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Sale of Goods Act MCQs for Judiciary, Page 3

Judiciary Sale of Goods Act questions 49-73 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 49EasyPassing of Property

For specific or ascertained goods, property passes when:

  1. A

    The parties intend it to pass

  2. B

    The police approve delivery

  3. C

    The buyer first sees the goods

  4. D

    The invoice is printed

View answer and explanation

Correct answer: A. The parties intend it to pass

Section 19 makes intention the controlling test for transfer of property in specific or ascertained goods.

Source note: Sale of Goods Act, 1930, Section 19

Question 50EasyPassing of Property

To determine intention as to passing of property, the court considers:

  1. A

    Only the colour of goods

  2. B

    Only the buyer age

  3. C

    Only the place of payment

  4. D

    Terms of contract, conduct of parties, and circumstances of the case

View answer and explanation

Correct answer: D. Terms of contract, conduct of parties, and circumstances of the case

Section 19(2) directs attention to the contract terms, conduct, and surrounding circumstances.

Source note: Sale of Goods Act, 1930, Section 19(2)

Question 51EasyPassing of Property

Property in unascertained goods cannot pass unless:

  1. A

    The buyer signs a receipt

  2. B

    The seller is a merchant

  3. C

    The goods are ascertained

  4. D

    The goods are insured

View answer and explanation

Correct answer: C. The goods are ascertained

Section 18 states that no property is transferred in unascertained goods unless and until the goods are ascertained.

Source note: Sale of Goods Act, 1930, Section 18

Question 52MediumPassing of Property

The prima facie rule under Section 26 is that risk:

  1. A

    Passes only after price is paid

  2. B

    Passes with property unless otherwise agreed

  3. C

    Always remains with the seller after sale

  4. D

    Always remains with the carrier

View answer and explanation

Correct answer: B. Passes with property unless otherwise agreed

Section 26 links risk with property unless parties agree otherwise, subject to the fault exception.

Source note: Sale of Goods Act, 1930, Section 26

Question 53EasyRules for Specific Goods

Under Section 20, in an unconditional contract for specific goods in deliverable state, property passes:

  1. A

    When the contract is made

  2. B

    Only after delivery

  3. C

    Only after full payment

  4. D

    Only after inspection

View answer and explanation

Correct answer: A. When the contract is made

Section 20 makes timing of payment or delivery immaterial where the goods are specific, deliverable, and the contract is unconditional.

Source note: Sale of Goods Act, 1930, Section 20

Question 54MediumRules for Specific Goods

Under Section 21, where the seller must do something to put specific goods into deliverable state, property passes when:

  1. A

    The seller silently completes the act

  2. B

    The buyer pays token money

  3. C

    The goods are advertised

  4. D

    The act is done and the buyer has notice

View answer and explanation

Correct answer: D. The act is done and the buyer has notice

Section 21 requires both completion of the necessary act and notice to the buyer.

Source note: Sale of Goods Act, 1930, Section 21

Question 55MediumRules for Specific Goods

Under Section 22, where goods must be weighed or measured to ascertain price, property passes when:

  1. A

    The seller chooses a carrier

  2. B

    The goods become old

  3. C

    That act is done and buyer has notice

  4. D

    The buyer enters the shop

View answer and explanation

Correct answer: C. That act is done and buyer has notice

If something remains to be done for ascertaining price, property does not pass until the act is done and notice is given to the buyer.

Source note: Sale of Goods Act, 1930, Section 22

Question 56EasyRules for Specific Goods

Goods are in a deliverable state when:

  1. A

    The price is above market price

  2. B

    The buyer would under the contract be bound to take delivery

  3. C

    The goods are physically beautiful

  4. D

    The seller is ready to litigate

View answer and explanation

Correct answer: B. The buyer would under the contract be bound to take delivery

Section 2(3) defines deliverable state by reference to whether the buyer would be bound to take delivery under the contract.

Source note: Sale of Goods Act, 1930, Section 2(3)

Question 57MediumUnascertained Goods

For unascertained goods, property passes under Section 23 when goods are:

  1. A

    Unconditionally appropriated to the contract with mutual assent

  2. B

    Merely shown in a catalogue

  3. C

    Kept somewhere in seller warehouse without identification

  4. D

    Promised orally without quantity

View answer and explanation

Correct answer: A. Unconditionally appropriated to the contract with mutual assent

Section 23 requires goods of the contractual description in deliverable state to be unconditionally appropriated with assent of the other party.

Source note: Sale of Goods Act, 1930, Section 23

Question 58MediumUnascertained Goods

Assent to appropriation under Section 23 may be:

  1. A

    Only by registered deed

  2. B

    Only by court order

  3. C

    Only after dispute arises

  4. D

    Express or implied, and may be given before or after appropriation

View answer and explanation

Correct answer: D. Express or implied, and may be given before or after appropriation

Assent may be express or implied and can be given before or after appropriation.

Source note: Sale of Goods Act, 1930, Section 23

Question 59MediumUnascertained Goods

Delivery of goods to a carrier for transmission to the buyer may amount to:

  1. A

    Extinction of buyer remedies

  2. B

    Auction sale

  3. C

    Unconditional appropriation if the seller does not reserve disposal rights

  4. D

    Rejection of goods

View answer and explanation

Correct answer: C. Unconditional appropriation if the seller does not reserve disposal rights

Section 23(2) treats delivery to carrier as appropriation in suitable cases, but reservation of the right of disposal may postpone transfer.

Source note: Sale of Goods Act, 1930, Sections 23 and 25

Question 60HardUnascertained Goods

Merely setting aside goods internally in the seller warehouse will usually not pass property because:

  1. A

    The contract becomes barter

  2. B

    There may be no irrevocable appropriation or assent

  3. C

    The goods become immovable

  4. D

    The buyer becomes unpaid seller

View answer and explanation

Correct answer: B. There may be no irrevocable appropriation or assent

Appropriation must identify and commit goods to the contract with the required assent. A revocable internal earmarking is usually insufficient.

Source note: Sale of Goods Act, 1930, Section 23 / Healy v. Howlett principle

Question 61EasyApproval and Return

Goods sent "on approval" or "sale or return" pass property when the buyer:

  1. A

    Signifies approval or acceptance to the seller

  2. B

    Merely receives the parcel in every case

  3. C

    Refuses to open the parcel

  4. D

    Asks for a lower price

View answer and explanation

Correct answer: A. Signifies approval or acceptance to the seller

Section 24 states that property passes when the buyer signifies approval or acceptance, or otherwise adopts the transaction.

Source note: Sale of Goods Act, 1930, Section 24

Question 62MediumApproval and Return

If goods are sent on approval and the buyer keeps them beyond the fixed or reasonable time without rejection, property:

  1. A

    Always returns to the seller

  2. B

    Is destroyed by law

  3. C

    Passes to the carrier

  4. D

    May pass to the buyer

View answer and explanation

Correct answer: D. May pass to the buyer

Section 24 treats retention beyond the agreed time, or beyond reasonable time where no time is fixed, as a basis for passing property.

Source note: Sale of Goods Act, 1930, Section 24

Question 63MediumReservation of Disposal

Where the seller reserves the right of disposal, property passes:

  1. A

    Only when buyer becomes insolvent

  2. B

    Never under the Act

  3. C

    Only when the conditions imposed by the seller are fulfilled

  4. D

    Immediately in every case

View answer and explanation

Correct answer: C. Only when the conditions imposed by the seller are fulfilled

Section 25 allows the seller to reserve disposal rights. Property does not pass until the conditions attached to that reservation are satisfied.

Source note: Sale of Goods Act, 1930, Section 25

Question 64HardReservation of Disposal

Taking a bill of lading to the seller order commonly indicates:

  1. A

    A completed gift

  2. B

    Reservation of right of disposal

  3. C

    Automatic rejection by buyer

  4. D

    Waiver of price

View answer and explanation

Correct answer: B. Reservation of right of disposal

Commercial documents may show that the seller has reserved disposal rights, postponing the passing of property until conditions are met.

Source note: Sale of Goods Act, 1930, Section 25

Question 65EasyTransfer of Title

The nemo dat rule means:

  1. A

    No one can transfer a better title than he himself has

  2. B

    Every possessor is owner

  3. C

    Every buyer must reject goods

  4. D

    Every auction is void

View answer and explanation

Correct answer: A. No one can transfer a better title than he himself has

Section 27 embodies the nemo dat principle, subject to recognised exceptions protecting bona fide purchasers in commercial situations.

Source note: Sale of Goods Act, 1930, Section 27

Question 66MediumTransfer of Title

A non-owner may pass good title where the true owner is:

  1. A

    A minor in every case

  2. B

    Absent from India

  3. C

    Unaware of market price

  4. D

    Precluded by conduct from denying the seller authority

View answer and explanation

Correct answer: D. Precluded by conduct from denying the seller authority

Section 27 preserves the estoppel exception. If the owner by conduct represents authority, the owner may be prevented from denying it against a bona fide buyer.

Source note: Sale of Goods Act, 1930, Section 27

Question 67MediumTransfer of Title

Sale by a mercantile agent can pass good title when possession is with owner consent and the buyer acts:

  1. A

    Without paying any price

  2. B

    After stealing the goods

  3. C

    In good faith without notice of want of authority

  4. D

    With full notice of fraud

View answer and explanation

Correct answer: C. In good faith without notice of want of authority

The mercantile agent exception protects bona fide buyers where the agent possesses goods with owner consent and sells in the ordinary course of business.

Source note: Sale of Goods Act, 1930, Section 27 proviso / Indian Contract Act, Section 178

Question 68EasyTransfer of Title

A thief selling stolen goods generally passes:

  1. A

    Title if goods are movable

  2. B

    No good title to the buyer

  3. C

    Perfect title if the buyer pays cash

  4. D

    Title only after seven days

View answer and explanation

Correct answer: B. No good title to the buyer

A thief has no title and cannot pass ownership under the general rule. Bona fide purchase alone does not cure theft title.

Source note: Sale of Goods Act, 1930, Section 27

Question 69MediumTransfer of Title

Under Section 28, one joint owner in sole possession may pass good title if the buyer:

  1. A

    Buys in good faith without notice of lack of authority

  2. B

    Knows all other owners object

  3. C

    Pays no price

  4. D

    Acts as a carrier

View answer and explanation

Correct answer: A. Buys in good faith without notice of lack of authority

Section 28 protects a bona fide buyer from one of several joint owners who has sole possession with permission of co-owners.

Source note: Sale of Goods Act, 1930, Section 28

Question 70MediumTransfer of Title

Under Section 29, a seller with voidable title can pass good title if:

  1. A

    The title is void from the beginning

  2. B

    The goods are stolen

  3. C

    The buyer knows of fraud

  4. D

    The contract has not been rescinded and the buyer acts in good faith without notice

View answer and explanation

Correct answer: D. The contract has not been rescinded and the buyer acts in good faith without notice

Voidable title is different from no title. Until rescinded, a bona fide buyer without notice may acquire good title.

Source note: Sale of Goods Act, 1930, Section 29

Question 71HardTransfer of Title

Why does Section 29 not protect a buyer from a thief?

  1. A

    The thief always sells by sample

  2. B

    The thief fixes reasonable price

  3. C

    The thief has no voidable title; he has no title at all

  4. D

    The thief is a mercantile agent

View answer and explanation

Correct answer: C. The thief has no voidable title; he has no title at all

Section 29 applies where the transferor has a voidable title under a contract, not where possession is obtained by theft without title.

Source note: Sale of Goods Act, 1930, Section 29

Question 72MediumTransfer of Title

In transfer-of-title exceptions, good faith generally requires:

  1. A

    A promise to litigate

  2. B

    Honesty and absence of notice of the defect in title or authority

  3. C

    Knowledge of seller fraud

  4. D

    Refusal to pay price

View answer and explanation

Correct answer: B. Honesty and absence of notice of the defect in title or authority

The statutory exceptions commonly require good faith and absence of notice. They are designed to protect honest commercial purchasers, not collusive buyers.

Source note: Sale of Goods Act, 1930, Sections 27-30

Question 73HardSeller or Buyer in Possession

Section 30(1) protects a second buyer where:

  1. A

    Seller remains in possession after sale and resells to a good-faith buyer without notice

  2. B

    Seller steals goods from first buyer

  3. C

    Buyer rejects goods immediately

  4. D

    Goods are immovable

View answer and explanation

Correct answer: A. Seller remains in possession after sale and resells to a good-faith buyer without notice

If a seller remains in possession after sale and transfers goods or documents of title to a bona fide second buyer without notice, the second buyer may get good title.

Source note: Sale of Goods Act, 1930, Section 30(1)

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