Question

In case of sale on "sale or return" or "approval" basis, property passes to the buyer when __________.

• A. buyer approves or accepts the goods
• B. buyer does any act adopting the transaction
• C. buyer retains the goods for more than the contract-stipulated time or reasonable time, without giving notice of rejection
• D. zll of the above

Answer 1

The correct option is D zll of the above

When the goods are sold on approval basis, these goods are not treated as sale until it is approved by the customer. In case of sale on "sale or return" or "approval" basis, property passes to the buyer when:

a) buyer approves or accepts the goods

b) buyer does any act adopting the transaction

c) buyer retains the goods for more than the contract-stipulated time or reasonable time, without giving notice of rejection