CMA Foundation · Fundamentals of Business Laws and Business Communication · Sale of Goods Act, 1930
Kiran Electronics delivers a television to Dev on 'sale or return' terms with no time fixed for return. Dev neither approves nor gives notice of rejection and keeps it. When does property pass to Dev?
Property passes to Dev on the expiration of a reasonable time. Under Section 24(b), where goods are delivered on sale or return, no time is fixed and the buyer retains them without giving notice of rejection, property passes after a reasonable time.
- AImmediately on delivery
- BOnly when Dev pays the full price
- CNever, unless Dev signifies approval in writing
- DOn the expiration of a reasonable timeCorrect
Explanation
Under Section 24(b), if the buyer retains the goods without giving notice of rejection and no time has been fixed, property passes on expiry of a reasonable time. Delivery alone does not pass property, so the first option is wrong.
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