- Parties: Consignor and consignee
- 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.
- 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.