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 In case of sale of goods on approval basis, the sale will take place under which of the following cases ?
  • a)
    When buyer signifies his approval
  • b)
    When time given to buyer expires
  • c)
    As soon as buyer takes goods to his home
  • d)
    All but not (c)
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
In case of sale of goods on approval basis, the sale will take place u...
Explanation:
When goods are sold on an approval basis, the ownership of the goods remains with the seller until the buyer signifies his approval or the time given to the buyer expires. Let's understand each option in detail:

a) When buyer signifies his approval:
If the buyer is satisfied with the goods and signifies his approval to the seller, it means that the buyer accepts the goods and agrees to purchase them. In this case, the ownership of the goods will transfer from the seller to the buyer, and the sale will take place.

b) When time given to buyer expires:
In some cases, the seller may give a specific time period to the buyer to test the goods and decide whether to keep them or return them. If the buyer does not signify his approval within the given time period, it is considered that the buyer has rejected the goods. In this case, the ownership of the goods remains with the seller, and the sale does not take place.

c) As soon as the buyer takes goods to his home:
This option is incorrect because merely taking the goods to the buyer's home does not signify the buyer's approval or acceptance of the goods. Ownership of the goods does not transfer automatically by taking them to the buyer's home.

d) All but not (c):
The correct answer is option 'D' because it includes both options (a) and (b) mentioned above. The sale will take place either when the buyer signifies his approval or when the time given to the buyer expires. These two conditions determine the transfer of ownership from the seller to the buyer.

In conclusion, the sale of goods on approval basis will take place when the buyer signifies his approval or when the time given to the buyer expires. Ownership of the goods will transfer from the seller to the buyer under these circumstances.
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In case of sale of goods on approval basis, the sale will take place under which of the following cases ?a)When buyer signifies his approvalb)When time given to buyer expiresc)As soon as buyer takes goods to his homed)All but not (c)Correct answer is option 'D'. Can you explain this answer?
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