Goods on approval

Updated: Aug 20, 2021

A person may ask for goods on approval if he wishes to see them before deciding whether to buy, and the vendor will usually allow him a stated number of days in which to make a decision.Equally, a vendor may also send goods to a selected number of persons in the hope that they will purchase them. In the first instance, the purchaser is a voluntary bailee and has a duty to take care of the goods and to return them as directed. In the second instance, the person is a quite involuntary bailee and has no responsibility towards the goods, unless custom dictates otherwise. He may not destroy them, but may demand that the vendor retakes them immediately and at his own expense, or simply redirect them to the vendor, leaving him to pay. If the goods are in any way a nuisance, he may take necessary precautions.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.