Here is Multiple Choice Questions (MCQs) on the Sale of Goods Act, 1930, with answers and explanations:
- Which of the following is NOT covered under the Sale of Goods Act, 1930?
a) Sale of movable goods
b) Sale of immovable property
c) Sale of specific goods
d) Sale of future goods
Answer: b) Sale of immovable property
Explanation: The Sale of Goods Act, 1930, applies only to the sale of movable property and excludes immovable property, which is governed by the Transfer of Property Act, 1882.
- The term "goods" under the Sale of Goods Act, 1930 includes:
a) Immovable property
b) Shares and stocks
c) Money
d) None of the above
Answer: b) Shares and stocks
Explanation: According to Section 2(7), goods include movable property like shares, stocks, and growing crops, but it excludes immovable property and money.
- What is the main difference between a sale and an agreement to sell?
a) Sale is conditional; agreement to sell is unconditional
b) Ownership transfers immediately in a sale; in an agreement to sell, it transfers in the future
c) Sale is void; agreement to sell is voidable
d) No difference
Answer: b) Ownership transfers immediately in a sale; in an agreement to sell, it transfers in the future
Explanation: In a sale, the ownership passes to the buyer at the time of the contract, whereas in an agreement to sell, it passes at a later date upon fulfillment of conditions.
- What is meant by “specific goods” under the Sale of Goods Act, 1930?
a) Goods identified and agreed upon at the time of the contract of sale
b) Goods that are fungible
c) Goods yet to be manufactured
d) Goods in their natural state
Answer: a) Goods identified and agreed upon at the time of the contract of sale
Explanation: As per Section 2(14), specific goods are those identified and agreed upon when the sale is made.
- In a contract of sale, the price of goods may be:
a) Fixed by the contract
b) Determined in a manner provided by the contract
c) Determined by the course of dealings between the parties
d) All of the above
Answer: d) All of the above
Explanation: Section 9 of the Sale of Goods Act states that the price may be fixed, determined in a manner agreed upon, or left to be determined by the course of dealings.
- What happens if the seller breaches a warranty in a contract of sale?
a) The buyer can terminate the contract
b) The buyer must accept the goods without remedy
c) The buyer can claim damages but cannot terminate the contract
d) None of the above
Answer: c) The buyer can claim damages but cannot terminate the contract
Explanation: A breach of warranty does not give the right to terminate the contract but allows the buyer to claim compensation for damages.
- The Sale of Goods Act, 1930 came into force on:
a) 1st July 1930
b) 15th August 1930
c) 1st January 1931
d) 1st April 1930
Answer: a) 1st July 1930
Explanation: The Act was enacted on 15th March 1930 and came into effect on 1st July 1930.
- Under the Sale of Goods Act, the term “delivery” means:
a) Transfer of possession of goods
b) Transfer of ownership of goods
c) Transfer of risk of goods
d) Transfer of both ownership and possession
Answer: a) Transfer of possession of goods
Explanation: Delivery is defined under Section 2(2) as the voluntary transfer of possession from one person to another.
- The implied condition as to title under a contract of sale means:
a) The seller has the right to sell the goods
b) The goods are of merchantable quality
c) The goods are fit for a particular purpose
d) None of the above
Answer: a) The seller has the right to sell the goods
Explanation: Section 14(a) implies that the seller has a right to sell the goods and transfer ownership.
- What is the legal effect if the buyer accepts the goods despite a breach of condition by the seller?
a) The buyer must reject the goods
b) The condition is treated as a warranty
c) The contract is automatically void
d) The buyer cannot claim damages
Answer: b) The condition is treated as a warranty
Explanation: As per Section 13, if the buyer accepts the goods despite a breach of condition, the breach is treated as a breach of warranty, allowing the buyer to claim damages.
Here are the next set of MCQs on the Sale of Goods Act, 1930, continuing from the previous list:
- A stipulation in a contract of sale may be:
a) A condition
b) A warranty
c) Either a condition or a warranty
d) None of the above
Answer: c) Either a condition or a warranty
Explanation: A stipulation may be a condition (essential to the main purpose of the contract) or a warranty (collateral to the main purpose).
- The doctrine of caveat emptor means:
a) Let the seller beware
b) Let the buyer beware
c) Seller is responsible for defects
d) Buyer has no rights
Answer: b) Let the buyer beware
Explanation: The doctrine of caveat emptor places the responsibility on the buyer to inspect goods before purchase unless the seller provides a warranty.
- Which of the following is NOT an implied condition under the Sale of Goods Act, 1930?
a) Condition as to title
b) Condition as to fitness for purpose
c) Condition as to free from encumbrances
d) Condition as to sample
Answer: c) Condition as to free from encumbrances
Explanation: Condition as to free from encumbrances is an implied warranty, not a condition.
- In case of a sale by sample, the goods should:
a) Match the sample in quality
b) Be better than the sample
c) Be of merchantable quality
d) Both a) and c)
Answer: d) Both a) and c)
Explanation: Under Section 17, goods must correspond with the sample and be of merchantable quality.
- The risk in goods sold passes to the buyer when:
a) The ownership is transferred
b) The payment is made
c) Delivery is completed
d) The contract is signed
Answer: a) The ownership is transferred
Explanation: As per Section 26, the risk follows ownership, not possession, unless otherwise agreed.
- The right of an unpaid seller is:
a) To stop goods in transit
b) To retain possession of goods
c) To resell the goods
d) All of the above
Answer: d) All of the above
Explanation: Sections 45–54 describe the rights of an unpaid seller, including lien, stoppage in transit, and resale.
- When goods are sold on approval, the ownership passes to the buyer:
a) When the buyer signifies approval
b) When the buyer does any act adopting the goods
c) When the buyer retains the goods beyond the agreed time
d) All of the above
Answer: d) All of the above
Explanation: As per Section 24, in a sale on approval, ownership passes upon approval, adoption, or lapse of the agreed time.
- What is the legal consequence of selling goods that belong to someone else without their permission?
a) The sale is valid
b) The sale is voidable
c) The sale is void
d) The buyer acquires good title
Answer: c) The sale is void
Explanation: Under Section 27, a seller cannot transfer ownership of goods they do not own unless authorized by the owner.
- Which of the following is NOT a type of delivery under the Sale of Goods Act, 1930?
a) Actual delivery
b) Symbolic delivery
c) Constructive delivery
d) Implied delivery
Answer: d) Implied delivery
Explanation: The Act recognizes actual, symbolic, and constructive delivery, but not implied delivery.
- A contract of sale is void if:
a) The goods are stolen
b) The seller has no right to sell the goods
c) The goods are perished before the contract is made
d) All of the above
Answer: c) The goods are perished before the contract is made
Explanation: Under Section 7, if goods are perished at the time of the contract, the contract is void.
- The implied warranty of quiet possession means:
a) The seller has the title to goods
b) The buyer shall enjoy possession without disturbance
c) The goods are of merchantable quality
d) None of the above
Answer: b) The buyer shall enjoy possession without disturbance
Explanation: Section 14(b) provides that the buyer is entitled to quiet possession of goods.
- When is stoppage in transit NOT possible?
a) When goods are delivered to the buyer
b) When goods are still in possession of the carrier
c) When goods are in transit
d) When the seller becomes insolvent
Answer: a) When goods are delivered to the buyer
Explanation: The seller’s right to stoppage in transit ends when the buyer takes delivery.
- Who bears the risk of loss when goods are delivered at the buyer’s risk?
a) Seller
b) Buyer
c) Carrier
d) Insurance company
Answer: b) Buyer
Explanation: When goods are delivered at the buyer’s risk, the buyer bears the risk of loss.
- The contract of sale becomes void when:
a) Goods are damaged after the contract but before delivery
b) Goods perish before the contract without the knowledge of the seller
c) Goods are delivered late
d) The buyer refuses to pay the price
Answer: b) Goods perish before the contract without the knowledge of the seller
Explanation: As per Section 7, the contract is void if goods perish before the contract is made and the seller was unaware.
- What happens if the buyer defaults on payment in a contract of sale?
a) The seller loses all rights
b) The seller can sue for the price
c) The seller can terminate the contract
d) Both b) and c)
Answer: d) Both b) and c)
Explanation: The seller can sue for the price or terminate the contract if the buyer defaults, depending on the situation.
Here is the continuation of the MCQs on the Sale of Goods Act, 1930, along with answers and explanations:
- Under the Sale of Goods Act, 1930, which goods are NOT included in the term "goods"?
a) Crops
b) Machinery
c) Patents
d) Immovable property
Answer: d) Immovable property
Explanation: "Goods" under Section 2(7) includes movable property, but excludes immovable property like land and buildings.
- The term "future goods" means goods:
a) That are already in existence
b) To be manufactured or produced in the future
c) Sold by sample
d) That are defective
Answer: b) To be manufactured or produced in the future
Explanation: Future goods, as per Section 2(6), refer to goods that will be manufactured, produced, or acquired after the contract is made.
- The right of stoppage in transit arises when:
a) The buyer becomes insolvent
b) The goods are destroyed
c) The seller is unpaid
d) Both a) and c)
Answer: d) Both a) and c)
Explanation: An unpaid seller has the right to stop goods in transit if the buyer becomes insolvent (Section 50).
- In which of the following cases can a seller resell the goods?
a) If the buyer delays payment
b) If the buyer refuses to accept delivery
c) If the seller exercises the right of lien or stoppage in transit
d) All of the above
Answer: d) All of the above
Explanation: An unpaid seller may resell the goods if the buyer defaults or delays, as per Section 54.
- A warranty is:
a) An essential stipulation to the contract
b) A collateral stipulation to the contract
c) A condition precedent to the contract
d) The main objective of the contract
Answer: b) A collateral stipulation to the contract
Explanation: A warranty is a minor term of the contract that does not affect the core objective (Section 12).
- In case of a breach of condition, the buyer can:
a) Treat the contract as repudiated
b) Recover damages
c) Waive the condition and accept the goods
d) All of the above
Answer: d) All of the above
Explanation: Section 13 allows the buyer multiple remedies in case of a breach of condition, including treating it as a breach of warranty.
- The term "merchantable quality" implies:
a) Goods are of reasonable quality
b) Goods are fit for the ordinary purpose for which they are used
c) Goods can be resold in the market
d) All of the above
Answer: d) All of the above
Explanation: Merchantable quality means goods are of reasonable standard and fit for resale (Section 16).
- A person who buys goods for resale is considered:
a) A buyer under the Sale of Goods Act
b) Not a buyer under the Act
c) A wholesaler
d) A retailer
Answer: a) A buyer under the Sale of Goods Act
Explanation: The Act defines a buyer as anyone who purchases goods, regardless of the purpose.
- A contract of sale involving the exchange of goods and no money is:
a) Sale
b) Barter
c) Void
d) Agreement to sell
Answer: b) Barter
Explanation: A barter involves the exchange of goods for goods, whereas a sale involves goods exchanged for money.
- The Sale of Goods Act, 1930, applies to:
a) Only domestic sales
b) Only international sales
c) Both domestic and international sales
d) Neither domestic nor international sales
Answer: c) Both domestic and international sales
Explanation: The Act applies to all contracts of sale in India unless excluded by agreement.
- Which section of the Sale of Goods Act deals with implied conditions and warranties?
a) Section 10
b) Section 12
c) Section 14
d) Section 16
Answer: d) Section 16
Explanation: Section 16 outlines the implied conditions and warranties, such as fitness for purpose and merchantable quality.
- What is the remedy available to the buyer in case of delivery of defective goods?
a) Reject the goods
b) Accept the goods and claim damages
c) Replace the goods
d) Either a) or b)
Answer: d) Either a) or b)
Explanation: The buyer can reject defective goods or accept them and claim damages.
- The Sale of Goods Act, 1930, is based on:
a) Indian Contract Act, 1872
b) English Sale of Goods Act, 1893
c) Transfer of Property Act, 1882
d) None of the above
Answer: b) English Sale of Goods Act, 1893
Explanation: The Indian Sale of Goods Act is modeled on the English Sale of Goods Act, 1893.
- When does ownership of unascertained goods pass to the buyer?
a) At the time of contract
b) When goods are ascertained
c) On payment of price
d) On delivery of goods
Answer: b) When goods are ascertained
Explanation: Ownership of unascertained goods passes only after the goods are identified and appropriated to the contract (Section 18).
- An unpaid seller can exercise the right of lien when:
a) Ownership has not passed to the buyer
b) Ownership has passed but payment is due
c) Goods are in transit
d) Goods are defective
Answer: b) Ownership has passed but payment is due
Explanation: The right of lien is available when the seller is unpaid and retains possession of the goods.
Here is the continuation of MCQs on the Sale of Goods Act, 1930, with answers and explanations:
- The transfer of property in goods means:
a) The transfer of possession of goods
b) The transfer of ownership of goods
c) The transfer of risk associated with goods
d) The transfer of delivery charges
Answer: b) The transfer of ownership of goods
Explanation: "Property in goods" refers to ownership and the rights associated with the goods, as per the Act.
- Which of the following is an implied condition in a contract of sale?
a) Quiet possession
b) Right to sell
c) Goods shall correspond to description
d) Both b) and c)
Answer: d) Both b) and c)
Explanation: Conditions as to the right to sell and correspondence to description are implied under Sections 14(a) and 15.
- The Sale of Goods Act applies to:
a) Movable goods only
b) Immovable goods only
c) Both movable and immovable goods
d) None of the above
Answer: a) Movable goods only
Explanation: Section 2(7) specifies that the Act applies only to movable goods.
- The term “price” in the context of a sale means:
a) Any monetary consideration
b) The cost of production
c) A combination of money and goods
d) None of the above
Answer: a) Any monetary consideration
Explanation: Price refers to the consideration in money for the transfer of ownership of goods (Section 2(10)).
- A sale by auction is governed under:
a) Section 59
b) Section 60
c) Section 64
d) Section 65
Answer: c) Section 64
Explanation: Section 64 of the Act provides rules for sales by auction, including the acceptance of bids.
- If the goods are perishable in nature, the unpaid seller can:
a) Retain the goods
b) Resell the goods immediately
c) Destroy the goods
d) File a suit for damages
Answer: b) Resell the goods immediately
Explanation: Under Section 54, the seller can resell perishable goods without notice if the buyer defaults.
- When is delivery considered complete?
a) When the buyer receives goods
b) When the seller loads the goods for transportation
c) When the buyer pays for the goods
d) When the risk is transferred
Answer: a) When the buyer receives goods
Explanation: Delivery is considered complete when possession of the goods is transferred to the buyer (Section 33).
- If the buyer refuses to take delivery of goods, the seller may:
a) Sue the buyer for damages
b) Destroy the goods
c) Cancel the contract
d) Both a) and c)
Answer: d) Both a) and c)
Explanation: The seller has remedies such as suing for damages and canceling the contract if the buyer refuses delivery.
- In a sale by sample, the bulk of goods must:
a) Be of superior quality
b) Correspond with the sample
c) Be inspected by the buyer
d) Be delivered in parts
Answer: b) Correspond with the sample
Explanation: Section 17 requires that goods in a sale by sample correspond with the sample.
- The risk in goods passes to the buyer:
a) When possession is transferred
b) When payment is made
c) When ownership is transferred
d) When the contract is signed
Answer: c) When ownership is transferred
Explanation: Risk generally passes with ownership, as per Section 26.
- Goods that are yet to be manufactured are known as:
a) Existing goods
b) Future goods
c) Unascertained goods
d) Contingent goods
Answer: b) Future goods
Explanation: Future goods are those that will be manufactured or acquired after the contract is made (Section 2(6)).
- What does "lien" mean under the Sale of Goods Act?
a) The right to resell goods
b) The right to hold goods until payment is made
c) The right to reject defective goods
d) The right to cancel the contract
Answer: b) The right to hold goods until payment is made
Explanation: Lien is the seller's right to retain possession of goods until payment is made (Section 47).
- An unpaid seller can exercise the right of stoppage in transit when:
a) The buyer is insolvent
b) The goods are defective
c) The price is reduced
d) The buyer refuses delivery
Answer: a) The buyer is insolvent
Explanation: The seller can stop goods in transit if the buyer becomes insolvent, as per Section 50.
- A condition in a contract of sale may be treated as a warranty if:
a) The seller agrees
b) The buyer waives the condition
c) The contract is rescinded
d) None of the above
Answer: b) The buyer waives the condition
Explanation: As per Section 13, a buyer may waive a condition and treat it as a warranty instead.
- The Sale of Goods Act was originally part of which Act?
a) Transfer of Property Act, 1882
b) Indian Contract Act, 1872
c) Companies Act, 1913
d) Partnership Act, 1932
Answer: b) Indian Contract Act, 1872
Explanation: The provisions related to the sale of goods were initially part of the Indian Contract Act but were separated in 1930.
- Who bears the risk of loss if goods are damaged during transit?
a) Buyer, if ownership has passed
b) Seller, if ownership has not passed
c) Carrier, in all cases
d) Both a) and b)
Answer: d) Both a) and b)
Explanation: Risk follows ownership unless agreed otherwise (Section 26).
- When goods are sold on a "sale or return" basis, ownership passes to the buyer when:
a) The buyer signifies approval
b) The buyer retains goods beyond the agreed time
c) The buyer adopts the transaction
d) All of the above
Answer: d) All of the above
Explanation: Ownership passes upon approval, adoption, or expiration of the agreed time (Section 24).
Here’s the continuation of MCQs on the Sale of Goods Act, 1930, with answers and explanations:
- In a sale by description, goods must:
a) Match the sample
b) Match the description
c) Be of merchantable quality
d) Both b) and c)
Answer: d) Both b) and c)
Explanation: Goods sold by description must match the description and be of merchantable quality, as per Section 15.
- A breach of warranty gives the buyer the right to:
a) Repudiate the contract
b) Sue for damages
c) Demand a replacement
d) Cancel the sale
Answer: b) Sue for damages
Explanation: A breach of warranty does not allow repudiation of the contract but gives the right to claim damages (Section 13).
- Which of the following is NOT an essential element of a contract of sale?
a) Transfer of property
b) Two parties
c) Delivery of goods
d) Price consideration
Answer: c) Delivery of goods
Explanation: Delivery is not essential at the time of the contract. The transfer of ownership and price are key elements.
- In case of fraud by the seller, the buyer can:
a) Reject the goods
b) Sue for damages
c) Repudiate the contract
d) All of the above
Answer: d) All of the above
Explanation: In case of fraud, the buyer can pursue any or all of the above remedies.
- Contingent goods are:
a) Specific goods
b) Goods to be acquired in the future based on a contingency
c) Goods already in possession
d) Existing goods
Answer: b) Goods to be acquired in the future based on a contingency
Explanation: Contingent goods depend on a future event and are defined under Section 6(2).
- When is a contract of sale considered "voidable"?
a) When the goods are defective
b) When the buyer fails to pay
c) When the contract is induced by coercion, fraud, or misrepresentation
d) When goods are delivered late
Answer: c) When the contract is induced by coercion, fraud, or misrepresentation
Explanation: A contract induced by fraud, coercion, or misrepresentation is voidable at the option of the aggrieved party under general contract law.
- The seller can resell the goods in case of default by the buyer:
a) Without any notice
b) After giving notice to the buyer
c) Only with the buyer's consent
d) Without any condition
Answer: b) After giving notice to the buyer
Explanation: Section 54 states that the seller must give notice to the buyer before resale, except in case of perishable goods.
- Which of the following is NOT an implied warranty?
a) Warranty of quiet possession
b) Warranty as to title
c) Warranty as to free from encumbrance
d) Warranty of fitness for a particular purpose
Answer: b) Warranty as to title
Explanation: Warranty as to title is an implied condition, not a warranty (Section 14(a)).
- In the case of unascertained goods, appropriation occurs when:
a) The seller identifies the goods
b) The goods are delivered to the carrier
c) The goods are specifically appropriated to the contract
d) Both b) and c)
Answer: d) Both b) and c)
Explanation: Section 23 states that appropriation occurs when the goods are identified and delivered to the buyer or their agent.
- When is delivery considered invalid?
a) When it is made to the wrong person
b) When the goods are stolen
c) When the buyer refuses to accept the goods
d) All of the above
Answer: a) When it is made to the wrong person
Explanation: Delivery is valid only if made to the buyer or their authorized agent (Section 33).
- What is "specific performance" in the context of the Sale of Goods Act?
a) An action to recover damages
b) A remedy for breach of contract
c) A court order compelling the seller to deliver the specific goods
d) A contractual penalty
Answer: c) A court order compelling the seller to deliver the specific goods
Explanation: Specific performance is a remedy where the court orders the seller to deliver the exact goods as per the contract (Section 58).
- When can the buyer claim damages for non-delivery of goods?
a) When the seller refuses to deliver the goods
b) When the buyer does not make payment
c) When the goods are stolen
d) When the contract is silent about delivery
Answer: a) When the seller refuses to deliver the goods
Explanation: Under Section 57, the buyer can claim damages for non-delivery if the seller fails to perform their obligation.
- The Sale of Goods Act, 1930, does NOT cover:
a) Goods sold at auction
b) Immovable property
c) Sale of unascertained goods
d) Delivery by installments
Answer: b) Immovable property
Explanation: The Act applies only to movable goods, not immovable property.
- In case of delivery of less quantity of goods, the buyer can:
a) Reject the goods
b) Accept the goods and pay for them
c) Treat the contract as repudiated
d) Either a) or b)
Answer: d) Either a) or b)
Explanation: The buyer may accept the lesser quantity and pay accordingly or reject the goods as per Section 37(1).
- In a CIF (Cost, Insurance, Freight) contract, who is responsible for arranging insurance?
a) Buyer
b) Seller
c) Carrier
d) Both buyer and seller
Answer: b) Seller
Explanation: In a CIF contract, the seller is responsible for arranging the insurance and providing the buyer with necessary documents.
- The term "goods" under the Act includes:
a) Stocks and shares
b) Actionable claims
c) Growing crops
d) Immovable property
Answer: c) Growing crops
Explanation: As per Section 2(7), "goods" include growing crops, grass, and things attached to land that can be severed.
- If the seller delivers goods of a higher quantity than contracted, the buyer can:
a) Reject the whole
b) Accept the contracted quantity and reject the rest
c) Accept the whole and pay for the excess
d) Any of the above
Answer: d) Any of the above
Explanation: Section 37(2) gives the buyer all these options in case of excess delivery.
- An "agreement to sell" becomes a "sale" when:
a) Payment is made
b) Ownership of goods is transferred
c) Delivery is completed
d) Contract is signed
Answer: b) Ownership of goods is transferred
Explanation: An agreement to sell becomes a sale upon the transfer of ownership (Section 4).
Here is the continuation of MCQs on the Sale of Goods Act, 1930, with answers and explanations:
- A buyer may reject goods if they are:
a) Defective
b) Do not correspond with the contract
c) Delivered late without the buyer's consent
d) All of the above
Answer: d) All of the above
Explanation: The buyer has the right to reject goods if they do not meet the terms of the contract, as per Section 37.
- In case of installment deliveries, the buyer:
a) Can reject all installments if one is defective
b) Must accept all installments
c) Can reject the defective installment without affecting the entire contract
d) Has no rights under the Act
Answer: c) Can reject the defective installment without affecting the entire contract
Explanation: Section 38 allows rejection of a defective installment while keeping the remaining contract valid, depending on its terms.
- When does risk pass to the buyer in a contract of sale?
a) When the goods are delivered
b) When the contract is signed
c) When the property is transferred
d) When payment is made
Answer: c) When the property is transferred
Explanation: Risk generally passes with ownership unless agreed otherwise (Section 26).
- The unpaid seller's right of resale is mentioned in which section?
a) Section 52
b) Section 54
c) Section 56
d) Section 58
Answer: b) Section 54
Explanation: Section 54 allows the unpaid seller to resell the goods under specified circumstances.
- Which of the following is a remedy available to the buyer for breach of contract?
a) Specific performance
b) Rescission of contract
c) Damages for non-delivery
d) All of the above
Answer: d) All of the above
Explanation: Sections 57 and 58 provide remedies such as specific performance, rescission, and damages to the buyer.
- The term "reasonable time" under the Sale of Goods Act, 1930, is:
a) Fixed by the court
b) Determined by the circumstances of the case
c) 30 days
d) Not defined in the Act
Answer: b) Determined by the circumstances of the case
Explanation: The term "reasonable time" is interpreted based on the facts and circumstances of each case (Section 63).
- In a sale by sample, which of the following is NOT required?
a) The bulk must correspond with the sample
b) The buyer must have the opportunity to compare the bulk with the sample
c) The goods must be of merchantable quality
d) The goods must be fit for a specific purpose
Answer: d) The goods must be fit for a specific purpose
Explanation: Fitness for a specific purpose is an implied condition only if the buyer relies on the seller's expertise, not a requirement for a sale by sample (Section 17).
- The buyer can rescind the contract in case of:
a) Breach of warranty
b) Breach of condition
c) Delivery of the wrong quantity
d) Late delivery
Answer: b) Breach of condition
Explanation: A breach of condition allows the buyer to treat the contract as repudiated, as per Section 13.
- When can the seller recover the price of goods?
a) When ownership has passed to the buyer
b) When the goods are ready for delivery
c) When the buyer refuses delivery
d) Both a) and c)
Answer: d) Both a) and c)
Explanation: The seller can recover the price if the ownership has passed, even if the buyer refuses delivery (Section 55).
- A buyer’s right to examine goods before accepting them is covered under:
a) Section 35
b) Section 36
c) Section 37
d) Section 38
Answer: a) Section 35
Explanation: Section 35 gives the buyer the right to examine goods to ensure they conform to the contract before accepting them.
- The right of stoppage in transit ends when:
a) The buyer takes delivery of the goods
b) The goods are delivered to the carrier
c) The seller gives notice of stoppage
d) The goods reach the buyer’s city
Answer: a) The buyer takes delivery of the goods
Explanation: The right of stoppage in transit ends once the buyer takes possession of the goods (Section 51).
- Which of the following constitutes a valid delivery under the Act?
a) Delivery by hand
b) Delivery through a third party
c) Symbolic delivery
d) All of the above
Answer: d) All of the above
Explanation: Delivery can be actual, constructive, or symbolic, as per Section 33.
- The contract of sale becomes void if:
a) Goods are destroyed before the contract is made
b) Goods are perished before ownership is transferred
c) Payment is not made on time
d) Delivery is not made on time
Answer: b) Goods are perished before ownership is transferred
Explanation: Under Section 8, the contract is void if specific goods perish without the seller's fault before ownership passes to the buyer.
- Specific goods are:
a) Goods identified and agreed upon at the time of the contract
b) Goods to be manufactured in the future
c) Goods that are perishable
d) Goods delivered in parts
Answer: a) Goods identified and agreed upon at the time of the contract
Explanation: Section 2(14) defines specific goods as those identified at the time of the contract.
- Under the Act, who is considered an "unpaid seller"?
a) A seller who has not received the full payment
b) A seller who has received a cheque that is dishonored
c) A seller who has not received payment for a part of the goods
d) All of the above
Answer: d) All of the above
Explanation: Section 45 defines an unpaid seller as one who has not received full payment, including cases of dishonored cheques.
- The right of lien is available when:
a) The buyer has taken possession of the goods
b) The seller is unpaid and retains possession of the goods
c) The goods are in transit
d) None of the above
Answer: b) The seller is unpaid and retains possession of the goods
Explanation: Section 47 gives the unpaid seller the right to retain goods until payment is made.
- Which of the following is NOT a remedy available to the seller?
a) Right of resale
b) Right of stoppage in transit
c) Right of specific performance
d) Right of lien
Answer: c) Right of specific performance
Explanation: Specific performance is a remedy available to the buyer, not the seller, as per Section 58.
- Which of the following is NOT covered under "goods" in the Act?
a) Stocks
b) Shares
c) Actionable claims
d) Crops
Answer: c) Actionable claims
Explanation: As per Section 2(7), actionable claims are excluded from the definition of goods.
- When goods are sold "on approval," ownership passes when:
a) The buyer approves the goods
b) The buyer retains goods beyond the approval period
c) The buyer adopts the transaction
d) Any of the above
Answer: d) Any of the above
Explanation: Ownership passes upon approval, retention, or adoption of the transaction (Section 24).
- In a sale by description, what happens if goods do not correspond with the description?
a) The buyer must accept the goods
b) The buyer can reject the goods
c) The seller can force the buyer to accept
d) None of the above
Answer: b) The buyer can reject the goods
Explanation: Section 15 allows the buyer to reject goods if they do not correspond with the description.
- In the event of partial payment, the seller’s lien:
a) Is lost
b) Is retained for the unpaid amount
c) Is converted into a right of resale
d) None of the above
Answer: b) Is retained for the unpaid amount
Explanation: The lien is retained for the unpaid amount even if partial payment is made (Section 47).
- If the goods are delivered by installments, the buyer can reject the whole contract if:
a) The seller fails to deliver one installment
b) The defective installment affects the entire contract
c) The buyer wants to terminate the contract
d) None of the above
Answer: b) The defective installment affects the entire contract
Explanation: Section 38(2) allows rejection of the entire contract only if the breach affects its core.
- In a sale by auction, the property is transferred to the buyer when:
a) The auction begins
b) The bid is accepted
c) The buyer makes payment
d) The goods are delivered
Answer: b) The bid is accepted
Explanation: Ownership is transferred when the auctioneer accepts the highest bid (Section 64).
- Delivery of goods to a carrier is deemed as:
a) Delivery to the buyer
b) Delivery to the seller
c) Delivery in transit
d) Symbolic delivery
Answer: a) Delivery to the buyer
Explanation: Under Section 39, delivery to a carrier is considered delivery to the buyer.
- The Sale of Goods Act, 1930, primarily governs:
a) Movable goods only
b) Services
c) Intellectual property rights
d) Employment contracts
Answer: a) Movable goods only
Explanation: The Act applies only to contracts related to the sale of movable goods, as per Section 2(7).
Here are additional multiple-choice questions on the Sale of Goods Act, 1930, with answers and explanations:
- In a contract of sale, the property in the goods is transferred from the seller to the buyer when:
a) The goods are delivered
b) Payment is made
c) Both parties agree
d) The intention of the parties determines it
Answer: d) The intention of the parties determines it
Explanation: As per Section 19, property in goods passes when the intention of the parties is clear, either explicitly or impliedly.
- Which of the following is NOT a condition in a contract of sale?
a) Title of goods
b) Description of goods
c) Delivery of goods
d) Fitness for a particular purpose
Answer: c) Delivery of goods
Explanation: Delivery is not a condition but a part of the performance of the contract.
- The unpaid seller's right to stop goods in transit is lost when:
a) The buyer resells the goods
b) The goods are delivered to the buyer
c) The goods are returned to the seller
d) The buyer makes partial payment
Answer: b) The goods are delivered to the buyer
Explanation: Under Section 51, the right of stoppage ends when the goods are delivered to the buyer.
- In a sale by sample, the sample must:
a) Match the description
b) Be of high quality
c) Correspond to the bulk of goods
d) Be approved by the buyer
Answer: c) Correspond to the bulk of goods
Explanation: As per Section 17, the bulk must match the sample in quality.
- A breach of condition in a contract of sale may be treated as a breach of warranty when:
a) The buyer waives the condition
b) The contract is indivisible
c) The goods are accepted by the buyer
d) All of the above
Answer: d) All of the above
Explanation: Section 13 states that a breach of condition may be treated as a breach of warranty under specific circumstances.
- Goods are said to be in a "deliverable state" when:
a) The seller has possession of the goods
b) The buyer agrees to take delivery
c) The goods are in such a condition that the buyer is bound to take delivery
d) The price is paid
Answer: c) The goods are in such a condition that the buyer is bound to take delivery
Explanation: Section 2(3) defines "deliverable state."
- Which of the following is an implied condition under the Sale of Goods Act, 1930?
a) Quiet possession
b) Freedom from encumbrance
c) Sample to match the bulk
d) Right to sell
Answer: d) Right to sell
Explanation: The right to sell is an implied condition under Section 14(a).
- Which section deals with the rules for the ascertainment of price?
a) Section 7
b) Section 9
c) Section 10
d) Section 11
Answer: b) Section 9
Explanation: Section 9 outlines the rules for ascertaining the price in a contract of sale.
- Goods perishing before the contract of sale becomes void under:
a) Section 8
b) Section 9
c) Section 10
d) Section 11
Answer: a) Section 8
Explanation: Section 8 states that the contract is void if specific goods perish before the contract is made.
- The Sale of Goods Act, 1930, does NOT apply to:
a) Goods sold by auction
b) Goods delivered as gifts
c) Goods sold for cash
d) Goods sold on credit
Answer: b) Goods delivered as gifts
Explanation: The Act applies only to the sale of goods for a price, not gifts (Section 4).
- The transfer of ownership from seller to buyer is known as:
a) Possession transfer
b) Delivery
c) Sale
d) Passing of property
Answer: d) Passing of property
Explanation: Passing of property refers to the transfer of ownership as per Section 18.
- When goods are sold by non-owners, the buyer gets a good title only when:
a) The buyer acts in good faith
b) The seller has possession of the goods
c) The owner consents to the sale
d) All of the above
Answer: d) All of the above
Explanation: Section 27 specifies situations where a non-owner can pass a good title.
- In a sale by auction, the auctioneer is considered as:
a) Buyer
b) Seller
c) Agent of the seller
d) Agent of the buyer
Answer: c) Agent of the seller
Explanation: The auctioneer acts as an agent of the seller to sell goods (Section 64).
- Goods that form the subject matter of a contract of sale must be:
a) Specific goods
b) Movable goods
c) Existing goods
d) All of the above
Answer: b) Movable goods
Explanation: The Act applies only to the sale of movable goods as defined under Section 2(7).
- A "warranty" in a contract of sale is:
a) A minor stipulation
b) A major stipulation
c) Not enforceable
d) None of the above
Answer: a) A minor stipulation
Explanation: A warranty is a stipulation collateral to the main purpose of the contract (Section 12).
- When a buyer purchases goods for a specific purpose, the seller must:
a) Guarantee fitness of goods
b) Inform the buyer about defects
c) Ensure the goods fit the specific purpose
d) None of the above
Answer: c) Ensure the goods fit the specific purpose
Explanation: This is an implied condition under Section 16.
- In case of breach of a condition, the buyer can:
a) Sue for damages only
b) Repudiate the contract and/or sue for damages
c) Accept the goods
d) Do nothing
Answer: b) Repudiate the contract and/or sue for damages
Explanation: The buyer can repudiate the contract in case of a breach of condition (Section 13).
- The term "future goods" refers to goods that:
a) Exist but are in transit
b) Are manufactured or acquired by the seller after the contract
c) Are in a deliverable state
d) Are specific and identified
Answer: b) Are manufactured or acquired by the seller after the contract
Explanation: Future goods are defined under Section 2(6).
- When goods are sold by description and sample, they must:
a) Match the description only
b) Match the sample only
c) Match both the description and the sample
d) Match the buyer’s expectations
Answer: c) Match both the description and the sample
Explanation: Section 15 requires goods to match both description and sample.
- The Sale of Goods Act, 1930, extends to:
a) The whole of India
b) India, excluding Jammu and Kashmir
c) India, excluding Union Territories
d) The entire Commonwealth
Answer: a) The whole of India
Explanation: Initially, it excluded Jammu and Kashmir, but now it applies to all of India.
- The "right of resale" is available to the unpaid seller when:
a) The buyer defaults in payment
b) Goods are perishable
c) The seller gives notice of resale
d) All of the above
Answer: d) All of the above
Explanation: Section 54 outlines conditions for the unpaid seller's right of resale.
- In a hire-purchase agreement, ownership passes when:
a) The buyer makes payment in installments
b) The goods are delivered
c) The buyer exercises the option to buy
d) The agreement is signed
Answer: c) The buyer exercises the option to buy
Explanation: Ownership passes only when the option to buy is exercised.
- Specific performance is granted when:
a) The goods are unique
b) Damages are an inadequate remedy
c) Both a) and b)
d) None of the above
Answer: c) Both a) and b)
Explanation: Section 58 allows specific performance in cases of unique goods or when damages are inadequate.
- If the goods are damaged during transit, the loss is borne by:
a) Buyer
b) Seller
c) Carrier
d) Insurer
Answer: a) Buyer
Explanation: If the ownership has passed, the buyer bears the risk, as per Section 26.
- A condition may be treated as a warranty if:
a) The buyer elects to treat it as a warranty
b) The breach is minor
c) The goods are accepted
d) All of the above
Answer: d) All of the above
Explanation: Section 13 provides the circumstances under which a condition may be treated as a warranty.
Here are 25 more multiple-choice questions (126–150) on the Sale of Goods Act, 1930, with answers and explanations:
- Which of the following is an "implied warranty" under the Sale of Goods Act, 1930?
a) Warranty of quiet possession
b) Warranty of merchantable quality
c) Warranty of fitness for a particular purpose
d) Warranty of description
Answer: a) Warranty of quiet possession
Explanation: Section 14(b) states that there is an implied warranty that the buyer shall have and enjoy quiet possession of the goods.
- A condition can be waived by:
a) The seller only
b) The buyer only
c) Both buyer and seller
d) Either buyer or seller
Answer: b) The buyer only
Explanation: Section 13 allows the buyer to waive a condition or elect to treat a breach of condition as a breach of warranty.
- Which of the following is NOT an essential element of a contract of sale?
a) Transfer of property in goods
b) Payment of price in money
c) Delivery of goods
d) Agreement between buyer and seller
Answer: c) Delivery of goods
Explanation: Delivery is not essential for the formation of a contract of sale; it is part of performance.
- Which of the following contracts is void?
a) Sale of stolen goods
b) Sale of future goods
c) Sale of goods by description
d) Sale by auction
Answer: a) Sale of stolen goods
Explanation: Sale of stolen goods is void as the seller does not have the right to sell the goods (Section 27).
- The term "mercantile agent" is defined in:
a) Section 2(8)
b) Section 2(9)
c) Section 2(10)
d) Section 2(11)
Answer: b) Section 2(9)
Explanation: A mercantile agent is defined as an agent with authority to sell, consign, or deal with goods.
- When the buyer refuses to pay the price, the seller can:
a) File a suit for damages only
b) File a suit for price only
c) File a suit for price or damages
d) Do nothing
Answer: c) File a suit for price or damages
Explanation: Section 55 allows the seller to recover the price, and Section 56 allows a claim for damages.
- The term "document of title to goods" includes:
a) Bill of lading
b) Warehouse receipt
c) Railway receipt
d) All of the above
Answer: d) All of the above
Explanation: Section 2(4) includes these documents as evidence of title to goods.
- The principle of caveat emptor means:
a) Buyer beware
b) Seller beware
c) Both buyer and seller beware
d) None of the above
Answer: a) Buyer beware
Explanation: The principle caveat emptor implies that the buyer must ensure the suitability of goods purchased.
- Which of the following is NOT covered by "goods" under the Sale of Goods Act?
a) Gas
b) Electricity
c) Immovable property
d) Crops
Answer: c) Immovable property
Explanation: The Act applies only to movable goods (Section 2(7)).
- If the seller is not the owner of goods but has possession of them, he may validly sell them if:
a) He has the consent of the owner
b) He is a mercantile agent acting within his authority
c) The buyer purchases in good faith
d) All of the above
Answer: d) All of the above
Explanation: Sections 27 to 30 provide exceptions to the rule that only the owner can sell goods.
- The sale of unascertained goods becomes a sale when:
a) The goods are manufactured
b) The goods are appropriated to the contract
c) The goods are delivered
d) The payment is made
Answer: b) The goods are appropriated to the contract
Explanation: As per Section 23, unascertained goods must be appropriated for the sale to become valid.
- The seller’s lien on goods ends when:
a) The goods are delivered to the carrier
b) The buyer takes possession of the goods
c) The buyer resells the goods
d) The goods are destroyed
Answer: b) The buyer takes possession of the goods
Explanation: Under Section 49, lien ends when the buyer takes possession.
- The Sale of Goods Act, 1930, is based on:
a) English Sale of Goods Act, 1893
b) Indian Contract Act, 1872
c) Both a) and b)
d) None of the above
Answer: c) Both a) and b)
Explanation: The Act is derived from the English Sale of Goods Act and evolved from the Contract Act.
- Which of the following is a "contingent contract" under the Act?
a) Sale of specific goods
b) Sale of unascertained goods
c) Sale of goods subject to a condition precedent
d) Sale of defective goods
Answer: c) Sale of goods subject to a condition precedent
Explanation: A contract dependent on a future uncertain event is contingent under Section 31 of the Contract Act.
- If the buyer rejects goods without valid reason, the seller can:
a) Sue for damages for non-acceptance
b) Resell the goods
c) Retain the goods
d) All of the above
Answer: d) All of the above
Explanation: Sections 56 and 54 provide these remedies to the seller.
- A sale by sample is governed by:
a) Section 17
b) Section 18
c) Section 19
d) Section 20
Answer: a) Section 17
Explanation: Section 17 deals with sales by sample.
- If the price is not fixed in a contract of sale, it will be determined by:
a) The seller
b) The buyer
c) Market price
d) The court
Answer: c) Market price
Explanation: Section 9 provides that a reasonable price, often determined by market value, will apply.
- The doctrine of caveat venditor applies when:
a) The buyer relies on the seller’s skill and judgment
b) The seller fails to disclose defects
c) Both a) and b)
d) None of the above
Answer: c) Both a) and b)
Explanation: This doctrine places responsibility on the seller in specific cases under Section 16.
- Who bears the risk if goods are destroyed before the property passes?
a) Buyer
b) Seller
c) Carrier
d) Both buyer and seller equally
Answer: b) Seller
Explanation: Risk remains with the seller until property passes to the buyer (Section 26).
- The contract of sale is void if:
a) The goods are destroyed at the time of the contract
b) The price is not fixed
c) The buyer is a minor
d) None of the above
Answer: a) The goods are destroyed at the time of the contract
Explanation: Section 6 states that the contract is void if specific goods are destroyed at the time of the agreement.
- If goods are sold by auction, the property passes:
a) Immediately
b) When payment is made
c) When the hammer falls
d) When the goods are delivered
Answer: c) When the hammer falls
Explanation: Property passes when the auctioneer accepts the highest bid (Section 64).
- Goods are in transit until:
a) The buyer takes possession of the goods
b) The goods reach the carrier
c) Payment is made
d) The seller retains the goods
Answer: a) The buyer takes possession of the goods
Explanation: As per Section 51, goods are considered in transit until the buyer takes delivery.
- The buyer is deemed to have accepted the goods when:
a) He communicates his acceptance
b) He does not reject them within a reasonable time
c) He uses or resells the goods
d) All of the above
Answer: d) All of the above
Explanation: Section 42 outlines the conditions under which acceptance is deemed.
- Which of the following terms is NOT defined in the Sale of Goods Act, 1930?
a) Seller
b) Buyer
c) Price
d) Delivery
Answer: c) Price
Explanation: Although price is a vital concept, it is not separately defined in the Act.
- A buyer has the right to demand delivery of goods if:
a) He has paid the price
b) The goods are ascertained
c) The property has passed
d) All of the above
Answer: d) All of the above
Explanation: The buyer’s right to demand delivery depends on payment, ascertainment, and property transfer.
