Sale of Goods Act 1930 MCQs
Sale of Goods Act, 1930 defines the term ‘goods’ as every kind of moveable property other than actionable claims and money. Here on MCQs.club we have prepared easy Multiple-Choice Questions (MCQs) on sale of goods act 1930 that fully cover MCQs on Indian sale of goods act 1930, types of goods under sale of goods act 1930, sales of goods act 1930 important questions, bare act/ definitions/ notes/ summary. These important mcq of sales of goods act 1930, multiple choice questions on sale of goods act 1930 with answers are use for Business management exams, Competitive exams, Professional Accountancy exams.
- Sale of Goods Act, 1930 defines the term ‘goods’ as every kind of moveable property other than actionable claims and money; and includes _________________and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.
- Stock
- Shares
- growing crops, grass
- All of the above
- Future good – goods to be manufactured or produced or acquired by the seller after making of the contract of sale.
- True
- False
- Mercantile agent – a mercantile agent having in the customary course of business as such agent authority either to sell goods, or to consign goods for the purposes of sale, or to buy goods, or to raise money on the security of goods.
- The above definition is correct
- The above definition is incorrect
- Which of the following is correct for CONTRACT OF SALE?
- A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price.
- A contract of sale may be absolute or conditional.
- Both A&B
- None
- Essentials of a Contract of Sale include:
- It is a bilateral contract because the property in goods has to pass from one party to another. A person cannot buy the goods himself.
- The object of a contract of sale must be the transfer of property (meaning ownership) in goods from one person to another.
- The subject matter must be some goods.
- The goods must be sold for some price, where the goods are exchanged for goods it is barter, not sale.
- All of the above
- A contract of sale is made by:
- an offer to buy or sell goods for a price
- the acceptance of such offer
- Both A&B
- None
- The subject matter of the contract is:
- existing or future goods
- goods perishing before making contract
- goods perishing before sale but after agreement to sell.
- All of the above
- Where there is a contract for the sale of specific goods, the contract is void if the goods without the knowledge of the seller have, at the time when the contract was made, perished or become so damaged as no longer to answer to their description in the contract.
- The above is correct
- The above is incorrect
- Where there is an agreement to sell specific goods, and subsequently the goods without any fault on the part of the seller or buyer perish or become so damaged as no longer to answer to their description in the agreement before the risk passes to the buyer, the agreement is thereby avoided.
- The above is incorrect
- The above is correct
- Which of the following is correct for Ascertainment of price?
- The price in a contract of sale may be fixed by the contract
- The price may be left to be fixed in manner thereby agreed or may be determined by the course of dealing between the parties
- Where the price is not determined in accordance with the foregoing provisions, the buyer shall pay the seller a reasonable price.
- All of the above
- Which of the following is correct for Contract of sale?
- The property of the goods passes from the buyer to the seller.
- Sales takes place only for existing and specific goods.
- The seller can sue the buyer for price and for damages in case of breach by the buyer
- The buyer, becoming the owner, is entitled to recover the same from the Official receiver or assignee
- All of the above
- Which of the following is correct for Agreement to sell?
- The transfer of property takes place at a future time or subject to certain conditions to be fulfilled.
- Future and contingent goods.
- The seller can sue for damages only in case of breach by the buyer
- The buyer cannot claim the goods but the dividend declared by the Official receiver or assignee.
- All of the above
- Rules for Ascertaining Passing of Property include:
- Goods must be ascertained
- Intention of the parties for such transfer
- Both A&B
- None
- When goods are delivered to the buyer on approval or on sale or return or other similar terms, the property therein passes to the buyer—
- When he signifies his approval or acceptance to the seller
- When he does any other act adopting the transaction.
- If he does not signify his approval or acceptance to the seller but retains the goods without giving notice of rejection, then, if a time has been fixed for the return of the goods, on the expiration of such time, and, if no time has been fixed, on the expiration of a reasonable time.
- All of the above
- A person although he is not the owner of the goods may sell the goods and pass a better title than he himself has. Such examples are:
- A finder of the goods has the right to sell
- A pawnee of goods has the right to sell the goods pawned subject to satisfying some conditions.
- A person who takes a negotiable instrument in good faith and for value becomes the true owner even if he takes it from a thief or finder.
- All of the above
- Which of the following is correct for “Condition”?
- A condition is a stipulation which is essential to the main purpose of the contract.
- The aggrieved party can repudiate the contract of sale in case there is a breach of a condition
- A breach of condition may be treated as a breach of a warranty. This would happen where the aggrieved party is contended with damages only
- All of the above
- Which of the following is correct for “Warranty”?
- A Warranty is a stipulation which is collateral to the main purpose of the contract.
- The aggrieved party can claim damages only in case of breach of a warranty.
- A breach of a warranty, con not be treated as a breach of a condition.
- All of the above
- Remedies Available to the Buyer for Breach of Conditions include:
- Affected party may claim refund of price and reject the goods
- Elect to treat breach of condition as breach of warranty and claim damages or compensation
- When the affected party treat, breach of condition as breach of warranty he cannot repudiate the contract but claim damages only
- No remedy is available when the fulfilment of condition is excused by law by means of impossibility or otherwise
- All of the above
- Consequences of Breach of Warranty include:
- The breach of warranty gives right to a claim for damages but not to reject the goods and treat the contract as repudiated.
- Buyer may sue for damages.
- No remedy is available if the fulfilment of warranty becomes impossible by law.
- All of the above
- In the case of a contract for sale by sample what are the implied conditions?
- That the bulk shall correspond with the sample in quality.
- That the buyer shall have a reasonable opportunity of comparing the bulk with the sample.
- That the goods shall be free from any defect, rendering them un-merchantable, which would not be apparent on reasonable examination of the sample.
- All of the above
- What are the exceptions to the doctrine of Caveat Emptor?
- Where the seller makes a false representation and the buyer relies on it.
- When the seller actively conceals a defect in the goods which is not visible on a reasonable examination of the same.
- When the buyer, relying upon the skill and judgement of the seller, has expressly or impliedly communicated to him the purpose for which the goods are required.
- Where goods are bought by description from a seller who deals in goods of that description.
- All of the above
- The performance of contract involves:
- Payment and delivery are concurrent conditions
- Delivery
- Buyer’s right of examining the goods and Buyer’s liability
- Acceptance of goods
- All of the above
- The delivery of goods sold may be made:
- by doing anything which the parties agree
- which has the effect of putting the goods in the possession of the buyer or of any person authorized to hold them on his behalf
- Both A&B
- None
- If there is variation in the quantity of goods delivered, the which of the following action may be taken by the buyer?
- Where the sellers deliver to the buyer a quantity of goods less than he contracted to sell, the buyer may reject them. If the buyer accepts the goods so delivered, he shall pay for them at the contract rate
- Where the seller delivers to the buyer a quantity of goods larger than he contracted to sell, the buyer may accept the goods included in the contract and the reject the rest. Or he may reject the whole. If the buyer accepts the whole of the goods so delivered, he shall pay for them at the contract rate
- Where the seller delivers to the buyer the goods, he contracted to sell mixed with goods of a different description not included in the contract, the buyer may accept the goods which are in accordance with the contract and reject the reject or may reject the whole
- All of the above
- When the buyer is deemed to have accepted the goods?
- when he intimates to the seller that he has accepted them
- when the goods have been delivered to him and he does any act in relation to them which is inconsistent with the ownership of the seller
- when, after the lapse of a reasonable time, he retains the goods without intimating to the seller that he has rejected them
- All of the above
- When the seller of the goods is deemed to be ‘unpaid seller’?
- when the whole of the price has not been paid or tendered
- when a bill of exchange or other negotiable instrument has been received as conditional payment, and the condition on which it was received has not been fulfilled by reason of the dishonour of the instrument or otherwise
- Both A&B
- None
- An unpaid seller’s right against the goods are:
- A lien or right of retention
- The right of stoppage in transit.
- The right of resale.
- The right to withhold delivery
- All of the above
- An unpaid seller who is in possession of goods sold, may exercise his lien on the goods, i.e., keep the goods in his possession and refuse to deliver them to the buyer until the payment or tender of the price in cases where:
- the goods have been sold without any stipulation as to credit
- the goods have been sold on credit, but the term of credit has expired
- the buyer becomes insolvent
- All of the above
- An unpaid seller’s Right of lien is lost where:
- When the seller delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer, without reserving the right of disposal of the goods
- When the buyer or his agent lawfully obtains possession of the goods
- By waiver of his lien by the unpaid seller
- All of the above
- The unpaid seller may re-sell:
- where the goods are perishable
- where the right is expressly reserved in the contract
- where in exercise of right of lien or stoppage in transit, the seller gives notice to the buyer of his intention to re-sell, and the buyer, does not pay or tender the price within a reasonable time.
- All of the above
- Rights of an unpaid seller against the buyer include:
- Suit for damages for non-acceptance
- Suit for repudiation
- Both A&B
- None
- Buyer’s Remedies against Seller for Breach of Contract include:
- Suit for Damages for Non-Delivery
- Suit for specific performance
- Suit for Breach of Warranty
- All of the above
- Which of the following is correct in the case of a sale by auction?
- The sale is complete when the auctioneer announces its completion by the fall of the hammer or in other customary manner; and until such announcement is made, any bidder may retract his bid
- the sale may be notified to be subject to a reserved or set up price
- If the seller makes use of pretended bidding to raise the price, the sale is voidable at the option of the buyer
- All of the above
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