J, a wholesaler of premium Basmati rice delivered on approval100bags of rice of 10 kg each to a local retailer, on sale or returnable basis within a…

According to Section 24 of the Sales of Goods Act,1930, in case of delivery of goods on approval basis, the property in goods passes from seller to the buyer:- (i) When the person to whom the goods are given either accepts them or does an act which implies adopting the transaction. (ii) When the person to whom the goods are given retains the goods without giving his approval or giving notice of rejection beyond the time fixed for the return of goods and in case no time is fixed after the lapse of reasonable time. In the given case, J (seller) has delivered on approval100bags of rice of10 kg each to local retailer (buyer) on sale or returnable basis within a month of delivery. Out of these100bags, the local retailer sold5bags to K (customer). It implies that the local retailer has accepted5bags out of100. A week later, local retailer received the complaint of some defect in the rice bags, so, he wanted to return all the bags to the J (seller). According to the above provisions, the local retailer is entitled to return only95bags to the J (seller) and not those4bags which are not used by K. Because, as per clause (i) above, the local retailer has already sold5bags, signifying that he has done an act which implies adopting the transaction relating to those5bags.