Legal Definition of Consignment Contract
Translated by
ScribdTranslationsLegal Definition of Consignment Contract
Translated by
ScribdTranslationsCONSIGNMENT CONTRACT
DEFINITION: The consignment or estimate contract involves a person, called the consignee, who undertakes the obligation to
sell goods of another called consignor, prior to the establishment of a price that he must deliver to him. The
the consignee will have the right to make the product of the sale of the goods their own and must pay the consignor the
price of those that have been sold or not returned by the due date agreed, or failing that, of the one
result from custom.
2.4 CHARACTERISTICS OF THE ESTIMATORY CONTRACT
The estimatory contract has the following characteristics:
It is a real contract that is perfected with the delivery of the things; "the delivery of the thing is the essential element for
the formation of the contract, (obligations arising from the disposition of a thing transferring risks to the consignee)
when it has been delivered
It is bilateral.
It is a commercial contract.
It is a onerous contract.
The one who delivers the item on consignment, or called the consignor, is the one who loses the availability of the good in favor of the
consignee, who is responsible for selling on behalf of a third party.
The consignor transfers to the consignee the possession of the asset, the possibility of disposing of said asset in a limited manner.
Gives rise to a complex relationship that results from the union of a deposit contract or an authorization or a
sale
It involves one or several movable assets.
The main obligation of the consignee is to pay the price or return the item.
At the appropriate time, the ownership of the asset will be transferred to the acquirer.
The contract must have a term
The consignee assumes the risk of loss of the goods while they are in their possession.
The contract is typical.
It is an autonomous contract because it is characteristic of this type of contracts.
Its genre or species is singular and exceptional.
It does not require a written form for its validity, although it needs to be in writing to bring the contract into effect.
execution.
OBJECTIVES OF THE CONTRACT:
This contract aims to facilitate and promote commercial activity, as merchants supply themselves,
receiving sufficient quantities of merchandise that they do not acquire in ownership, but that they have the authority to sell and
profit from them as if they were one's own. This way, benefits are achieved for both the consignor and the
consignee.
PARTIES:
CONSIGNOR (TRADENS): Delivers movable things with the purpose that another person called consignee ...
sell within a period and for an agreed price. The holder has the condition of owner of the movable things given in
assignment.
CONSIGNOR (RECIPIENT): Is the one who receives movable items to subsequently dispose of them in favor of a third party.
based on the authorization and instructions given by the consignor. The consignee is obliged, as a performance
principal, to pay the consignor the agreed price at the time of the consignment, deducted the agreed remuneration or, in
in its default, and as an ancillary provision, to replace it with the restitution of the things.
Obligations of the consignor:
The delivery. As soon as the estimate contract is signed, the consignor is obligated to deliver to the consignee the
merchandise subject to the contract.
The payment of the agreed commission. This implies a right for the consignee, which is to be able to set a price for the
sale of goods exceeding the estimated amount with the consignor. However, it may happen that such authority has not been granted to him.
granted, in which case you are entitled to the stipulated commission.
Obligations of the consignee:
The obligation to preserve the merchandise. The consignee must preserve the goods or merchandise...
there may be a different provision, that is to say, it could be agreed that the same consignee is also liable for the fault
slightest or even respond for the risks of force majeure or fortuitous event. It will always respond to any
guilt.
The obligation to sell the goods consists of deploying all activity and diligence aimed at achieving it.
to establish a buy-sell business regarding those goods.
Obligation to pay the price. If the consignee manages to sell the goods, they must deliver the price to the consignor.
dear to them at the time of the contract signing. In case they are not able to sell them within the agreed timeframe,
must return them to the consignor.
Termination of the contract
For the completion of the object:
The consignment contract reaches its normal extinguishing phase with the sale of the entrusted goods and the subsequent
settlement of accounts between the parties.
Unilateral Withdrawal:
Even without having concluded the agreed contractual term, this relationship may end prematurely. Having its
point of origin in a voluntary decision by either party.
Course of the agreed term
When defining the estimation contract, the term is agreed upon in the terms of both parties, within the obligations that
It is argued by the consignee that the following is held:
The payment to the consignor of the agreed price for the delivery of the movable things, and that this main performance should
to be carried out within the agreed timeframe.
Death of any of the contracting parties
Breach of obligations by any of the parties in general.
Responsibilities and obligations must be respected and fulfilled; otherwise, termination would occur.
of the contract.
ASSUMPTIONS UNDER WHICH THE CONTRACT IS NULL:
a) If the price were undetermined, understood as such when it is not defined or determinable.
b) When they have appointed someone for its determination and that person does not want to or fails to determine it.
In this case, the contract will be 'void' due to the failure to meet the suspensive condition it was subject to.
subordinate.
c) When the thing is sold "for what its fair price would be," for what "another would offer for it," or when "the price
I stayed with the referee of one of the contractors