Multiple choice

In case of goods sent on approval basis, the ownership is transferred when

  1. a buyer does not signify approval

  2. a buyer returns the goods

  3. the goods are destroyed by an act of God

  4. a buyer fails to return the goods within time

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Option (3) is incorrect: The goods destroyed without negligence of a buyer are not deemed to be transferred. Option (4) is correct: If a buyer does not return the goods within time, then the ownership is deemed to be transferred.