اسم المؤلف:
احمد عبد السلام كاظم
اسم المشرف:
عماد حسن سلمان
المستخلص:
Iraqi legislator did not define the consignment contract; nor did he regulate its provisions, although it has been frequently circulated in people transactions. The Civil Italian Law No. 262 for the year 1942 regulated its provisions in Articles (1556, 1557, 1558). So it did the Amended Uniform Commercial Code (UCC) of 1952, Section (2/326). It was also stipulated by UK Sale of Goods Act of 1979, Paragraph (4), and Section (18) that dealt with (the sale or return.) The consignment contract is a special in - kind contract under which wholesaler would deliver goods to retailer for sale within an agreed - upon time period, whereby the former retains ownership of the goods until the price be paid, while the latter shall take the risk of loss of the goods and be obliged to pay for whatever be sold with the right to return that which is unsold. The object of contract would only include the movables without real estates. It does not take place by means of mutual consent. Rather it must be concluded whenever a wholesaler hands over the goods to retailer. Besides, it is a netting contract binding on the parties, on each party a host of commitments shall be placed. It is an immediate contract whereby time is not considered an essential element in spite of a delay of payment.The consignment contract, although it is more like a sale contact, is not a sale contract. For the sale contract is a consensual contract governed just by a mutual consent of its two parties, while the contract in question is an in - kind contract concluded by no means but delivery. Neither is it a deposit contract, nor agency contract, nor commission contract, nor company contract and nor sale with the retention of ownership. Rather, it is a special contract, new in its legal drafting, and one of the contracts that might be treated rightfully and legally, for it is in conformity with public order and morals.Furthermore, the contract in question is devoid of ambiguity and ignorance. For the wholesaler, who wants to sell out the largest possible number of his goods, would decide to distribute these goods to retailers, determining the price of the goods and the time of sale. The retailer does not afford the price of the goods, would receive the goods from the wholesaler and bear the risk of its loss so that he can sell them out. The price gain is the difference between the price determined by the wholesaler and the price at which the retailer sell.Under the contract, the retailer is committed to sell out the goods in accordance with the principle of good faith, i.e. the retailer must make every effort to show the goods in question and encourage customers to buy. Any violation of above would entail that the retailer is acting on bad faith, that is when he decides to store in the goods rather than having them offered to the public. In such a case, the wholesaler is entitled to terminate the contract because the retailer breached its obligations to sell out the goods in good faith. The retailer shall adhere as well to a key commitment that he should pay for the goods that have been sold, as well as his commitment - which is at the same time his right - to return the goods that have not been sold during the agreed - upon period. The wholesaler shall in return be committed to deliver the goods subject of the contract.The consignment contract is an in - kind contract; it is originally not to be concluded nor does it exist without delivery of goods. It also entails that the wholesaler is committed not to have access to the goods while in the possession of the retailer, whatever that might be, whether mortgaging or selling of the goods. The wholesaler as well shall not claim a refund of the goods within the specified period of the sale. Under the contract, the liability for the loss of the goods shall be placed on the retailer upon delivery; he holds responsible for the cause of the loss, even if it was a foreign cause of which he does not have a choice. Nevertheless, the retailer shall not be liable for any loss in case of old goods. Creditors of the retailer may not hold on the goods so long as the retailer did not pay for the goods. Besides, the wholesaler shall retains ownership of the goods until the retailer pays for the goods. The creditors of the wholesaler may not seize the goods under contract. This ruling is derived from the text of Article (1376) of the Iraqi Civil Law which acts as an exception to the privilege of movable seller.The consignment contract ends upon the sale of the goods, which is the subject of contract, or by the end of the specified period of sale. Moreover, the contract in question is one of the contracts that is governed by personal considerations so that the death of the retailer might be one reason among many that leads to terminate the contract especially in case that a wholesaler is not convinced with the efficiency and integrity of the retailers heirs. The contract also deemed terminated if one of the parties is considered in breach of a commitment determined by the contract in question.
