Unit VI · Topic 5Sale of Goods Act, 1930 – Previous Year Questions

"Where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale, 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 an agreement to sell." Read above statement and find correct answer, using codes given below:

1. (a)Contract of sale is conditional
2. (b)Contract of agreement to sell is conditional✓
3. (c)There is no difference between sale and agreement to sell, as both are contracts
4. (d)Sale is a contract, agreement to sell is not a contract

Find correct answer, using codes given below:

Bulk shall correspond with sample, is an implied condition.

Buyer shall have a reasonable opportunity of comparing bulk with sample, is an implied condition.

Goods should be free from any defect rendering them unmerchantable, is an implied condition.

There is an implied condition that the buyer shall have and enjoy possession of the goods. Codes:

1. (a)1 only is correct
2. (b)1 and 2 only are correct
3. (c)1, 2 and 3 only are correct✓
4. (d)All of above are correct

Which are essentials of a contract of sale of goods? Answer using codes given below:

Offer

Acceptance of offer

Exchange of goods for money

Transfer of property in goods from seller to buyer Codes:

1. (a)only i and ii
2. (b)only iii and iv
3. (c)Only ii and iii
4. (d)i, ii, iii and iv✓

Read Assertion (A) and Reason (R) and answer using the codes below: Assertion (A): Where under a contract of sale the property in the goods has passed to the buyer and the buyer wrongfully neglects to pay for the goods according to the terms of the contract, the buyer may sue the seller for the price of the goods. Reason (R): The seller is entitled to get the contractual price. Codes:

1. (a)Both (A) and (R) are correct, and (R) is correct reason for (A)
2. (b)Both (A) and (R) are wrong
3. (c)(A) is wrong, but (R) is right✓
4. (d)(R) is wrong, but (A) is right

Match List-I with List-II and select the correct answer using the codes given below: List-I A. Intention of parties to pass property in goods B. Ascertainment of intention to pass property in goods C. Property of goods D. Specific goods in deliverable state List-II

Ghasiram v. State

Badriprasad v. State of Madhya Pradesh

United Breweries Ltd. v. State of Andhra Pradesh

Usha Beltron Ltd v. State of Punjab Code:

1. (a)A-2, B-4, C-1, D-3
2. (b)A-3, B-1, C-2, D-4
3. (c)A-1, B-3, C-4, D-2
4. (d)A-3, B-1, C-4, D-2✓

Intention to pass property in goods — United Breweries Ltd. v. Andhra Pradesh

Ascertainment of intention to pass property — Ghasiram v. State

Property of goods — Usha Beltron Ltd v. State of Punjab

Specific goods in deliverable state — Badriprasad v. Madhya Pradesh State

Which one statement is correct from the following statements?

1. (a)If the contract is inconsistent with the public documents, the person contracting will not be prejudiced by irregularities that may be set the outdoor working of the company
2. (b)If the contract is consistent with the public documents, the person contracting will not be prejudiced by irregularities that may be set the indoor working of the company✓
3. (c)The doctrine of indoor management seeks to protect the company against the outside
4. (d)The doctrine of ultra vires seeks to protect the outsider against internal irregularities of the company

Which are essentials of sale of goods? Answer using codes given below:

Contractual capacity

Bilateral contract

Profit for seller

Mutual and free consent of parties to the contract of sale of goods Codes:

1. (a)1, 2, 3
2. (b)1, 2, 3✓
3. (c)2, 3, 4
4. (d)1, 3, 4

Match List-I with List-II and select the correct answer using the code given below: List-I A. Installment Supply Ltd. v. STO B. Gardiner v. Gray C. Peter Darlington Partners Ltd. v. Gesho Co. Ltd. D. Farquharson Bros v. King and Co. List-II

Conditions applied by trade usage

Nemo dat quod non habet

Sale by description

Difference between sale and agreement to sale Code:

1. (a)A-3, B-4, C-2, D-1
2. (b)A-3, B-4, C-1, D-2
3. (c)A-4, B-3, C-1, D-2✓
4. (d)A-4, B-3, C-2, D-1

Match List-I with List-II and select the correct answer using codes given below: List-I A. Goods in sale of goods B. Consideration for a sale of goods C. Sale and agreement to sale D. Difference between contract of sale and contract of agency List-II

Bhopal Sugar Industries Ltd. v. STO

Instalment Supply Ltd. v. STO

R.D. Goyal v. Reliance Industries Ltd.

Aldridge v. Johnson Code:

1. (a)A-3, B-4, C-2, D-1✓
2. (b)A-4, B-3, C-2, D-1
3. (c)A-3, B-4, C-1, D-2
4. (d)A-2, B-1, C-4, D-3

Match list-I with List-II and select the correct answer using the codes given below: List-I A. Buyer purchasing on the basis of description B. Packing as description C. Reliance on description to be in contemplation of parties. D. Correspondence with description. List-II

Arcos v. Ronnason & Son

Varley v. Whipp

Moore and Co. v. Landauer & Co.

Leaf v. International Gallries Code:

1. (a)A-3, B-2, C-4, D-1
2. (b)A-2, B-3, C-4, D-1✓
3. (c)A-2, B-3, C-1, D-4
4. (d)A-4, B-1, C-3, D-2

Which of the following statement is correct according to section 2(9) of the Sale of Goods Act? "Mercantile Agent" means a mercantile agent

1. (a)having in the usual course of business as such seller authority either to sell goods, or to consign goods for the purpose of sale, or to buy goods, or to distribute money for security of goods
2. (b)having in the customary business as such agent power either to sell goods, or to mortgage goods for purpose of sale
3. (c)having in the customary course of business as such agent authority to sell goods✓
4. (d)having in the normal course of business as such agent authority to confine goods or to raise goods for purpose of the security of money

Which of the following statements are correct. Answer using the codes given below:

Ascertainment of goods for sale is done by buyer

Appropriation of goods for sale is done by seller

Distinction between ascertainment of goods and appropriation of goods that former involves "the element of common intention between buyer and seller", whereas latter can be a unilateral act by buyer

Property in goods does not pass to buyer till appropriation Codes:

1. (a)only 1, 3 and 4 are correct
2. (b)only 2 is correct
3. (c)only 4 is correct✓
4. (d)only 3 is correct

Read Assertion (A) and Reason (R) and answer using the codes given below: Assertion (A): "Goods" means every kind of movable property including actionable claims and money and excludes stock and shares, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale. Reason (R): Above principle is laid down in Section 2(7) of the Sale of Goods Act. Code:

1. (a)Both (A) and (R) are right
2. (b)Both (A) and (R) are wrong✓
3. (c)(A) is wrong but (R) is right
4. (d)(A) is right but (R) is wrong

Which of the following is incorrect regarding meaning of 'Merchantable quality of goods'?

1. (a)the goods are free from patent defects✓
2. (b)the goods are free from latent defects
3. (c)the goods can be used for the purpose for which they are bought
4. (d)that the goods are marketable at their full value

Which one of the following cannot be treated as delivery under the Sale of Goods Act, 1930?

1. (a)Doing anything which has the effect of putting goods in possession of legal representatives of seller✓
2. (b)Doing anything which has the effect of putting goods in possession of any person authorised by the buyer
3. (c)Doing anything which has the effect of putting goods in possession of the buyer
4. (d)Doing anything which the parties agree to be treated as delivery

Under Section 5 of the Sale of Goods Act, 1930, a contract for sale of goods can be made: A. By writing and must be registered B. By word of mouth C. By partly in writing and partly word of mouth D. By writing or partly in writing and partly by word of mouth Choose the correct answer from the options given below:

1. (a)A and C only
2. (b)A and D only
3. (c)A and B only
4. (d)B and D only✓

In case of unascertained goods, the property in goods passes:

1. (a)When goods are ascertained✓
2. (b)When the parties intend the property in goods to pass
3. (c)As soon as the contract of sale is signed
4. (d)After the payment of goods is received by the seller

A car was sold on 'as is' basis and without any warranty or guarantee whatever. After 5 days of the contract, the engine of the car blew up. Discuss the liability of the seller.

1. (a)He is liable for the damages due to the doctrine of fundamental breach of standard form of contract✓
2. (b)The seller is not liable because the car was sold on 'as is' basis and without any warranty or guarantee
3. (c)The buyer should take care if he buys a second-hand car
4. (d)Under standard form contract, in this case, contributory negligence is applicable

In which of the following cases, it was held that a 'contract to take and supply photographs' is a 'contract of sale of goods'?

1. (a)Love V/s Norman Wright (Builders) Ltd. (1944)
2. (b)Newman V/s Lipman (1951)✓
3. (c)Lee V/s Griffin (1861)
4. (d)Robinson V/s Graves (1935)

In the Sale of Goods Act, 1930, "fault" means:

1. (a)Wrongful gain or wrongful loss
2. (b)Wrongful act
3. (c)Wrongful act or default✓
4. (d)Negligent and wrongful act

Match List-I with List-II: List-I A. Specific goods in a deliverable state B. Auction sale C. Remedy for breach of warranty D. Sale by one joint owners List-II I. Section 64, Sale of Goods Act, 1930 II. Section 28, Sale of Goods Act, 1930 III. Section 20, Sale of Goods Act, 1930 IV. Section 59, Sale of Goods Act, 1930

1. (a)A-II, B-III, C-I, D-IV
2. (b)A-IV, B-II, C-III, D-I
3. (c)A-I, B-III, C-II, D-IV
4. (d)A-III, B-I, C-IV, D-II✓

"Implied conditions as to quality or fitness of goods" is given under which section of the Sale of Goods Act, 1930 ?

1. (a)Section 14
2. (b)Section 15
3. (c)Section 16✓
4. (d)Section 17

Which of the following right is not available under the Sale of Goods Act, 1930 to the Unpaid Seller notwithstanding that the property in the goods may have passed to the buyer?

1. (a)A lien on the goods for the price while he is in possession of them
2. (b)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
3. (c)A right of re-sale as limited by the Act
4. (d)A right of withholding delivery✓

'A' purchase a horse from 'B'. 'A' needs the horse for riding but he does not mention this to 'B'. The horse is not suitable for riding but is suitable only for being driven in a carriage. 'A' can

A. 'A' can return the horse under implied conditions as to quality or purpose under Section 16 of the sale of Goods Act

B. 'A' can neither reject the horse nor can he claim any compensation from B

C. The situation is covered under the rule contained in the maxim caveat emptor

D. The situation is covered under exception mentioned under 16(1) dealing with implied conditions of the fitness of the goods for any particular purpose

Choose the correct answer from the options given below

1. (a)A and B only
2. (b)B and C only✓
3. (c)A and C only
4. (d)A and D only