Legal Definitions - consignee

A consignee is a person or entity that receives goods from a consignor for the purpose of selling them. The consignee takes care of the goods and sells them on behalf of the consignor. The consignor retains ownership of the goods until they are sold, and the consignee pays the consignor a portion of the sale proceeds.

• When a clothing store receives merchandise from a designer to sell in their store, the store is the consignee and the designer is the consignor.
• When a shipping company delivers a package to a specific person or business, that person or business is the consignee and the sender is the consignor.
• When a person entrusts their belongings to a storage facility, the storage facility is the consignee and the person is the consignor.

These examples illustrate how a consignee is responsible for the care and sale of goods that belong to someone else. The consignor retains ownership until the goods are sold, and the consignee pays the consignor a portion of the sale proceeds. This arrangement allows for the consignor to distribute their goods without having to manage the sales process themselves.