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.