A consignment contract is a legal agreement between a supplier and a seller, allowing the latter to sell the supplier’s products on their behalf.

Though similar to a typical sales contract, consignment contract must clearly define all terms in writing. Verbal agreements often lack legal standing in the event of a dispute, making a written contract essential for clarifying rights and responsibilities.

These contracts typically include terms such as the scope of consignment, commission rates, responsibilities, contract duration, and termination clauses. Accurate translation is crucial to avoid misunderstandings, unauthorized changes, or omissions.