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.