sale on approval
sale on approval, defined:
a sale of goods completed upon the approval of the merchandise by the buyer Key to understanding the term, sale on approval, is that the transfer of ownership of goods does not occur simultaneously with the change of possession of the goods. Ownership changes upon the approval of the buyer. Some jurisdictions limit the use of sale on approval contracts to goods purchased for the buyer's own use. Compare sale on approval to a sale or return agreement which is used in the sale of goods for resale.
sale on approval, as it might be used:
For the purchase to be a sale on approval there has to be some provision or objective fact demonstrating an intent that the goods do not belong to the buyer until the buyer approves them.
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Clear-Point Law Dictionary
