Sale on Approval Law and Legal Definition

Sale on approval is a conditional sale the completion of which depends on acceptance of the goods by a buyer. The sale is complete when the buyer is satisfied with the goods sold. The buyer receives the goods primarily for use with the option to return. When the goods do not meet buyer’s approval, s/he can return the goods even though they conform to contract. The buyer need not expressly convey his/her approval. When the buyer keeps the goods beyond a reasonable time, the approval can be implied. Title passes subject to buyer’s approval.