Existence of the legal relationship of consignment


Scenario:

Melissa carries on a business of selling new and used lamps. In 2009, she obtained an operating line of credit from the Bank. Melissa gave the bank a security interest in all her present and future assets. John is a dealer in imported chandeliers. He and Melissa make an arrangement wherein John gave Meliss possession of a dozen chandeliers to sell on his behalf,  and they agreed that any of the chandeliers not sold by the end of 30 days could be kept by Melissa or returned to John, but if Melissa chose to keep them she would have to pay for them. The bank has seized all of Melissa's inventory, including the 12 chandeliers. John has found out about the seizure and is demanding the chandeliers be returned to him, saying that they are his, but the bank disputes this.

Question:

What are the factual elements that must be proved to show the existence of the legal relationship of consignment, and are they present in the scenario described above?

 

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Other Subject: Existence of the legal relationship of consignment
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