THE SALE OF GOODS ACT, 1930 |
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CHAPTER I |
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PRELIMINARY |
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What is the short title of the Act dealing with sale of goods? |
Sale of Goods Act, 1930
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The Sale of Goods Act, 1930, originally formed part of which Act? |
Indian Contract Act, 1872 |
When did the Sale of Goods Act, 1930 come into force? |
1st July 1930 |
What is the territorial extent of the Sale of Goods Act, 1930? |
Whole of India except the State of Jammu & Kashmir (Note: this was true before the abrogation of Article 370) |
Before becoming a separate Act, the provisions related to sale of goods were under which chapter of the Indian Contract Act? |
Chapter 7 |
What are the three elements of Section 1? |
Short title, Extent, Commencement |
Which Act repealed the sale of goods provisions from the Indian Contract Act? |
Sale of Goods Act, 1930 |
Who is a 'buyer' as per the Sale of Goods Act, 1930? |
A person who buys or agrees to buy goods |
Section 2(1) defines |
buyer |
Section 2(2) defines |
delivery |
Section 2(3) defines |
deliverable state |
Section 2(4) defines |
document of title to goods |
Section 2(5) defines |
Fault |
Section 2(6) defines |
future goods |
Section 2(7) defines |
Goods |
Section 2(8) defines |
Insolvent |
Section 2(9) defines |
mercantile agent |
Section 2(10) defines |
Price |
Section 2(11) defines |
Property |
Section 2(12) defines |
quality of goods |
Section 2(13) defines |
Seller |
Section 2(14) defines |
specific goods |
Who is a 'seller' under the Act? |
One who sells or agrees to sell goods |
‘Goods’ under the Act refer to: |
Movable property other than actionable claims and money |
Which is NOT included in the definition of ‘goods’? |
Money |
What does 'delivery' mean under the Sale of Goods Act, 1930? |
Voluntary transfer of possession from one person to another |
Which is a 'document of title to goods'? |
Bill of lading |
A person is considered 'insolvent' under the Act when they: |
Have ceased to pay their debts |
The term 'price' in the Act refers to: |
The consideration in terms of money for sale of goods |
'Property' in goods means: |
The legal ownership of the goods |
Which statements is correct? |
An 'agreement to sell' becomes a 'sale' when conditions are fulfilled |
The term ‘agreement to sell’ indicates: |
A future or conditional transfer of ownership |
Which are included in the definition of goods? |
Growing crops |
When the property in goods is transferred from seller to buyer, the contract is called: |
Sale |
As per Section 2(7), 'goods' include which things? |
Things attached to the land agreed to be severed |
Which section of the Sale of Goods Act defines ‘goods’? |
Section 2(7) |
In a sale, the ownership of goods is transferred to the buyer: |
When agreed upon by the parties |
The Indian Contract Act continues to apply to sale of goods contracts if its provisions are: |
Not inconsistent with the Sale of Goods Act |
When there is inconsistency between the Sale of Goods Act and the Indian Contract Act, which one prevails? |
Sale of Goods Act |
The legal framework for remedies such as damages in sale contracts derives from: |
Indian Contract Act and Sale of Goods Act both |
If a sale of goods contract is silent on a particular issue, the applicable rule comes from: |
Indian Contract Act, 1872 |
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CHAPTER II |
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FORMATION OF THE CONTRACT |
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Section 4 of the Sale of Goods Act, 1930 deals with: |
Sale and agreement to sell |
A contract of sale of goods is a contract whereby the seller: |
Transfers or agrees to transfer property in goods to the buyer for a price |
In a ‘sale’, the transfer of ownership is: |
Immediate |
In an ‘agreement to sell’, the ownership in goods is transferred: |
At a future time or upon fulfillment of a condition |
A contract of sale may relate to: |
Existing or future goods |
In which case does the risk of loss remain with the seller? |
Agreement to sell |
Which is not an essential element of a contract of sale? |
Delivery of goods |
An agreement to sell becomes a sale when: |
Ownership is transferred |
Which type of contract is created when ownership is not yet transferred but is to be in the future? |
Agreement to sell |
Under the Sale of Goods Act, the price in a contract of sale must be: |
In terms of money |
In a sale, the risk of loss or damage to the goods passes to the buyer: |
Immediately upon transfer of ownership |
Which is not a correct statement? |
Sale and agreement to sell are legally identical |
Which is true about future goods under Section 4? |
They can only be agreed to be sold |
The Sale of Goods Act, 1930, requires that the transfer of ownership in goods must be for: |
Money consideration |
When does an agreement to sell become a sale? |
When conditions agreed upon are fulfilled |
Which is best illustrates a contract of sale? |
Sale of a used phone for cash |
In a contract of sale, the ownership of goods may be transferred: |
Immediately or in future |
Under Section 5 of the Sale of Goods Act, a contract of sale can be made: |
By writing, word of mouth, or by conduct |
Which is NOT a valid mode of forming a contract of sale under Section 5? |
Silent assumption |
The contract of sale may be made: |
In any manner showing agreement between buyer and seller |
Section 5 states that the payment under a contract of sale can be: |
Made immediately or in instalments or on a future date |
A contract of sale can be implied by: |
The conduct of the parties |
According to Section 5, a contract of sale is complete when: |
There is mutual consent and consideration |
Under Section 5, when may the delivery of goods take place? |
Immediately, by instalments, or at a future date |
The Sale of Goods Act allows a contract to be formed through: |
Mutual consent |
Under Section 5, when is registration of a contract of sale mandatory? |
Never – the Act does not require registration |
When is a contract of sale considered complete under the Act? |
When there is mutual agreement on the transfer of goods for price |
Section 6 of the Sale of Goods Act, 1930 deals with: |
Existing or future goods |
Goods owned or possessed by the seller at the time of the contract are called: |
Existing goods |
Goods which are to be manufactured, acquired, or produced by the seller after the contract are called: |
Future goods |
A contract of sale may be made for: |
Either existing or future goods |
Which is an example of future goods? |
Goods to be manufactured next month |
A contract for sale of future goods operates as: |
An agreement to sell |
When can a valid sale take place for future goods? |
When the goods are acquired and ownership is transferred |
Under Section 6(1), the subject matter of a contract of sale can be: |
Existing goods, future goods, or contingent goods |
Future goods can be: |
The subject of an agreement to sell |
A contract to sell mangoes that will be harvested next season is a contract of: |
Agreement to sell future goods |
Section 7 of the Sale of Goods Act, 1930 deals with: |
Goods perishing before contract |
Section 7 applies only when the goods are: |
Specific goods |
A contract is void under Section 7 when: |
Specific goods have perished before the contract is made |
What is the legal status of a contract if specific goods had already perished before the contract, and neither party knew? |
Void |
Which is essential for Section 7 to apply? |
The seller must be unaware of the destruction |
Which type of goods are relevant under Section 7? |
Specific goods only |
A contract to sell specific goods that have already perished is: |
Void |
Section 7 emphasizes the principle of: |
Mutual mistake |
Section 8 of the Sale of Goods Act, 1930 deals with: |
Goods perishing after agreement to sell but before sale |
Under Section 8, the contract is void if the goods perish: |
Before sale is completed, after agreement to sell |
Which type of goods are relevant under Section 8? |
Specific goods |
In an agreement to sell, the risk remains with the: |
Seller |
If specific goods are damaged beyond sale after an agreement to sell, who bears the loss? |
Seller, if ownership not transferred |
Which principle is reflected in Section 8? |
Doctrine of risk follows ownership |
When does risk pass from seller to buyer in a contract of sale? |
With transfer of ownership |
The rule in Section 8 is similar to the doctrine of: |
Frustration of contract |
Section 9 of the Sale of Goods Act, 1930 deals with: |
Ascertainment of price |
According to Section 9, the price of goods may be: |
Fixed by the contract or in a manner agreed |
If the price is not determined in the contract, the buyer is required to pay: |
A reasonable price |
“Reasonable price” under Section 9 is determined as: |
A question of fact |
If a contract does not specify a price, which applies? |
Buyer must pay a reasonable price |
Section 10 of the Sale of Goods Act, 1930 deals with: |
Agreement to sell at valuation |
An agreement to sell becomes void under Section 10 if: |
Third party fails to fix the price |
If goods have been delivered and appropriated under an agreement to sell at valuation, the buyer must: |
Pay a reasonable price |
In an agreement to sell at valuation, the price is to be fixed by: |
Third party |
A contract to sell is valid if: |
Valuation is provided by an agreed third party |
Section 11 of the Sale of Goods Act, 1930 relates to: |
Time stipulations in contracts of sale |
Which statements is true regarding time in contracts of sale? |
Time is not of the essence unless agreed by both parties |
In the case of Union of India vs. B.N. Nandi, it was held that: |
Time stipulations must be strictly followed when agreed upon |
According to Section 11, if a time stipulation is not a condition of the contract, then: |
The contract may still be performed despite the delay |
Which would make time a condition of the contract under Section 11? |
The contract explicitly states that time is of the essence |
If a seller fails to deliver the goods on time but the contract does not specify that time is of the essence, the buyer: |
May still have to accept delivery within a reasonable time |
In the case of Union of India vs. B.N. Nandi, the issue of time was considered because: |
Time was an essential part of the agreement |
In the absence of a time stipulation, the law presumes the time of delivery to be: |
As soon as possible, within a reasonable time |
Section 12 of the Sale of Goods Act, 1930 deals with: |
Conditions and warranties in contracts of sale |
A condition in a contract of sale is defined as: |
An essential term which must be fulfilled |
Which is true about a warranty under Section 12 of the Sale of Goods Act, 1930? |
Breach of warranty gives the aggrieved party the right to sue for damages |
If a contract specifies that a particular term is a "condition," a breach of that condition allows the aggrieved party to: |
Terminate the contract and claim damages |
Under Section 12, if a contract is silent about the nature of the stipulations, the law will treat them as: |
Warranties |
A stipulation in a contract that the goods will be of a specific quality is generally considered a: |
Condition |
Section 13 of the Sale of Goods Act, 1930, deals with: |
When a condition is treated as a warranty |
Under Section 13, a condition may be treated as a warranty if: |
The breach of the condition is accepted by the aggrieved party |
If the buyer accepts goods knowing the breach of a condition, then: |
The condition may be treated as a warranty |
If the seller makes a minor defect in the goods and the buyer accepts them, the breach of condition will likely be treated as: |
A breach of warranty |
Which statements is true regarding the breach of a condition under Section 13? |
The breach can be waived and treated as a warranty with the buyer’s consent |
If a condition is waived by the buyer under Section 13, the buyer can still: |
Claim damages for the breach of the warranty |
Section 14 of the Sale of Goods Act, 1930, deals with the: |
Implied undertaking as to title |
Under Section 14, the seller of goods is deemed to have an implied warranty that: |
The seller has the right to sell the goods |
If the seller does not have the right to sell the goods, the buyer can: |
Return the goods and claim damages |
According to Section 14, if the goods are subject to an undisclosed charge, the buyer may: |
Return the goods and sue for damages |
Which is true about the implied warranty under Section 14 in a contract of sale? |
It is implied that the seller has the right to sell the goods free from encumbrances |
Section 15 of the Sale of Goods Act, 1930, deals with: |
Sale by description |
In a sale by description, the goods must: |
Conform to the description given by the seller |
Which statements is true regarding a sale by description under Section 15? |
The goods must correspond to the description even if the buyer inspects them |
In the case of Harling v. Eddy (1951), the court ruled that the seller was liable for: |
Breach of contract due to failure to meet the description |
According to Section 15, when goods are sold by description, the buyer has the right to reject the goods if: |
The goods do not conform to the description |
Which is NOT a requirement under Section 15 regarding a sale by description? |
The goods must be inspected by the buyer before the sale |
In Ellis v. Atkinson (1858), the court ruled that the sale of goods by description meant: |
The buyer has the right to reject the goods if they do not match the description |
When goods are sold by description under Section 15, the description must: |
Be true and not misleading |
In Harling v. Eddy (1951), the buyer’s right to reject the goods was upheld because: |
The goods did not match the description provided |
Which conditions apply in a sale by description under Section 15? |
The description must be complete, accurate, and not misleading |
Section 16 of the Sale of Goods Act, 1930, deals with: |
Implied conditions as to quality or fitness |
Under Section 16, if the buyer buys goods for a particular purpose, the seller must ensure that the goods are: |
Suitable for the purpose the buyer has made known |
Section 16 implies that goods sold must be of: |
Merchantable quality |
According to Section 16, if a buyer has an opportunity to inspect the goods before purchase, the implied condition as to fitness and quality may be: |
Waived |
Under Section 16, the implied condition of fitness for a particular purpose does not apply if: |
The buyer inspects the goods before purchasing them |
Under Section 16, if the goods sold are fit for the particular purpose communicated by the buyer, it is an implied condition that the goods will: |
Be of merchantable quality |
Which does NOT come under the implied condition of merchantable quality under Section 16? |
The goods must meet the specific requirements of the buyer |
If a seller knows that the goods are to be used for a particular purpose, the goods must be: |
Fit for that particular purpose |
If the buyer has not communicated a specific purpose for which they need the goods, the implied condition of fitness does not apply. However, the goods must still be: |
Of a reasonable quality and fit for general use |
Section 17 of the Sale of Goods Act, 1930, deals with: |
Sale by sample |
In a sale by sample, the goods delivered must: |
Match the sample in quality |
When goods are sold by sample, the seller must ensure that: |
The bulk of the goods corresponds with the sample in quality |
In the case of Beale v. Taylor (1967), the court ruled that: |
The bulk of the goods must correspond to the sample in terms of quality |
In a sale by sample, it is the responsibility of the seller to ensure that: |
The bulk corresponds with the sample in quality |
In a sale by sample, if the goods delivered do not conform to the sample in quality, the buyer is entitled to: |
A full refund |
The implied condition under Section 17 regarding the quality of the goods sold by sample applies to: |
Only the quality of the goods |
If a seller delivers goods that are not of merchantable quality but were sold by sample, the buyer can: |
Return the goods and claim a refund or replacement |
Section 18 of the Sale of Goods Act, 1930, requires that the goods in a contract of sale must be: |
Ascertained |
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CHAPTER III |
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EFFECTS OF THE CONTRACT |
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According to Section 18 of the Sale of Goods Act, 1930, goods must be ascertained for the contract of sale to be: |
Valid |
Which is an example of goods being ascertained? |
Goods being described as "100 units of laptops from a specified model" |
When the goods have been ascertained, the contract of sale becomes enforceable because: |
The goods are specific and identifiable |
Under Section 18, when a contract of sale involves goods that are yet to be ascertained, the contract remains: |
Invalid until the goods are identified |
Section 18 applies to: |
All contracts of sale where the goods are unascertained until identified |
If the buyer and seller agree on a price but do not specify the goods, the contract is considered: |
Void unless the goods are ascertained |
If goods are described in the contract but are not identified, the sale is: |
Not valid until the goods are identified or ascertained |
According to Section 19 of the Sale of Goods Act, 1930, the property in goods passes when: |
The parties intend it to pass |
Under Section 19, if the contract does not specify when the property in goods passes, the general rule is that it passes when: |
The parties agree on the time of passing the property |
Which is an example of property passing in a contract of sale under Section 19? |
The buyer and seller agree that property passes when payment is made |
In a sale of goods, if no agreement exists regarding when property passes, the general rule is that it passes when: |
The goods are delivered and the buyer accepts them |
According to Section 20 of the Sale of Goods Act, 1930, specific goods are in a deliverable state when they: |
Are ready for delivery to the buyer |
For specific goods to be in a deliverable state under Section 20, they must: |
Be ready for delivery without requiring further preparation by the seller |
Under Section 20 of the Sale of Goods Act, if specific goods require further preparation before they can be delivered, the property in the goods passes when: |
The seller completes the preparation of the goods |
If specific goods are not in a deliverable state at the time the contract is made, the seller is responsible for: |
Preparing the goods and putting them into a deliverable state |
In the case of Chandelor v. Lopus (1603), the court ruled that if goods are not in a deliverable state, the seller must: |
Put the goods into a deliverable state |
In a sale of specific goods, if the buyer inspects the goods but later notices they are not in a deliverable state, the buyer can: |
Reject the goods and demand a replacement |
According to Section 21 of the Sale of Goods Act, 1930, if specific goods are not in a deliverable state, the seller is required to: |
Complete any necessary work to make the goods deliverable |
Under Section 21, if specific goods require work to be done to make them deliverable, the property passes to the buyer when: |
The work is completed, making the goods deliverable |
Section 21 of the Sale of Goods Act, 1930, applies to: |
Specific goods that require further preparation or work before delivery |
If specific goods are in an incomplete or unfit state, the seller must: |
Complete the necessary work to put the goods in a deliverable state |
Which is true regarding the seller’s obligation to put specific goods into a deliverable state under Section 21? |
The seller must finish the required work before delivering the goods to the buyer |
In a contract for the sale of specific goods, if the goods require finishing before delivery, who bears the cost of completing the work? |
The seller |
According to Section 22, if the seller must perform a task (e.g., measuring or testing) to ascertain the price of goods, property in the goods passes to the buyer when: |
The task is completed and the price is known |
When specific goods are in a deliverable state, but the seller needs to perform some action to ascertain the price, the goods remain the seller’s property until: |
The seller performs the required task to ascertain the price |
In the case of specific goods in a deliverable state where the price needs to be ascertained, which must occur before the property in the goods passes to the buyer? |
The seller must complete the task necessary to ascertain the price |
Under Section 22 of the Sale of Goods Act, 1930, if specific goods are in a deliverable state but the price needs to be ascertained, the seller must: |
Perform the necessary task to fix the price |
According to Section 23 of the Sale of Goods Act, 1930, the sale of unascertained goods becomes effective when: |
The goods are identified and agreed upon by the parties |
Under Section 23, delivery of goods to a carrier is considered as delivery to the buyer if: |
The goods are in transit and identified as the buyer’s property |
In a sale of unascertained goods, the seller must appropriate or identify the goods to the contract in order for: |
The property in the goods to pass |
When a seller delivers unascertained goods to a carrier for transport to the buyer, the contract is considered complete if: |
The seller identifies the specific goods being delivered to the carrier |
Under Section 23, the delivery of unascertained goods to a carrier by the seller is equivalent to: |
Delivery of the goods to the buyer |
In the sale of unascertained goods, the appropriation of the goods to the contract must be made by: |
The seller |
When the seller delivers unascertained goods to a carrier under Section 23, the seller’s responsibility is considered fulfilled when: |
The goods are delivered to the carrier and identified as the buyer’s property |
In the case of a sale of unascertained goods, appropriation can occur when: |
The goods are specified or set aside for the buyer |
If a contract involves the sale of unascertained goods and the seller delivers the goods to the carrier, the property in the goods will pass to the buyer when: |
The goods are handed over to the carrier and identified as the buyer's goods |
Under Section 24 of the Sale of Goods Act, 1930, if goods are sent to the buyer "on approval," the property in the goods remains with: |
The seller |
In a "sale or return" contract under Section 24 of the Sale of Goods Act, 1930, the buyer has the option to: |
Reject the goods within a reasonable time |
Under Section 24, goods sent on approval or "on sale or return" can only be considered sold when: |
The buyer accepts the goods and communicates their intention to purchase |
Under Section 24 of the Sale of Goods Act, 1930, if the buyer does not return the goods within a reasonable time, it is presumed that: |
The buyer has accepted the goods |
In a contract for goods sent on approval, if the buyer does not communicate their decision to approve or reject within the specified time, the seller can: |
Treat the goods as accepted |
In a "sale or return" contract, the property in the goods passes to the buyer when: |
The buyer accepts the goods |
Under Section 24, if the buyer returns the goods after the return period has passed, the seller may: |
Reject the return and cancel the contract |
Under Section 25 of the Sale of Goods Act, 1930, the seller can retain the right of disposal of the goods until: |
The buyer pays the full price |
In a contract where the seller reserves the right of disposal under Section 25, the ownership of goods passes to the buyer when: |
The buyer pays the price |
Section 25 of the Sale of Goods Act, 1930, allows the seller to retain the right to dispose of the goods until: |
The seller has been paid the full purchase price |
In a situation where the seller retains the right of disposal under Section 25, the buyer has possession of the goods, but the property in the goods remains with: |
The seller |
Under Section 25 of the Sale of Goods Act, 1930, if the seller has reserved the right of disposal, the buyer can: |
Only use the goods until the right is transferred |
When the seller retains the right of disposal under Section 25, the buyer has a right to possess the goods only if: |
The buyer pays the agreed price |
According to Section 26 of the Sale of Goods Act, 1930, the risk in goods passes to the buyer when: |
The property in the goods passes to the buyer |
Under Section 26 of the Sale of Goods Act, 1930, if the goods are in transit at the time of the sale, the risk passes to the buyer when: |
The property in the goods passes to the buyer |
In a contract for sale, if the risk in the goods is passed to the buyer under Section 26, the seller is not liable for: |
Any loss or damage to the goods once the property passes |
Which is true regarding the transfer of risk under Section 26 of the Sale of Goods Act, 1930? |
Risk passes when the property in the goods passes to the buyer |
Section 26 of the Sale of Goods Act, 1930, establishes that the risk passes to the buyer at the time when: |
The property in the goods passes to the buyer, unless agreed otherwise |
If the goods are destroyed after the contract but before the property passes to the buyer, who bears the risk under Section 26? |
The seller, because the property has not passed to the buyer |
Section 27 of the Sale of Goods Act, 1930, is based on the doctrine of: |
Nemo dat quod non habet |
If a person sells goods that they do not own, the buyer under Section 27 of the Sale of Goods Act, 1930, would generally acquire: |
No title to the goods |
In which situations can a non-owner transfer ownership under Section 27 of the Sale of Goods Act, 1930? |
If the buyer is a bona fide purchaser and unaware of the seller’s lack of ownership |
Section 27 of the Sale of Goods Act, 1930, implies that a person who sells goods without ownership generally has the power to transfer: |
No rights over the goods |
Which can happen if a non-owner sells goods under Section 27 of the Sale of Goods Act, 1930? |
The buyer may take possession but will not acquire ownership |
According to Section 27 of the Sale of Goods Act, 1930, if a buyer purchases goods from a person who is not the owner and the goods are later seized, the buyer: |
Will have no claim to the goods |
Which statements is true under Section 27 of the Sale of Goods Act, 1930? |
A non-owner can transfer full ownership to the buyer if the buyer is unaware |
According to Section 28 of the Sale of Goods Act, 1930, a sale by one of the joint owners of goods is valid if: |
The other co-owners consent to the sale |
Under Section 28 of the Sale of Goods Act, 1930, if one joint owner sells the goods without the consent of the other co-owners, the buyer: |
Acquires no title to the goods |
Section 28 of the Sale of Goods Act, 1930, applies to which scenarios? |
Sale of goods by a joint owner without the consent of the other owners |
If one joint owner of goods sells the goods under Section 28 of the Sale of Goods Act, 1930, without the consent of the other joint owners, the buyer: |
Will acquire no title to the goods |
In case of joint ownership, a sale made by one of the joint owners without the authority of the other co-owners will generally: |
Not transfer any ownership to the buyer |
Which is true according to Section 28 of the Sale of Goods Act, 1930? |
A joint owner can sell goods if the other co-owners have agreed or ratified the sale |
Section 28 of the Sale of Goods Act, 1930, primarily applies to sales involving: |
Co-owners of goods |
Under Section 28, a buyer who purchases goods from one of the joint owners without the consent of other owners: |
Can take possession of the goods but will not acquire full ownership |
Which is an example of an invalid sale under Section 28 of the Sale of Goods Act, 1930? |
A joint owner selling the goods to a third party without informing the other co-owners |
In the case of a sale by one joint owner under Section 28, the buyer can acquire a good title to the goods only if: |
The other co-owners have given prior consent or ratified the sale |
Under Section 28 of the Sale of Goods Act, 1930, what happens if one joint owner sells the goods without the other co-owners' consent, and the buyer acts in good faith? |
The buyer’s title is voidable at the option of the co-owners |
Under Section 29 of the Sale of Goods Act, 1930, when a person sells goods to a third party, the title of the goods will be valid if the contract under which they hold the goods is: |
Voidable and not rescinded before the sale |
In the case of a voidable contract under Section 29 of the Sale of Goods Act, 1930, the buyer in good faith and without notice of the defect in the seller’s title will: |
Acquire a good title if the contract has not been rescinded |
Section 29 of the Sale of Goods Act, 1930, applies to the sale of goods by a person in possession of goods that are subject to a: |
Voidable contract |
If a person in possession of goods sells them under a voidable contract, the title to the goods will pass to the buyer if: |
The contract is not rescinded by the original owner before the sale |
According to Section 29 of the Sale of Goods Act, 1930, a buyer who purchases goods under a voidable contract can acquire a valid title if: |
The seller has legal possession of the goods at the time of the sale |
If a person has possession of goods under a voidable contract, the buyer who purchases them in good faith will acquire a valid title unless: |
The contract was rescinded before the sale |
In a sale by a person in possession under a voidable contract, the buyer’s title will not be affected if: |
The original owner has not taken action to rescind the contract before the sale |
Under Section 29, if a voidable contract is rescinded by the original owner before a sale is made, the buyer’s title will be: |
Invalid, as the goods have been reclaimed |
A sale made under a voidable contract under Section 29 is considered valid only if: |
The buyer acquires the goods in good faith without knowledge of the voidable contract |
According to Section 30 of the Sale of Goods Act, 1930, if a seller retains possession of the goods after the sale, the buyer can still claim the goods if: |
The title to the goods has passed to the buyer |
Under Section 30 of the Sale of Goods Act, 1930, if the buyer is in possession of the goods before the title passes, the buyer: |
Cannot transfer the title of goods to a third party |
Section 30 of the Sale of Goods Act, 1930, allows the seller to retain possession of the goods after the sale if: |
The seller has a right to retain the goods as security for the price |
If a seller is in possession of goods after a sale, the buyer's right to the goods is dependent on: |
The buyer's payment of the full price |
Section 30 of the Sale of Goods Act, 1930, applies when a seller retains possession of the goods after the sale under which condition? |
The contract specifies the seller will retain possession as security |
Under Section 30 of the Sale of Goods Act, 1930, if a buyer is in possession of goods before the title passes, the buyer: |
Cannot transfer title to the goods to a third party |
Section 30 of the Sale of Goods Act, 1930, states that the seller's possession after sale is legitimate if: |
The contract gives the seller a lien or right to retain the goods |
If the seller continues in possession of the goods after the sale and the buyer later defaults in payment, the seller has the right to: |
Retain possession of the goods until the buyer pays the price |
Under Section 30 of the Sale of Goods Act, 1930, if a buyer is in possession of goods, the title to the goods passes to the buyer: |
When the goods are transferred and the price is paid, unless there’s an agreement to the contrary |
Section 30 of the Sale of Goods Act, 1930, applies to all transactions where the seller or buyer: |
Continues to hold goods until certain conditions are fulfilled, like payment |
According to Section 30, if the seller is in possession of goods after the sale and the buyer has paid the full price, the seller must: |
Deliver the goods immediately upon request by the buyer |
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|
CHAPTER IV |
|
PERFORMANCE OF THE CONTRACT |
|
According to Section 31 of the Sale of Goods Act, 1930, the seller is obligated to deliver goods that are: |
Of the same kind, quality, and quantity as agreed upon in the contract |
Under Section 31 of the Sale of Goods Act, 1930, the buyer is bound to pay the price for the goods in: |
The manner and at the time specified in the contract |
Under Section 31, if a buyer refuses to accept the goods upon delivery without a legitimate reason, the seller may: |
Sue for damages or compel the buyer to accept the goods |
Which is a duty of the seller under Section 31 of the Sale of Goods Act, 1930? |
To transfer the title of goods to the buyer |
In which circumstances would a seller NOT be liable under Section 31 of the Sale of Goods Act, 1930? |
If the buyer had previously accepted the goods but later changes their mind |
According to Section 31 of the Sale of Goods Act, 1930, the buyer is responsible for paying the price of the goods as per the contract unless: |
The seller has failed to deliver the goods |
According to Section 32 of the Sale of Goods Act, 1930, the conditions of payment and delivery are: |
Concurrent |
Under Section 32 of the Sale of Goods Act, 1930, a seller is not bound to deliver the goods unless the buyer is: |
Ready and willing to pay the price |
Section 32 of the Sale of Goods Act, 1930, applies to situations where: |
Both payment and delivery are to occur at the same time unless agreed otherwise |
Under Section 32, if the buyer is not ready to pay for the goods, the seller: |
Has no obligation to deliver the goods |
In a contract governed by Section 32 of the Sale of Goods Act, 1930, if the seller delivers goods but the buyer refuses to pay, the seller can: |
Sue for the price or return of the goods |
Under Section 32 of the Sale of Goods Act, 1930, the buyer must pay the price at the time of delivery unless: |
The contract states otherwise |
Section 32 of the Sale of Goods Act, 1930, implies that both delivery and payment must happen at: |
The time agreed by the parties |
If the seller is ready to deliver the goods but the buyer refuses to pay the price, the buyer is in breach of: |
Payment obligations |
Under Section 32, if the goods are delivered but the buyer refuses to pay, the buyer is considered to be in: |
Breach of contract |
Section 32 of the Sale of Goods Act, 1930, creates a situation where: |
Both buyer and seller are required to perform their obligations concurrently |
Under Section 32, if the seller is ready to deliver the goods, but the buyer is unable to pay at the time of delivery, the seller can: |
Rescind the contract or seek compensation for damages |
Under Section 33 of the Sale of Goods Act, 1930, the seller is required to deliver the goods to the buyer: |
At the time specified in the contract |
According to Section 33, the place of delivery of goods is determined by: |
The location agreed upon in the contract |
If no time for delivery is specified in the contract, delivery of goods must take place: |
Within a reasonable time |
Under Section 33, if the contract does not specify a place of delivery, the goods will be delivered at: |
The location where the goods were situated at the time of sale |
According to Section 33, if the goods are sold on a “sale or return” basis, the delivery is complete when: |
The buyer accepts the goods |
In case of delivery by a carrier, the delivery will be complete when the goods are: |
Delivered to the carrier |
Section 33 specifies that delivery must be made in accordance with the contract's terms. If the contract does not specify terms, the goods should be delivered: |
Within a reasonable time |
The term "delivery" under Section 33 of the Sale of Goods Act, 1930, can be satisfied all except: |
The buyer taking possession of the goods without prior notice |
Under Section 34, when a buyer accepts part of the goods delivered, the buyer is: |
Bound to accept the full quantity of goods unless the contract specifies otherwise |
If the buyer accepts part delivery but the seller fails to deliver the remaining goods, the buyer may: |
Demand the full delivery of the goods |
Under Section 34 of the Sale of Goods Act, 1930, if part of the goods are delivered, and the buyer refuses to accept them, the seller is entitled to: |
Sue the buyer for the price of the part delivered |
When goods are delivered in part and the buyer accepts them, the buyer: |
Has accepted the contract in full |
In case of part delivery under Section 34, if the seller fails to deliver the remainder of the goods, the buyer: |
May sue the seller for non-delivery of the remaining goods |
Section 34 of the Sale of Goods Act, 1930, applies to contracts involving the delivery of goods in: |
Installments |
If part delivery occurs and the buyer refuses to accept it, the buyer is required to: |
Demand the full amount of goods as agreed in the contract |
According to Section 35 of the Sale of Goods Act, 1930, the seller is not bound to deliver the goods unless: |
The buyer applies for delivery |
Under Section 35, if no specific time is mentioned in the contract, the buyer must apply for delivery: |
Within a reasonable time |
What is the effect if the buyer does not apply for delivery under Section 35? |
The seller is not obligated to deliver |
Under Section 35, who has the duty to initiate delivery when not otherwise agreed? |
The buyer |
If a buyer fails to apply for delivery and later claims non-delivery, under Section 35: |
The buyer’s claim is invalid |
Section 35 primarily imposes an obligation on the: |
Buyer to apply for delivery |
In the absence of an agreement, the responsibility to initiate the delivery process lies with: |
The buyer |
If goods are in the possession of a third party at the time of sale, delivery is complete only when: |
The third party acknowledges holding the goods on buyer’s behalf |
If the seller must send the goods but no time is fixed, the seller must deliver them: |
Within a reasonable time |
Delivery must be made at a reasonable hour unless: |
Otherwise agreed |
Who bears the expense of making the goods deliverable unless otherwise agreed? |
The seller |
If the goods are not yet manufactured, delivery should occur at: |
The place where goods are to be produced |
A tender of delivery may be considered invalid if it is not made at: |
A reasonable hour |
When the contract mentions a place of delivery, the goods must be delivered: |
At the agreed place |
In the absence of contract to the contrary, the delivery of goods must be at: |
The place where the goods are at the time of sale |
If the seller delivers less than the contracted quantity, the buyer may: |
Accept the goods and claim damages |
If the seller delivers more than the contracted quantity, the buyer may: |
Accept the contracted quantity and reject the excess |
If the buyer accepts a part of the goods delivered in excess, they must pay for: |
Only the goods they have accepted |
In case of short delivery, the buyer may: |
Sue the seller for the balance |
If the seller delivers a greater quantity than contracted, the buyer may: |
Accept the agreed quantity and reject the excess |
If the seller delivers a smaller quantity than the contract specifies, the buyer may: |
Insist on delivery of the remaining quantity or reject the goods |
In case of delivery of the wrong quantity, the buyer is entitled to: |
Cancel the entire contract if it significantly affects the performance |
If the seller delivers the wrong quantity of goods, the buyer's rights include: |
Both b and c |
The buyer’s right to reject goods due to the wrong quantity is lost if: |
They accept the goods without objection |
When the buyer receives more goods than agreed, they are required to: |
Pay only for the contracted quantity |
If there is an excess delivery of goods, the buyer can: |
Accept the contracted quantity and reject the rest |
If the buyer accepts part of the goods delivered in excess, they must: |
Pay for the accepted quantity only |
When a contract for goods specifies an exact quantity, and the seller delivers more or less, the buyer’s action is to: |
Accept the contracted quantity and either reject or return the rest |
Under Section 38, a contract for sale of goods may provide for delivery in: |
Instalments |
If a contract provides for instalment delivery, the buyer has the right to reject an instalment only if: |
One or more instalments are defective |
Under Section 38, if one instalment is rejected, it will not affect the entire contract unless: |
The failure to deliver the instalment affects the buyer’s ability to perform the contract |
If the buyer accepts one instalment and later rejects others, they may: |
Claim damages for the defective instalments rejected |
Under Section 39, delivery of goods to a carrier or wharfinger is considered: |
Delivery to the buyer's agent |
According to Section 39, when goods are delivered to a carrier or wharfinger for transportation to the buyer, the risk passes to the buyer: |
As soon as the goods are handed over to the carrier |
When goods are delivered to a carrier or wharfinger, they are deemed to be delivered to the buyer unless: |
The contract specifically requires delivery at the buyer’s location |
Under Section 40, when goods are sold for delivery at a distant place, the risk of loss or damage to the goods passes to the buyer when: |
The goods are handed over at the place of delivery |
If the contract requires delivery of goods at a distant place, the risk passes to the buyer: |
Once the goods are delivered to the agreed place of destination |
According to Section 40, the seller is responsible for the risk of the goods until they are delivered to the buyer at a distant place, unless: |
The seller has explicitly agreed to a different risk allocation |
In a contract where goods are delivered to a distant place, the seller bears the risk: |
Until the goods arrive at the agreed place |
Under Section 40, if the seller has delivered the goods to a distant place, the risk of loss or damage passes to the buyer when: |
The goods are received by the buyer at the distant place |
If goods are sold for delivery at a distant place and are lost or damaged during transit, who bears the risk according to Section 40? |
The seller bears the risk until delivery to the buyer |
When the goods are sold for delivery at a distant place, the seller is required to: |
Ensure the goods arrive at the agreed destination |
Under Section 40, if the contract requires the goods to be delivered to a distant place and the goods are delayed during transit, the risk still remains with: |
The seller, until they reach the destination |
Under Section 41, the buyer has the right to examine the goods before: |
Taking delivery |
According to Section 41, if the goods are delivered without being examined by the buyer, the buyer has the right to examine them at: |
The place where the goods are delivered |
Under Section 42, the buyer is deemed to have accepted the goods when they: |
Fail to reject the goods within a reasonable time |
According to Section 42, the buyer may accept the goods by: |
Taking delivery of the goods without protest |
The buyer's right to reject goods is lost under Section 42 if they: |
Delay in rejecting the goods within a reasonable time |
Section 42 states that acceptance of the goods does not necessarily imply that the goods are: |
Free from defects |
Under Section 43, when goods are rejected by the buyer, the buyer is: |
Not bound to return the goods to the seller |
According to Section 43, if the buyer rejects the goods, they are not required to return the goods unless: |
The goods are still in the buyer's possession |
Under Section 43, if the buyer rejects the goods, they do not have to return them unless: |
The seller asks the buyer to return the goods |
Under Section 43, what happens when goods are rejected by the buyer and the seller does not request the return? |
The buyer can dispose of the goods as they wish |
According to Section 43, in case of rejection, the buyer’s obligation is: |
To return the goods, but only if the seller requests it |
Under Section 44, if the buyer neglects or refuses to take delivery of goods, they are: |
Not bound to return the goods to the seller |
According to Section 44, the buyer’s refusal to take delivery of goods can result in the seller’s right to: |
Sell the goods to a third party |
If the buyer refuses to take delivery, the seller may claim damages for: |
Losses caused by the refusal or neglect |
Under Section 44, the buyer is liable for neglecting or refusing to take delivery of goods, even if: |
The goods are defective |
Section 44 imposes liability on the buyer if they: |
Refuse to accept delivery when the goods are ready |
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|
CHAPTER V |
|
RIGHTS OF UNPAID SELLER AGAINST THE GOODS |
|
Under Section 45 of the Sale of Goods Act, 1930, who is defined as an "unpaid seller"? |
A seller who has not received the whole price for the goods |
According to Section 45, an unpaid seller can be defined as one who has not received: |
The full price of the goods |
Under Section 45 of the Sale of Goods Act, 1930, an unpaid seller has the right to: |
Retain the goods until the buyer pays the price in full |
According to Section 45, an unpaid seller's lien exists until: |
The full price is received by the seller |
In the case of Dutton v. Poole (1919), it was held that a seller is an unpaid seller if: |
The buyer has not paid a portion of the price |
An unpaid seller is defined in Section 45 as someone who has the right to: |
Retain possession of the goods until the full price is paid |
According to Section 45, the term “unpaid seller” includes: |
A seller who has received some but not all of the price |
Under Section 45, when an unpaid seller has possession of the goods, they have the right to: |
Exercise a lien over the goods |
According to Section 45 of the Sale of Goods Act, an unpaid seller has the right to: |
Retain possession of the goods until the price is paid or tendered |
The case of The Cornwall (1922) deals with the definition of an unpaid seller and explains that: |
The seller's lien ends when the goods are sold to a third party |
According to Section 45, when is a seller considered an “unpaid seller”? |
If the price is unpaid even after delivery of the goods |
Under Section 45, the rights of an unpaid seller are available when: |
The seller has delivered the goods, but the buyer has not paid the full price |
In the case of Saleh & Co. v. Amritraj Singh (1957), the court ruled that an unpaid seller has the right to: |
Withhold the goods and claim damages for loss of value |
According to Section 45, if the buyer has already received the goods, but has not paid for them, the seller is an unpaid seller who: |
Can claim the goods back from the buyer |
Under Section 45, an unpaid seller can exercise a lien over the goods until the full price is paid, even if: |
The goods have been delivered to the buyer’s location |
In the case of Cooke v. Lyle (1910), the court clarified that the seller is an unpaid seller if: |
The buyer fails to pay the price on time, but the seller has made a partial delivery |
According to Section 46 of the Sale of Goods Act, 1930, which is a right of the unpaid seller? |
To resell the goods |
Under Section 46, if the buyer neglects or refuses to pay for the goods, the unpaid seller has the right to: |
Exercise a lien on the goods |
Section 46 grants the unpaid seller the right to resell the goods in which cases? |
When the buyer has repudiated the contract |
According to Section 46 of the Sale of Goods Act, 1930, when can an unpaid seller exercise the right of lien? |
If the goods have not yet been delivered to the buyer |
Which is a right of the unpaid seller under Section 46 of the Sale of Goods Act, 1930? |
The right to resell the goods after a proper notice |
Under Section 46, if the unpaid seller resells the goods, the buyer is liable to: |
Pay any additional loss suffered due to the resale |
In the case of K.S. P. S. S. Lakshmi v. Bank of India (1996), the court ruled that the unpaid seller has the right to: |
Exercise the right of lien or resell the goods |
According to Section 46, the unpaid seller's right of resale is subject to: |
Written notice to the buyer and a reasonable period to take delivery |
Under Section 46, which rights can an unpaid seller exercise if the buyer has not paid the price and goods are in the seller's possession? |
Right to retain the goods and withhold delivery until payment is made |
Section 46 of the Sale of Goods Act, 1930, gives the unpaid seller the right to refuse delivery of goods in case of: |
The buyer has made no payment for the goods |
In the case of R.S. V. Mehta & Co. v. Union of India (1958), the court held that the unpaid seller may exercise a right of lien if: |
The buyer refuses to accept delivery of the goods |
Under Section 46 of the Sale of Goods Act, 1930, an unpaid seller may also exercise a right of resale if: |
The goods are perishable or easily damaged |
According to Section 46, which actions is NOT a right of the unpaid seller? |
The right to resell the goods at any price |
Under Section 46, the unpaid seller’s lien may be lost if: |
The seller accepts payment from the buyer |
Under Section 46, which is a condition for the unpaid seller to exercise the right of resale? |
A reasonable period must be given to the buyer to pay the price |
In the case of Ramgopal S. Sons v. Union of India (1964), the court held that the unpaid seller has a right to: |
Exercise a lien on the goods until the price is paid in full |
Under Section 46, if an unpaid seller resells the goods, and the resale results in a loss, the unpaid seller may claim: |
The difference between the resale price and the original price |
Under Section 47 of the Sale of Goods Act, 1930, what is the primary right of a seller’s lien? |
To retain possession of the goods until the full price is paid |
According to Section 47, the seller's lien can be exercised when: |
The goods are in the possession of the seller |
Under Section 47 of the Sale of Goods Act, the seller has a lien over goods if: |
The buyer has made a partial payment but has not paid the full price |
According to Section 47, the lien can be enforced by the seller until: |
The buyer pays the full price of the goods |
In which cases can a seller exercise their lien under Section 47 of the Sale of Goods Act, 1930? |
When the buyer fails to pay the full price after delivery |
Under Section 47, the seller can retain the goods as long as: |
The buyer has not paid the entire price |
The right of lien under Section 47 of the Sale of Goods Act can be lost if: |
The seller delivers the goods to the buyer |
Under Section 47 of the Sale of Goods Act, a seller’s lien is exercisable only when the goods are: |
In the possession of the seller |
If the buyer has paid a portion of the price and the seller retains the goods, which can happen according to Section 47? |
The seller may retain the goods as long as the buyer has not paid in full |
Under Section 48 of the Sale of Goods Act, 1930, what happens if a seller delivers part of the goods but does not deliver the entire quantity as agreed? |
The buyer can reject the entire contract |
According to Section 48, if there is a part delivery of goods, the buyer may: |
Accept the part delivered and sue for the rest of the goods |
Under Section 48, if a seller delivers only a portion of the goods under a contract of sale, the buyer is allowed to: |
Accept the partial delivery and demand the remaining goods |
Under Section 48, what is the effect of a part delivery of goods in a contract for sale of goods? |
The buyer can accept the part delivered but may still demand the remainder of the goods |
In which circumstances can a buyer reject the entire contract after part delivery according to Section 48? |
If part of the goods delivered are defective |
Under Section 48, the seller may be liable for damages if: |
The part delivery does not comply with the agreed contract terms |
Under Section 49 of the Sale of Goods Act, 1930, a seller's lien on goods is terminated when: |
The full price is paid by the buyer |
According to Section 49 of the Sale of Goods Act, the seller’s lien can also be terminated if: |
The buyer resells the goods |
Under Section 49, a seller’s lien is terminated when the seller: |
Delivers the goods to the buyer’s carrier |
According to Section 49, if the buyer makes full payment of the price for the goods, the seller's lien is: |
Terminated |
Under Section 49, the seller's lien is automatically terminated when: |
The seller delivers the goods to the buyer |
Under Section 49 of the Sale of Goods Act, 1930, which actions results in the termination of the seller's lien? |
Payment of the price by the buyer |
What does Section 50 of the Sale of Goods Act, 1930, deal with? |
Right of stoppage in transit |
Under Section 50, the right of stoppage in transit can be exercised by: |
An unpaid seller |
The right of stoppage in transit is available to the unpaid seller when the buyer: |
Is or becomes insolvent |
When can the unpaid seller exercise the right of stoppage in transit under Section 50? |
While the goods are still in transit |
Which condition must exist for the unpaid seller to exercise stoppage in transit under Section 50? |
The buyer is found to be insolvent |
According to Section 50, the right of stoppage in transit ends when: |
The buyer or his agent obtains delivery of goods |
Under Section 50, how can the unpaid seller exercise the right of stoppage in transit? |
By giving notice to the carrier or bailee in possession of the goods |
The right of stoppage in transit is a: |
Statutory right |
What does Section 51 of the Sale of Goods Act, 1930 define? |
The duration of transit |
Under Section 51, when does the transit of goods begin? |
When the goods are delivered to the carrier |
According to Section 51, when does the transit of goods end? |
When the goods are received by the buyer or their agent |
According to Section 51, if the buyer rejects the goods and the carrier continues possession, the transit: |
Is still considered to be continuing |
Which case is relevant to understanding the duration of transit under the Sale of Goods Act, 1930? |
Schotsman v. Lancashire & Yorkshire Railway Co. |
Under Section 51, delivery to a warehouse keeper appointed by the buyer is treated as: |
End of transit |
When is the unpaid seller no longer entitled to stop the goods in transit? |
When buyer or agent receives possession |
Section 52 of the Sale of Goods Act, 1930, explains how an unpaid seller can: |
Stop goods in transit |
According to Section 52, the unpaid seller may exercise stoppage in transit by: |
Physically intercepting the goods |
As per Section 52, the unpaid seller can stop the goods in transit by: |
Giving notice to the carrier or bailee in possession |
If the seller chooses to give notice to the carrier to stop goods in transit, under Section 52, the notice must be given: |
While the goods are still in transit |
Under Section 52, to effectively stop goods in transit, the seller must: |
Notify the carrier or the bailee before delivery to the buyer |
When does the notice of stoppage in transit become effective as per Section 52? |
Once it is received by the carrier or bailee in possession |
According to Section 52, after receiving notice of stoppage, the carrier must: |
Redeliver goods to or hold them for the seller |
As per Section 52, stoppage in transit can be effected by: |
Taking actual possession of the goods |
What does Section 53 of the Sale of Goods Act, 1930, deal with? |
Effect of sub-sale or pledge by the buyer |
According to Section 53(1), the unpaid seller’s right of lien or stoppage in transit is not affected by: |
Buyer’s sub-sale or pledge |
Under Section 53(1), the unpaid seller's right of lien or stoppage in transit continues unless: |
The seller consents to the sub-sale or pledge |
What is the main exception to the unpaid seller’s right under Section 53(1)? |
If the buyer sub-sells or pledges with the seller’s consent |
What does Section 54 of the Sale of Goods Act, 1930 deal with? |
Lien or stoppage not resulting in rescission of sale |
According to Section 54(1), the exercise of lien or stoppage in transit by the unpaid seller does not by itself: |
Cancel the sale contract |
Section 54(1) implies that merely exercising the right of lien or stoppage does not: |
Rescind the sale |
What must occur for the unpaid seller to resell the goods under Section 54(2)? |
Have express or implied right of resale |
Under Section 54(2), resale by the unpaid seller is allowed only if: |
The right of resale has been expressly reserved |
According to Section 54(2), the right of resale can arise by: |
Express contract or implication |
If the unpaid seller resells the goods under a valid right of resale, the new buyer: |
Gets good title to the goods |
Section 54 allows resale of goods by the unpaid seller only when: |
The right is expressly or impliedly reserved |
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|
CHAPTER VI |
|
SUITS FOR BREACH OF THE CONTRACT |
|
What does Section 55 of the Sale of Goods Act, 1930 deal with? |
Suit for price |
According to Section 55(1), a seller can sue the buyer for the price of goods when: |
The property in goods has passed to the buyer |
Under Section 55(1), the seller can file a suit for the price when the buyer: |
Has refused payment even though property has passed |
As per Section 55(1), what condition must be met for the seller to sue for price? |
Property in goods must have passed to the buyer |
According to Section 55(2), a seller can sue for price even if: |
Property has not passed |
Under Section 55(2), in which case can the seller sue for price though the property has not passed? |
When price is payable on a specific day regardless of delivery |
Section 55(2) applies when: |
Price is due on a fixed date irrespective of delivery |
Under Section 55, which legal action can the seller take if the buyer fails to pay after ownership has passed? |
Sue for price |
Which is a condition for filing a suit under Section 55(1)? |
Ownership of goods has transferred to the buyer |
A seller cannot sue for the price under Section 55(1) if: |
Property has not passed to the buyer |
Under Section 55(2), when property has not passed, seller can still sue for price if: |
The price was agreed to be paid on a specific date |
If the buyer fails to pay for the goods on the fixed date, even though property has not passed, seller can: |
Sue for price |
The basis for a suit for price under Section 55 is: |
Contract of sale |
What does Section 56 of the Sale of Goods Act, 1930 deal with? |
Damages for non-acceptance of goods by buyer |
According to Section 56, when can the seller sue the buyer for damages? |
When buyer wrongfully neglects or refuses to accept and pay for the goods |
Under Section 56, what is the legal remedy available to the seller when the buyer refuses to accept the goods? |
Suit for damages |
Section 56 grants the seller the right to claim damages when: |
The buyer refuses to accept delivery without a valid reason |
What must the seller prove in a claim under Section 56? |
That the buyer wrongfully refused to accept the goods |
Under Section 56, if the buyer refuses to accept goods, the seller can claim damages for: |
Loss directly and naturally resulting from the refusal |
Damages under Section 56 are determined based on: |
The difference between contract price and market price |
Which is not required to claim damages under Section 56? |
Delivery of goods |
In Section 56, what type of refusal by the buyer gives rise to a damages claim? |
Wrongful refusal |
The measure of damages under Section 56 is guided by which principle? |
Reasonable foreseeability |
Under Section 56, the seller can sue for damages even if: |
The property in goods hasn’t passed |
Which case law is relevant to understanding damages for non-acceptance under contract law principles? |
Hadley v. Baxendale |
What does Section 57 of the Sale of Goods Act, 1930 deal with? |
Damages for non-delivery of goods by the seller |
Under Section 57, the buyer may sue the seller for damages when: |
The seller wrongfully neglects or refuses to deliver the goods |
What type of breach is covered under Section 57? |
Breach by wrongful non-delivery of goods |
According to Section 57, damages are recoverable for: |
Non-delivery of goods by seller |
What is the primary remedy provided to the buyer under Section 57? |
Suit for damages for non-delivery |
When can the buyer sue the seller under Section 57? |
If the seller fails to deliver goods as agreed |
Under Section 57, damages can be claimed even if: |
The seller makes no attempt to deliver the goods |
What does "wrongful refusal to deliver" mean under Section 57? |
Seller refuses delivery without contractual justification |
What is the time of assessing damages under Section 57? |
At the time when delivery should have been made |
According to Section 58, who may direct specific performance of a contract for sale? |
Civil Court |
Under Section 58, specific performance may be granted when: |
Goods are specific or ascertained |
What type of goods are involved in Section 58 for seeking specific performance? |
Specific or ascertained goods |
What must a party seeking specific performance prove under Section 58? |
Goods are specific and damages are not adequate |
Under what legal principle is Section 58 of the Sale of Goods Act applied? |
Principle of equity |
Which is a landmark case supporting specific performance in sale of goods? |
Falcke v. Gray |
What does Section 59 of the Sale of Goods Act, 1930 deal with? |
Remedy for breach of warranty |
When a breach of warranty occurs, the buyer can: |
Only sue for damages or reduce the price |
According to Section 59, can the buyer reject goods due to breach of warranty? |
No, buyer cannot reject goods |
What are the remedies available to a buyer under Section 59? |
Damages or reduction in price |
Breach of warranty does not allow: |
Rejection of goods |
Under Section 59, the buyer may: |
Set up breach of warranty in reduction or extinction of price |
What is the nature of a warranty in a sale contract? |
Collateral stipulation |
Which one is not a remedy for breach of warranty under Section 59? |
Rejection of goods |
In case of a breach of warranty, damages are awarded for: |
Direct financial loss |
Section 59 applies when the breach relates to: |
A warranty, not a condition |
The right to reduce the price due to breach of warranty is: |
Available to the buyer under Section 59 |
A breach of warranty gives rise to a right to: |
Claim compensation but not reject goods |
Can the buyer both claim damages and reduce the price under Section 59? |
No, only one remedy can be used |
Which case is often cited to distinguish between condition and warranty? |
Baldry v. Marshall |
A breach of warranty under Section 59 means: |
The buyer can claim damages but must accept the goods |
What does Section 60 of the Sale of Goods Act, 1930 deal with? |
Repudiation of contract before the due date |
Under Section 60, if one party repudiates the contract before the due date, the other party: |
Can refuse to perform the contract |
What does repudiation of a contract before due date mean under Section 60? |
A party expresses unwillingness or inability to perform their contractual obligations before the due date |
If the buyer repudiates the contract under Section 60, the seller may: |
Refuse to deliver the goods |
What can the seller do if the buyer repudiates the contract before the due date under Section 60? |
Terminate the contract and claim damages |
When a contract is repudiated before the due date, the aggrieved party can: |
Accept the repudiation and treat the contract as rescinded |
If the buyer repudiates the contract under Section 60, the seller can: |
Sue for damages or claim the price |
When repudiation occurs, the non-repudiating party has the option to: |
Treat the contract as void and claim damages |
If a contract is repudiated by the seller under Section 60, the buyer may: |
Refuse to accept the goods and claim damages |
What does Section 61 of the Sale of Goods Act, 1930 deal with? |
Interest by way of damages and special damages |
According to Section 61, when can interest be claimed as part of damages? |
When a party is entitled to claim damages for non-payment or breach of contract |
Under Section 61, special damages can be claimed for: |
Loss specifically incurred due to a breach, which is beyond normal damages |
In case of breach of contract, Section 61 allows for the recovery of: |
Special damages and interest as part of the compensation |
When can a party claim interest under Section 61 of the Sale of Goods Act, 1930? |
Interest can be claimed when the contract allows for it or in case of specific financial loss |
Which is true about special damages under Section 61? |
They are granted for losses incurred by the party beyond the normal scope of damages |
What type of damages does Section 61 primarily address? |
Special damages and interest |
Under Section 61, can interest be awarded as a remedy for non-acceptance of goods? |
Yes, if there is an agreement for it in the contract |
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CHAPTER VII |
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MISCELLANEOUS |
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What does Section 63 of the Sale of Goods Act, 1930 deal with? |
Reasonable time for performance as a question of fact |
Under Section 63, what is determined to be a “reasonable time”? |
The time required to perform under normal circumstances, which is a question of fact |
Which is true regarding "reasonable time" under Section 63? |
What constitutes reasonable time is a matter of judgment and depends on the facts of the case |
In which case did the court rule that "reasonable time" is a question of fact? |
S.C. Rajan v. T.V. Somanathan |
In determining a "reasonable time" under Section 63, what factors are considered? |
Market conditions and the nature of the transaction |
What is the effect if a contract does not specify a time for performance? |
The performance must be within a reasonable time, as determined by the circumstances |
Section 63 implies that "reasonable time" is: |
An objective standard determined by the circumstances surrounding the contract |
In which case did the court consider what constitutes a "reasonable time"? |
In The Moorcock’s case |