Sale Of Goods Act — Part 1 MCQs with Explanations

The Sale of Goods Act, 1930, provides various rights to an unpaid seller. However, the right of withholding delivery specifically pertains to cases where the property in the goods has not passed to the buyer. An unpaid seller can exercise this right to retain possession of the goods until the full payment is made or satisfactory security is provided by the buyer. Once the property in the goods has passed to the buyer, the unpaid seller generally loses the right of withholding delivery. Option A: Right of lien on goods for the price while the goods are in possession of seller is a valid right of an unpaid seller. Lien allows the seller to retain possession of the goods until the price is paid. Option B: Right of stopping the goods in transit, in case of insolvency of buyer is another right of an unpaid seller. It allows the seller to stop the goods during transit if the buyer becomes insolvent. Option C: Right of resale as limited by the Act is also a valid right of an unpaid seller. The Act permits the seller to resell the goods in certain circumstances. Given the options provided, the correct answer is Option D: Right of withholding delivery where the property in the goods has passed to the buyer.

The position of a finder of goods is similar to that of a bailee under the Sale of Goods Act. A bailee is a person who is entrusted with the possession of goods by the owner (bailor) for a specific purpose. Similarly, a finder of goods is a person who comes into possession of goods that are lost or abandoned by their true owner. Both the bailee and the finder of goods have a duty to take care of the goods and act in the best interest of the owner. They do not acquire ownership of the goods but are responsible for their safekeeping and eventual return to the rightful owner. Option A: Bailor , Option C: Creditor , and Option D: True owner are not the correct answers as they do not accurately represent the position of a finder of goods under the Sale of Goods Act. Given the options provided, the correct answer is Option B: Bailee.

According to the Sale of Goods Act , the general rule for the transfer of property in goods is that it passes from the seller to the buyer at the time when the parties intend it to pass. This intention is determined based on the terms of the agreement between the parties, the conduct of the parties, and the circumstances of the case. In the given scenario, since A agrees to purchase a certain quantity of coal from B and the coal is to be transported by ship to the port, the property in the coal is likely to pass to A when the ship arrives at the port with the coal . This is because the parties would likely have intended the transfer of property to occur upon the actual arrival of the goods at the agreed location. Option A: Immediately at the time of the agreement is not the correct answer as the passing of property is generally not immediate but occurs based on the parties' intention. Option C: When A is informed that ship is safe is not the correct answer as the safety of the ship does not necessarily determine the transfer of property in goods. Option D: At the option of B is not the correct answer as the transfer of property is determined by the intention of both parties and not solely at the option of one party. Given the options provided, the correct answer is Option B: When the ship arrives at the port with coal.

The English Sale of Goods Act, 1893 is the correct answer to “The Sale of Goods Act, 1930 is based on:”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

A question of fact is the correct answer to “Under section 9 of the Sale of Goods Act, 1930, what is a reasonable price is”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Indian Contract Act, 1872 is the correct answer to “Before the enactment of Sale of Goods Act, the provisions regarding Sale of Goods were contained in:”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Voluntary transfer of possession from one person to another is the correct answer to “Delivery under the Sale of Goods Act means:”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Either (A) or (B) or (c) is the correct answer to “Section 59 of the Sale of Goods Act, 1930 authorises the buyer to”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Section 2(6) is the correct answer to “Future goods' has been defined, in the Sale of Goods Act, 1930, under”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

By (A) and (B) both is the correct answer to “The unpaid seller may exercise his right of stoppage in transit”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

At the place where they were at the time of sale is the correct answer to “Where in a contract for sale of goods there is no express or implied provision as to place of delivery of the goods, under section 36 of the Sale of Goods Act, 1930, the goods would be deemed to have been delivered”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

When he is in possession of the goods is the correct answer to “The unpaid seller, under section 47 of the Sale of Goods Act, 1930 can exercise his right of lien”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

A bid can be recalled and it is open to the seller to withdraw the goods from the auction at any time before the fall of the hammer is the correct answer to “In a sale of goods by auction”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Goods is the correct answer to “In a contract for sale (Under the Sale of Goods Act) the subject matter must primarily be related to”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Caveat Emptor is the correct answer to “. . . . . . . . is the concept of "LET THE BUYER BEWARE".”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

The seller must bear the expenses upto shipment is the correct answer to “In a F.O.B. contract, by virtue of section 36(5) of the Sales of Goods Act, 1930”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Part delivery has the same effect as the delivery of the whole irrespective of the type of goods unless part delivery is made with intention of severing it from whole is the correct answer to “What is the effect of part delivery of goods made in the progress of delivery of the whole of the goods as”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Price is the correct answer to “In case of sale the seller can sue the buyer for . . . . . . . in case of breach”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Neither the right of lien nor the right of stoppage in transit is defeated is the correct answer to “Section 53 of the Sale of Goods Act, 1930 provides that by sub-sale or pledge of goods by the buyer, the unpaid seller's”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Route involving sea-transit is the correct answer to “Section 39(3) of the Sale of Goods Act, 1930, is applicable where the seller sends the goods to the buyer by a”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

At such rate as it thinks fit is the correct answer to “Under section 61 of the Sale of Goods Act, 1930, the court can award interest”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Section 49 is the correct answer to “Which of the following section provides for 'termination of lien'”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Before the property in goods has passed to the buyer is the correct answer to “A contract of sale of goods, on goods having been damaged/perished subsequent to the formation of the contract under section 8 of the Sale of Goods Act, 1930, can be avoided”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

The original owner's risk if perish by inevitable accident is the correct answer to “In cases of goods sent on approval or 'on sale or return' basis under section 24 of the Sale of Goods Act, 1930, the goods are at”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Neither opposed to public policy nor immoral is the correct answer to “In Gherulal Parekh v. Mahadeo Das Maiya & Other, AIR 1959 SC 781, it has been held that wagering contracts are”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

The finder of the goods is subject to the same responsibility as that of a Bailee is the correct answer to “Between the finder and the owner of the good there is no contract, but”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

All of the above is the correct answer to “A contract of sale may be made:”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Ownership or title is the correct answer to “The word "Property" in the Sale of Goods Act, 1930 means”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

P. S. Atiyah is the correct answer to “It has been remarked that the Sale of Goods Act has not proved one of the more successful pieces of codification undertaken by the Parliament, by”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Both (A) and (B) is the correct answer to “The implied condition as contained in section 16(2) of the Sale of Goods Act, 1930, applies to”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Either (A) or (B) or (C) is the correct answer to “Under section 5 of the Sale of Goods Act, 1930, a contract of sale of goods can be”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Voidable at the instance of the buyer is the correct answer to “In an auction sale of goods, if the seller makes use of pretended bidding to raise the price, under section 64 of the Sale of Goods Act, 1930, the sale is”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Contract for work and labour is the correct answer to “A commissions B to paint a portrait of him at a price of Rs. five thousand and supplies to B painting material. What is the nature of transaction”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

No, the contract of sale of specific goods cannot be enforced because goods have already perished without the knowledge of the seller at the time of contract, and then the contract of sale itself is void as per Section 7 of the Sale of Goods Act is the correct answer to “When the specific goods which are subject matter of the contract under the Sales of Goods Act have perished prior to making of the contract then contract can be enforced against alternative goods because the contract of sale of goods is otherwise valid.”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

When the seller does everything for the purposes of ascertaining the price and the buyer has notice thereof is the correct answer to “Under section 22 of the Sale of Goods Act, 1930, the property in specific goods in deliverable state passes to the buyer”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Impossibility of performance of the contract subsequent to the formation of the contract is the correct answer to “Section 8 of the Sale of Goods Act, 1930 deals with cases of”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Where the buyer obtains delivery of goods from the carrier either before the goods reach the appointed destination or at the appointed destination is the correct answer to “Under section 51 of the Sale of Goods Act, 1930, the transit of goods comes to an end”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Immaterial is the correct answer to “In contract of sale the payment of price is . . . . . . . to the transfer of property in goods”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Lickbarrow v. Mason, (1787) 102 ER 1192 is the correct answer to “The rule of estoppel as contained in section 27 of the Sale of Goods Act, 1930 is on the principle of”. This question is standard in competitive examination syllabi for Sale Of Goods Act.

Recover the full price paid as on a total failure of consideration is the correct answer to “Where a buyer who purchased a motor car and used the same for some time but was forced to surrender the same to the true owner, owing to seller's defect of title, is entitled to”. This question is standard in competitive examination syllabi for Sale Of Goods Act.