Skip to content

CMA Intermediate · Business Laws and Ethics · Sale of Goods Act, 1930

Mehta Furnishings delivers a sofa to Iyer on 'sale or return' terms, with no time fixed for return. Iyer does not tell Mehta whether he approves and keeps the sofa without giving notice of rejection. When does the property in the sofa pass to Iyer, absent an earlier act of adoption?

Property passes to Iyer on the expiry of a reasonable time. Where goods are on sale or return, no time is fixed, and the buyer retains them without giving notice of rejection, Section 24(b) provides that property passes after a reasonable time.

  1. AImmediately on delivery
  2. BOn the expiry of a reasonable timeCorrect
  3. COnly when Iyer pays the price
  4. DNever, unless Iyer signifies approval in writing

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, and if none was fixed, on expiry of a reasonable time. Property does not pass on mere delivery, and approval need not be written.

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.

Practise Sale of Goods Act, 1930Free diagnostic mock

More Sale of Goods Act, 1930 questions