A contract in which title and risk of loss remain with the seller and that provides for the sale subject to the buyer's final decision is a(n):

Question

Quizplus · Accepted Answer

A sale on approval is a contract in which the seller retains title and risk of loss until the buyer makes a final decision to accept the goods. The buyer has the option to either accept the goods or return them. In contrast, a contract for sale or contract to sell transfer the title and risk of loss to the buyer at the time of the contract. An endorsement of a contract is a signature or written approval of terms, which is not applicable in this scenario.

A Contract in Which Title and Risk of Loss Remain