1) A contract for the sale if goods where property would pass to the buyer on the payment of total price would be

  • Sale
  • Agreement to sale
  • H.P.Sale
  • Sale of approval

2) Which of the following is the requirement of a valid contract for sale ?

  • There must be two distinct parties
  • The subject matter should be goods
  • The consideration called price must be money
  • All of the above

3) Which of the following is incorrect for a valid contract for sale ?

  • Transfer of General property as distiguished from special property
  • All the essential elements of a valid contract of sale
  • There must be atleast two parties
  • Pledged property cannot be the subject matter of a contract of sale.

4) To effect a contract of sale, a buyer and seller must be competent to contract.

  • True
  • False

5) A partnership firm is dissolved the surplus assets including stock is divided among the partners. Is it a sale ?

  • No, It is a agreement to sale
  • Only distribution of stock is considered as sale
  • Yes, it is a sale.
  • No, since partners are joint owners it cannot be considered as sale

6) Under sec.2(7) of the sale of goods act, "Goods" means every kind of movable property and it includes

  • Stock and shares
  • Growing crops, grass
  • All of the above
  • None of the above

7) "Goods" under sale of goods act, 1930  does not include 

  • Patent and trademark
  • actionable claims
  • money
  • Harvested crops

8) Which of the following is not in existence at the time of contract of sale ?

  • Future goods
  • Contingent goods
  • Unascertained goods
  • All of the above

9) Mr. A agreed to exchange with 100 drum s of Mustard oil at Rs. 100 per drum for 50 drum of Olive oil Valued at Rs. 150 per drum and pay the difference in cash. Is it a contract of sale ?

  • No, Goods are plegded
  • It is a contract of sale
  • It is a auction sale
  • None of the above

10) Which of the following are special goods ?

  • Pledged goods
  • Goods sold under hire-purchase
  • Goods sold on credit
  • Goods sold under instalment system

11) Which of the following is a mode of contract of sale ?

  • Immediate delivery of goods and immediate payment of price
  • Delivery of goods and payment of price at some futrue date
  • Delivery of goods and payment of price both in instalment
  • All of the above

12) There is no contract of sale in the following cases :
        (a) price is paid and goods are not delivered.
        (b) price is not paid at all for delivery of goods.

  • True
  • False
13) Transfer of movable property is regulated by the sale of goods act.

  • True
  • False

14) Which of the following is a contract of sale ?

  • Where goods are exchanged for goods
  • Where money is exchanged for money
  • Where goods are transferred for a price
  • Where goods are transferred for a consideretion partly of goods and partly of money

15) Under the provision " Goods perishing before making of the contract ", Contract of sale of goods is void if

  • Goods Partly or Wholly perished before the contract is made
  • When the seller deprived of the goods (that cannot be recovered)
  • Contract is to agreement to sale not actual sale
  • All of the above

16) A sold to B cargo of dates. The dates were contaminated with sea water so as to be unsaleable as dates, though they could be used for making spirits. Is the contract void ?

  • No, whole goods are not destroyed.
  • No, valid but price consideretion is to be adjusted
  • Yes, as dates no longer answer there description in the contract
  • None of the above

17) Specific goods are those which are 

  • Identified and agreed upon at the time of sale
  • Ascertained goods
  • Unascertained goods
  • Future goods

18) An agreement to sale specific goods cannot be void if

  • Goods are perished without any fault on the part of the seller or buyer
  • Goods so damaged as no longer to answer to their desciption in the agreement
  • When it is impossible to perform the contract
  • When goods are unascertained

19) A agrees to sell to B 10 bales of Egyptian cotton out of 100 bales lying in his godown. The godown had been destroyed by fire at the time of the contract. Both A and B are unaware of this fact. Is this contract void ?

  • Yes, Goods are totally destroyed
  • Yes, Goods are of specific nature
  • No, there is no specific goods
  • None of the above

20 ) What are the options available to the Hirer in case of Hire purchase agreement ?

  • He may purchase the goods after paying all the agreed instalments
  • He may purchase the goods without paying all the agreed instalments
  • Return the goods at any time and stop further payment of instalments
  • Return the goods at any time and remain paying the instalments

21) Which of the following is a typical sale ?

  • Barter
  • Hire purchase
  • Hypothecation of goods
  • Bailment of goods


22) A agrees to sale to B his two second-hand cars on the terms that the price wasto be fixed by C. B takes delivery of one car immediately. C, however, refuges to fix the price. A asks for return of the car already delivered whereas B insist on the delivery of the second car to him for a reasonable price of both the cars. Decide.

  • B shall have to return the car delivered to him
  • B shall have to pay for both the cars a reasonnable price
  • B shall have to pay for the car delivered to him a reasonable price
  • B cannot insists on the delivery of second car to him for a reasonable price


23) If in a contract of sale price is not fixed, the buyer shall have to pay to the seller

  • Market price
  • Reasonable price
  • Nothing
  • None of the above


24) Which of the following is not a essential of a good document of title to goods ?

  • It must be used in ordinary course of business
  • The undertaking ot deliver the goods is unconditional
  • The possessor of the document is entitled to receive the goods conditionally
  • The possessor of the document must be entitled to receive the goods Unconditionally


25) "Caveat emptor"  means :

  • Let the buyer beware
  • Let the Seller beware
  • All of the above
  • None of the above


26) Condition is a Stipulation which is essential to:

  • the main purpose of the contract
  • the breach of which gives the right to the aggrieved party to repudiate the contract
  • the breach of which gives the right to the aggrieved party to claim for damages
  • A and B above


27) Warranty is a Stipulation which is :

  • essential to the main purpose of the contract
  • the breach of which gives the right to the aggrieved party to repudiate the contract
  • the breach of which gives the right to the aggrieved party to claim for damages
  • A and B above


28) A breach of condition may be treated as breach of warranty but a breach of warranty cannot be treated as a breach of condition.

  • True
  • False

29) When condition is treated as warranty (sec.13)?

  • Voluntary waiver of condition by the buyer
  • When buyer elect to treat the breach of condition as a breach of warranty
  • When the buyer has accepted the goods or part thereof
  • All of the above

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