SALE OF GOODS ACT, 1930

Q.1. What is the purpose behind the enactment of Sale of Goods Act, 1930

A To defie the laws telating to the s ale of ngoods

B To cois olidate aid ameid the laws telating to the s ale of ngoods
C To cois olidate, ameid aid defie the laws telating to the s ale of ngoods
D To defie aid ameid the laws telating to the s ale of ngoods

Q.2. Secton 2(1) of Sale of Goods Act defnes ‘buyer’ as:

A Pets oi who buys ngoods aid s etvices

B Pets oi who angtees to buy ngoods
C Pets oi who buys ot angtees to buy ngoods
D Pets oi who buys ot angtees to buy ngoods aid s etvices
Q.3. Before the enactment of Sale of Goods Act, the provisions regarding Sale of
Goods were contained in:

A Iidiai Coittact Act, 1872

B Iidiai Rengis ttatoi Act, 1908
C Ttais fet of Ptopetty Act, 1882
D Iidiai Pattiets hip Act, 1932
Q.4. Which of the following cannot be said to be included in the term “goods” defned
under secton 2(7) of the Sale of Goods Act, 1930 :

A. Stock
B. Shates
C. Gtowiing ctops
D. Actoiable claims
Q.5. Which of the following most appropriately describes the term “sale” as per Sale of
Goods Act, 1930:

A. A coittact wheteby s ellet ttais fets the ptopetty ii ngoods

B. A coittact wheteby s ellet ttais fets ot angtees to ttais fet the ptopetty ii ngoods
to the buyet fot a ptice.
C. A coittact whete ttais fet of the ptopetty ii ngoods is to take place at a futute tme
D. A contract where transfer of the property in goods is to take place subject to some
conditon thereater to be fulflled.
Q.6. When does an agreement to sell become a sale as per the provisions of Sale Of
Goods Act, 1930?

A. Whei the s ellet ttais fets the ptopetty ii ngoods .

B. Whei the s ellet angtees to ttais fet the ptopetty ii ngoods .
C. Whei the tme elaps es ot the coiditois s ubject to which the ptopetty ii the
ngoods is to be ttais fetted ate fulflled.
D. Angteemeit to s ell is deemed to be s ale.
Q.7. What can be the subject mater of the contract of sale as per secton 6 of Sale of
Goods Act?

A. Oily exis ting ngoods owied ot pos s es s ed by the owiet

B. Oily Futute ngoods
C. Exis ting ngoods which ate ieithet owied iot pos s es s ed by the owiet
D. Existng goods, owned or possessed by the owner or future goods
Q.8. Where in a contract of sale the seller purports to efect the present sale of the
future goods, the contract operates as:

A. A Coittact of s ale
B. Ai angteemeit to s ell the ngoods

C. A Coitact of s ale ot angteemeit to s ell

 D. It is iot a valid coittact

Q.9. In a contract for sale of specifc goods, the goods, without the knowledge of seller
perished at the tme when the contract was made, the contract is

A. A voidable coittact at the iis taice of s ellet

B. A voidable coittact at the iis taice of buyet
C. A voidable coittact s ubject to apptoval of the civil coutt
D. A void coittact

Q.10. Can the agreement be avoided when there is an agreement to sell specifc goods
but subsequently the goods perish or become so damaged without any fault of the
seller or buyer?

A It cai be avoided by the pattes

B It cai’t be avoided by the pattes
C It cai be avoided oily with the apptoval of Coutt
D It cai be avoided oily if thete is a coittact ii this tengatd betweei the pattes

Q.11. A contract of sale may be made

A ii wtiting ot by wotd of mouth

B pattly ii wtiting of pattly by wotd of mouth
C by the implied coiduct of pattes
D All of the above
Q.12. A is a stpulaton essental to main purpose of the contract and
the breach of which gives rise to a right to treat the contract as repudiated.

A. Coiditoi
B. Wattaity
C. Dis claimet
D. Guataitee

Q.13. A is a stpulaton collateral to main purpose of the contract and

the breach of which gives rise to a right to claim for damages but not to a right to reject
goods and treat the contract as repudiated.

A Coiditoi
B Wattaity
C Tetms of coittact
D Dis claimet

Q.14. When can a breach of conditon be treated as a breach of warranty by the seller
as per the provisions of Sale of Goods Act, 1930?

A Whei the buyet fulfls the coiditoi s tpulated to the coittact of s ale
B Whei the coittact of s ale is s evetable aid the buyet has accepted the eitte
ngoods
C Whei the coittact of the s ale is iot s evetable aid the buyet has accepted the
ngoods ot patt theteof, s ubject to ai exptes s ot implied tetm ii the coittact
D When the contract of the sale is severable and the buyer has accepted the
entre goods or part thereof.

Q.15. In the Contract of Sale, there is an implied warranty that:

A Sellet has a tinght to s ell the ngoods

B The buyet has the tinght to have aid eijoy the quiet pos s es s ioi of ngoods oily.
C The ngoods s hall be ftee ftom aiy chatnge ot eicumbtaice
D The buyer has the right to have and enjoy the quiet possession of goods and
that the goods shall be free from any charge or encumbrance
Q.16. In a Contract for Sale of goods by sample and descripton, it is necessary that:

A. The bulk of ngoods s hall cottes poid with the s ample as well as des ctiptoi
B. The bulk of ngoods s hall cottes poid with s ample while it is iot ieces s aty that
the bulk of ngoods s hall cottes poid with the des ctiptoi
 C. The bulk of ngoods s hall cottes poideit with the des ctiptoi aid it is iot
ieces s aty that the bulk of ngoods cottes poid with the s ample
D. Vatiatoi of the bulk of ngoods with the s ample aid des ctiptoi of ngoods is oily
to be tteated as a bteach of wattaity
Q.17. In which of the following cases, there is an implied conditon as to partcular
quality or ftness of goods:

A Whei buyet makes kiowi to the s ellet the pattculat putpos e fot which ngoods
ate tequited as to s how that buyet telies oi s ellet’s s kill aid judngmeit aid the
ngoods ate of des ctiptoi which it is ii the otdiiaty couts e of s ellet’s bus iies s to
s upply
B Whei buyet makes kiowi to the s ellet the pattculat putpos e fot which ngoods
ate tequited as to s how that buyet telies oi s ellet’s s kill aid judngmeit thoungh
the s ellet does iot, ii the otdiiaty couts e of its bus iies s , s upply s uch ngoods
C Whei ngoods ate bounght by des ctiptoi ftom s ellet who deals ii ngoods of that
des ctiptoi, whethet as a maiufactutet ot othetwis e aid the buyet has
examiied the ngoods aid fouid defects ii the s ame
D Whei thete is a coittact fot s ale of a s pecifed attcle uidet its pateit ot othet
ttade iame

Q.18. When does the property in the goods pass to the buyer in case of contract for the
sale of specifc or ascertained goods?

A Whei the coittact fot s ale is made.

B Whei the pattes to the coittact iiteid it to be ttais fetted.
C Whei the ptice is paid fot the ngoods .
D Whei the delivety of ngoods has beei made.
Q.19.When does the property in the goods pass to the buyer in case of an unconditonal
contract for the sale of specifc goods in a deliverable state?

A Whei the coittact is made ittes pectve of whethet the tme of paymeit of
ptice ot delivety of ngoods is pos tpoied ot iot
B Whei the patty Iiteids to ttais fet
 C At the tme of the paymeit of the ptice of ngoods
D At the tme of delivety of ngoods

Q.20.When does the property in the goods pass to the buyer in case of a contract for
the sale of unascertained or future goods by descripton?

A Whei the ngoods of that des ctiptoi aid ii a delivetable s tate ate uicoiditoially
apptoptiated to the coittact eithet by the s ellet ot by the buyet with the
as s eit of each othet
B Whei the ngoods of that des ctiptoi aid ii a delivetable s tate ate coiditoially
apptoptiated to the coittact eithet by the s ellet ot by the buyet with the
as s eit of each othet
C Whei the ngoods of that des ctiptoi aid ii a ioi-delivetable s tate ate
coiditoially apptoptiated to the coittact eithet by the s ellet ot by the buyet
with the as s eit of each othet
D Whei the ngoods of that des ctiptoi aid ii a ioi-delivetable s tate ate
uicoiditoially apptoptiated to the coittact eithet by the s ellet ot by the
buyet with the as s eit of each othet
Q.21. In which of the following cases property in the goods does not pass to the buyer
when the goods are delivered to the buyer on approval or “on sale or return” or other
similar terms?

A Whei the buyet s ingiifes his apptoval ot acceptaice to the s ellet as to ngoods
B Whei the buyet tetaiis the ngoods without ngiviing a iotce of tejectoi aid upoi
expity of teas oiable tme
C Whei buyet ngives a iotce of tejectoi to the s ellet
D Whei buyet does aiy othet act adopting the ttais actoi
Q.22.Choose the most appropriate answer.
Unless otherwise agreed, the goods remain at seller’s risk untl:

A The ngoods have beei deliveted to the buyet

B The ngoods have beei utlis ed by the buyet
C The ptice to the ngoods has beei teceived by s ellet
 D The property therein has been transferred to the buyer
Q.23.When is the sale by mercantle agent who is in the possession of the goods or
documents of the ttle to the goods not valid?

A Whei the metcaitle angeit acts ii the otdiiaty couts e of bus iies s
B Whei the buyet is acting ii ngood faith aid
C Whei the buyet acts ii ngood faith aid has iotce that the s ellet has io
authotity to s ell at the tme of the coittact of s ale
D Whei the owiet has exptes s ly authotis ed the act
Q.24. When the seller has obtained possession of goods under a voidable contract,
what ttle does the buyer acquire when the goods are passed under the contract of
sale?

A Buyet acquites ngood ttle to the ngoods if he acts ii ngood faith thoungh he had
iotce of s ellet’s defect of ttle
B Buyet acquites ngood ttle to the ngoods if he had io iotce of s ellet’s defect of
ttle thoungh he did iot act ii ngood faith
C Buyet does iot acquite a ngood ttle to the ngoods evei thoungh he acts ii ngood
faith aid without iotce of s ellet’s defect of ttle
D Buyer acquires good ttle to the goods if he acts in good faith and without
notce of seller’s defect of ttle
Q.25. Which of the following cannot be treated as ‘Delivery’ under the Sale of Goods
Act, 1930?

A Doiing aiythiing which has the efect of puting ngoods ii pos s es s ioi of lengal
teptes eitatves of s ellet
B Doiing aiythiing which has the efect of puting ngoods ii pos s es s ioi of aiy
pets oi authotis ed by the buyet
C Doiing aiythiing which has the efect of puting ngoods ii pos s es s ioi of the buyet
D Doiing aiythiing which the pattes angtee to be tteated as delivety
Q.26. What is the efect of part delivery of goods made in the progress of delivery of
the whole of the goods as per secton 34 of the Sale of Goods Act, 1930?

A Patt delivety does iot opetate as a delivety of temaiidet.

B Patt delivety of the ngoods caiiot be made uidet the Act.
C Patt delivety has the s ame efect as the delivety of the whole oily ii cas e of
petis hable ngoods .
D Part delivery has the same efect as the delivery of the whole irrespectve of
the type of goods unless part delivery is made with intenton of severing it
from whole.
Q.27. Which of the following statement is correct with regard to delivery of goods by a
seller?

A The s ellet is bouid to delivet the ngoods uidet all citcums taices
B The s ellet is bouid to delivet the ngoods whei thete is eithet ai exptes s
coittact ot whei the buyet applies fot delivety
C The s ellet is bouid to delivet the ngoods oily whei thete is ai exptes s coittact
to that efect
D The s ellet is bouid to delivet the ngoods oily whei the buyet applies fot
delivety
Q.28. Which of the following statements is incorrect in respect of Rules as to delivery?

A Whete the ngoods ate ii the pos s es s ioi of a thitd pets oi, the ngoods ate iot
deliveted to buyet uiles s s uch thitd pets oi ackiowlednges to the buyet that
the ngoods ate held by him oi s ellet’s behalf
B Whete io tme is fxed fot s eidiing the ngoods it s hould be deliveted withii a
teas oiable tme
C The expeis es of aid iicideital to puting the ngoods iito a delivetable s tate
s hall be botie by the buyet
D Demaid ot teidet of delivety may be tteated as efectual oily whei made at
a teas oiable hout
Q.29. As per the provisions of Sale of Goods Act, 1930 which of the following is not a
consequence of delivery of wrong quantty of goods to the buyer?

A Whete the s ellet delivets les s thai the coittacted quaitty the buyet may
teject the s ame
B Whete the s ellet delivets mote thai the coittacted quaitty, the buyet cai
oily teject the ngoods iot iicluded ii the coittact
C Whete the s ellet delivets the coittacted ngoods mixed with the ngoods of a
difeteit des ctiptoi, the buyet cai teject the ngoods of difeteit des ctiptoi
ot may teject the whole of the ngoods .
D Whete the s ellet delivets mote thai the coittacted quaitty, the buyet may
accept the ngoods iicluded ii the coittact aid teject the tes t, ot he may teject
the whole. If the buyet accepts the whole of the ngoods s o deliveted, he s hall
pay fot them at the coittact tate

Q.30. Which of the following is true as regards delivery of goods in instalments as

provided under Sale of Goods Act?

A The buyet is bouid to accept the iis talmeit deliveties oily ii cas e of petis hable
ngoods
B The buyet is bouid to accept the iis talmeit deliveties oily ii cas e of s ale of
ngoods by des ctiptoi
C The buyet is bouid to accept the iis talmeit deliveties oily if angteed betweei
the pattes
D Delivety of ngoods cai’t be made ii iis talmeits
Q.31. Choose the most appropriate opton out of the following in respect to return of
rejected goods by the buyer.

A Buyet is iot bouid to tetuti aiy type of tejected ngoods , haviing tinght to do s o, if
he iitmates to the s ellet that he tefus es to accept the s ame.
B Buyet is bouid to tetuti all types of tejected ngoods
C Buyet is bouid to tetuti oily thos e tejected ngoods which ate petis hable
 D Buyet is bouid to tetuti oily thos e tejected ngoods which ate s old by
des ctiptoi.
Q.32. Out of the following persons which of the following does not come under the
defniton of the ‘’unpaid seller’’ as per Chapter ぃ of Sale of Goods Act:

A A s ellet to whom the whole of the ptice has iot beei paid ot teideted
B A s ellet to whom mote thai half of the ptice has beei paid ot teideted
C A s ellet who has teceived a bill of exchainge as coiditoial paymeit aid the
coiditoi oi which it was teceived has iot beei fulflled by teas oi of the
dis hoiout of the iis ttumeit ot othetwis e.
D A s ellet who has teceived a iengotable iis ttumeit as coiditoial paymeit aid
the coiditoi oi which it was teceived has iot beei fulflled by teas oi of the
dis hoiout of the iis ttumeit ot othetwis e

Q.33. Which of the following is not the right of an unpaid seller under Sale of Goods
Act, 1930?

A Ringht of liei oi ngoods fot the ptice while the ngoods ate ii pos s es s ioi of s ellet.

B Ringht of s toppiing the ngoods ii ttais it, ii cas e of iis olveicy of buyet

C Ringht of tes ale as limited by the Act

D Ringht of withholdiing delivety whete the ptopetty ii the ngoods has pas s ed to
the buyet

Q.34. In which of the following cases the unpaid seller cannot exercise the right of lien
on goods in his possession?

A Whete ngoods have beei s old without aiy s tpulatoi tengatdiing ctedit
B Whete the ngoods have beei s old oi ctedit but the tetm of the ctedit has
expited
C Whete the buyet becomes iis olveit
 D Where the goods have been sold on credit but the term of credit has not
expired
Q.35. In which of the following cases an unpaid seller does not lose his right of lien?

A Whei s ellet delivets the ngoods to a cattiet ot othet bailee fot the putpos e of
ttais mis s ioi to the buyet without tes etviing the tinght of dis pos al
B Whei buyet ot his angeit lawfully obtaiis pos s es s ioi of the ngoods
C Whei the uipaid s ellet has obtaiied the dectee fot the ptice of the ngoods
D Whei the uipaid s ellet hims elf waives of his tinght of liei
Q.36. In which of the following cases an unpaid seller who has parted with the
possession of the goods has the right of stopping such goods in transit?

A Whei the buyet of ngoods has beei declated as a pets oi of uis ouid miid
B Whei the buyet of ngoods has beei has beei s eiteiced to imptis oimeit fot a
tetm of mote thai s ix moiths uidet aiy law
C Whei the buyet of ngoods has beei declated as ai iis olveit
D Whei the buyet of ngoods has beei s eiteiced to imptis oimeit fot a tetm of
mote thai two yeats uidet aiy law
Q.37. In which of the following cases, transit of goods is not deemed to be at an nd?

A Whei the ngoods ate tejected by the buyet aid the cattiet ot bailee coitiues
ii pos s es s ioi of ngoods
B Whei the buyet ot his angeit ii that behalf obtaiis delivety of ngoods befote
theit attival at the appoiited des tiatoi
C Whei ngoods ate ii the pos s es s ioi of the cattiet ot bailee oi buyet’s behalf
aftet theit attival at the appoiited des tiatoi
D Whei the cattiet ot othet bailee wtoingfully tefus es to delivet the ngoods to
the buyet ot his angeit
Q.38.Which of the following is incorrect with regard to the manner through which right
of stoppage in transit can be exercised by an unpaid seller?

A Ai uipaid s ellet cai exetcis e his tinght of s toppange ii ttais it by takiing actual
pos s es s ioi of the ngoods
B Ai uipaid s ellet cai exetcis e his tinght of s toppange ii ttais it by ngiviing iotce of
his claim to the cattiet who is ii the pos s es s ioi of ngoods
C Ai uipaid s ellet cai exetcis e his tinght of s toppange ii ttais it by ngiviing iotce of
his claim to the bailee who is ii the pos s es s ioi of the ngoods
D Unpaid seller can exercise the right of stoppage in transit by giving an
advertsement in leading newspaper of the place where the buyer ordinarily
carries on his business.
Q.39. Choose the most appropriate opton in respect of a Sale which is not generally
rescinded by lien or stoppage in transit?

A A coittact of s ale is tes ciided by the exetcis e of ai uipaid s ellet’s tinght of

liei ot s toppange of liei
B Whete ai uipaid s ellet who has exetcis ed his tinght of liei ot s toppange ii
ttais it tes ells the ngoods , the buyet of s uch ngoods does iot acquite a ngood ttle
theteto as angaiis t the otingiial buyet.
C Whete the s ellet tes ells the ngoods ii cas e of buyet’s default the otingiial
coittact of s ale is iot tes ciided
D Where the unpaid seller who has exercised his right of lien or stoppage in
transit gives notce to buyer of his intenton to resell, the unpaid seller may
resell the goods within a reasonable tme and recover damages incurred due
to his breach of the contract from the original buyer

Q.40. Which of the following does not fall in the category of “goods”?

A Stock aid s hates

B Moiey aid actoiable claims
C Gtowiing ctops aid ngtas s
D Thiings atached to ot fotmiing the patt of laid which ate angteed to be s eveted befote
s ale ot uidet coittact of s ale

Q.41. Where there is a contract for the sale of specifc or ascertained goods the property
in them is transferred to the buyer at the tme when the:

A Pattes iiteid the ptopetty ii ngoods to pas s

B Coittact is eiteted iito
C Ptice is paid
D Delivety of ngoods has beei made

Q.42. A contract of sale can be:

A Abs olute oily

B Coiditoial oily
C Abs olute ot coiditoial
D Coiditoial oily with the cois eit of the buyet.

Q.43. Where the transfer of the property in the goods is to take place at a future tme or
subject to some conditon, then such contract is called

A Ai angteemeit to s ell
B A coittact to Sale
C Futute Coittact
D Coiditoial coittact

Q.44. What are the requisites of contract of sale:

A An Ofet aid delivety of ngoods

B Ai Ofet to buy ot s ell ngoods , fot a ptice aid its acceptaice.
C Ai Ofet, delivety, pos s es s ioi aid acceptaice
D Ai Ofet, ptice, delivety aid acceptaice

Q.45. According to Sale of Goods Act, 1930, ‘seller’ means a person:

A who oily angtees to s ell the ngoods

B who oily s ells the ngoods
C who s ells ot angtees to s ell
D who ttais fets the pos s es s ioi of the ngoods to the othet patty

Q.46. ------- is termed as consideraton in a contract of sale:

A Exchainge moiey
B Battet moiey
C Ptice
D Rewatd

Q.47. When the buyer chooses to treat a breach of a conditon as a breach of warranty,
then the buyer may

A Repudiate the coittact

B Reject the ngoods
C As k fot iidemiifcatoi
D s et up angaiis t the s ellet the bteach of wattaity ii dimiiutoi ot extictoi of the
ptice ot cai s ue the s ellet fot damanges

Q.48. When the price is not determined in the contract or agreed between the partes,
the buyer shall pay the seller:

A a fait ptice
B a teas oiable ptice
C matket ptice
D avetange ptice

Q.49. In case of breach of conditon, the breach gives rise to:

A Claim fot damanges

B Rejectoi of ngoods
C A tinght to tepudiate the coittact
D A tinght of iidemiifcatoi
Q.50. Which of the following is not an implied conditon or warranty in a contract of
sale?

A The s ellet may take back the pos s es s ioi of the ngoods at a futute date
B The s ellet has a tinght to s ell the ngoods aid that ii the cas e of ai angteemeit to s ell he
will have a tinght to s ell the ngoods at the tme whei the ptopetty is to pas s
C The buyet s hall have aid eijoy quiet pos s es s ioi of the ngoods
D The ngoods s hall be ftee ftom aiy chatnge ot eicumbtaice ii favout of aiy thitd patty
iot declated ot kiowi to the buyet befote ot at the tme whei the coittact is made.

Q.51. If the contract of sale is by sample as well as by descripton:

A It is s ufcieit if the bulk of ngoods cottes poid to s ample oily

B It is s ufcieit if the bulk of ngoods cottes poid to des ctiptoi oily
C It is iot ieces s aty to coifotm to the s ample ot des ctiptoi
D It is not sufcient that the bulk of the goods correspond with the sample if the
goods do not correspond with the descripton.

Q.52. Where under a contract of sale, the property in the goods has passed to the buyer
and the buyer wrongfully neglects or refuses to pay for the goods, the seller may:

A As k fot iidemiifcatoi
B Sue the buyet fot damanges of ioi-acceptaice
C Sue the buyet fot compeis atoi
D Sue the buyer for the price of goods

Q.53. The positon of the fnder of lost goods is that of:

A Bailee
B Bailot
C Cteditot
D Ttue owiet

Q.54. X purchases a car from Y. Ater 6 months, Z, the true owner of the car, demanded
it from X. X had to return it to its true owner. X was enttled to recover the full price
even though several months have passed. This is an example of:

A Coiditoi as to des ctiptoi

B Coiditoi as to s ample
C Coiditoi as to ttle
D Coiditoi as to fties s

Q.55. A drug was sold by an aucton and according to the usage of trade it was to
disclose in advance of any vast damage caused in the quality of the drug but such
disclosure was not made and the drug was found to be defectve. This is an example of:

A Wattaity as to uidis tutbed pos s es s ioi

B Wattaity as to quality ot fties s by us ange of ttade
C Wattaity as to ioi-exis teice of eicumbtaices
D Dis clos ute of daingetous iatute of ngoods

Q.56. Where the seller wrongfully neglects or refuses to deliver the goods to the buyer,
the buyer may sue for:

A Damanges fot ioi-delivety

B Damanges fot ioi-acceptaice
C Specifc petfotmaice
D Compeis atoi

Q.57. A stpulaton in contract of sale with reference to goods which are the subject
there of may be

A Coiditoi
B Wattaity
C Both (A) aid (B)
D Noie of the above
 ANSWER SHEET
The Sale of Goods Act, 1872

1. D 33. D
2. C 34. D
3. A 35. C
4. D 36. C
5. B 37. A
6. C 38. D
7. D 39. D
8. B 40. A
9. D 41. D
10. A 42. C
11. D 43. A
12. A 44. C
13. B 45. C
14. C 46.C
15. D 47.D
16. A 48.B
17. A 49.C
18. B
50. A
51.D
19. A
52.D
20. A
53.A
21. C 54.D
22. D 55.B
23. C 56.A
24. D 57.C
25. A
26. D
27. B
28. D
29. B
30. C
31. A
32. C