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Sale of Goods Act - II

Description: Sale of Goods Act-II, CPT
Number of Questions: 23
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Tags: Law-Sale of Goods Act-II CPT The Sale of Goods Act, 1930
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Which of the following is not a stage in a contract of sale?

  1. Transfer of property in goods

  2. Transfer of possession of goods

  3. Passing of risk

  4. Sharing of risk


Correct Option: D
Explanation:

There is no sharing of risk in a contract of sale.

Unless otherwise stated, delivery of goods is made

  1. before the price is paid

  2. after the price is paid

  3. at the time when price is paid

  4. None of these


Correct Option: C
Explanation:

If there is no such contract, delivery and payment are concurrent conditions. However, the contract may provide for advance or deferred payment.

Who bear(s) the risk of loss of goods by accident?

  1. The person having possession

  2. The person having ownership

  3. Both of these

  4. Any third party


Correct Option: B
Explanation:

It is the owner who has to bear the risk.

The mercantile agent cannot sell the property if

  1. the property is possessed by agent.

  2. the property is with the consent of buyer.

  3. the buyer acts in good faith.

  4. the buyer has knowledge of dispute between agent and owner.


Correct Option: D
Explanation:

If the buyer has knowledge of any dispute, he should not buy the goods.

Handing over the keys of godown to buyer is an example of

  1. actual delivery

  2. constructive delivery

  3. symbolic delivery

  4. no delivery


Correct Option: C
Explanation:

Symbolic delivery indicates the symbolic transfer of goods especially when the goods are bulky in nature. Actual delivery means physical delivery of goods. Constructive delivery refers to acknowledgement of delivery by third party on behalf of seller.

Unless otherwise stated, delivery of goods is made

  1. before the price is paid

  2. after the price is paid

  3. at the time when price is paid

  4. None of these


Correct Option: C
Explanation:

If there is no such contract, delivery and payment are concurrent conditions. However, the contract may provide for advance or deferred payment.

It is the duty of _________ to apply for the delivery of goods.

  1. buyer

  2. seller

  3. banker

  4. third party


Correct Option: A
Explanation:

It is the duty of buyer to apply for the delivery of goods.

Where there is no specific agreement in contract of sale as to place of delivery, the goods should be delivered

  1. at the place of buyer

  2. at the place where they were at the time of sale

  3. at the place of manufacturing

  4. in between the place of buyer and seller


Correct Option: B
Explanation:

In such cases, goods are delivered at the place where they were at the time of sale. In case of future goods, which are yet to be manufactured, they are to be delivered at the place of manufacturing.

The expenses of delivery are to be borne by the _____ in absence of any contract.

  1. buyer

  2. seller

  3. banker

  4. carrier


Correct Option: B
Explanation:

In absence of contract, the buyer should pay the delivery expenses.

Delivery of wrong quantity includes

  1. delivery of goods in quantity less than contracted

  2. delivery of goods in quantity more than contracted

  3. delivery of goods contracted to sell mixed with other goods

  4. all of these


Correct Option: D
Explanation:

All of these are examples of delivery of wrong quantity.

Delivery of goods to carrier is deemed to be made to buyer when the carrier is/are

  1. an independent contractor

  2. an agent of seller

  3. an agent of buyer

  4. all of these


Correct Option: C
Explanation:

It is deemed only when the carrier is an agent of buyer. If the carrier is independent, the goods are deemed as delivered only when he intimates buyer to accept the goods.

Which of the following is not an unpaid seller?

  1. The seller who has to sell the goods on cash basis but the price is due.

  2. The seller who has received a cheque, which has bounced, for the goods sold.

  3. The seller who has received installment as per the terms of contract.

  4. The seller who has sold goods on one month credit and one month has not passed yet.


Correct Option: D
Explanation:

The credit period is not yet over, so he is not an unpaid seller.

The unpaid seller has right of stoppage of goods in transit when

  1. the seller wishes not to deliver the goods to buyer

  2. the buyer has refused to make payment

  3. the buyer has become insolvent

  4. all of these


Correct Option: C
Explanation:

 Conditions under which Right of Stoppage in Transit can be Exercised [Section 50]: The unpaid seller can exercise the right of stoppage in transit only if the following conditions are fulfilled: (i) The seller must have parted with the possession of goods, i.e., the goods must not be in the possession of seller. (ii) The goods must be in the course of transit. (iii) The buyer must have become insolvent.

Right of lien is exercised by an unpaid seller when goods are in possession of

  1. buyer

  2. seller

  3. carrier who is buyer's agent

  4. buyer's agent


Correct Option: B
Explanation:

The seller has the right to lien of goods only when the goods are in his possession. Once the possession is lost, the lien is also lost.

If the goods are of perishable nature, the unpaid seller has the right

  1. to resale the goods without notice to buyer

  2. to resale the goods after giving due notice to buyer

  3. not to resell the goods

  4. none of these


Correct Option: A
Explanation:

In case of perishable goods, there is no need to give the notice.

In an auction sale, the sale is complete

  1. when the seller accepts the sale

  2. when the auctioneer accepts the sale

  3. when the payment is made

  4. at the fall of hammer in customary mode


Correct Option: D
Explanation:

The auction sale is complete at the fall of hammer.

Which of the following documents is not a document of title of goods?

  1. Railway receipt

  2. Bill of lading

  3. Dock warrant

  4. Letter of credit


Correct Option: D
Explanation:

All others are documents of title of goods. A letter of credit is issued by Importer's bank to guarantee the payment. It is not a document of title.

Which of the following is/are not remedy/remedies for consequence of breach in warranty?

  1. Claim for damages

  2. Extinction of price

  3. Repudiate of contract

  4. All of these


Correct Option: C
Explanation:

The contract can't be repudiated in case of breach of warranty. The buyer can claim for damages or may make extinction (adjustment) in price.

Who among the following cannot make valid sale?

  1. Unpaid seller

  2. Mercantile agent

  3. Pawnee (when there is no default)

  4. Joint owner


Correct Option: C
Explanation:

The Pawnee can sale the goods only if the pawnor has defaulted in payment of debt.

Doctrine of Caveat Emptor is not applicable if the

  1. purpose of buying is not known to seller

  2. goods are bought by description

  3. contract is made by fraud

  4. buyer has relied upon the skills of seller


Correct Option: A
Explanation:

If the purpose is not known to seller, then the contract can't be repudiated.

Right of lien can be exercised only when goods are in possession of

  1. buyer

  2. seller

  3. carrier, who is an agent of buyer

  4. broker


Correct Option: B
Explanation:

Only the seller can exercise the right of lien. Once the possession is lost, the right of lien is also lost.

Right of the unpaid seller against the buyer personally does not include

  1. suit for price

  2. suit for interest

  3. suit for repudiation

  4. none of these


Correct Option: D
Explanation:

All of these rights are available to unpaid seller.

Reserve price is the ______ price in case of auction sale.

  1. maximum

  2. minimum

  3. average

  4. variable


Correct Option: B
Explanation:

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