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To consign means that the consignor delivers goods to the consignee for sale. The consignee takes care of the goods and sells them through consignment. Until the goods are sold, the consignor does not lose ownership of the goods. After the sale, the consignee pays the consignor a certain amount of sale proceeds. The consignor is generally responsible for the freight charges for the shipment of the goods.

In a carriage contract, to consign means to have the goods delivered by the carrier to the named receiver. The consignor is the person who sends the goods, also known as the shipper or sender; the consignee is the person who receives the goods, also known as the receiver.

Consigning can also refer to a contract in which the goods are entrusted to another person for storage; the person who entrusts is the consignor and the person who accepts the entrustment is the consignee.

[Last updated in August of 2022 by the Wex Definitions Team]