Sale of Goods Act 1930 - sale of goods, conditions and warranties, transfer of property, performance of contract of sale, rights of an unpaid seller - Question Bank

1. Which section deals with the buyer's right to sue for specific performance?
A) Section 55
B) Section 56
C) Section 57
D) Section 58
2. Which section deals with the buyer's right to sue for damages for non-delivery?
A) Section 55
B) Section 56
C) Section 57
D) Section 58
3. When can an unpaid seller claim interest on the amount of price from the buyer?
A) When the seller has demanded interest.
B) When the contract expressly provides for interest.
C) When the buyer has wrongly neglected or refused to pay the price.
D) From the date of delivery of goods.
4. What is the consequence of the buyer's wrongful refusal to accept goods?
A) The seller can claim the price.
B) The seller can claim damages for non-acceptance.
C) The seller must resell the goods.
D) The contract is automatically terminated.
5. In case of breach of contract by the seller, the buyer can sue for:
A) Specific performance.
B) Damages for non-delivery.
C) Return of price.
D) All of the above.
6. If the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller may sue him for:
A) The price of the goods.
B) Damages for non-acceptance.
C) Specific performance of the contract.
D) Loss of profit.
7. An unpaid seller can sue the buyer for damages if the buyer wrongfully neglects or refuses to accept and pay for the goods. This is known as:
A) Suit for price
B) Suit for interest
C) Suit for damages
D) Suit for repudiation
8. Which of the following is a right of an unpaid seller against the buyer personally?
A) Right of lien
B) Right of stoppage in transit
C) Suit for price
D) Right of resale
9. If an unpaid seller resells the goods, the new buyer acquires good title as against the original seller, provided:
A) The resale is done without notice to the original buyer.
B) The new buyer acts in good faith and without notice of the breach of contract by the original buyer.
C) The resale is done at a higher price.
D) The original buyer has become insolvent.
10. An unpaid seller can resell the goods under certain circumstances. Which of the following is NOT a condition for resale?
A) The goods are of a perishable nature.
B) The unpaid seller has expressly reserved a right of resale in the contract.
C) The buyer has failed to perform his part of the contract and the seller has given notice to the buyer of his intention to resell.
D) The seller has already parted with the possession of the goods.
11. For how long does the right of stoppage in transit last?
A) Until the goods reach the buyer's destination.
B) Until the goods reach the final destination agreed upon.
C) Until the carrier or bailee acknowledges to the buyer that he holds the goods on his behalf.
D) Until the buyer takes delivery or the transit ends.
12. The right of stoppage in transit is available to an unpaid seller when:
A) The seller has already parted with the possession of the goods.
B) The goods are in the course of transit.
C) The buyer has become insolvent.
D) All of the above
13. When does the unpaid seller's right of lien get terminated?
A) When he delivers the goods to a carrier or other bailee for transmission to the buyer.
B) When the buyer obtains lawful possession of the goods.
C) By waiver thereof expressed or implied.
D) All of the above
14. The unpaid seller's right of lien is the right to:
A) Stop the goods while they are in transit.
B) Retain possession of the goods until payment or tender of the price.
C) Resell the goods.
D) Claim damages from the buyer.
15. Which of the following is NOT a right of an unpaid seller against the goods?
A) Right of lien
B) Right of stoppage in transit
C) Right of resale
D) Right to sue for damages
16. A seller is considered 'unpaid' if:
A) The whole price has not been paid or tendered.
B) A bill of exchange or other negotiable instrument has been received as conditional payment, and the condition on which it was received has been broken.
C) Both (a) and (b).
D) The goods have been rejected by the buyer.
17. An unpaid seller is defined under which section of the Act?
A) Section 45
B) Section 46
C) Section 47
D) Section 48
18. When does the buyer's duty to accept and pay arise?
A) As per terms of the contract.
B) Upon delivery of goods.
C) Upon payment of price.
D) When the contract is made.
19. Which section deals with the buyer's duty to accept and pay for the goods?
A) Section 31
B) Section 32
C) Section 33
D) Section 34
20. What is the general rule regarding the place of delivery?
A) At the buyer's place.
B) At the seller's place.
C) As per contract terms.
D) At the nearest railway station.
21. When is the buyer bound to accept goods when mixed with different goods?
A) Always.
B) Never.
C) If the contract specifies.
D) If the buyer accepts the whole consignment.
22. If the seller delivers fewer goods than ordered, the buyer may:
A) Accept the goods delivered.
B) Reject the goods delivered.
C) Accept the goods delivered and pay for them at the contract rate.
D) Accept the goods delivered and pay for them at market rate.
23. If the seller delivers more goods than ordered, the buyer may:
A) Accept the whole.
B) Reject the excess goods.
C) Accept the contract quantity and reject the excess.
D) Any of the above.
24. Which section deals with the rules as to delivery of goods?
A) Section 31
B) Section 32
C) Section 33
D) Section 34
25. What is the seller's duty regarding delivery of goods?
A) To deliver the goods as per the contract terms.
B) To deliver the goods immediately after payment.
C) To deliver the goods only upon buyer's demand.
D) To deliver the goods at the seller's convenience.
26. Under the Act, 'delivery' means:
A) Actual transfer of possession.
B) Voluntary transfer of possession from one person to another.
C) Symbolic transfer of possession.
D) Constructive transfer of possession.
27. Which rule governs the transfer of property when goods are sent on approval or 'on sale or return'?
A) Rule 1
B) Rule 2
C) Rule 3
D) Rule 4
28. Rule 1 of Section 20 states that in a sale of specific goods, property passes:
A) On delivery.
B) When the contract is made.
C) When the price is paid.
D) When the goods are ascertained.
29. Property in specific or ascertained goods passes:
A) When the contract is made.
B) When the goods are appropriated to the contract.
C) When intended to pass, subject to terms and conditions.
D) When delivered.
30. When does property pass in the case of unascertained goods?
A) Immediately upon the making of the contract of sale.
B) When the goods are ascertained and appropriated to the contract.
C) When the goods are delivered to the buyer.
D) When the price is paid in full.
31. The rules regarding the transfer of property from seller to buyer are laid down in which part of the Act?
A) Sections 18 to 25
B) Sections 26 to 30
C) Sections 31 to 36
D) Sections 37 to 40
32. The transfer of property (ownership) in goods occurs:
A) When the contract of sale is made.
B) When the goods are delivered.
C) When the price is paid.
D) When the property is intended to pass according to the intention of the parties.
33. In a sale by sample, which of the following is an implied condition?
A) The bulk will correspond with the sample in quality.
B) The buyer shall have a reasonable opportunity of comparing the bulk with the sample.
C) The goods shall be free from any defect rendering them unmerchantable, which would not be apparent on reasonable examination of the sample.
D) All of the above
34. Which section deals with the implied condition relating to sale by description?
A) Section 14
B) Section 15
C) Section 16
D) Section 17
35. When does the condition as to fitness for a particular purpose apply?
A) When the buyer relies on the seller's skill or judgment.
B) When the goods are sold under a patent or trade name.
C) When the defect is obvious upon examination.
D) When the goods are sold by description.
36. The implied condition that goods shall be of merchantable quality applies when:
A) The buyer has examined the goods.
B) The seller sells goods in the ordinary course of business.
C) The buyer expressly states the purpose for which the goods are required.
D) The goods are sold by sample.
37. Which section deals with the implied condition as to merchantable quality?
A) Section 14
B) Section 15
C) Section 16
D) Section 17
38. The doctrine of 'caveat emptor' means:
A) Let the seller beware.
B) Let the buyer beware.
C) Let the goods be beware.
D) Let the contract be beware.
39. The implied condition that the seller has the right to sell the goods is covered under which section of the Act?
A) Section 14(a)
B) Section 14(b)
C) Section 15
D) Section 16
40. Under the Sale of Goods Act, 1930, which of the following is an implied condition?
A) Condition as to merchantable quality
B) Condition as to fitness for a particular purpose
C) Condition as to title
D) All of the above
41. If a warranty is broken, the injured party can:
A) Reject the goods and repudiate the contract.
B) Claim damages only.
C) Claim damages and reject the goods.
D) Treat the contract as void.
42. If a condition is broken, the injured party can:
A) Claim damages only.
B) Reject the goods and repudiate the contract.
C) Claim damages and reject the goods, but not repudiate the contract.
D) Only claim damages if the goods have been accepted.
43. What is a 'warranty' in a contract of sale?
A) A stipulation essential to the main purpose of the contract.
B) A stipulation collateral 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.
C) A condition that can be treated as a warranty.
D) An express term agreed upon by both parties.
44. What is a 'condition' in a contract of sale?
A) A stipulation collateral to the main purpose of the contract.
B) A stipulation essential to the main purpose of the contract, the breach of which may give rise to a right to treat the contract as repudiated.
C) A minor term of the contract.
D) A term that is implied by law but not expressly stated.
45. Under the Sale of Goods Act, 1930, 'goods' are defined to include:
A) Every kind of movable property, excluding actionable claims and money.
B) Every kind of movable property, including actionable claims but excluding money.
C) Every kind of movable property, including money but excluding actionable claims.
D) Every kind of movable and immovable property.
46. Which of the following is NOT an essential element of a contract of sale?
A) There must be two or more parties.
B) There must be a transfer of property (ownership) in goods.
C) The goods must be movable.
D) There must be a price paid or promised.
47. What is the primary difference between a 'sale' and an 'agreement to sell' under the Act?
A) In a sale, property passes immediately; in an agreement to sell, it passes later.
B) In a sale, price is paid; in an agreement to sell, price is deferred.
C) In a sale, goods are delivered; in an agreement to sell, goods are not delivered.
D) In a sale, there is a written contract; in an agreement to sell, it can be oral.
48. According to the Sale of Goods Act, 1930, a contract of sale includes which of the following?
A) Only sale
B) Only agreement to sell
C) Both sale and agreement to sell
D) Hire-purchase agreement
49. Which section of the Sale of Goods Act, 1930 defines a 'contract of sale'?
A) Section 3
B) Section 4
C) Section 5
D) Section 6
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