Multiple choice

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

  1. when he accepts the goods

  2. when he adopts the transaction

  3. when he fails to return goods

  4. in all the above cases
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In a sale on approval (or sale or return), the goods are sent to the buyer on approval. The property only passes when the buyer signifies acceptance or adoption of the goods, or does any other act adopting the transaction. The key is the buyer's positive indication of acceptance, not merely failure to return within a reasonable time. The option C is incorrect because failure to return goods alone is not sufficient - there must be clear adoption of the transaction. The correct answer B precisely captures this legal principle.

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