Texas Attorney General Opinion: O-2098 Page: 3 of 4
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Honorable Charley Lockhart, Pae 3
"If the title does not pass to the receiver
of the article, viewed from his standpoint, rather
than that of the sender, there can be no sale to
the receiver. (Citing authorities) Thus, there
may be a consignment for the purpose of sale to
a straner, but not a sale to the receiver, with-
out in the least degree impairing the true ohar-
acter of the transaction as a bailment."
In the ease of Whitehouse Bros. v. S. E. Abbott
and Son, 228 S. W. 599, the court oited from noKenzie v.
Roper Wholesale Grocery Co., 9 Ga. App. 185, as follows:
"If the person to whom the possession of the
property is delivered gets it by virtue of a con-
tract of purchase (i.e., gets it under such oir-
oumastances that the person parting with the pos-
session can sue for the purchase price, irrespeo-
tive of whether the person to whom the possession
is delivered has sold or otherwise disposed of the
goods), the contract is one of conditional sale,
notwithstanding, it may impose limitations unon
the purchaser's right to dispose of the property
and may require a definite plan of accounting. On
the other hand, if the effect of the contract is
that the property is delivered from the bailor to
the t1ailee with the understanding that the title is
to remain in the bailor, and the bailee does not
assume initial responsibility to pay the purchase
price, it is ordinarily not a conditional sale, but
is a consignment although the beilee may have the
option of purchasing the goods themselves by pay-
ing a stipulated priee, or may have a right to sell
them to other persons upon accounting to the bailor
for a stipulated sum, end though the bailee's com-
Aensation in the matter may depend upon such pro-
fit as he shall realize on the difference between
the price at which the goods are consigned and the
prie at which they are sold, and though the bailee
say be responsible to the bailor for the value of
such goods as he may sell on a credit, whether he
collects from the purchasers or not."
We conclude that a consignment contract is not
similar to a conditional sale, chattel mortgage, or the
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Texas. Attorney-General's Office. Texas Attorney General Opinion: O-2098, text, 1940; (https://texashistory.unt.edu/ark:/67531/metapth259301/m1/3/: accessed March 24, 2019), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.