Choice "C" is correct. In a sale on approval, risk of loss passes to the buyer on approval of the goods.
Choice "d" is incorrect. A sale on approval does not require that either party be a merchant.
Choice "a" is incorrect. If the buyer is purchasing for resale, it generally is a sale or return. In any case, there is no such requirement for a sale on approval.
Choice "b" is incorrect. In a sale on approval, title does not pass to the buyer on delivery; rather it passes when the buyer approves the goods.
