CMA Foundation · Fundamentals of Business Laws and Business Communication · Sale of Goods Act, 1930
Arun Textiles delivers 20 sarees to Bhavna on 'sale or return' terms, with no time fixed for return. Bhavna neither signifies approval nor gives notice of rejection and keeps the goods. When does the property pass to her?
Property passes to Bhavna on the expiry of a reasonable time. Under Section 24(b), when goods are held on sale or return with no time fixed and the buyer retains them without giving notice of rejection, property passes after a reasonable time.
- AImmediately on delivery
- BOnly when she pays the price in full
- COn expiry of a reasonable timeCorrect
- DNever, unless she signs an approval in writing
Explanation
Section 24(b) says that if the buyer does not signify approval but retains the goods without notice of rejection, property passes on expiry of the fixed time, or of a reasonable time if none is fixed. Passing on delivery is wrong because delivery alone does not pass property in such a case.
Did you get it right without looking?
One question tells you little. A timed set on Sale of Goods Act, 1930 shows your real accuracy, how long you take and where you lose marks.
More Sale of Goods Act, 1930 questions
- Rohit walks into a grocery store, picks up a packet of tea, places the price on the counter, and the shopkeeper takes the money without eith…
- Ritu Enterprises agrees to sell 500 kg of wheat out of a larger heap in its godown, without identifying which wheat. Later, 500 kg in a deli…
- Rao agreed to sell a specific second-hand lorry to Iqbal. Before the risk passed to Iqbal, and without fault of either party, the lorry was …
- On 1 March, Anil agreed to sell to Bhavna a specific lot of 50 cartons of mangoes stored in his godown. Unknown to Anil, a fire had destroye…
- Under the Sale of Goods Act, 1930, how is a contract of sale made?
- In an auction, the notice of sale states that the seller reserves the right to bid. Which statement is correct under the Sale of Goods Act, …