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 contract allows the buyer to take possession of the goods for a trial period to determine whether they meet the buyer's needs. During this time, the seller retains ownership and risk of loss until the buyer decides to accept the goods or return them. Therefore, title and risk remain with the seller until final approval.

A Contract in Which Title and Risk of Loss Remain