Sale of Goods Act, 1930 MCQ Quiz in தமிழ் - Objective Question with Answer for Sale of Goods Act, 1930 - இலவச PDF ஐப் பதிவிறக்கவும்

The correct answer is the agreement is avoided.

Key Points

• Section 8 of the Sale of Goods Act, 1930, provides for the Goods perishing before sale but after agreement to sell.
• It states that —Where there is an agreement to sell specific goods, and subsequently the goods without any fault on the part of the seller or buyer perish or become so damaged as no longer to answer to their description in the agreement before the risk passes to the buyer, the agreement is thereby avoided.

​ Additional Information

• Section 7- Goods perishing before making of contract. — Where there is a contract for the sale of specific goods, the contract is void if the goods without the knowledge of the seller have, at the time when the contract was made, perished or become so damaged as no longer to answer to their description in the contract.​

The correct answer is Section 4.

Key Points

• Section 4 of the Sale of Goods Act, 1930, provides for the Sale and agreement to sell.
• It states that —(1) A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. There may be a contract of sale between one part-owner and another.
  (2) A contract of sale may be absolute or conditional.
  (3) Where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale, but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called an agreement to sell.
  (4) An agreement to, sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred.

The correct answer is Rules as to delivery.

Key Points

• Section 36 of the Sale of Goods Act, 1930, provides for the Rules as to delivery.
• It states that — (1) Whether it is for the buyer to take possession of the goods or for the seller to send them to the buyer is a question depending in each case on the contract, express or implied, between the parties. Apart from any such contract, goods sold are to be delivered at the place at which they are at the time of the sale, and goods agreed to be sold are to be delivered at the place at which they are at the time of the agreement to sell, or, if not then in existence, at the place at which they are manufactured or produced.
  (2) Where under the contract of sale the seller is bound to send the goods to the buyer, but no time for sending them is fixed, the seller is bound to send them within a reasonable time.
  (3) Where the goods at the time of sale are in the possession of a third person, there is no delivery by seller to buyer unless and until such third person acknowledges to the buyer that he holds the goods on his behalf:
  Provided that nothing in this section shall affect the operation of the issue or transfer of any document of title to goods.
  (4) Demand or tender of delivery may be treated as ineffectual unless made at a reasonable hour. What is a reasonable hour is a question of fact.
  (5) Unless otherwise agreed, the expenses of and incidental to putting the goods into a deliverable state shall be borne by the seller.

The correct answer is Section 26.

Key Points

• Section 26 of the Sale of Goods Act, 1930, provides that the Risk prima facie passes with property.
• It states that —Unless otherwise agreed, the goods remain at the seller’s risk until the property therein is transferred to the buyer, but when the property therein is transferred to the buyer, the goods are at the buyer’s risk whether delivery has been made or not:
  Provided that, where delivery has been delayed through the fault of either buyer or seller, the goods are at the risk of the party in fault as regards any loss which might not have occurred but for such fault:
  Provided also that nothing in this section shall affect the duties or liabilities of either seller or buyer as a bailee of the goods of the other party.

The correct answer is Option 3 Key Points

•  Section 41: Buyer's Right to Examine Goods:
• If the buyer receives goods without previous examination, they are not deemed to have accepted them until they have had a reasonable opportunity to examine them for conformity with the contract. The seller, upon request, must provide the buyer with a reasonable opportunity to examin the goods upon tendering delivery.
• Section 33: Modes of Delivery:
• Delivery of goods can be made by any means agreed upon by the parties or any act that puts the goods in the possession of the buyer or a person authorized to hold them on behalf of the buyer.
  • Section 34: Part Delivery: The delivery of part of the goods, in the process of delivering the whole, has the same effect as the delivery of the entire goods. However, if part of the goods is delivered with the intention of severing it from the rest, it does not operate as a delivery of the remaining goods.
  • Section 35: Buyer's Application for Delivery: Unless otherwise agreed, the seller is not obligated to deliver the goods until the buyer applies for delivery.

Additional Information

• Section 36. Rules for Delivery:
  • The question of whether the buyer should take possession of the goods or the seller should send them to the buyer depends on the contract. If no specific agreement exists, the goods sold should be delivered at the place where they are at the time of the sale, while goods agreed to be sold should be delivered at the place of agreement or, if not in existence, at the place of manufacturing or production.
  • If the seller is bound to send the goods to the buyer but no specific time is mentioned, the seller must send them within a reasonable time.
  •  If the goods are in the possession of a third person at the time of sale, there is no delivery by the seller to the buyer unless the third person acknowledges holding the goods on the buyer's behalf.
  • Demand or tender of delivery must be made at a reasonable hour.
  • The expenses incurred in putting the goods into a deliverable state are borne by the seller, unless otherwise agreed.
• Section 37: Delivery of Wrong Quantity:
  • If the seller delivers a quantity of goods that is less than the contracted quantity, the buyer may reject them. However, if the buyer accepts the delivered goods, they must pay for them at the contract rate.
  •  If the seller delivers a quantity of goods larger than the contracted quantity, the buyer may accept the goods included in the contract and reject the rest, or reject the entire delivery.
  •  If the seller delivers goods of a different description, not included in the contract, mixed with the contracted goods, the buyer may accept the conforming goods and reject the rest, or reject the entire delivery.
  • These provisions are subject to any usage of trade, special agreement, or course of dealing between the parties

The correct answer is Option 3

Key Points

• Section 50- Stoppage in transit:
  • Right of stoppage in transit: When the buyer becomes insolvent, the unpaid seller who has parted with possession of the goods has the right to stop the goods in transit. This means they can resume possession and retain the goods until payment or tender of the price.
• Section 51: Duration of transit:
  •  Goods are considered to be in transit from the time they are delivered to a carrier or bailee for transmission to the buyer until the buyer or their agent takes delivery from the carrier or bailee.
  • The transit ends if the buyer or their agent takes delivery before the goods reach the destination or if the carrier or bailee acknowledges holding the goods on behalf of the buyer after the goods arrive at the destination.
  •  If the buyer rejects the goods and the carrier or bailee continues to hold them, the transit is not deemed to be at an end.
  • In the case of goods delivered to a ship chartered by the buyer, the nature of possession depends on the circumstances.
  •  If the carrier or bailee wrongfully refuses to deliver the goods to the buyer or their agent, the transit is considered to be at an end.
  •  If part delivery has been made, the remainder of the goods may be stopped in transit unless the circumstances indicate an agreement to give up possession of the whole.

Additional Information

• Section 45: "Unpaid seller" defined: The seller of goods is considered an "unpaid seller" under the Sale of Goods Act in two situations:
  • When the entire price of the goods has not been paid or tendered.
  • When a bill of exchange or other negotiable instrument has been received as conditional payment, but the condition has not been fulfilled due to the dishonor of the instrument or other reasons.
• The term "seller" in this context includes anyone who is in the position of a seller, such as an agent of the seller to whom the bill of lading has been endorsed, a consignor, or an agent who has paid the price or is directly responsible for it.
• Section 46: Rights of unpaid seller: Despite the property in the goods passing to the buyer, the unpaid seller of goods has certain implied rights under the law:

1. The seller has a lien on the goods for the price while in possession of them
2. In case the buyer becomes insolvent, the seller has the right to stop the goods in transit after parting with possession of them.\
3. The seller has the right of re-sale, subject to certain limitations specified in the Act.

• 47. Unpaid seller's lien:
  • Seller's lien:
  • The unpaid seller of goods who is in possession of the goods has the right to retain possession until payment or tender of the price in the following cases:

1. When the goods have been sold without any stipulation as to credit.
2. When the goods have been sold on credit, but the credit period has expired.
3. When the buyer becomes insolvent.
4. The seller can exercise the right of lien even if they are in possession of the goods as an agent or bailee for the buyer.

The correct answer is Option 2

Key Points

• Implied undertaking as to title, etc. (Section 14) - 
• In a contract of sale, unless the circumstances of the contract are such as to show a different intention there is -
  • (a) an implied condition on the part of the seller that, in the case of a sale, he has a right to sell the goods and that, in the case of an agreement to sell, he will have a right to sell the goods at the time when the property is to pass.
  • (b) an implied warranty that the buyer shall have and enjoy quiet possession of the goods.
  • (c) an implied warranty that the goods shall be free from any charge or encumbrance in favour of any third party not declared or known to the buyer before or at the time when the contract is made.
• What is Warranty?
•  A warranty is a stipulation (stipulation means to demand something):-

1. Which is not essential to the main purpose of the contract
2. The breach of warranty gives the aggrieved party a right to claim for damages but not the right to reject the goods
3. Even if there is breach of warranty, the main contract can be completed
4. 4. Breach of warranty can’t be treated as breach of condition

• Example: A (buyer) told B (shop keeper) that he wants to buy a good watch. B showed him a watch saying that it is made in Thailand. A buys the watch and later on realized that watch is made in China and not Thailand. There is breach of warranty because the stipulation made by the seller was not correct.

Additional Information

•  Various implied warranties are mentioned below:

1. Implied warranty as a quiet possession (Section 14b SOGA)- According to Section 14(b) an implied warranty that the buyer shall have and enjoy quiet possession of the goods.
2.  Implied warranty as to free from encumbrances (Section 14c SOGA)- According to Section 14(c) an implied warranty that the goods shall be free from any charge or encumbrance in favor of any third party not declared or known to the buyer before or at the time when the contract is made.
3. Implied warranty as to quality or fitness by usage of trade ([Section 16(4)] SOGA) - According to Section 16 (4) of the said Act, An express warranty or conditions does not negative a warranty or condition implied by this Act unless inconsistent therewith.

• Diffrence between Warranty and Gurantee: 

The correct answer is option 3.Key Points

• Section 2 (7) of Sale of Goods Act 1932 deals with  “goods”.
• It means every kind of moveable property other than actionable claims and money; and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.

Additional Information

• Section 2​ (6) states “future goods” means goods to be manufactured or produced or acquired by the seller after the making of the contract of sale.
• Section 2 (14) states “specific goods” means goods identified and agreed upon at the time a contract of sale is made.

The correct answer is Neither (1) nor (2).

Key Points

• 'Goods' within the meaning of Section 2(7) of the Sale of Goods Act, 1930:
  • The term "goods" as defined under Section 2(7) of the Sale of Goods Act, 1930, includes every kind of movable property, other than actionable claims and money. Therefore, the definition explicitly excludes actionable claims and money.
  • Actionable claims refer to claims or debts which can be enforced through legal action, such as debts or claims to movable property not in possession. These are excluded from the definition of goods under the Act.
  • Money is also excluded from the definition of goods because it is considered a medium of exchange and not an item that can be bought and sold as goods in the conventional sense.

Additional Information

• Actionable claim(s):
  • These are claims which can be enforced by legal action, such as debts and beneficial interest in movable property not in possession. Since actionable claims are not considered as goods, they are not included under the definition provided in Section 2(7).
• Money:
  • Money, being a medium of exchange and legal tender, is not included in the definition of goods. It is used to facilitate transactions but is not considered a tradable good itself under the Act.