Difference Between the terms: Consignment And Joint Venture Arrangement

April 27th, 2009 Comments off
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This article tabulated below the major difference between Consignment and Joint Venture:

Major Differences Between A Joint Venture and Consignment Arrangement

 

Parties:

·         In consignment, the parties are the consignor and consignee whilst in a joint venture the parties are called co-ventures

 

Relationship:

·         In consignment, it is principal and agent relationship whilst in a joint venture it is like a partnership

 

Powers:

·         In consignment, the consignee is the agent who follows instruction from the consignor who is the principal whilst in a joint venture, the co-ventures enjoy full powers as to the sale and purchase of goods and collection of dues, etc

 

      

Governing Act:

·         In consignment, as it is a principal and agent relationship hence governed by the Law of Agency whilst in a joint venture it is governed by the Partnership Act

 

Sharing Profits:

·         In consignment, the consignee is given commission whilst in a joint venture the parties are entitled to profit sharing

       

Scope/Activities:

·         In consignment, concerned only with the sale of movable whilst, in a joint venture it can undertake all kinds of business activities like construction of infrastructure, film-making and many others and which includes the purchase and sale of goods.

    

Capital Contribution:

·         In consignment, the consignee do not contribute capital whilst in a joint venture, all the co-ventures contribute funds or capital to the joint venture business.

 

      

Number of Person:

·         In consignment, normally two parties namely consignor and consignee whilst in a joint venture it is at least two and can have more parties.

 

 

 

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