Multiple choice

The relationship between a consignor and consignee is that of

  1. creditor and debtor

  2. principal and agent

  3. owner and servant

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 The relationship between a consignor and consignee is that of a principal and agent. The consignee is appointed by the consignor to sell the goods on his behalf, so he is the agent of the consignor. The ownership of the goods is not transferred to consignee. He receives commission on the goods sold. The consignor appoints a consignee because he cannot personally go and sell the goods at another place.

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