When goods are delivered to the buyer on approval or on sale or return basis, the property in the goods transferred to the buyer when____a)The buyer retains the goods beyond stipulated timeb)The buyer signifies his approvalc)The buyer does any other act adopting the transactiond)All of theseCorrect answer is option 'C'. Can you explain this answer?

Question

Answer

Transfer of Property in Specific and Ascertained Goods

According to Sec. 19 where there is a contract of sale of specific or ascertained goods, the property in them shall pass from the seller to the buyer when the parties have intended it to pass.

In order to find out the intention of parties in this regard, consideration is to be given to the terms of the contract, conduct of the parties and circumstances of the case.

But if the parties fail to lay down their intentions regarding the transfer of property in the goods, certain rules have been laid down for ascertaining the intention of the parties as to the time at which the property in the goods is to pass to the buyer, which are contained from Sec. 20 to 24 and which are the following:

1. When goods are in a deliverable state: According to Section 20 where there is an unconditional contract for the sale of specific goods in a deliverable state the property in the good passes to the buyer when the contract of sale is made and it is immaterial whether the time of payment of the price or the time of delivery of the goods or both is postponed.

Answer

The correct answer is. D. It signifies all other points mentioned above.C is partially correct.

Answer

The correct answer is option 'C' - The buyer does any other act adopting the transaction.

Explanation:
When goods are delivered to the buyer on approval or on a sale or return basis, it means that the buyer has the option to either approve the goods and purchase them or return them to the seller. In such cases, the ownership or property in the goods is not transferred to the buyer until certain conditions are met.

The conditions for the transfer of property in goods delivered on approval or on sale or return basis are as follows:

1. Retention of Goods beyond Stipulated Time:
If the buyer retains the goods beyond the stipulated time, it does not automatically transfer the property in the goods to the buyer. The buyer may retain the goods for a certain period of time to examine them or determine their suitability. However, the mere retention of goods beyond the stipulated time does not transfer the ownership to the buyer.

2. Signifying Approval:
The buyer may signify their approval of the goods after examining them. This can be done by communicating their acceptance or satisfaction with the goods to the seller. However, the buyer's approval alone does not transfer the property in the goods.

3. Adoption of the Transaction:
The transfer of property in goods delivered on approval or on sale or return basis occurs when the buyer takes some other act adopting the transaction. This means that the buyer must go beyond mere retention or approval of the goods and perform some additional act that indicates their intention to take ownership of the goods. This act could be making payment for the goods, altering or modifying the goods, or using the goods in a manner consistent with ownership.

Therefore, the correct answer is option 'C' - The buyer does any other act adopting the transaction. This is because the transfer of property in goods delivered on approval or on sale or return basis occurs when the buyer performs an act that goes beyond mere retention or approval of the goods and shows their intention to take ownership.

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