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LSDefine
Simple English definitions for legal terms
sale on approval
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A quick definition of sale on approval:
Sale is when someone gives something to another person in exchange for money. It's like when you sell your old toys to your friend for some money. There are different types of sales, like when you buy something and pay for it right away, or when you buy something on credit and pay for it later. Sometimes, a sale can be cancelled if the buyer doesn't like what they bought. This is called a sale on approval. There are also sales where the seller keeps ownership until the buyer pays the full price, and sales where the buyer can return the item if they can't sell it.A more thorough explanation:
Definition: A type of sale where the buyer has the right to approve the goods before completing the transaction. The seller retains ownership and risk of loss until the buyer approves the goods.
Example: John wants to buy a new laptop from a store. The store offers a sale on approval, so John can take the laptop home and use it for a few days. If he likes it, he can complete the purchase. If he doesn't like it, he can return it to the store, and the seller will take back ownership of the laptop.
Explanation: In this example, the sale is not complete until John approves the laptop. The seller retains ownership and risk of loss until John decides to keep the laptop. This type of sale is beneficial for buyers who want to test the product before committing to the purchase.