Question

    Under the Sale of Goods Act, a "Conditional Sale" is one

    where:
    A Ownership passes to the buyer upon payment of price Correct Answer Incorrect Answer
    B The buyer can only use the goods temporarily Correct Answer Incorrect Answer
    C Ownership is reserved by the seller until specified conditions are fulfilled Correct Answer Incorrect Answer
    D The goods are pledged to the seller Correct Answer Incorrect Answer
    E Payment is made in instalments only Correct Answer Incorrect Answer

    Solution

    A conditional sale is a transaction where title/ownership in goods is retained by the seller until certain conditions (typically payment of full price or fulfillment of other obligations) are satisfied. Until the condition is fulfilled, the buyer has possession but not ownership. This is distinct from an absolute sale where ownership passes upon agreement.

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