What is a consignment agreement?

A consignment agreement is a legal agreement between a seller (known as the consignor) and a buyer (the consignee). The consignor agrees to sell their artwork or other goods to the consignee for a certain amount of money. The consignee agrees to pay the consignor the agreed upon price for the goods after they have been sold. The consignor retains ownership of the artwork or goods until they are sold. In Alabama, consignment agreements are governed by the Uniform Commercial Code (UCC). The UCC dictates the conditions and terms of a consignment agreement, including how the consignor is to be compensated, the timeframe for the consignor to receive payment, and how disputes between the parties should be resolved. It also outlines the consignee’s obligations, including timely payment, communication with the consignor, and proper care of the goods. Consignment agreements are important for protecting both consignors and consignees. It is important for the parties to be aware of the terms of a consignment agreement before entering into one. Consulting an attorney is recommended to ensure that the agreement is in line with Alabama law.

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What is a consignment agreement?

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