Sale of Goods Act Section 24 — Goods sent on approval or “on sale or return”
CHAPTER III EFFECTS OF THE CONTRACT — Transfer of property as between seller and buyer
Commercial / Corporate
Summary
When goods are handed over to the buyer on approval, on sale or return, or on similar terms, the ownership of those goods passes to the buyer in one of two ways.
Under clause (a), ownership passes when the buyer tells the seller that they approve or accept the goods, or when the buyer does any other act that shows they are adopting the transaction, such as using or reselling the goods.
Under clause (b), if the buyer does not tell the seller that they approve or accept the goods, but keeps them without giving notice that they are rejecting them, ownership passes when the time fixed for returning the goods expires, if a time was fixed. If no time was fixed, ownership passes when a reasonable time for returning the goods expires.
Official Text
When goods are delivered to the buyer on approval or “on sale or return” or other similar terms, the property therein passes to the buyer—
(a) when he signifies his approval or acceptance to the seller or does any other act adopting the transaction;
(b) if he does not signify his approval or acceptance to the seller but retains the goods without giving notice of rejection, then, if a time has been fixed for the return of the goods, on the expiration of such time, and, if no time has been fixed, on the expiration of a reasonable time.