Ownership of a goods: In consignment, there is no transfer of ownership in the goods from consignor to consignee. The consignor remains the owner of goods till they are actually sold by the consignee.
Mutual relation between Parties: Is that of principal and agent.
Expenses after despatching the goods: Are to be borne by the consignor.
Risk: Remains with the consignor.
Return of goods: Is possible if goods are not sold by consignor.
Proforma Invoice: Consignor prepares only a proforma invoice.
Profit/Loss: Consignee is not in any way connected with Profit loss on sale.
Sales:
Parties: Seller and buyer.
Ownership of a goods: In the case of sale, ownership in the goods is immediately transferred from the seller to the buyer.
Mutual relation between Parties: Is that of debtor and creditors.
Expenses after dispatching the goods: Are borne by the buyer.
Risk: Passes to the buyer.
Return of goods: Is not possible as goods once sold are not return able.
Proforma Invoice: Seller prepares a sales invoice.
Profit/Loss: After the sale is complete, the profit/loss belongs to buyer.
