The lot of goods forwarded by the principal to his agent for the purpose of sale on behalf of and at the risk of the principal is called Consignment.
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Consignment arrangement is a means of expanding business without incurring additional establishment costs. Consignment agreements are flourishing and have become the order of the day due to economies of operation.
Thus consignment is the simplest and economical method of expanding one’s business in remote and distant territories without involving extra cost and botheration.