Sale of Goods Act MCQs for Judiciary, Page 2

Judiciary Sale of Goods Act questions 25-48 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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Practice judiciary exam MCQs with answers and explanations across substantive law, procedure, evidence, constitutional law, and state judicial service subjects.

  • 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 25EasyConditions and Warranties

A condition in a contract of sale is a stipulation:

  1. A

    Collateral to the main purpose only

  2. B

    Essential to the main purpose of the contract

  3. C

    Always implied and never express

  4. D

    That can never be waived

View answer and explanation

Correct answer: B. Essential to the main purpose of the contract

Section 12 treats a condition as a stipulation essential to the main purpose of the contract. Breach ordinarily gives a right to reject and claim damages.

Source note: Sale of Goods Act, 1930, Section 12

Question 26EasyConditions and Warranties

A warranty is best described as:

  1. A

    A rule of criminal liability

  2. B

    A transfer of property document

  3. C

    An auctioneer certificate

  4. D

    A stipulation collateral to the main purpose of the contract

View answer and explanation

Correct answer: D. A stipulation collateral to the main purpose of the contract

A warranty is collateral to the main purpose. Its breach usually gives a right to damages, but not a right to reject goods and treat the contract as repudiated.

Source note: Sale of Goods Act, 1930, Section 12

Question 27EasyConditions and Warranties

The usual remedy for breach of warranty is:

  1. A

    Automatic imprisonment of seller

  2. B

    Cancellation of every connected contract

  3. C

    Rejection of goods in every case

  4. D

    Damages or diminution/extinction of price

View answer and explanation

Correct answer: D. Damages or diminution/extinction of price

Section 59 allows breach of warranty to be used to reduce or extinguish price, or as the basis of an action for damages.

Source note: Sale of Goods Act, 1930, Section 59

Question 28MediumConditions and Warranties

Whether a stipulation is a condition or warranty depends primarily on:

  1. A

    Whether the buyer is a merchant

  2. B

    The name used by parties alone

  3. C

    The construction of the contract and importance of the term

  4. D

    The amount of court fee

View answer and explanation

Correct answer: C. The construction of the contract and importance of the term

Section 12 says a stipulation may be a condition though called a warranty, and vice versa. Substance and contractual importance matter more than labels.

Source note: Sale of Goods Act, 1930, Section 12

Question 29MediumCondition Treated as Warranty

A buyer may elect to treat breach of condition as breach of warranty by:

  1. A

    Waiving the condition or choosing not to reject the goods

  2. B

    Filing a police complaint

  3. C

    Transferring goods to a stranger automatically

  4. D

    Refusing to inspect goods

View answer and explanation

Correct answer: A. Waiving the condition or choosing not to reject the goods

Section 13 permits the buyer to waive a condition or elect to treat its breach as breach of warranty, thereby limiting the remedy to damages.

Source note: Sale of Goods Act, 1930, Section 13

Question 30MediumCondition Treated as Warranty

Where a contract of sale is not severable and the buyer has accepted the goods, breach of condition is generally treated as:

  1. A

    A breach of warranty, unless the contract shows a different intention

  2. B

    No breach at all

  3. C

    A void agreement

  4. D

    A ground for criminal forfeiture

View answer and explanation

Correct answer: A. A breach of warranty, unless the contract shows a different intention

Section 13 limits rejection after acceptance in non-severable contracts, subject to contrary intention. The buyer may still claim damages.

Source note: Sale of Goods Act, 1930, Section 13

Question 31MediumCondition Treated as Warranty

In a severable contract, acceptance of one instalment or part does not necessarily mean:

  1. A

    The seller loses all remedies

  2. B

    The contract is void

  3. C

    The buyer has accepted all goods under all parts

  4. D

    The buyer must pay double price

View answer and explanation

Correct answer: C. The buyer has accepted all goods under all parts

Severability matters because rights may be assessed part-wise. Section 13 itself distinguishes severable from non-severable contracts.

Source note: Sale of Goods Act, 1930, Section 13

Question 32HardCondition Treated as Warranty

The statutory rule converting breach of condition into breach of warranty after acceptance is important because it:

  1. A

    Prevents any claim for damages

  2. B

    Balances commercial finality with compensation

  3. C

    Makes every buyer remedy criminal

  4. D

    Abolishes conditions entirely

View answer and explanation

Correct answer: B. Balances commercial finality with compensation

The rule protects finality in commercial dealings after goods are accepted while preserving a damages remedy for the buyer.

Source note: Sale of Goods Act, 1930, Section 13

Question 33EasyImplied Terms

In every contract of sale, there is an implied condition that the seller:

  1. A

    Will deliver within one hour

  2. B

    Has a right to sell the goods, or will have it when property is to pass

  3. C

    Will always provide a manufacturer guarantee

  4. D

    Will personally manufacture the goods

View answer and explanation

Correct answer: B. Has a right to sell the goods, or will have it when property is to pass

Section 14(a) implies a condition as to title. In sale, the seller must have a right to sell; in agreement to sell, such right must exist when property is to pass.

Source note: Sale of Goods Act, 1930, Section 14(a)

Question 34MediumImplied Terms

The implied warranty of quiet possession means:

  1. A

    The goods will be noiseless

  2. B

    The seller will store goods forever

  3. C

    The buyer cannot sue for title defect

  4. D

    The buyer shall enjoy possession without disturbance from persons with superior title

View answer and explanation

Correct answer: D. The buyer shall enjoy possession without disturbance from persons with superior title

Section 14(b) protects the buyer against disturbance of possession arising from title defects or superior claims.

Source note: Sale of Goods Act, 1930, Section 14(b)

Question 35MediumImplied Terms

An implied warranty under Section 14(c) protects the buyer against:

  1. A

    Any delay caused by buyer

  2. B

    Every change in market demand

  3. C

    Price fluctuation

  4. D

    Undisclosed charge or encumbrance in favour of a third party

View answer and explanation

Correct answer: D. Undisclosed charge or encumbrance in favour of a third party

The seller impliedly warrants that goods shall be free from any charge or encumbrance not declared or known to the buyer before or at the time of contract.

Source note: Sale of Goods Act, 1930, Section 14(c)

Question 36HardImplied Terms

In Rowland v. Divall type situations, where the seller has no title at all, the buyer may recover the price because:

  1. A

    The buyer was negligent in bargaining

  2. B

    There is total failure of consideration

  3. C

    The buyer inspected the goods

  4. D

    The sale was by auction

View answer and explanation

Correct answer: B. There is total failure of consideration

A seller without title cannot provide the essential benefit of ownership. The title condition is central to the contract of sale.

Source note: Rowland v. Divall / Sale of Goods Act, 1930, Section 14

Question 37EasySale by Description and Sample

In a sale by description, there is an implied condition that:

  1. A

    Goods must correspond with the description

  2. B

    Goods must be sold only by sample

  3. C

    Buyer must accept goods regardless of description

  4. D

    Seller must provide credit

View answer and explanation

Correct answer: A. Goods must correspond with the description

Section 15 states that goods must correspond with description. If they do not, the buyer may reject for breach of condition.

Source note: Sale of Goods Act, 1930, Section 15

Question 38MediumSale by Description and Sample

A sale may still be by description even if the buyer sees the goods where:

  1. A

    The buyer signs a mortgage deed

  2. B

    The goods are immovable

  3. C

    The price is absent

  4. D

    The buyer relies on the descriptive identity of the goods

View answer and explanation

Correct answer: D. The buyer relies on the descriptive identity of the goods

Seeing goods does not always eliminate reliance on description. If the goods are identified commercially by description, Section 15 may apply.

Source note: Sale of Goods Act, 1930, Section 15

Question 39EasySale by Description and Sample

In a sale by sample, the bulk must:

  1. A

    Be different from the sample

  2. B

    Be approved by a public officer

  3. C

    Correspond with the sample in quality

  4. D

    Always be delivered by sea

View answer and explanation

Correct answer: C. Correspond with the sample in quality

Section 17 implies that the bulk shall correspond with the sample in quality.

Source note: Sale of Goods Act, 1930, Section 17

Question 40MediumSale by Description and Sample

In a sale by sample, the buyer is protected against:

  1. A

    Seller insolvency after payment

  2. B

    Defects making goods unmerchantable which would not be apparent on reasonable examination of the sample

  3. C

    Every fall in market price

  4. D

    All defects apparent on casual inspection

View answer and explanation

Correct answer: B. Defects making goods unmerchantable which would not be apparent on reasonable examination of the sample

Section 17 protects the buyer where defects are latent and not discoverable on reasonable examination of the sample.

Source note: Sale of Goods Act, 1930, Section 17

Question 41MediumFitness and Quality

The implied condition of fitness for purpose arises when the buyer:

  1. A

    Makes the particular purpose known and relies on seller skill or judgment

  2. B

    Always buys goods by auction

  3. C

    Pays price in advance only

  4. D

    Never inspects goods

View answer and explanation

Correct answer: A. Makes the particular purpose known and relies on seller skill or judgment

Section 16(1) requires purpose to be made known, expressly or by implication, and reliance on the seller skill or judgment.

Source note: Sale of Goods Act, 1930, Section 16(1)

Question 42MediumFitness and Quality

Where goods are bought under a patent or trade name, the implied fitness condition is excluded if:

  1. A

    The seller is unpaid

  2. B

    Goods are future goods

  3. C

    The sale is by sample

  4. D

    The buyer does not rely on seller skill or judgment

View answer and explanation

Correct answer: D. The buyer does not rely on seller skill or judgment

The proviso to Section 16(1) limits the fitness condition where the buyer relies on the trade name rather than the seller skill or judgment.

Source note: Sale of Goods Act, 1930, Section 16(1) proviso

Question 43MediumFitness and Quality

The implied condition of merchantable quality under Section 16(2) generally requires:

  1. A

    Only auction sale of immovable property

  2. B

    Only sale of old coins

  3. C

    Goods sold by description from a seller dealing in such goods

  4. D

    Any casual private sale of identified goods

View answer and explanation

Correct answer: C. Goods sold by description from a seller dealing in such goods

Section 16(2) applies where goods are bought by description from a seller who deals in goods of that description.

Source note: Sale of Goods Act, 1930, Section 16(2)

Question 44MediumFitness and Quality

If the buyer examines goods, the implied condition as to merchantable quality does not extend to:

  1. A

    The price term

  2. B

    Defects which such examination ought to have revealed

  3. C

    All hidden defects in every case

  4. D

    The seller title

View answer and explanation

Correct answer: B. Defects which such examination ought to have revealed

Section 16(2) proviso excludes protection for defects which the buyer examination ought to have revealed.

Source note: Sale of Goods Act, 1930, Section 16(2) proviso

Question 45EasyCaveat Emptor

The doctrine of caveat emptor means:

  1. A

    Let the buyer beware

  2. B

    Let the seller insure every risk

  3. C

    Let the court fix price

  4. D

    Let the auctioneer own goods

View answer and explanation

Correct answer: A. Let the buyer beware

Caveat emptor is the general rule that the buyer must use judgment while buying, subject to statutory exceptions and implied conditions.

Source note: Sale of Goods Act, 1930, Section 16

Question 46EasyCaveat Emptor

Which is a recognised exception to caveat emptor?

  1. A

    Buyer refuses delivery without reason

  2. B

    Seller is unpaid

  3. C

    Goods are delivered to a carrier

  4. D

    Buyer makes purpose known and relies on seller skill

View answer and explanation

Correct answer: D. Buyer makes purpose known and relies on seller skill

Section 16(1) creates an exception where the buyer relies on the seller skill or judgment for a known purpose.

Source note: Sale of Goods Act, 1930, Section 16(1)

Question 47MediumCaveat Emptor

Caveat emptor will not protect a seller who:

  1. A

    Delivers goods by carrier

  2. B

    Sells under a written contract

  3. C

    Fraudulently conceals a defect or misleads the buyer

  4. D

    Sells goods at a low price

View answer and explanation

Correct answer: C. Fraudulently conceals a defect or misleads the buyer

The doctrine cannot be used as a shield for fraud, active concealment, or misleading conduct.

Source note: Sale of Goods Act, 1930, Section 16 / General contract principles

Question 48HardCaveat Emptor

An implied condition or warranty may be annexed by usage of trade if:

  1. A

    Goods are destroyed

  2. B

    The usage is not inconsistent with the express contract

  3. C

    The buyer is always a consumer

  4. D

    The price is unpaid

View answer and explanation

Correct answer: B. The usage is not inconsistent with the express contract

Section 16 recognises implied terms arising from trade usage, subject to consistency with the contract.

Source note: Sale of Goods Act, 1930, Section 16(3)