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Sale of Goods Act MCQs for Judiciary

Judiciary Sale of Goods Act questions 1-24 of 220, with answer keys and explanations covering conditions, warranties, transfer of property, delivery, unpaid seller rights, auction sales, and buyer remedies.

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  • Acceptance1
  • Acceptance and Rejection4
  • Approval and Return2
  • Auction Sale2
  • Buyer and Seller Remedies6
  • Buyer’s Remedies2
  • Carrier and Examination4
  • Caveat Emptor4
  • Condition Treated as Warranty4
  • Conditions and Warranties22
  • Delivery to Carrier2
  • Fitness and Quality4
  • Formation of Contract of Sale4
  • Goods and Classification4
  • Implied Terms7
  • Nature and Scope10
  • Passing of Property4
  • Performance and Delivery20
  • Preliminary and Scope4
  • Price and Valuation4
  • Quantity and Instalments4
  • Remedies and Auction1
  • Reservation of Disposal2
  • Rules for Specific Goods4
  • Sale and Agreement to Sell4
  • Sale by Description and Sample4
  • Seller or Buyer in Possession4
  • Seller’s Remedies3
  • Stoppage and Resale3
  • Title of Buyer6
  • Title to Goods6
  • Transactions Similar to Sale4
  • Transfer of Property18
  • Transfer of Risk2
  • Transfer of Title8
  • Unascertained Goods4
  • Unpaid Seller29
Question 1EasyPreliminary and Scope

Which statement correctly reflects the present territorial extent of the Sale of Goods Act, 1930?

  1. A

    It extends only to former British India

  2. B

    It extends to the whole of India

  3. C

    It excludes Jammu and Kashmir even today

  4. D

    It applies only to commercial merchants

View answer and explanation

Correct answer: B. It extends to the whole of India

The present text of Section 1 states that the Act extends to the whole of India. The old exception for Jammu and Kashmir was omitted after the 2019 legislative changes.

Source note: Sale of Goods Act, 1930, Section 1

Question 2EasyPreliminary and Scope

Where the Sale of Goods Act is silent on an issue, what is the correct legal position?

  1. A

    Only custom can govern the matter

  2. B

    The unrepealed and consistent principles of the Indian Contract Act apply

  3. C

    The Consumer Protection Act replaces the contract

  4. D

    The contract becomes void automatically

View answer and explanation

Correct answer: B. The unrepealed and consistent principles of the Indian Contract Act apply

Section 3 preserves the application of the Indian Contract Act, 1872 so far as its provisions are not inconsistent with the Sale of Goods Act.

Source note: Sale of Goods Act, 1930, Section 3

Question 3EasyPreliminary and Scope

The Sale of Goods Act, 1930 primarily deals with:

  1. A

    Partnership accounts between traders

  2. B

    Registration of companies dealing in goods

  3. C

    Transfer of immovable property

  4. D

    Transfer or agreement to transfer property in movable goods for price

View answer and explanation

Correct answer: D. Transfer or agreement to transfer property in movable goods for price

The Act defines and regulates contracts of sale of goods. It is not a statute for land transfers, services, or company registration.

Source note: Sale of Goods Act, 1930, Section 4

Question 4MediumPreliminary and Scope

Which transaction is least likely to fall within the Sale of Goods Act?

  1. A

    Sale of a specific machine for a price

  2. B

    Sale of shares for money

  3. C

    Sale of standing crops to be severed before sale

  4. D

    Pure contract to provide legal consultancy services

View answer and explanation

Correct answer: D. Pure contract to provide legal consultancy services

Goods include movable property, stocks, shares, and severable things attached to land. A pure service contract is not a contract of sale of goods.

Source note: Sale of Goods Act, 1930, Section 2(7)

Question 5EasyFormation of Contract of Sale

A valid contract of sale requires:

  1. A

    A seller, a buyer, goods, transfer or agreement to transfer property, and price

  2. B

    Only delivery and invoice

  3. C

    Only registration before a public officer

  4. D

    Only physical possession with the buyer

View answer and explanation

Correct answer: A. A seller, a buyer, goods, transfer or agreement to transfer property, and price

Section 4 requires transfer or agreement to transfer property in goods from seller to buyer for a price. General contract requirements such as capacity and consent also apply.

Source note: Sale of Goods Act, 1930, Sections 3 and 4

Question 6EasyFormation of Contract of Sale

Why is price essential in a contract of sale?

  1. A

    Because price is the money consideration for transfer of property in goods

  2. B

    Because price must be fixed by a court

  3. C

    Because price converts every service contract into sale

  4. D

    Because price must always be paid in advance

View answer and explanation

Correct answer: A. Because price is the money consideration for transfer of property in goods

Price means money consideration. Without money consideration, a transaction may be barter, gift, exchange, or another arrangement, but not a sale under the Act.

Source note: Sale of Goods Act, 1930, Section 2(10)

Question 7EasyFormation of Contract of Sale

A contract of sale may be made:

  1. A

    By writing, word of mouth, partly by both, or by conduct

  2. B

    Only through an invoice bearing stamp duty

  3. C

    Only by a registered written instrument

  4. D

    Only by delivery of goods

View answer and explanation

Correct answer: A. By writing, word of mouth, partly by both, or by conduct

Section 5 recognises flexible modes of making a contract of sale. Formal writing is not always necessary unless another law or the facts require it.

Source note: Sale of Goods Act, 1930, Section 5

Question 8EasyFormation of Contract of Sale

The phrase "contract of sale" under Section 4 includes:

  1. A

    Only auction sales

  2. B

    Only completed sales

  3. C

    Only agreements to sell

  4. D

    Both sale and agreement to sell

View answer and explanation

Correct answer: D. Both sale and agreement to sell

Section 4 uses contract of sale as a broad expression. It covers both a completed sale and an agreement to sell.

Source note: Sale of Goods Act, 1930, Section 4

Question 9EasyGoods and Classification

Which of the following is included within "goods" under Section 2(7)?

  1. A

    Actionable claims

  2. B

    Money as legal tender

  3. C

    Stocks and shares

  4. D

    Pure labour without materials

View answer and explanation

Correct answer: C. Stocks and shares

Goods include stocks and shares. Money and actionable claims are expressly excluded, while pure labour is not movable property sold as goods.

Source note: Sale of Goods Act, 1930, Section 2(7)

Question 10EasyGoods and Classification

A contracts to sell all mangoes to be produced in his orchard next season. The goods are:

  1. A

    Future goods

  2. B

    Existing goods

  3. C

    Rejected goods

  4. D

    Specific goods

View answer and explanation

Correct answer: A. Future goods

Future goods are goods to be manufactured, produced, or acquired by the seller after the contract is made.

Source note: Sale of Goods Act, 1930, Section 2(6) and Section 6

Question 11MediumGoods and Classification

A agrees to sell B a rare car if A succeeds in buying it from its present owner. This is best classified as:

  1. A

    Unpaid seller goods

  2. B

    Goods sold by sample

  3. C

    Contingent goods

  4. D

    Goods in deliverable state

View answer and explanation

Correct answer: C. Contingent goods

Contingent goods are a form of future goods whose acquisition depends upon a contingency which may or may not happen.

Source note: Sale of Goods Act, 1930, Section 6

Question 12EasyGoods and Classification

Which is the best example of unascertained goods?

  1. A

    A named antique watch kept in a showcase

  2. B

    A particular painting identified at the time of contract

  3. C

    Any one pen out of a box of fifty identical pens

  4. D

    A registered car identified by number

View answer and explanation

Correct answer: C. Any one pen out of a box of fifty identical pens

Unascertained goods are not specifically identified at the time of contract. They are usually indicated by description, quantity, or class.

Source note: Sale of Goods Act, 1930, Sections 2 and 18

Question 13EasyPrice and Valuation

Under Section 9, price in a contract of sale may be fixed by:

  1. A

    Only the buyer

  2. B

    Only the court before delivery

  3. C

    The contract, an agreed manner, or course of dealing

  4. D

    The police in case of dispute

View answer and explanation

Correct answer: C. The contract, an agreed manner, or course of dealing

Section 9 permits price to be fixed by the contract, in a manner agreed by the contract, or by course of dealing between parties.

Source note: Sale of Goods Act, 1930, Section 9

Question 14MediumPrice and Valuation

If a contract of sale is valid but the price is not determined in any agreed way, the buyer must pay:

  1. A

    A reasonable price

  2. B

    Double the market price

  3. C

    Only nominal damages

  4. D

    Nothing, because no price was written

View answer and explanation

Correct answer: A. A reasonable price

Section 9 provides that where price is not determined in accordance with the contract, the buyer must pay a reasonable price, depending on the circumstances.

Source note: Sale of Goods Act, 1930, Section 9

Question 15MediumPrice and Valuation

If price is to be fixed by a third party and that third party fails to fix it, the agreement ordinarily becomes:

  1. A

    A mortgage

  2. B

    An auction sale

  3. C

    Void, subject to statutory consequences for delivered goods

  4. D

    A concluded sale at any price chosen by seller

View answer and explanation

Correct answer: C. Void, subject to statutory consequences for delivered goods

Section 10 deals with valuation by a third party. If valuation fails, the agreement is avoided, but a buyer who has received and appropriated goods must pay a reasonable price.

Source note: Sale of Goods Act, 1930, Section 10

Question 16MediumPrice and Valuation

Where one party prevents the agreed third-party valuation from taking place, the other party may:

  1. A

    Compel the third party to become a seller

  2. B

    Treat the contract as criminal automatically

  3. C

    Sue for damages against the party at fault

  4. D

    Keep the goods without paying anything

View answer and explanation

Correct answer: C. Sue for damages against the party at fault

Section 10 protects the innocent party where valuation fails because of the fault of the seller or buyer. The party at fault may be liable in damages.

Source note: Sale of Goods Act, 1930, Section 10

Question 17EasySale and Agreement to Sell

The core difference between sale and agreement to sell is:

  1. A

    Sale is always oral, agreement to sell is written

  2. B

    Sale transfers property immediately; agreement to sell postpones transfer

  3. C

    Sale requires delivery, agreement to sell requires price only

  4. D

    Sale applies to services, agreement applies to goods

View answer and explanation

Correct answer: B. Sale transfers property immediately; agreement to sell postpones transfer

In a sale, property in goods passes immediately. In an agreement to sell, property is to pass later or on fulfilment of a condition.

Source note: Sale of Goods Act, 1930, Section 4

Question 18MediumSale and Agreement to Sell

In an agreement to sell, if the seller becomes insolvent before property passes, the buyer generally has:

  1. A

    A right to seize all seller property

  2. B

    A contractual claim for damages or refund according to law

  3. C

    A lien over unrelated goods

  4. D

    Ownership of the goods

View answer and explanation

Correct answer: B. A contractual claim for damages or refund according to law

Until property passes, the buyer is not owner of the goods. The buyer normally has contractual remedies rather than proprietary rights in the goods.

Source note: Sale of Goods Act, 1930, Section 4

Question 19MediumSale and Agreement to Sell

Why is the sale/agreement distinction practically important?

  1. A

    It matters only in auction sales

  2. B

    It is relevant only for future goods

  3. C

    It decides only stamp duty

  4. D

    It may decide ownership, risk, remedies, and insolvency consequences

View answer and explanation

Correct answer: D. It may decide ownership, risk, remedies, and insolvency consequences

The distinction affects whether property has passed, whether risk may pass, whether the buyer can claim goods themselves, and what remedies are available.

Source note: Sale of Goods Act, 1930, Sections 4 and 26

Question 20EasySale and Agreement to Sell

A sale is often described as executed because:

  1. A

    The buyer must inspect goods first

  2. B

    Nothing remains to be paid

  3. C

    Property in goods has already passed to the buyer

  4. D

    Goods must be future goods

View answer and explanation

Correct answer: C. Property in goods has already passed to the buyer

A sale is executed in the proprietary sense because ownership has passed. Payment or delivery may still be postponed by agreement.

Source note: Sale of Goods Act, 1930, Section 4

Question 21MediumTransactions Similar to Sale

A hire-purchase transaction differs from sale mainly because:

  1. A

    The hirer usually has an option to buy, not an immediate obligation to buy

  2. B

    The goods are always immovable

  3. C

    There can never be delivery

  4. D

    The price must be fixed by auction

View answer and explanation

Correct answer: A. The hirer usually has an option to buy, not an immediate obligation to buy

In hire-purchase, ownership usually passes only when the option to purchase is exercised or final condition is satisfied. Until then, the hirer is not necessarily buyer-owner.

Source note: JK Shah SOGA Notes / Hire-purchase distinction

Question 22EasyTransactions Similar to Sale

Exchange of goods for goods without money consideration is:

  1. A

    Barter or exchange, not sale

  2. B

    Auction sale

  3. C

    Sale by sample

  4. D

    Sale under Section 4

View answer and explanation

Correct answer: A. Barter or exchange, not sale

Price under the Act means money consideration. Pure exchange of goods for goods lacks price and is not a sale under Section 4.

Source note: Sale of Goods Act, 1930, Sections 2(10) and 4

Question 23MediumTransactions Similar to Sale

A contract is more likely to be a contract for work and labour, rather than sale, when:

  1. A

    Goods are sold in a shop

  2. B

    The buyer pays money

  3. C

    The substance of the contract is skill and service, with materials only incidental

  4. D

    Goods are sold by description

View answer and explanation

Correct answer: C. The substance of the contract is skill and service, with materials only incidental

The court looks at the substance of the transaction. If the main object is skill or service and the passing of materials is merely incidental, it may not be a sale of goods.

Source note: JK Shah SOGA Notes / Standard contract principles

Question 24EasyTransactions Similar to Sale

Bailment differs from sale because:

  1. A

    Bailment is possible only for money

  2. B

    Bailment transfers ownership immediately

  3. C

    Bailment involves transfer of possession, not property in goods

  4. D

    Bailment requires auction

View answer and explanation

Correct answer: C. Bailment involves transfer of possession, not property in goods

In bailment, possession is transferred for a purpose, but ownership remains with the bailor. Sale requires transfer or agreement to transfer property in goods.

Source note: Sale of Goods Act, 1930, Section 4 / Indian Contract Act bailment principles

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