Consignments Law and Legal Definition

A consignment is an agreement made when goods are delivered to an agent or customer when an actual purchase has not been made, obliging the consignee to pay the consignor for the goods when sold. A consignment may be made in an agreement to sell one's car through a car dealer and split the profits or when a debtor has belongings but no money to pay his/her creditors and deposits his/her goods with a trustee who will sell them to raise money to pay the owner's debts and creditors. This is done by agreement between a debtor and his/her creditors or by order of a bankruptcy judge.