MCQs on The Sale of Goods Act, 1930

Q.1:- Where the price is not determined by the parties to the contract of sale of goods, what price shall be paid by the buyer:

• The buyer shall pay the seller a reasonable price.
• The buyer shall determine the price at his discretion.
• The seller shall determine the price at his discretion.
• The seller shall charge the price according the market forces.

Q.2:- When a seller can stop the goods in transit:

• When the buyer of the goods informs that he will make payment after some time.
• The seller has no right to stop the goods in transit.
• When the buyer of goods becomes insolvent and goods are in transit.
• When the buyer informs that he is now not in need of the goods.

Q.3:- Where there is a contract for the sale of specific or ascertained goods the property in them is transferred to the buyer:

• At such time as the parties to the contract intend it to be transferred
• At such time as the buyer only intend it to get it transferred.
• It depends upon the circumstances of the case.
• At such time as the seller only intend it to transfer to the buyer.

Q.4:- A seller of goods shall be deemed to be an “unpaid seller”:

• When a bill of exchange or other negotiable instrument has been received as conditional payment, and the condition on which it was received has not been fulfilled by reason of the dishonour of the instrument or otherwise.
• A seller who has obtained money decree for the price of the goods is still an unpaid seller, if the decree has not been satisfied.
• When the whole of the price has not been paid or tendered.
• All of the above.

Q.5:- When a buyer can sue the seller:

• He may ask for the specific performance, if this being the part of the contract.
• He may initiate for the breach of the warranty.
• He may initiate suit for delivery of the goods, if not delivered.
• All of the above.

Q.6:- A condition is a stipulation to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated.

• Not essential
• Not collateral
• Essential
• Collateral

Q.7:- Goods may be:

• Future
• Contingent
• Existing
• All of the above

Q.8:- The Act relating to the sale of goods is called:

• The Sale of Goods Act, 1930
• The Selling of Goods Act, 1930
• The Sale of Goods Act, 1830
• The Goods Selling Act, 1930

Q.9:- The contract of sale may provide for:

• The immediate payment of the price.
• The delivery or payment by installments, or that the delivery or payment or both shall be postponed
• The immediate delivery of the goods.
• All of the above.

Q.10:- An implied condition on the part of the seller that, in the case of a sale, and that, in the case of an agreement to sell,

• he has a right to sell the goods/he may have a right to sell the goods at the time when the property is to pass.
• he has a right to sell the goods/he will have a right to sell the goods at the time when the property is to pass.
• he will have a right to sell the goods at the time when the property is to pass/he has a right to sell the goods.
• he may have a right to sell the goods at the time when the property is to pass/he ha a right to sell the goods.

Q.11:- In a contract of sale of goods the seller is under no duty to reveal unflattering truths about the goods sold. This doctrine is called as:

• Doctrine of indoor management
• Caveat Emptor
• Unjust enrichment
• Doctrine of ultra vires

Q.12:- The unpaid seller of goods, having a lien thereon, ___________by reason only that he has obtained a decree for the price of the goods:

• Does not lose his lien
• Lien cannot be exercised after getting the decree.
• Losses his right of lien
• None of the above.

Q.13:- When a seller can sue the buyer:

• He may ask for the damages for non• cooperation of the goods.
• Suit for damages for repudiation of the contract.
• He may sue for the price and interest.
• All of the above.

Q.14:- Where there is an agreement to sell goods on the terms that the price is to be fixed by the valuation of a third party and such third party cannot or does not make such valuation, the agreement is thereby:

• Voidable
• Illegal
• Avoided.
• Bad

Q.15:- The Sale of Goods Act, 1930 came into force on:

• 1st day of August, 1930
• 1st day of September, 1930
• 1st day of July, 1930
• 1st day of June, 1930

Q.16:- A contract of sale may be made:

• Partly in writing and partly by word of mouth
• It may be implied from the conduct of the parties.
• In writing or by word of mouth
• All of the above.

Q.17:- The conditions and warranties in a sale of goods may be:

• Express or implied
• Express
• Implied
• None of the above.

Q.18:- How stoppage in transit is effected by the unpaid seller:

• By giving notice of his claim to the carrier in whose possession the goods are
• By giving notice of his claim to the other bailee in whose possession the goods are
• By taking actual possession of the goods.
• All of the above.

Q.19:- Where there is a contract for the sale of goods by description, there is an implied condition that:

• If the sale is by sample as well as by description, the goods must correspond both with the sample and with the description.
• The goods shall correspond with the description.
• Both A and B are correct
• None of the above.

Q.20:- A lien can be exercised by the unpaid seller only:

• When the ownership right relating to goods have transferred to the buyer.
• When the goods are still in possession of the un-paid seller.
• When the goods have been transported through the carrier made available by the buyer.
• When the goods have delivered to the buyer.

Q.21:- Where there is an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods passes to the buyer:

• When the seller offer to delivery the goods to the buyer.
• When the contract is made.
• When the delivery of the goods is taken by the buyer.
• When payment is made by the buyer.

Q.22:- In what circumstances an unpaid seller, who have possessions of the goods, may exercise lien over the goods:

• Where the goods have been sold on credit, but the term of credit has expired.
• Where the buyer becomes insolvent.
• Where the goods have been sold without any stipulation as to credit.
• All of the above.

Q.23:- A warranty is a stipulation __________________to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated.

• Not collateral
• Collateral
• Not essential
• Essential

Q.24:- Where there is a contract for the sale of specific goods, if the goods without the knowledge of the seller have, at the time when the contract was made, perished or become so damaged as no longer to answer to their description in the contract.

• the contract is bad
• the contract is illegal
• the contract is void
• the contract is voidable

Q.25:- The Sale of Goods Act, 1930 extends to:

• The whole of India( Except the Union Territories)
• The State of Jammu & Kashmir
• The whole of India(except the State of Jammu & Kashmir)
• The whole of India

Q.26:- Transfer of immovable property is regulated by:

• The Indian Contract Act, 1872
• The Sale of Goods Act, 1930
• The Transfer of Property Act, 1882
• None of the above

Q.27:- The price in a contract of sale may be:

• Left to be fixed in an agreed manner
• Determined by the course of dealing between the parties.
• Fixed by the contract itself
• All of the above

Q.28:- Whether the stipulation of time in a contract of sale of goods is essential:

• Time is not the essence in the contract of sale of goods, unless a different intention appears from the contract.
• Time may be of the essence of the contract but this essentially depends on the terms of the contract.
• Time is the essence in the contract of sale of goods.
• Both B and C are correct.

Q.29:- There is an implied undertaking in a contract of sale of goods that:

• The goods shall be free from any charge or encumbrance.
• The buyer shall have and enjoy quiet possession of the goods.
• Both A and B are correct
• None of the above

Q.30:- What are the rights of an unpaid seller:

• a right of re-sale as limited by this Act.
• a lien on the goods for the price while he is in possession of them
• in case of the insolvency of the buyer a right of stopping the goods in transit after he has parted with the possession of them.
• All of the above.

Q.31:- A stipulation in a contract of sale with reference to goods which are the subject thereof may be:

• A condition or warranty
• A conditions and warranty both
• A warranty
• A condition

Q.32:- The existing goods may be:

• Unascertained
• Specific or generic
• As certained
• All of the above

Q.33:- “Specific goods” means:

• Goods identified and agreed when actual sale is made.
• Goods identified and agreed upon at the time a contract of sale is made.
• Goods to be identified only when the buyer is making cash purchases.
• Goods identified at the time a contract of sale is made.

Q.34:- Where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called, but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called

• A Sale/an agreement to sell
• Conditional sale/ absolute sale
• An agreement to sell/sale
• Absolute sale/conditional sale

Q.35:- A contract of sale of goods is a contract whereby the seller:

• Transfers or agrees to transfer the property in goods to the buyer for a price. There may be a contract of sale between one part- owner and another.
• Transfers or agrees to transfer the property in goods to the buyer for a price.
• Transferred or agreed to transfer the property in goods to the buyer for a price. There may be a contract of sale between one part-owner and another.
• Actual transfers of the property in goods to the buyer for a price.

Q.36:- Future goods’ means:

• Goods to be manufactured or acquired from the third person by the seller after making of the contract of sale.
• Goods to be manufactured or produced or acquired by the seller after making of the contract of sale.
• Goods to be manufactured or produced by the seller after making of the contract of sale.
• Goods to be acquired by the seller after making of the contract of sale.

Q.37:- “Mercantile agent” means:

• A mercantile agent having in the customary course of business as such agent authority either to sell goods, or to consign goods for the purposes of sale.
• A mercantile agent having in the customary course of business as such agent authority either to sell goods, or to consign goods for the purposes of sale, or to buy goods, or to raise money on the security of goods.
• A mercantile agent having in the customary course of business as such agent authority either to sell goods.
• A mercantile agent having in the customary course of business as such agent authority either to sell goods, or to consign goods for the purposes of sale, or to buy goods.

Q.38:- In the case of a contract for sale by sample there is an implied condition:

• That the buyer shall have a reasonable opportunity of comparing the bulk with the sample;
• That the goods shall be free from any defect, rendering them unmerchantable, which would not be apparent on reasonable examination of the sample.
• That the bulk shall correspond with the sample in quality;
• All of the above.

Q.39:- When goods are delivered to the buyer on approval or “on sale or return” or other similar terms, the property therein passes to the buyer:

• if he does not signify his approval or acceptance to the seller but retains the goods without giving notice of rejection, then, if a time has been fixed for the return of the goods, on the expiration of such time,
• if no time has been fixed, on the expiration of a reasonable time.
• when he signifies his approval or acceptance to the seller or does any other act adopting the transaction
• All of the above.

Q.40:- When the lien exercised by the unpaid seller come to an end:

• When the buyer or his agent lawfully obtains possession of the goods.
• By waiver thereof.
• When he delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer without reserving the right of disposal of the goods.
• All of the above.

Q.41:- There is an implied undertaking in a contract of sale of goods that:

• The goods shall be free from any charge or encumbrance.
• The buyer shall have and enjoy quiet possession of the goods.
• Both A and B are correct
• None of the above

Q.42:- An agreement to sell becomes a sale:

• When the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred.
• When the conditions are not fulfilled even after the elapse of time, subject to which the property in the goods is to be transferred
• When the conditions are fulfilled subject to which the property in the goods is to be transferred.
• When the time elapses or the conditions are fulfilled.

Q.43:- When the goods are said to be in a “delivered state”:

• When the seller is ready to deliver the goods.
• When they are in such state that the buyer would under the contract be bound to take delivery of them.
• When the seller and buyer both are ready give and take the possession of the goods.
• When the buyer is ready to purchase the goods.