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

Mohan, a dealer, sends a television to Kavita 'on sale or return' with no time fixed for return. Kavita neither tells Mohan she approves nor gives notice of rejection and keeps the television. When does property pass to her?

Property passes to Kavita on the expiration of a reasonable time. Under Section 24(b), where goods are delivered on sale or return with no time fixed and the buyer retains them without notice of rejection, property passes after a reasonable time.

  1. AOn the expiration of a reasonable timeCorrect
  2. BImmediately on delivery of the television
  3. COnly when she pays the price
  4. DNever, unless she signifies approval in words

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 is fixed, on expiry of a reasonable time. Property does not pass on delivery alone, which is the key mistaken view, and approval need not be in words.

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