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).