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CSEET · Business Laws and Management · Elements of Law relating to Sale of Goods

Dev, a dealer, delivers a laptop to Esha on approval. No time is fixed for return. Esha neither says anything to Dev nor sends any notice of rejection, and keeps the laptop. Which statement is correct as per Section 24 of the Sale of Goods Act, 1930?

Property passes to Esha on the expiry of a reasonable time. Since no time was fixed for return and she retained the laptop without giving notice of rejection, Section 24(b) treats her as having accepted. Mere delivery on approval does not pass property.

  1. AProperty passes only when Esha pays the price
  2. BProperty never passes without written acceptance
  3. CProperty passes immediately on delivery
  4. DProperty passes to Esha on expiry of a reasonable timeCorrect

Explanation

Under Section 24(b), if the buyer does not signify approval but retains the goods without giving notice of rejection, property passes on expiry of the fixed time, or if none was fixed, on expiry of a reasonable time. Option C is wrong because delivery alone on approval does not pass property.

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