16 Questions
When does the property pass to the buyer in a transaction where goods are delivered on approval?
After the buyer signifies approval to the seller
What action by the buyer indicates acceptance of goods delivered on approval?
Keeping the goods without rejection
In a sale where goods are delivered on approval, when can property pass if no time is fixed for the return of goods?
After a reasonable time has passed
What happens if a buyer retains goods delivered on approval without signifying acceptance or rejection?
Property passes on the expiration of a fixed time
How does a buyer formally adopt a transaction in which goods are delivered on approval?
By retaining the goods without objection
What is the key factor that determines when property passes in a sale of specific goods in a deliverable state?
Completion of seller's required actions
According to Rule 2, when does the property of specific goods pass from the seller to the buyer?
After the buyer has notice of the completion of a required action by the seller
In a contract where goods are delivered on approval, what signifies the buyer's acceptance of the goods?
Signifying approval to the seller
When is a sale of specific goods considered unconditional according to Rule 1?
When goods are in a deliverable state
What action by a buyer indicates acceptance of specific goods delivered in a deliverable state under Rule 4?
Signifying approval or acceptance to the seller
In what situation does property pass from the seller to the buyer when specific goods are delivered on approval and no time is fixed for their return?
After a reasonable time has passed
If a seller becomes insolvent before the property passes, what right does the buyer have?
The buyer can only sue for any payment made.
According to S20 SGA, what happens if goods are damaged before the property and risk pass to the buyer?
The seller bears the loss.
What is the consequence if either party becomes insolvent?
Both parties lose certain rights depending on when insolvency occurs.
When can a buyer claim goods from a seller’s liquidator?
When property passes to the buyer before seller's insolvency.
What right does the buyer have if goods are damaged, destroyed, or lost before property passes?
The seller bears the loss.
Test your knowledge on Rule 4 of sales law which determines when the property in goods passes in transactions involving delivery on approval, sale, return, or similar terms.
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