Legal Definitions - salable

The term salable describes an item or product that is in a condition suitable for being sold through normal business channels, at its standard market price. It means the item meets the expected quality and condition that buyers would anticipate, making it ready for typical commercial transactions without requiring special discounts due to defects or unusual circumstances. Essentially, it's fit for its intended purpose and ready to be bought and sold in the ordinary course of trade.

• Example 1: Retail Goods

  A clothing boutique receives a new shipment of dresses. Each dress is free of tears, stains, or missing buttons, and the stitching is intact. They are all correctly sized and match the advertised designs.

  Explanation: These dresses are salable because they meet the expected quality standards for new clothing. They can be displayed in the store and offered to customers at their regular retail price, fitting the usual course of trade for a clothing boutique. If many dresses had defects, they would not be considered salable at full price.

• Example 2: Industrial Equipment

  A construction company decides to upgrade its fleet and wants to sell a used excavator. The excavator has been regularly serviced, all its major components are in good working order, and it passes a standard operational inspection, despite having accumulated many hours of use.

  Explanation: This excavator is salable because, even as a used piece of heavy machinery, its excellent maintenance record and functional condition mean it can be offered for sale at a fair market price for used equipment. It is fit for its intended purpose and can be traded in the usual course of business for industrial assets, without needing significant repairs before sale.

• Example 3: Perishable Goods

  A bakery prepares a batch of fresh bread early in the morning. The loaves are perfectly baked, have a golden crust, and a soft interior, and are ready for customers to purchase throughout the day.

  Explanation: The fresh bread is salable because it meets the quality and freshness standards expected by customers for baked goods. It can be placed on the shelves and sold at the standard price, fitting the usual course of trade for a bakery. If the bread were burnt, stale, or undercooked, it would not be considered salable at its usual price.