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.