A consignment contract is a type of mutual benefit bailment in which the consignor entrusts goods to the consignee for the purpose of selling them.

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A consignment contract is a type of mutual benefit bailment in which the consignor (owner) entrusts goods to the consignee for the purpose of selling them. If the goods are sold, the consignee, known as the factor, will forward the proceeds, less a fee, to the consignor. If they are not sold, they will be returned. In a mutual-benefit bailment, the bailee owes a duty to use reasonable care.

A Consignment Contract Is a Type of Mutual Benefit Bailment