2Meaning & Features Of Consignment
Meaning: Consignment means the transaction of sending goods by one person (called CONSIGNOR) to another (called CONSIGNEE) who is to sell those goods on behalf of the Ist person.
Features
- The relation between consignor and consignee is that of principal and agent.
- Only the possession and not ownership is transferred to
- Risk of goods remains with Consignor and not with the
- Only movable property is subject matter of the
- Consignment goods are dispatched on the basis that the goods will be sold on behalf of, at the expense and at the risk of the consignor.
- Consignor sends Pro-forma Invoice and not Sales
- Consignee sends Account Sales (which contains information as to Sales, Expenses, Commission, Advance, and Balance due).
- The Profit or Loss on consignment belongs to Consignor and not Consignee.
