Paralegal Advanced Competency Exam (PACE) Practice Exam 2025 - Free PACE Practice Questions and Study Guide

A consignor in a consignment agreement is defined as the person or entity that ships or delivers property to another for sale while retaining ownership until the goods are sold. This arrangement allows the consignor to provide their goods for sale without transferring ownership until a sale occurs, making it a common practice in retail and various industries.

The role of the consignor is crucial because they initiate the consignment process by providing the inventory to the consignee (the recipient of the property), who then sells the goods on behalf of the consignor. This retains the consignor's interest in the goods even after they are in the possession of the consignee, creating a unique dynamic in the transaction where payment is only required upon the successful sale of the consignor's items. This structure benefits both parties, facilitating sales opportunities for the consignor while minimizing risk for the consignee.