Meaning of Consignment (What is, Concept and Definition)

What is Consignment:

The word consignment derives from the Latin consignment , which indicates the action to consign, allocate or designate an amount of money to make the payment expenses or debts .Also refers to the commercial contracts whose merchandise payments are made after the sale is made .

On the other hand, consignment may refer to put an amount of money in the hands of a third person; set budgets for certain items to pay for services; register an opinion according to the judicial regulations.

The word consignment can be replaced by the synonyms deposit, assets, delivery or remittance.

See also the meaning of consign.

Consignment contract

The consignment or commercial consignment contract is a agreement in which two figures participate, the consignor (owner of a good or merchandise) and consignee (person who is responsible for the sale of a good or merchandise), in which the power of sale is delegated without losing the right to own the merchandise .

This is a commercial activity that in the field of accounting is also known as consignment in accounting.

The consignee assumes or contracts the obligation to sell the merchandise that he receives from the consignee, after reaching an agreement, in which its value and the percentage that both parties must receive by the sale of this.

In this agreement it is also usually established that the merchandise not sold by the consignee must be returned to the consignor according to the established deadlines.

The consignment contract offers an advantage for both parties.For example, the consignor does not see the need to make a large capital investment in the purchase and storage of merchandise and, on the other hand, the consignee benefits because it can expedite and prevent stagnation of its capital and sale of merchandise.

See also the meaning of the Contract.

Payment Consignment

The payment consignment is a legal mechanism that occurs when the consignor rejects or, for some reason, is not willing to receive from the consignee the offer of payment or deposit of an amount required for the merchandise or objects under his responsibility and from which he wants to be released.

If the consignee, after several attempts, fails to pay directly to the consignor, then he must make the payment in a court, what is known as judicial consignment , this with the purpose of avoiding greater interests and expenses for the care of said goods.

Criminal consignment

When a crime occurs, law enforcement agencies must conduct an investigation of the events that occurred in order to gather information and evidence about the suspect's guilt.

Once the evidence be analyzed and prove the alleged guilt and responsibility of the suspect, the case is transferred to a criminal judge.This action is called criminal consignment, whose purpose is to submit the alleged culprit in a trial process that determines his guilt and sanction or, of Otherwise, your innocence.