Mcqs on sales of goods act
1930 with Answers
1) When did the sales of Goods Act, 1930 came into
force?
A) 1 April 1982
B) 1 March 1936
C) 01 May 1989
D) 01 July 1930
Answer –D) 01 July 1930
2) Which section of the sales of Goods Act, 1930 deals
with Risk prima facie passes with the property?
A. Section 21 of the sales of Goods Act, 1930
B. Section 26 of the sales of Goods Act, 1930
C. Section 4 of the sales of Goods Act, 1930
D. Section 20 of the sales of Goods Act, 1930
Answer B. Section 26 of the sales of Goods Act, 1930
3) Which section of the sales of Goods Act, 1930 defined
buyer__ ?
A. Section 2(1) of the sales of Goods Act, 1930
B. Section 2 (10) of the sales of Goods Act, 1930
C. Section 2(5) of the sales of Goods Act, 1930
Answer – A. Section 2(1) of the sales of Goods Act,
1930
4) Section 13 of the sales of Goods Act, 1930 deals
with_______?
A. When condition to be treated as warranty
B. Sale by sample.
C. Existing or future goods
D. Ascertainment of price
Ans-A. When condition to be treated as warranty
5.Contract of sale how made are provided in section____
of the sales of Goods Act, 1930
A. Section 4 of the sales of Goods Act, 1930
B. Section 1 of the sales of Goods Act, 1930
C. Section 5 of the sales of Goods Act, 1930
D. Section 2 of the sales of Goods Act, 1930
Ans- C. Section 5 of the sales of Goods Act, 1930
6.Section 35 of the sales of Goods Act, 1930 provides _?
A. Buyer to apply for delivery
B. Buyer not bound to return rejected goods
C. Delivery to carrier or wharfinger
D. Duties of seller and buyer.
Ans- A. Buyer to apply for delivery
7.Which section of the sales of Goods Act, 1930 deals
with the suit for price ?
A. Section 21 of the sales of Goods Act, 1930
B. Section 31 of the sales of Goods Act, 1930
C. Section 55 of the sales of Goods Act, 1930
D. Section 29 of the sales of Goods Act, 1930
Answer – C. Section 55 of the sales of Goods Act, 1930
8.Section 18 of the sales of Goods Act, 1930
deals_______?
A. Goods must be ascertained
B. Ascertainment of price
C. Implied undertaking as to title
D. Existing or future goods
Ans- A. Goods must be ascertained
9) Which section of the sales of Goods Act, 1930 deals
with the Buyer’s right of examining the goods. ?
A. Section 22 of the sales of Goods Act, 1930
B. Section 41 of the sales of Goods Act, 1930
C. Section 43 of the sales of Goods Act, 1930
D. Section 45 of the sales of Goods Act, 1930
Answer B. Section 41 of the sales of Goods Act, 1930
10) Section 14 of the sales of Goods Act, 1930deals
with_______?
A. Delivery to carrier or wharfinger
B.Agreement to sell at valuation.
C. Implied undertaking as to title
D. Unpaid seller’s rights
Answer- C. Implied undertaking as to title
Question 11
Sale of Goods Act 1979 implied various terms into contracts for the sale of
goods but what type of goods are not included under the Act?
Your answer:
c) Land.
Feedback:
The Sale of Goods Act 1979 applies to contracts for future goods which include
crops but does not include land.
Question 12
Which one of the following statements is correct?
Your answer:
c) The Sale of Goods Act 1979 applies to contracts for the sale of goods where
ownership is to be transferred immediately from the seller to the buyer and to
contracts where the seller agrees to transfer ownership at a later date.
Feedback:
The Sale of Goods Act 1979 applies to agreements to sell where ownership
passes at a later date. Where a price is not specified the buyer must pay a
reasonable price.
Question 13
Which one of the following terms is not implied into contracts for the sales of
goods in a private sale?
Your answer:
b) The goods are of satisfactory quality.
Feedback:
A terms relating to satisfactory quality is only implied into contracts where the
goods are sold by a seller acting in the course of a business.
Question 14
In a consumer contract goods must be of satisfactory quality except:
Your answer:
c) When the defect is drawn to the attention of the buyer.
Feedback:
What is satisfactory quality can vary depending on price etc. but second -hand
goods and sale goods are included.
Question 15
Deepa bought an electric bike from "Great Bikes Ltd" telling the sales assistant
that she knew nothing about bikes but wanted a bike suitable for riding on
rough terrain. She bought the bike recommended by the assistant, however,
although the bike was fine around town, the wheels and frame bent the first
time she used it on rough terrain. Her action against "Great Bikes Ltd" would be
for breach of which section of the Sale of Goods Act 1979?
Your answer:
c) 14(3)
Feedback:
Goods must be reasonable fit for their purpose even if it is not a purpose for
which such goods are commonly supplied if the buyer makes the purpose known
to the seller.
Question 16
Alice enters into a carpet shop and chooses a purple carpet from a sample which
is labeled 100% wool. She buys the carpet but the carpet that is delivered is
blue and 80% wool. There is a breach of which sections of the Sale of Goods Act
1979?
Your answer:
d) Sections 13 and 15
Feedback:
It is a sale by sample (15) and description (13).
Question 17
Which one of the following statements is incorrect?
Your answer:
c) Ownership of goods always passes when physical possession passes to the
buyer.
Feedback:
Ownership of goods passes when the parties intend it to pass which does not
have to be at the same time that physical possession passes.
Question 18
A reservation of title clause is:
Your answer:
a) A clause in a contract of sale retaining title of goods until payment has been
made.
Feedback:
In the commercial world goods are often supplied on credit, and in recent years
there has been an increasing business practice to incorporate 'reservation of
title clauses into contracts. The seller protects himself by adding a clause to the
contract of sale retaining title of the goods until payment has been made.
Question 19
Under the Sale of Goods Act the seller has a duty to deliver the goods to the
buyer. What is the legal meaning of 'delivery'?
Your answer:
b) The voluntary transfer of possession from one person to another.
Feedback:
The seller has a duty to ensure the goods are in a state to be dispatched but not
to do the actual delivery unless that is what is agreed in the contract. Ownership
does not necessarily pass with possession.
Question 20
Under the Supply of Goods and Services Act 1982 the term implied into the
contract that the supplier will carry out the service with reasonable case and
skills is treated as a:
Your answer:
c) Innominate term.
Feedback:
Implied terms relating to the sale of goods are conditions but implied terms
relating to the supply of services are innominate terms.
Sales of Goods ACT 1930
1. The Sale of Goods Act, 1930 came into force on
A. 1st day of july 1930
B. 1st day of january 1930
C. 1st day of august 1930
D. 1st day of september 1930
Discussion
A. 1st day of july 1930
2. Which law governs the sale of movable property in
India?
A. transfer of property act, 1872
B. sale of goods act, 1930
C. indian contract act, 1872
D. all of the above
Discussion
B. sale of goods act, 1930
3. A contract of sale may be
A. oral
B. written
C. always expressed
D. either (a) & (b)
Discussion
D. either (a) & (b)
4. ‘Delivery’ within the meaning of the Sale of Goods Act
can be
A. symbolic
B. actual
C. actual
D. either (a) or (b) or (c)
Discussion
D. either (a) or (b) or (c)
5. The term ‘possession of goods’ means
A. ownership of goods
B. custody of goods
C. both (a) & (b)
D. none of these
Discussion
B. custody of goods
6. The term ‘Goods’ in the Sale of Goods Act means
A. subject matter of the contract of sale
B. specific goods only
C. ascertained goods only
D. unascertained goods only
Discussion
A. subject matter of the contract of sale
7. The goods which are to be produced by the seller after
the contract of sale is made areknown as
A. contingent goods
B. unascertained goods
C. future goods
D. none of the above
Discussion
C. future goods
8. Where money is exchanged by one person for some
money with another person, thetransaction is known as
A. barter
B. exchange
C. money sale
D. none of the above
Discussion
B. exchange
9. A Sale of Goods under the Sale of Goods Act, 1930
includes
A. a jus in personam
B. a jus in rem
C. both (a) & (b)
D. neither (a) & (b)
Discussion
B. a jus in rem
10. Where no price is fixed by express agreement, the
buyer shall pay the seller
A. lowest price
B. reasonable price
C. suitable price
D. adhoc price
Discussion
B. reasonable price
11. A stipulation in a contract may be
A. condition
B. warranty
C. neither (a) & (b)
D. both (a) & (b)
Discussion
D. both (a) & (b)
12. A ‘Condition’ under the Sale of Goods Act has been
defined as a stipulation
A. collateral to the main purpose of the contract
B. main purpose of contract
C. essential to the main purpose of the contract
D. all of the above
Discussion
C. essential to the main purpose of the contract
13. Which of the following is correct?
A. a condition is a stipulation, not essential to the main purpose of the
contract.
B. a warranty is a stipulation, collateral to the main purpose of the contract.
C. breach of a warranty, gives rise to a right to treat the contract as repudiat
Discussion
B. a warranty is a stipulation, collateral to the main purpose of the contract.
14. When the buyer’s right of quiet possession of goods is
affected by the seller’s fault, thebuyer can
A. reject the goods
B. claim for damages
C. repudiate the contract
D. all of the above
claim for damages
15. The buyer shall have and enjoy quiet possession of
goods. This is an __________
A. implied warranty as to title
B. implied condition as to title
C. implied warranty as to possession
D. implied condition as to possession
Discussion
C. implied warranty as to possession
16. The general rule is that the buyer of goods is
responsible for his choice or selection. Thisdoctrine is
A. ignorantia juris non excusat
B. quid pro quo
C. nemo dat quad non habet
D. caveat emptor
Discussion
D. caveat emptor
17. The process of identifying the goods and setting apart
is called
A. identification
B. procurement
C. ascertainment
D. allocation
Discussion
C. ascertainment
18. ‘Nemo Dat Quod Non Habet’ means
A. no man can pass a better title than what he himself possesses.
B. let the buyer beware.
C. void from the beginning.
D. ignorance of law is no excuse.
Discussion
A. no man can pass a better title than what he himself possesses.
19. According to the Sale of Goods Act ‘fault’ means
A. refusal to pay price
B. refusal to deliver goods
C. any wrongful act or default
D. any fraud
Discussion
C. any wrongful act or default
20. An unpaid seller loses his right of lien in case of
A. delivery of goods to buyer
B. delivery of goods to carrier or wharfinger
C. tender of price by buyer
D. any of the above
Discussion
D. any of the above
21. An unpaid seller can exercise his right of stoppage of
goods in transit
A. by giving notice to the carrier
B. by taking actual possession of the goods
C. by notice of his claim to the bailee who is in possession of the goods
D. either (a) or (b) or (c)
Discussion
D. either (a) or (b) or (c)
22. Auction sale is also known as
A. public sale
B. private sale
C. cash sale
D. none of the above
Discussion
A. public sale
23. Where the seller appoints his person to bid at the
auction sale without informing to bidder, itis called as
A. prepared bidding
B. pretend bidding
C. power bidding
D. both (a) & (c)
Discussion
B. pretend bidding
24. In contract through sea route, where the seller has to
put the goods on board a ship at hisown expenses, the
contract is known as
A. cif contract
B. fob contract
C. board obligatory contract
D. ex-ship contract
Discussion
B. fob contract
25. In a contract through sea route where the seller has to
deliver the goods to the buyer at theport of destination
A. fob contract
B. cif contract
C. ex-ship contract
D. destination contract
Discussion
C. ex-ship contract
Sales of Goods ACT 1930 solved MCQs
in Business Regulations
Business Laws and Special Contracts
» Sales of Goods ACT 1930
IT ACT 2000
1 of 3 sets
chapter: Sales of Goods ACT 1930
1. The Sale of Goods Act, 1930 came into force on
A. 1st day of july 1930
B. 1st day of january 1930
C. 1st day of august 1930
D. 1st day of september 1930
Discussion
A. 1st day of july 1930
2. Which law governs the sale of movable property in
India?
A. transfer of property act, 1872
B. sale of goods act, 1930
C. indian contract act, 1872
D. all of the above
Discussion
B. sale of goods act, 1930
3. A contract of sale may be
A. oral
B. written
C. always expressed
D. either (a) & (b)
Discussion
D. either (a) & (b)
4. ‘Delivery’ within the meaning of the Sale of Goods Act
can be
A. symbolic
B. actual
C. actual
D. either (a) or (b) or (c)
Discussion
D. either (a) or (b) or (c)
5. The term ‘possession of goods’ means
A. ownership of goods
B. custody of goods
C. both (a) & (b)
D. none of these
Discussion
B. custody of goods
6. The term ‘Goods’ in the Sale of Goods Act means
A. subject matter of the contract of sale
B. specific goods only
C. ascertained goods only
D. unascertained goods only
Discussion
A. subject matter of the contract of sale
7. The goods which are to be produced by the seller after
the contract of sale is made areknown as
A. contingent goods
B. unascertained goods
C. future goods
D. none of the above
Discussion
C. future goods
8. Where money is exchanged by one person for some
money with another person, thetransaction is known as
A. barter
B. exchange
C. money sale
D. none of the above
Discussion
B. exchange
9. A Sale of Goods under the Sale of Goods Act, 1930
includes
A. a jus in personam
B. a jus in rem
C. both (a) & (b)
D. neither (a) & (b)
Discussion
B. a jus in rem
10. Where no price is fixed by express agreement, the
buyer shall pay the seller
A. lowest price
B. reasonable price
C. suitable price
D. adhoc price
Discussion
B. reasonable price
11. A stipulation in a contract may be
A. condition
B. warranty
C. neither (a) & (b)
D. both (a) & (b)
Discussion
D. both (a) & (b)
12. A ‘Condition’ under the Sale of Goods Act has been
defined as a stipulation
A. collateral to the main purpose of the contract
B. main purpose of contract
C. essential to the main purpose of the contract
D. all of the above
Discussion
C. essential to the main purpose of the contract
13. Which of the following is correct?
A. a condition is a stipulation, not essential to the main purpose of the
contract.
B. a warranty is a stipulation, collateral to the main purpose of the contract.
C. breach of a warranty, gives rise to a right to treat the contract as repudiat
Discussion
B. a warranty is a stipulation, collateral to the main purpose of the contract.
14. When the buyer’s right of quiet possession of goods is
affected by the seller’s fault, thebuyer can
A. reject the goods
B. claim for damages
C. repudiate the contract
D. all of the above
Discussion
B. claim for damages
15. The buyer shall have and enjoy quiet possession of
goods. This is an __________
A. implied warranty as to title
B. implied condition as to title
C. implied warranty as to possession
D. implied condition as to possession
Discussion
C. implied warranty as to possession
16. The general rule is that the buyer of goods is
responsible for his choice or selection. Thisdoctrine is
A. ignorantia juris non excusat
B. quid pro quo
C. nemo dat quad non habet
D. caveat emptor
Discussion
D. caveat emptor
17. The process of identifying the goods and setting apart
is called
A. identification
B. procurement
C. ascertainment
D. allocation
Discussion
C. ascertainment
18. ‘Nemo Dat Quod Non Habet’ means
A. no man can pass a better title than what he himself possesses.
B. let the buyer beware.
C. void from the beginning.
D. ignorance of law is no excuse.
Discussion
A. no man can pass a better title than what he himself possesses.
19. According to the Sale of Goods Act ‘fault’ means
A. refusal to pay price
B. refusal to deliver goods
C. any wrongful act or default
D. any fraud
Discussion
C. any wrongful act or default
20. An unpaid seller loses his right of lien in case of
A. delivery of goods to buyer
B. delivery of goods to carrier or wharfinger
C. tender of price by buyer
D. any of the above
Discussion
D. any of the above
21. An unpaid seller can exercise his right of stoppage of
goods in transit
A. by giving notice to the carrier
B. by taking actual possession of the goods
C. by notice of his claim to the bailee who is in possession of the goods
D. either (a) or (b) or (c)
Discussion
D. either (a) or (b) or (c)
22. Auction sale is also known as
A. public sale
B. private sale
C. cash sale
D. none of the above
Discussion
A. public sale
23. Where the seller appoints his person to bid at the
auction sale without informing to bidder, itis called as
A. prepared bidding
B. pretend bidding
C. power bidding
D. both (a) & (c)
Discussion
B. pretend bidding
24. In contract through sea route, where the seller has to
put the goods on board a ship at hisown expenses, the
contract is known as
A. cif contract
B. fob contract
C. board obligatory contract
D. ex-ship contract
Discussion
B. fob contract
25. In a contract through sea route where the seller has to
deliver the goods to the buyer at theport of destination
A. fob contract
B. cif contract
C. ex-ship contract
D. destination contract
Discussion
C. ex-ship contract
1. The Sale of Goods Act was enacted in
1. 1930
2. 1872
3. 1932
4. 1956
5. 2002
Hide answer
Correct Option: A
Explanation:
The Sale of Goods Act was effective from 1st July 1930 in whole of India, except
Jammu and Kashmir.
2. ABC Ltd. purchased perishable goods from Mohan Bros. by description. Prior to
two days from the date of delivery, the goods get damaged. Which of the following
is correct regarding the relief that the seller can enjoy?
1. Seller is not liable.
2. Seller is partially liable.
3. Contract is void.
4. Contract is voidable.
5. Contract can be avoided by giving voidable option to buyer for contract.
Hide answer
Correct Option: E
Explanation:
As per provisions of the Sale of Goods Act, 1930, a buyer can enjoy a voidable
option if he is satisfied with the words of seller that he is not responsible for product
position.
3. Which of the following is a feature of an agreement to sell, instead of a contact
of sale?
1. Transferring the goods to buyer
2. Fulfillment of a condition
3. Transfer of ownership
4. Contract may be absolute or conditional.
5. Goods
Hide answer
Correct Option: B
Explanation:
An agreement to sale becomes sale if the condition is fulfilled or a buyer satisfies it.
4. Which of the following is a reasonable manner to determine the price under
contract of sale?
1. Fixed in contract
2. Fluctuations in market
3. Negotiations
4. Buyer's perception
5. Seller's perception
Hide answer
Correct Option: A
Explanation:
The parties decide a price or manner of determining price at the time of contract.
5. An agreement to sell shall be made for which of the following kinds of goods?
1. Existing goods
2. Future goods
3. Intermediate goods
4. Finished goods
5. Perishable goods
Hide answer
Correct Option: B
Explanation:
They are the goods which are available as a sample with suitable modifications and
add-ons in future at the time of contract of sale.
6. Which of the following is a stipulation collateral to the main purpose of the
contract?
1. Condition
2. Warranty
3. Repair and maintenance
4. Guarantee
5. Replacement
Hide answer
Correct Option: B
Explanation:
A warranty is a stipulation collateral to the main purpose of the contract.
7. Asha purchased goods by making full payment from Minocha Enterprises due to
a threat enforced on her by her husband. Which of the following essential elements
of a contract is missing in the contract of sale?
1. Free consent
2. Two parties
3. Consideration
4. Subject matter must be goods
5. Legal formalities
Hide answer
Correct Option: A
Explanation:
In this case, Asha had not purchased goods by her own will. Therefore, free consent
element is missing.
8. Unpaid seller is entitled to some rights against the goods under the Sale of
Goods Act, 1930. Which of the following is not in the list of rights conferred under
this act?
1. Right of lien
2. Right of resale
3. Right of stoppage in transit
4. Right of suit for price
5. Right to deliver the goods
Hide answer
Correct Option: D
Explanation:
Seller can file a suit for price if goods are manufactured on special order. This right
is available against buyer.
9. Which of the following is/are not essential for a contract of sale?
1. Two parties
2. Price
3. Goods
4. Partnership
5. Delivery of goods
Hide answer
Correct Option: D
Explanation:
It is the agreement between two or more parties to accomplish any project for
purpose of sharing profits. It is not essential to a valid contract of sale.
10. Which of the following remedies is not available in case of breach of contract?
1. Suit for price
2. Damages for non-acceptance
3. Damages for repudiation
4. Damages by way of interest
5. Right of lien
Hide answer
Correct Option: E
Explanation:
The seller can hold the possession of goods if undelivered till the completion of
complete payment. This is a right and not a remedy.
11. Which of the following is an implied condition to sale as per Sale of Goods Act,
1930?
1. Condition as to title
2. Sale by description
3. Condition as to quality or fitness
4. Condition by sample
5. All of the above
Hide answer
Correct Option: E
Explanation:
All of the above are the implied conditions to sale as per Sale of Goods Act, 1930
12. Which of the following must necessarily be the subject matter of a contract of
sale?
1. Goods
2. Services
3. Fictitous assets
4. Immovable property
5. Complete sale
Hide answer
Correct Option: A
Explanation:
Goods means every kind of movable property, other than actionable claims and
money. The act applies on sale of goods only.
13. Which section of Sale of Goods Act, 1930 deals with the definition of unpaid
seller?
1. Section 45
2. Section 24
3. Section 17
4. Section 15
5. Section 4
Hide answer
Correct Option: A
Explanation:
It deals with provisons regarding unpaid seller.
14. Which of the following is not a document of title as per Sale Of Goods Act,
1930?
1. Bill of lading
2. Dock warrant
3. Railway receipt
4. Wharfingers' certificate
5. Bill containing description of quantity and quality of goods only
Hide answer
Correct Option: E
Explanation:
Its not a valid document of title as it does not include the details regarding the holder
of goods carried.
15. Mr. A sold his motorcycle to Mr. B at a price of Rs. 5,00,000. Mr. B made part
payment on the delivery of the motorcycle and promised to pay the rest of the
amount in a month's time from the date of delivery. One month has passed but Mr.
A has not recieved the complete payment. Which of the following remedies can be
suggested to Mr. A?
1. Mr. A can exercise his right of lien.
2. Mr. A may sue him for the price of the goods.
3. Mr. A can exercise the right to resell the goods.
4. Mr. A can exercise the right to stop the goods in transit.
5. Mr. A can exercise the right to sue Mr. B for the damages.
Hide answer
Correct Option: B
Explanation:
This right is available to unpaid seller against buyer. Therefore, Mr. A can sue Mr. B
for the price of the motorcycle.
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1. The Sale of Goods Act was enacted in
1. 1930
2. 1872
3. 1932
4. 1956
5. 2002
Hide answer
Correct Option: A
Explanation:
The Sale of Goods Act was effective from 1st July 1930 in whole of India, except
Jammu and Kashmir.
2. ABC Ltd. purchased perishable goods from Mohan Bros. by description. Prior to
two days from the date of delivery, the goods get damaged. Which of the following
is correct regarding the relief that the seller can enjoy?
1. Seller is not liable.
2. Seller is partially liable.
3. Contract is void.
4. Contract is voidable.
5. Contract can be avoided by giving voidable option to buyer for contract.
Hide answer
Correct Option: E
Explanation:
As per provisions of the Sale of Goods Act, 1930, a buyer can enjoy a voidable
option if he is satisfied with the words of seller that he is not responsible for product
position.
3. Which of the following is a feature of an agreement to sell, instead of a contact
of sale?
1. Transferring the goods to buyer
2. Fulfillment of a condition
3. Transfer of ownership
4. Contract may be absolute or conditional.
5. Goods
Hide answer
Correct Option: B
Explanation:
An agreement to sale becomes sale if the condition is fulfilled or a buyer satisfies it.
4. Which of the following is a reasonable manner to determine the price under
contract of sale?
1. Fixed in contract
2. Fluctuations in market
3. Negotiations
4. Buyer's perception
5. Seller's perception
Hide answer
Correct Option: A
Explanation:
The parties decide a price or manner of determining price at the time of contract.
5. An agreement to sell shall be made for which of the following kinds of goods?
1. Existing goods
2. Future goods
3. Intermediate goods
4. Finished goods
5. Perishable goods
Hide answer
Correct Option: B
Explanation:
They are the goods which are available as a sample with suitable modifications and
add-ons in future at the time of contract of sale.
6. Which of the following is a stipulation collateral to the main purpose of the
contract?
1. Condition
2. Warranty
3. Repair and maintenance
4. Guarantee
5. Replacement
Hide answer
Correct Option: B
Explanation:
A warranty is a stipulation collateral to the main purpose of the contract.
7. Asha purchased goods by making full payment from Minocha Enterprises due to
a threat enforced on her by her husband. Which of the following essential elements
of a contract is missing in the contract of sale?
1. Free consent
2. Two parties
3. Consideration
4. Subject matter must be goods
5. Legal formalities
Hide answer
Correct Option: A
Explanation:
In this case, Asha had not purchased goods by her own will. Therefore, free consent
element is missing.
8. Unpaid seller is entitled to some rights against the goods under the Sale of
Goods Act, 1930. Which of the following is not in the list of rights conferred under
this act?
1. Right of lien
2. Right of resale
3. Right of stoppage in transit
4. Right of suit for price
5. Right to deliver the goods
Hide answer
Correct Option: D
Explanation:
Seller can file a suit for price if goods are manufactured on special order. This right
is available against buyer.
9. Which of the following is/are not essential for a contract of sale?
1. Two parties
2. Price
3. Goods
4. Partnership
5. Delivery of goods
Hide answer
Correct Option: D
Explanation:
It is the agreement between two or more parties to accomplish any project for
purpose of sharing profits. It is not essential to a valid contract of sale.
10. Which of the following remedies is not available in case of breach of contract?
1. Suit for price
2. Damages for non-acceptance
3. Damages for repudiation
4. Damages by way of interest
5. Right of lien
Hide answer
Correct Option: E
Explanation:
The seller can hold the possession of goods if undelivered till the completion of
complete payment. This is a right and not a remedy.
11. Which of the following is an implied condition to sale as per Sale of Goods Act,
1930?
1. Condition as to title
2. Sale by description
3. Condition as to quality or fitness
4. Condition by sample
5. All of the above
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Correct Option: E
Explanation:
All of the above are the implied conditions to sale as per Sale of Goods Act, 1930
12. Which of the following must necessarily be the subject matter of a contract of
sale?
1. Goods
2. Services
3. Fictitous assets
4. Immovable property
5. Complete sale
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Correct Option: A
Explanation:
Goods means every kind of movable property, other than actionable claims and
money. The act applies on sale of goods only.
13. Which section of Sale of Goods Act, 1930 deals with the definition of unpaid
seller?
1. Section 45
2. Section 24
3. Section 17
4. Section 15
5. Section 4
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Correct Option: A
Explanation:
It deals with provisons regarding unpaid seller.
14. Which of the following is not a document of title as per Sale Of Goods Act,
1930?
1. Bill of lading
2. Dock warrant
3. Railway receipt
4. Wharfingers' certificate
5. Bill containing description of quantity and quality of goods only
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Correct Option: E
Explanation:
Its not a valid document of title as it does not include the details regarding the holder
of goods carried.
15. Mr. A sold his motorcycle to Mr. B at a price of Rs. 5,00,000. Mr. B made part
payment on the delivery of the motorcycle and promised to pay the rest of the
amount in a month's time from the date of delivery. One month has passed but Mr.
A has not recieved the complete payment. Which of the following remedies can be
suggested to Mr. A?
1. Mr. A can exercise his right of lien.
2. Mr. A may sue him for the price of the goods.
3. Mr. A can exercise the right to resell the goods.
4. Mr. A can exercise the right to stop the goods in transit.
5. Mr. A can exercise the right to sue Mr. B for the damages.
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Correct Option: B
Explanation:
This right is available to unpaid seller against buyer. Therefore, Mr. A can sue Mr. B
for the price of the motorcycle.
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