Sale of Goods Act MCQs for Judiciary, Page 7

Correct answer: C. To be manufactured or acquired by the seller after making the contract of sale

Future goods do not exist in the seller's ownership at the time of contract. They are expected to be manufactured or acquired later. Because they are not presently owned, a present sale of such goods cannot usually take place immediately.

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

Correct answer: A. Whose acquisition by the seller depends upon a contingency which may or may not happen

Contingent goods are a special class of future goods. Their acquisition depends on an uncertain event. Since the seller may never acquire them at all, the transaction remains dependent on that contingency and cannot operate as an immediate transfer of ownership.

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

Correct answer: B. Identified and agreed upon at the time the contract of sale is made

The emphasis is on identification at the time of contract. If the goods are already singled out and agreed upon, they are specific goods. This matters because the rules of passing property for specific goods differ from those for unascertained goods.

Source note: Sale of Goods Act, 1930, Section 2(14)

Correct answer: C. A reasonable price

Section 9 protects the contract from failing merely because the price was not expressly fixed. In such a case, the law implies a reasonable price. What is reasonable depends on facts such as market conditions, nature of goods, and surrounding circumstances.

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

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

A condition goes to the root of the contract. If it is broken, the buyer ordinarily has a right to reject the goods and repudiate the contract, subject to the Act. A warranty, by contrast, is collateral and gives only a damages remedy.

Source note: Sale of Goods Act, 1930, Section 12(2)

Correct answer: B. Collateral to the main purpose

A warranty is a secondary promise connected with the sale. Its breach does not generally allow rejection of goods. The buyer can usually sue for damages, but the contract itself continues unless some other ground justifies repudiation.

Source note: Sale of Goods Act, 1930, Section 12(3)

Correct answer: B. A breach of warranty

Section 13 allows the buyer in suitable cases to waive a condition or treat its breach only as breach of warranty. This means the buyer may keep the goods and claim damages instead of rejecting them. The law gives this election to avoid unnecessary commercial disruption.

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

Correct answer: C. A breach of warranty only, subject to contract terms

Once goods are accepted in a non-severable contract, the law usually limits the buyer to damages, unless there is a contract term preserving rejection or some other special ground. This rule balances the buyer's protection with commercial finality after acceptance.

Source note: Sale of Goods Act, 1930, Section 13(2)

Correct answer: B. Has a right to sell the goods in the case of a sale

Title is basic to a sale. The buyer expects that the seller either presently has the right to sell, or in an agreement to sell will have that right when property is to pass. If the seller lacks title, the buyer is exposed to eviction and loss, so the law implies this protection.

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

Correct answer: B. Enjoy possession without lawful disturbance by reason of defective title

Quiet possession means the buyer should not later be disturbed by someone with a better legal title. It does not promise physical peace in a general sense. It protects the buyer from lawful claims that arise because the seller had no right or defective right to sell.

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

Correct answer: B. Any charge or encumbrance in favour of a third party not declared to the buyer

If a third party has a lien, charge, or other encumbrance over the goods, the buyer should not be surprised after purchase. The seller must either disclose it or bear responsibility. This warranty protects the buyer from hidden burdens affecting full enjoyment of the goods.

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

Correct answer: B. Correspond with the description

Description is often the basis on which the buyer agrees to purchase. If the goods do not match the description, the buyer has not received what was contracted for. This condition applies even if the buyer has not seen the goods and often even where goods are seen but purchased by description.

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

Correct answer: A. Match the sample in quality

The sample is shown to represent the bulk. The buyer relies on it as an indication of quality. If the delivered goods materially differ from the sample, the seller has not performed the contract according to the standard held out at the time of sale.

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

Correct answer: C. Correspond with both the sample and the description

Both representations form part of the contract. It is not enough that the goods match one but fail the other. The buyer is entitled to insist on conformity with both the sample shown and the description used in the bargain.

Source note: Sale of Goods Act, 1930, Sections 15 and 17

Correct answer: B. By description from a seller who deals in goods of that description

The law implies merchantable quality where the seller is in the business of selling goods of that kind and the goods are bought by description. The buyer is then entitled to goods fit for the ordinary purpose for which such goods are commonly used, subject to statutory limits.

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

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

This condition does not arise automatically in every sale. The buyer must communicate the particular purpose and must rely on the seller's skill or judgment. If the seller deals in those goods, the law then implies that the goods will be reasonably fit for that disclosed purpose.

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

Correct answer: B. Let the buyer beware

The traditional rule places the burden on the buyer to be cautious and inspect what is being purchased. However, modern sale law softens this rule through several statutory and common law exceptions, especially where the buyer relies on the seller or where the seller makes descriptions or representations.

Source note: General principle of sale law

Correct answer: B. The buyer makes known the purpose and relies on the seller's skill

One major exception is fitness for a disclosed purpose. Other recognised exceptions include merchantable quality, sale by description, sale by sample, fraud, and usage of trade. The basic idea is that the seller cannot escape responsibility where the buyer is entitled to rely on the seller.

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

Correct answer: A. Discoverable on such examination

The law does not protect a buyer against defects that a reasonable examination would have revealed and which the buyer had the opportunity to notice. But hidden defects not discoverable by ordinary examination can still support a claim if the other requirements are met.

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

Correct answer: C. Wholesome and fit for consumption

Where food is sold for human consumption, the buyer is entitled to expect that it is wholesome and reasonably fit to be eaten. This is closely tied to the broader idea of fitness for purpose and public safety. Unwholesome food gives rise to civil liability and may also attract statutory consequences.

Source note: Standard implied condition in sale of food

Correct answer: B. Intention of the parties

Section 19 makes intention the controlling principle. The later rules in Sections 20 to 24 are aids for discovering that intention when it is not expressly stated. Courts therefore look first at contract terms, conduct of parties, and surrounding circumstances.

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

Correct answer: C. When the contract is made

Section 20 lays down a clear rule. If the goods are specific, in a deliverable state, and the contract is unconditional, ownership passes at the time of contract, whether or not payment or delivery is postponed. This is one of the most frequently tested provisions in judiciary exams.

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

Correct answer: B. That thing is done and the buyer has notice thereof

Until the necessary act is done, the goods are not ready for delivery in the legal sense contemplated by the contract. The buyer must also have notice of the completion of that act. Only then does ownership pass, unless the contract shows a different intention.

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

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

Section 22 is different from Section 21. The goods may already be physically deliverable, but some act remains necessary to determine price with precision. Until that act is completed and known to the buyer, property does not pass under the statutory rule.

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

Correct answer: A. Expressly signifies approval or acceptance, or retains the goods beyond the fixed or reasonable time

The buyer is first given an option to decide. Ownership passes when the buyer accepts expressly, does an act adopting the transaction, or keeps the goods beyond the agreed or reasonable period without rejecting them. Mere temporary possession is not enough.

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