The difference between consignment and sale are:
Consignment:
- The legal ownership of the goods remains with the consignor. The property in the goods does not pass to the consignee.
- The risk attached to goods does not pass to consignee. The loss or damage to goods is to be borne by the consignor, provided the consignee has taken reasonable care of the goods and the loss or damage is not due to his negligence.
- The relationship between the consignor and consignee is that of a principal and agent.
- A consignment is returnable if it cannot be sold.
- Expenses incurred by consignee are to be borne by consignor.
Inage Source:stchristopherschatham.org/wp-content/uploads/2014/04/consignsign.jpg
Sale:
- The ownership of the goods passes over to the buyer, as soon as the agreement of sale is decided.
- The risk attached to the goods passes along with ownership to the buyer.
- The relationship between the buyer and seller is that of a debtor and creditor.
- The goods sold are not returnable or wrong quality of goods.
- Expenses incurred after sale are to be borne by the purchaser only.