Difference Between Joint Venture and Consignment:
What is the difference between
joint ventures and consignment?
In joint venture, parties to
the agreement are known as co-venturers while in consignment they are termed
as consignor and consignee.
Co-venturers are the partners
in the venture and share profits or losses of the venture. Where as
consignee is never a partner. Consignee gets his commission for acting as an
agent for consignor.
Each co-venturer is a partner
as well as the agent of other co-venturers. Where as consignee is the agent
of his principle i.e., consignor.
Relationship of co-venturers
comes to an end when venture is completed. Where as relationship of
consignor and consignee continues until terminated by parties.
contribute towards the capital of the venture (in the form of money or
materials) but consignee does not contribute towards the capital.
Co-venturers enjoy equal
rights as partners but consignee only acts as an agent.
Co-venturers are the owners of
their venture but in consignment the consignor is the owner not the
Consignee is required to send
account sales to consignor. Co-venturers exchange the relevant information.
No regular reports are submitted.