Consignment Meaning & Features

Meaning & 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.