Sale of Goods Act MCQs for Judiciary, Page 4

Correct answer: D. Buyer has possession with seller consent and transfers to a good-faith transferee without notice

A buyer in possession with seller consent may pass good title to a bona fide transferee who has no notice of the original seller rights.

Source note: Sale of Goods Act, 1930, Section 30(2)

Correct answer: C. Goods or documents of title to goods

The sections cover delivery or transfer of goods or documents of title, reflecting commercial trading through documents.

Source note: Sale of Goods Act, 1930, Section 30

Correct answer: B. Protect bona fide commercial transferees who rely on possession or title documents

Section 30 is a carefully limited exception to nemo dat. It supports commercial certainty where possession creates an appearance of authority.

Source note: Sale of Goods Act, 1930, Section 30

Correct answer: A. Seller delivers goods and buyer accepts and pays according to contract

Section 31 states the reciprocal duties: delivery by seller, and acceptance plus payment by buyer, in accordance with the contract.

Source note: Sale of Goods Act, 1930, Section 31

Correct answer: D. Concurrent conditions

Section 32 treats payment and delivery as concurrent conditions unless the parties agree otherwise.

Source note: Sale of Goods Act, 1930, Section 32

Correct answer: C. Actual, symbolic, or constructive

Delivery means voluntary transfer of possession. It may occur by actual handover, symbolic act, or constructive change in legal possession.

Source note: Sale of Goods Act, 1930, Sections 2(2) and 33

Correct answer: B. It is made in progress of delivery of the whole

Section 34 distinguishes part delivery in progress of the whole from part delivery made only for severance or other limited purpose.

Source note: Sale of Goods Act, 1930, Section 34

Correct answer: A. Reject the goods, or accept and pay at contract rate

Section 37 gives the buyer rights where wrong quantity is delivered. Acceptance of lesser quantity generally requires payment at the contract rate.

Source note: Sale of Goods Act, 1930, Section 37(1)

Correct answer: D. Accept the contracted quantity and reject the rest, or reject the whole

Section 37 allows the buyer to accept only the contracted quantity and reject excess, or reject the whole delivery.

Source note: Sale of Goods Act, 1930, Section 37(2)

Correct answer: C. Accept conforming goods and reject the rest, or reject the whole

Section 37(3) deals with mixed delivery and protects the buyer from being forced to accept goods of a different description.

Source note: Sale of Goods Act, 1930, Section 37(3)

Correct answer: B. The contract so provides

Section 38 states that, unless otherwise agreed, the buyer is not bound to accept delivery by instalments.

Source note: Sale of Goods Act, 1930, Section 38

Correct answer: A. Delivery to the buyer

Section 39 treats delivery to carrier or wharfinger as prima facie delivery to buyer where authorised or required by the contract.

Source note: Sale of Goods Act, 1930, Section 39

Correct answer: D. Make a reasonable contract with the carrier on behalf of buyer

Section 39 requires the seller to make a reasonable carrier contract. Failure may expose the seller to responsibility for resulting loss.

Source note: Sale of Goods Act, 1930, Section 39

Correct answer: C. The buyer, unless otherwise agreed

Section 40 states the rule on deterioration necessarily incident to transit when goods are to be delivered at a distant place.

Source note: Sale of Goods Act, 1930, Section 40

Correct answer: B. He has a reasonable opportunity to examine them for conformity

Section 41 protects the buyer right to examine goods before acceptance where no prior examination has occurred.

Source note: Sale of Goods Act, 1930, Section 41

Correct answer: A. Intimates acceptance, acts inconsistently with seller ownership, or retains goods beyond reasonable time

Section 42 gives three routes to acceptance: intimation, inconsistent act, or retention beyond reasonable time without rejection.

Source note: Sale of Goods Act, 1930, Section 42

Correct answer: D. Not bound to return them; it is enough to intimate rejection

Section 43 states that the buyer need not return rejected goods unless agreed. He must make rejection known to the seller.

Source note: Sale of Goods Act, 1930, Section 43

Correct answer: C. Loss caused by neglect or refusal, and reasonable charge for care and custody

Section 44 protects the seller from losses and expenses caused by buyer neglect or refusal to take delivery.

Source note: Sale of Goods Act, 1930, Section 44

Correct answer: B. A question of fact depending on circumstances

The Act often uses reasonable time as a fact-sensitive standard. Nature of goods, trade practice, and circumstances matter.

Source note: Sale of Goods Act, 1930, Sections 42 and 63

Correct answer: A. Whole price has not been paid or tendered, or negotiable instrument received as conditional payment is dishonoured

Section 45 defines unpaid seller by non-payment or dishonour of conditional payment instrument.

Source note: Sale of Goods Act, 1930, Section 45

Correct answer: D. Lien, stoppage in transit, and resale

Section 46 recognises unpaid seller rights against goods, including lien, stoppage in transit, and resale, along with personal remedies.

Source note: Sale of Goods Act, 1930, Section 46

Correct answer: C. Possession of goods by the seller

Lien is a possessory right to retain goods until payment or tender of price in recognised circumstances.

Source note: Sale of Goods Act, 1930, Section 47

Correct answer: B. He delivers goods to a carrier without reserving disposal rights

Section 49 provides that lien is lost by delivery to carrier without reservation, lawful possession by buyer, or waiver.

Source note: Sale of Goods Act, 1930, Section 49

Correct answer: A. Buyer becomes insolvent and goods are in transit

Section 50 permits stoppage in transit when the buyer becomes insolvent and goods are still in transit.

Source note: Sale of Goods Act, 1930, Section 50