On Consignment

The consignment in modern laws means transfer of possession. Right in essence of possession can be not only real rights, but also claim. So consignment exists both in law relating to rights over things and claim law. Intention and extension of consignment is basically identical in any case.In essence, consignment is a kind of factual behavior. It is the different kind of agreement not consignment that determine the legal consequence. This is the very reason that consignment sometimes lead to alternation of real rights, sometimes lead to alternation of claim.Possession is conferred some other certain significance because of its characters. So consignment has some other indirect valve except for transfer of possession. Possession is the way of public declaration of alternation of right over the movables. So consignment becomes the way of public declaration in alternation of right over the movables. Because actual possession means factual administration and control over things, consignment becomes one of the marks of risk transfer in business contract.Intention and extension of consignment is expanded in alternation of real rights. And there are some restrictions in implement of possession change and indicative consignment because of their characters.As the way of public declaration, effect of public declaration of possession is incomplete. But the order of right over the movables is well because of the existence of innocent purchase.Owner should bear the risk in general. But in business contract, there are different views on the burden of object risk. Some argue owner should bear the risk. Some others argue consignment should be the mark of risk transfer. Because of the arising of title retention, consignism become reasonable to movables transaction. To immovables, if consignment is finished before registration, registration should be the mark of risk passage; otherwise, consignment should be the mark of risk transfer.