CONSIGNATION Meaning and
Definition
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Consignation is a term that is used to describe the act of consigning or entrusting something to the care or custody of another person or entity. It typically involves transferring or delivering an item or goods to a consignee, who will then be responsible for distributing or selling them on behalf of the consignor. The consignor retains ownership of the goods until they are sold or otherwise disposed of by the consignee.
In a business context, consignation often refers to a consignment agreement between a supplier or manufacturer and a retailer. The supplier provides the retailer with inventory, which is then displayed and sold in the retailer's store. The retailer acts as a middleman, offering the products to customers and taking a commission or predetermined percentage of the sales as compensation. This arrangement allows suppliers to reach a wider market while reducing inventory holding costs, as they only receive payment for goods that have been sold.
Consignation can also be used in a legal or financial context, where it may involve the depositing of funds or property with a trusted third party, such as an escrow agent. This ensures that the assets are held securely until certain conditions are met or until they can be properly distributed to the intended recipients.
Overall, consignation is a process that entails the transfer of goods or assets to a designated person or entity, who assumes responsibility for their management, sale, or distribution while the original owner retains ownership rights.
Common Misspellings for CONSIGNATION
- xonsignation
- vonsignation
- fonsignation
- donsignation
- cinsignation
- cknsignation
- clnsignation
- cpnsignation
- c0nsignation
- c9nsignation
- cobsignation
- comsignation
- cojsignation
- cohsignation
- conaignation
- conzignation
- conxignation
- condignation
- coneignation
- conwignation
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