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MIAMI A
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LSDefine
Simple English definitions for legal terms
approval sale
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A quick definition of approval sale:
An approval sale is when someone buys something, but they can decide if they want to keep it or not. The seller still owns the thing until the buyer says they want to keep it. If the buyer doesn't like it, they can give it back to the seller. It's like borrowing something before deciding if you want to keep it.A more thorough explanation:
Definition: A type of sale where the completion of the transaction depends on the buyer's satisfaction with the goods, regardless of whether they conform to the contract. The seller retains title and risk of loss until the buyer approves.
Example: A customer orders a custom-made dress from a designer. The designer delivers the dress to the customer, but the sale is not complete until the customer approves the dress. If the customer is not satisfied, the designer retains ownership of the dress and the risk of loss.
Explanation: In an approval sale, the buyer has the right to inspect the goods and decide whether to accept or reject them. The seller retains ownership and risk of loss until the buyer approves. This type of sale is common in custom-made or high-value items where the buyer wants to ensure that the goods meet their expectations before completing the transaction.