In case of sale on approval, the ownership is transferred to the buyer when he:a)Accepts the goodsb)Adopts the transactionc)Fails to return goods within the specified timed)All of theseCorrect answer is option 'D'. Can you explain this answer?

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CA Foundation Exam > CA Foundation Questions > In case of sale on approval, the ownership is...

In case of sale on approval, the ownership is transferred to the buyer when he:

a)
Accepts the goods
b)
Adopts the transaction
c)
Fails to return goods within the specified time
d)
All of these

Correct answer is option 'D'. Can you explain this answer?

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Most Upvoted Answer

In case of sale on approval, the ownership is transferred to the buyer...

TRANSFER OF OWNERSHIP IN CASE OF SALE ON APPROVAL:

a) Goods sent on approval: - In case of sale on approval or sale on return, the buyer has an option to return the goods to the seller within a reasonable period of time. Thus, the ownership transferred to the buyer when he accepts the goods. If the buyer does not return the goods within the reasonable time, the seller can recover the price of the goods from the buyer.

In case of sale on approval, the ownership to the buyer is transferred in three ways:

1. When the goods are accepted by the buyer, or

2. When the buyer performs some acts which indicates implied acceptance of the buyer, or

3. The buyer fails to return the goods within a reasonable time

Under Section 24, when goods are sold under a contract of sale or return or on approval, the sale is a conditional sale. As a result of significance of the buyer’s approval, the goods will pass to the buyer.

Answered by Freedom Institute · View profile

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In case of sale on approval, the ownership is transferred to the buyer...

Sale on Approval: Ownership Transfer

Sale on approval is a type of sale where the ownership of the goods is transferred to the buyer only when he approves the goods. Until then, the seller retains the ownership of the goods.

Ownership Transfer

The ownership of the goods is transferred to the buyer when he satisfies the following conditions:

• Accepts the goods
• Adopts the transaction
• Fails to return goods within the specified time

All of these conditions must be met for the ownership to be transferred to the buyer.

Acceptance of Goods

The buyer must accept the goods to transfer the ownership from the seller to the buyer. Acceptance indicates that the buyer is satisfied with the goods.

Adoption of Transaction

The buyer must adopt the transaction to transfer the ownership of the goods. Adoption indicates that the buyer is committed to the transaction and intends to keep the goods.

Failure to Return Goods

If the buyer fails to return the goods within the specified time, ownership of the goods is transferred to the buyer. This condition applies when the buyer does not explicitly accept or adopt the transaction.

Conclusion

In summary, ownership of goods in a sale on approval is transferred to the buyer when he accepts the goods, adopts the transaction, or fails to return goods within the specified time. All of these conditions must be met for the ownership to be transferred to the buyer.

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In case of sale on approval, the ownership is transferred to the buyer when he:a)Accepts the goodsb)Adopts the transactionc)Fails to return goods within the specified timed)All of theseCorrect answer is option 'D'. Can you explain this answer?

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