Sale of Goods Act MCQs for Judiciary, Page 8

Judiciary Sale of Goods Act questions 172-195 of 220, with answer keys and explanations covering conditions, warranties, transfer of property, delivery, unpaid seller rights, auction sales, and buyer remedies.

220 questions37 topics172-195 on this page

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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 172EasyTransfer of Property

No property in unascertained goods is transferred to the buyer unless and until the goods are:

  1. A

    Paid

  2. B

    Insured

  3. C

    Ascertained

  4. D

    Loaded for transit

View answer and explanation

Correct answer: C. Ascertained

Section 18 is an absolute rule. If the goods are not identified, ownership cannot pass because the law cannot transfer title in uncertainty. The goods must first be ascertained and then usually appropriated according to the contract.

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

Question 173MediumTransfer of Property

In the case of unascertained or future goods, property passes when goods of that description are unconditionally appropriated to the contract with:

  1. A

    The assent of the other party

  2. B

    A court order

  3. C

    Police verification

  4. D

    A written warranty only

View answer and explanation

Correct answer: A. The assent of the other party

Appropriation means final earmarking of the goods to the contract. It must be unconditional, and the other party must assent, which can be express or implied. Delivery to a carrier without reserving disposal may itself amount to such appropriation.

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

Question 174MediumTransfer of Property

When the seller reserves the right of disposal, property in the goods does not pass to the buyer until:

  1. A

    The buyer pays the advance only

  2. B

    The conditions imposed by the seller are fulfilled

  3. C

    The carrier receives the goods

  4. D

    The goods are manufactured

View answer and explanation

Correct answer: B. The conditions imposed by the seller are fulfilled

A seller can part with possession yet still retain control over ownership until some condition is met, such as payment against documents. Section 25 recognises this commercial device. It protects the seller against the buyer's default after shipment.

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

Question 175EasyTransfer of Property

The general rule is that risk prima facie passes with:

  1. A

    Possession

  2. B

    Property

  3. C

    Registration

  4. D

    Delivery order

View answer and explanation

Correct answer: B. Property

Section 26 states the usual rule that risk follows ownership, not mere possession. So if property has already passed, the loss generally falls on the buyer even if delivery is pending. But parties may agree otherwise, and delay caused by fault may shift consequences.

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

Question 176MediumTransfer of Property

Where there is a contract for sale of specific goods, but the goods without seller knowledge had already perished at the time of contract, the contract is:

  1. A

    Void

  2. B

    Voidable at buyer option only

  3. C

    Perfectly valid

  4. D

    Only suspended

View answer and explanation

Correct answer: A. Void

A sale of specific goods assumes that the goods exist. If they had already perished before the agreement, the foundation of the contract has failed. The law therefore treats the contract as void because there is nothing that can legally be transferred.

Source note: Sale of Goods Act, 1930, Section 7

Question 177MediumTransfer of Property

If specific goods perish after an agreement to sell but before the sale and without fault of either party, the agreement to sell becomes:

  1. A

    Void

  2. B

    A sale at market price

  3. C

    Enforceable with damages

  4. D

    Automatically converted into a bailment

View answer and explanation

Correct answer: A. Void

Section 8 covers supervening destruction before ownership passes. Since the goods no longer exist and neither party is at fault, the agreement cannot be performed and becomes void. This protects both sides from liability for an impossible transfer.

Source note: Sale of Goods Act, 1930, Section 8

Question 178MediumTransfer of Property

For deciding intention under Section 19, the court may look at:

  1. A

    Only the wording of one clause

  2. B

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

  3. C

    Only market price

  4. D

    Only physical delivery

View answer and explanation

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

Section 19 is flexible because commercial transactions vary greatly. Courts therefore consider the full transaction context, including express terms, acts of the parties, and surrounding facts. This prevents mechanical application of one rule where the parties clearly intended another result.

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

Question 179EasyTitle of Buyer

The basic nemo dat rule means:

  1. A

    No one can sue without notice

  2. B

    No one can give what he does not have

  3. C

    No seller can sell on credit

  4. D

    No buyer can reject delivered goods

View answer and explanation

Correct answer: B. No one can give what he does not have

The rule protects true owners. A non-owner ordinarily cannot transfer a better title than he himself possesses. Therefore, a buyer from a person with defective title usually gets only that defective title, unless one of the statutory exceptions applies.

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

Question 180MediumTitle of Buyer

A mercantile agent can pass a good title to the buyer when the sale is made in the ordinary course of business and the buyer acts:

  1. A

    Without paying price

  2. B

    In good faith and without notice of the agent's lack of authority

  3. C

    After a court decree

  4. D

    Only with owner's written ratification

View answer and explanation

Correct answer: B. In good faith and without notice of the agent's lack of authority

This is an important commercial exception to nemo dat. If the owner has put the mercantile agent in possession with consent, and the buyer buys honestly without notice of any defect in authority, the buyer is protected to preserve market security.

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

Question 181MediumTitle of Buyer

A true owner may be estopped from denying the seller's authority when the owner has:

  1. A

    Never dealt with the seller

  2. B

    By conduct caused the buyer to believe that the seller had authority to sell

  3. C

    Filed a criminal case later

  4. D

    Only orally objected in private

View answer and explanation

Correct answer: B. By conduct caused the buyer to believe that the seller had authority to sell

Estoppel operates against inconsistent conduct. If the owner's words or behaviour induced the buyer to believe the seller was authorised, fairness prevents the owner from later denying that appearance to the prejudice of the buyer.

Source note: Principle of estoppel in sale law

Question 182MediumTitle of Buyer

Where the seller has obtained possession under a voidable contract not yet rescinded, a buyer in good faith without notice may acquire:

  1. A

    No title at all

  2. B

    Good title

  3. C

    Only a possessory lien

  4. D

    Title subject to automatic cancellation after one year

View answer and explanation

Correct answer: B. Good title

The law protects innocent third parties where the original contract is merely voidable and has not yet been avoided. Until rescission happens, the seller's title is defeasible but operative. So a good-faith purchaser without notice can obtain good title.

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

Question 183MediumTitle of Buyer

If the seller, after sale, continues in possession of goods or documents of title and makes another sale to a buyer in good faith without notice, the later buyer may obtain:

  1. A

    No rights at all

  2. B

    Only a damages claim

  3. C

    Good title

  4. D

    A right to possession but not ownership

View answer and explanation

Correct answer: C. Good title

Section 30 protects good-faith third parties who rely on possession still held by the seller. The law treats continued possession as creating apparent authority. Commercial convenience requires some protection to a later innocent buyer who acts without notice.

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

Question 184MediumTitle of Buyer

A buyer in possession with the seller's consent can pass good title to a sub-buyer acting in good faith without notice when:

  1. A

    The original buyer has already become insolvent only

  2. B

    The original buyer wrongfully sells or pledges the goods while in possession

  3. C

    The goods are immovable property

  4. D

    The original seller later changes the contract orally

View answer and explanation

Correct answer: B. The original buyer wrongfully sells or pledges the goods while in possession

The Act protects honest third parties who deal with a buyer apparently clothed with possession and authority. If the seller voluntarily allowed such possession, the risk of that appearance is placed more on the seller than on the innocent sub-buyer.

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

Question 185EasyPerformance and Delivery

It is the duty of the seller to deliver the goods and of the buyer to:

  1. A

    Accept and pay for them in accordance with the contract

  2. B

    Insure the seller against all transit loss

  3. C

    Resell the goods immediately

  4. D

    Register the contract with the State

View answer and explanation

Correct answer: A. Accept and pay for them in accordance with the contract

Section 31 states the reciprocal obligations in the simplest form. Delivery and payment are the core performances expected from seller and buyer. The remaining terms of the contract may refine the manner, time, and place, but they do not alter this basic structure.

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

Question 186EasyPerformance and Delivery

Unless otherwise agreed, delivery of goods and payment of price are:

  1. A

    Independent obligations

  2. B

    Concurrent conditions

  3. C

    Void conditions

  4. D

    Criminally enforceable duties

View answer and explanation

Correct answer: B. Concurrent conditions

The Act presumes a cash-against-goods structure unless parties decide differently. The seller must be ready and willing to give possession in exchange for the price, and the buyer must be ready and willing to pay in exchange for possession.

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

Question 187EasyPerformance and Delivery

Delivery of goods means voluntary transfer of:

  1. A

    General ownership only

  2. B

    Possession from one person to another

  3. C

    Documents of title alone

  4. D

    Risk alone

View answer and explanation

Correct answer: B. Possession from one person to another

Delivery concerns possession, not necessarily ownership. Possession may pass before ownership, as in some agreements to sell or where disposal rights are reserved. The definition therefore focuses on the act of putting the buyer or authorised person in possession.

Source note: Sale of Goods Act, 1930, Section 33

Question 188EasyPerformance and Delivery

Which of the following is not commonly treated as a mode of delivery?

  1. A

    Actual delivery

  2. B

    Symbolic delivery

  3. C

    Constructive delivery

  4. D

    Penal delivery

View answer and explanation

Correct answer: D. Penal delivery

Actual, symbolic, and constructive delivery are recognised commercial ideas. Penal delivery is not a legal mode under sale law. The concept of delivery is flexible because possession can be transferred physically, by control over documents, or by attornment.

Source note: Standard sale law doctrine

Question 189MediumPerformance and Delivery

Part delivery of goods may operate as delivery of the whole when it is made:

  1. A

    To separate the part from the whole

  2. B

    In progress of delivering the whole

  3. C

    Without seller consent

  4. D

    After filing of a suit only

View answer and explanation

Correct answer: B. In progress of delivering the whole

The effect of part delivery depends on intention. If the part is delivered as part of a process of delivering the entire lot, the law may treat it as delivery of the whole. If it is delivered merely to separate that part, the result is different.

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

Question 190EasyPerformance and Delivery

Where no place of delivery is specified, the goods are to be delivered at:

  1. A

    The buyer's residence always

  2. B

    The seller's place of business, or if none, the seller's residence

  3. C

    The nearest railway station

  4. D

    The place chosen by the carrier

View answer and explanation

Correct answer: B. The seller's place of business, or if none, the seller's residence

The Act supplies default rules where parties are silent. One such rule is about place of delivery. Commercially, the seller is not presumed to travel to the buyer unless the contract says so; the buyer generally takes delivery at the seller's business or residence.

Source note: Sale of Goods Act, 1930, Section 36

Question 191EasyPerformance and Delivery

Where demand for delivery is necessary, it must be made at:

  1. A

    Any hour the buyer pleases

  2. B

    A reasonable hour

  3. C

    Only during court hours

  4. D

    Only before sunset

View answer and explanation

Correct answer: B. A reasonable hour

What is reasonable depends on the nature of goods, business usage, and surrounding facts. The Act avoids rigid timing rules and instead adopts a practical standard. A midnight demand in an ordinary business context would typically not satisfy this requirement.

Source note: Sale of Goods Act, 1930, Section 36(4)

Question 192MediumPerformance and Delivery

Delivery of goods to a carrier for transmission to the buyer is prima facie deemed to be delivery to:

  1. A

    The court

  2. B

    The buyer

  3. C

    The insurer

  4. D

    The State

View answer and explanation

Correct answer: B. The buyer

Where the seller hands over goods to an independent carrier for transmission to the buyer, the carrier is generally treated as the buyer's agent for receipt, unless the seller reserves the right of disposal or the contract indicates otherwise.

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

Question 193EasyPerformance and Delivery

The buyer is not deemed to have accepted the goods unless and until the buyer has had a reasonable opportunity of:

  1. A

    Reselling them

  2. B

    Examining them to ascertain whether they conform to the contract

  3. C

    Pledging them to a bank

  4. D

    Testing them in court

View answer and explanation

Correct answer: B. Examining them to ascertain whether they conform to the contract

The law does not force acceptance blindly. The buyer must get a fair chance to inspect whether the goods correspond with the contract. This is especially important in sales by description, sample, or where defects may appear on ordinary examination.

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

Question 194MediumPerformance and Delivery

A buyer is deemed to have accepted goods when the buyer does an act in relation to them which is:

  1. A

    Consistent with the ownership of the seller

  2. B

    Inconsistent with the ownership of the seller

  3. C

    Wholly unrelated to the goods

  4. D

    Ordered by the police

View answer and explanation

Correct answer: B. Inconsistent with the ownership of the seller

Acts like resale, consumption, or use as owner may show acceptance because they are inconsistent with the seller's continuing ownership. Section 42 therefore looks not merely at words but at conduct that reveals adoption of the goods by the buyer.

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

Question 195EasyPerformance and Delivery

Unless otherwise agreed, the buyer is not bound to accept delivery by:

  1. A

    A recognised carrier

  2. B

    Instalments

  3. C

    A warehouse keeper

  4. D

    Symbolic delivery

View answer and explanation

Correct answer: B. Instalments

The general rule is that the buyer is entitled to insist on delivery in one lot, unless the contract permits instalments. This matters because instalment delivery can affect convenience, risk, storage, and the buyer's commercial use of the goods.

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