Difference Between Joint Venture And Consignment

Difference Between Joint Venture And Consignment

The main dissimilarities or difference between joint venture and consignment can be pointed out as follows:

1. Meaning

Joint Venture: A business activity carried on by two or more parties to accomplish a certain project.

Consignment: A business activity where consignee (person who receives and sells goods) agrees to pay a consignor ( person who sends goods to the consignee) after the sale of goods.

2. Parties Name

Joint Venture: Known as Co-ventures

Consignment: Known as Consignor And Consignee

3. Relationship Between Parties

Joint Venture: Like partners

Consignment: Principal and agent relation

4. Governing Act

Joint Venture: No special governing act for joint venture business

Consignment: Contract act governs consignment.

5. Profit Sharing

Joint Venture: Yes. Profit is shared among the co-ventures 

Consignment: No sharing of profit and loss

6. Risk Bearing

Joint Venture: All member bear risk

Consignment: Risk is borne by consignor only

7. Ownership

Joint Venture: Co-ventures are the owners

Consignment: Consignor is the owner of the goods

    Also Read: 

Difference Between Consignment And Sales

8. Number Of Members

Joint Venture: Two or more than two members

Consignment: Only two persons or parties

9. Termination

Joint Venture: It is terminated after the completion of specified task

Consignment: It can be terminated at any time with the mutual consent of consignor and consignee.

Joint Venture Vs Consignment(Comparison Chart)

Basis For Difference	Joint Venture	Consignment
Introduction	Business or project carried on by two or more parties	Business arrangement where consignee pays a consignor after the sales
Parties Known As	Co-ventures	Consignor and consignee
Relationship Between Parties	Partners	Principal and agent
Governing Act	No special act	Contract Act
Profit Sharing	Yes	No
Risk Borne By	All parties	Consignor
Owner	Co-ventures	Consignor
Number Of Members	Two or more	Only two
Termination	After the completion of task	At any time with the mutual consent

I hope this post is helpful to understand the difference between joint venture and consignment and to make comparison between them.