CMA Intermediate · Business Laws and Ethics · Sale of Goods Act, 1930
Sunil delivers a sofa to Tanya on approval, with no time fixed for its return. Tanya neither approves it nor gives notice of rejection and keeps it. When does the property in the sofa pass to Tanya?
The property passes to Tanya on the expiry of a reasonable time. Where goods are delivered on approval, no time is fixed, and the buyer retains them without giving notice of rejection, property passes after a reasonable time elapses.
- AOn the expiry of a reasonable timeCorrect
- BImmediately on delivery
- COnly when she pays the price
- DNever, unless she signifies approval in writing
Explanation
Under Section 24(b), if the buyer retains goods delivered on approval without giving notice of rejection, property passes on the expiry of the fixed time or, if none is fixed, a reasonable time. Option B is wrong since delivery alone does not pass property.
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
- Under the Sale of Goods Act, 1930, unless the parties have agreed otherwise, how are delivery of the goods and payment of the price related?
- Which of the following is correctly classified as 'future goods' under the Sale of Goods Act, 1930?
- Kiran agrees to sell his car to Lata at a price to be fixed by the valuation of Mr. Desai, a third party. Mr. Desai dies before making the v…
- 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 appr…
- Mehta Traders agreed to supply 200 bags of a particular grade of rice from its godown, with delivery in instalments. Which statement about s…
- Under Section 62 of the Sale of Goods Act, 1930, a right, duty or liability arising by implication of law under a contract of sale may be ne…