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There are 2 Sets of MCQs available for Sale Of Goods Act, 1930 , you are advised to explore all the sets :
1. Whether buyer is to take possession or seller is to send goods depends on:
a. Market practice
b. Court order
c. Contract between parties (express or implied)
d. Seller’s discretion
2. Apart from contract, goods sold are to be delivered at:
a. Buyer’s place
b. Seller’s place
c. Place where goods are at time of sale
d. Warehouse
3. Goods agreed to be sold are to be delivered at:
a. Buyer’s place
b. Place where goods are at time of agreement to sell
c. Seller’s residence
d. Court
4. If goods are not in existence at time of agreement, delivery place is:
a. Buyer’s place
b. Seller’s office
c. Place where goods are manufactured or produced
d. Warehouse
5. Where seller must send goods and no time is fixed, he must send:
a. Immediately
b. Within fixed time
c. Within reasonable time
d. After payment
6. Where goods are in possession of third person, delivery is complete when:
a. Goods are inspected
b. Third person acknowledges holding goods on behalf of buyer
c. Goods are paid for
d. Goods are transported
7. This rule does not affect:
a. Ownership
b. Contract terms
c. Issue or transfer of document of title to goods
d. Delivery terms
8. Demand or tender of delivery may be ineffectual if not made:
a. In writing
b. At reasonable hour
c. In presence of witness
d. After payment
9. What is a reasonable hour is:
a. Question of law
b. Fixed by statute
c. Question of fact
d. Fixed by court
10. Expenses of putting goods into deliverable state are borne by:
a. Buyer
b. Seller
c. Both equally
d. Carrier
11. This rule applies:
a. Always
b. Only when court directs
c. Unless otherwise agreed
d. Only in written contracts
12. Where seller delivers less quantity than contracted, the buyer may:
a. Accept only
b. Reject the goods
c. Sue only
d. Resell goods
13. If buyer accepts lesser quantity, he shall pay:
a. Market price
b. Discounted price
c. Contract rate
d. No price
14. Where seller delivers larger quantity than contracted, buyer may:
a. Accept all only
b. Reject all only
c. Accept goods included in contract and reject rest or reject whole
d. Pay extra price
15. If buyer accepts whole excess quantity, he shall pay:
a. Market price
b. Extra price
c. Contract rate
d. No price
16. Where goods are mixed with goods of different description, buyer may:
a. Accept all
b. Reject all only
c. Accept conforming goods and reject rest or reject whole
d. Pay extra
17. This section is subject to:
a. Court order
b. Government rules
c. Usage of trade, special agreement or course of dealing
d. Seller’s discretion
18. Unless otherwise agreed, the buyer is:
a. Bound to accept instalments
b. Not bound to accept delivery by instalments
c. Bound to reject instalments
d. Bound to pay in instalments
19. This rule applies:
a. Always
b. Only by court order
c. Unless otherwise agreed
d. Only in writing
20. Where contract provides for delivery by instalments, each instalment is:
a. Free
b. Separately paid for
c. Optional
d. Not enforceable
21. If seller makes no delivery or defective delivery in instalments, it is:
a. Always repudiation of whole contract
b. Always severable breach
c. A question depending on terms of contract and circumstances
d. Automatically void
22. If buyer neglects or refuses to take delivery or pay for instalments, it is:
a. Always repudiation
b. Always breach
c. A question depending on terms and circumstances
d. Void contract
23. The breach may amount to repudiation of:
a. Instalment only
b. Whole contract
c. Part contract
d. Payment terms
24. Alternatively, breach may be:
a. Void
b. Illegal
c. Severable breach giving rise to claim for compensation only
d. Unenforceable
25. This section applies where seller is:
a. Not authorised
b. Authorised or required to send goods to buyer
c. Forced by court
d. Acting without contract
26. Delivery to a carrier for transmission to buyer is:
a. Not delivery
b. Conditional delivery
c. Prima facie deemed delivery to buyer
d. Void delivery
27. Carrier may be:
a. Named by buyer only
b. Not named by buyer
c. Named or not named by buyer
d. Court appointed only
28. Delivery to a wharfinger for safe custody is:
a. Not valid
b. Prima facie deemed delivery to buyer
c. Conditional
d. Void
29. Seller must make contract with carrier or wharfinger:
a. As per his choice
b. On behalf of buyer and reasonable having regard to nature of goods and circumstances
c. As per court order
d. As per usage only
30. If seller fails to make reasonable contract and goods are lost or damaged, buyer may:
a. Sue carrier only
b. Accept delivery
c. Decline to treat delivery as delivery to himself or hold seller liable in damages
d. Ignore loss
31. This rule applies:
a. Always
b. Unless otherwise authorised by buyer
c. Only by agreement
d. Only by statute
32. Where goods are sent by sea route involving usual insurance, seller must:
a. Insure goods
b. Notify buyer to enable him to insure
c. Deliver personally
d. Take risk
33. If seller fails to give such notice, goods are at:
a. Buyer’s risk
b. Carrier’s risk
c. Seller’s risk during sea transit
d. No risk
34. This applies:
a. Always
b. Only in written contracts
c. Unless otherwise agreed
d. Only in international trade
35. This section applies where seller agrees to deliver goods:
a. At buyer’s risk
b. At his own risk at a place other than where goods are when sold
c. At warehouse
d. At court
36. The buyer shall bear risk of:
a. Loss due to seller’s fault
b. Transit delay
c. Deterioration necessarily incident to course of transit
d. Theft
37. This rule applies:
a. Always
b. Unless otherwise agreed
c. Only by court order
d. Only in writing
38. Buyer is not deemed to have accepted goods unless:
a. He pays for them
b. He inspects them
c. He has had reasonable opportunity of examining them
d. He receives them
39. Examination is for purpose of:
a. Checking price
b. Checking quantity
c. Ascertaining conformity with contract
d. Checking delivery
40. Seller must afford buyer opportunity to examine goods:
a. Always
b. On request
c. Only in writing
d. After payment
41. This obligation applies:
a. Always
b. Only in written contracts
c. Unless otherwise agreed
d. Only in court
42. Buyer is deemed to have accepted goods when he:
a. Receives goods
b. Pays price
c. Intimates to seller that he has accepted them
d. Inspects goods
43. Acceptance also occurs when buyer:
a. Stores goods
b. Does any act inconsistent with ownership of seller
c. Negotiates price
d. Insures goods
44. Acceptance occurs when buyer retains goods:
a. For short time
b. After reasonable time without intimating rejection
c. After payment
d. After inspection
45. Where buyer rightfully refuses goods, he is:
a. Bound to return them
b. Not bound to return them
c. Bound to store them
d. Bound to insure them
46. It is sufficient if buyer:
a. Returns goods
b. Sells goods
c. Intimates seller of refusal
d. Inspects goods
47. This rule applies:
a. Always
b. Only by agreement
c. Unless otherwise agreed
d. Only in writing
48. Buyer is liable when he:
a. Refuses to inspect
b. Does not take delivery within reasonable time after request by seller
c. Does not pay
d. Delays inspection
49. Seller must be:
a. Ready only
b. Willing only
c. Ready and willing to deliver goods
d. Paid
50. Buyer is liable for:
a. Price only
b. Loss caused by neglect or refusal and reasonable charges for care and custody
c. Damages only
d. Penalty
51. This section does not affect seller’s rights where refusal amounts to:
a. Delay
b. Breach
c. Repudiation of contract
d. Default
52. A seller is deemed to be an unpaid seller when:
a. Price is partly paid
b. Whole of the price has not been paid or tendered
c. Goods are delivered
d. Contract is made
53. A seller is also unpaid when a negotiable instrument is received as:
a. Absolute payment
b. Conditional payment
c. Partial payment
d. Advance payment
54. The seller remains unpaid if such instrument is:
a. Accepted
b. Honoured
c. Dishonoured or condition not fulfilled
d. Registered
55. The term “seller” includes:
a. Buyer
b. Carrier
c. Person in position of seller
d. Court
56. Such person includes:
a. Warehouse keeper
b. Agent of seller to whom bill of lading is endorsed
c. Carrier
d. Buyer’s agent
57. Such person also includes:
a. Consignor or agent who has paid or is directly responsible for price
b. Broker
c. Auctioneer
d. Banker
58. Rights of unpaid seller exist:
a. Only when property has not passed
b. Even when property has passed to buyer
c. Only after delivery
d. Only after payment
59. One right of unpaid seller is:
a. Ownership
b. Lien on goods while in possession
c. Mortgage
d. Lease
60. In case of buyer’s insolvency, unpaid seller has right of:
a. Lien only
b. Stoppage in transit
c. Delivery
d. Possession
61. Unpaid seller also has right of:
a. Re-sale
b. Lease
c. Gift
d. Bailment
62. Where property has not passed, unpaid seller has right of:
a. Ownership
b. Withholding delivery
c. Mortgage
d. Gift
63. Right of withholding delivery is:
a. Independent
b. Similar to lien and stoppage in transit
c. Absolute
d. Limited
64. This right is co-extensive with:
a. Ownership
b. Possession
c. Rights of lien and stoppage in transit
d. Delivery
65. The right of lien is available to:
a. Buyer
b. Paid seller
c. Unpaid seller in possession of goods
d. Carrier
66. The lien allows the seller to:
a. Sell goods
b. Retain possession of goods until payment or tender of price
c. Deliver goods
d. Transfer ownership
67. Lien arises where goods are sold:
a. On instalments
b. Without stipulation as to credit
c. On mortgage
d. On lease
68. Lien arises where goods are sold on credit and:
a. Buyer refuses delivery
b. Term of credit has expired
c. Price is fixed
d. Contract is void
69. Lien arises when buyer:
a. Delays payment
b. Becomes insolvent
c. Refuses delivery
d. Negotiates price
70. Seller may exercise lien even if he is in possession as:
a. Owner
b. Agent or bailee for buyer
c. Carrier
d. Broker
71. Where part delivery is made, unpaid seller:
a. Loses lien completely
b. Retains lien on remainder
c. Must deliver all goods
d. Has no remedy
72. Lien is lost if part delivery shows:
a. Delay
b. Waiver of lien
c. Breach
d. Payment
73. Lien is lost when goods are delivered to carrier:
a. With reservation of right of disposal
b. Without reserving right of disposal
c. With buyer’s consent
d. After payment
74. Lien is lost when:
a. Seller insures goods
b. Buyer or his agent lawfully obtains possession
c. Goods are delayed
d. Price is fixed
75. Lien is lost by:
a. Delivery
b. Waiver thereof
c. Payment only
d. Inspection
76. Lien is not lost merely because seller:
a. Delivers goods
b. Obtains decree for price
c. Waives lien
d. Transfers goods
77. The right of stoppage in transit is available to:
a. Buyer
b. Paid seller
c. Unpaid seller who has parted with possession
d. Carrier
78. This right arises when buyer:
a. Delays payment
b. Refuses delivery
c. Becomes insolvent
d. Breaches contract
79. Stoppage in transit means:
a. Cancelling contract
b. Resuming possession of goods while in transit
c. Refusing delivery
d. Retaining goods before dispatch
80. The seller may exercise this right:
a. Before delivery
b. After payment
c. As long as goods are in course of transit
d. After acceptance
81. After resuming possession, the seller may:
a. Sell goods immediately
b. Retain goods until payment or tender of price
c. Return goods
d. Destroy goods
82. Goods are in course of transit from:
a. Time of contract
b. Time of payment
c. Delivery to carrier or bailee for transmission to buyer
d. Time of inspection
83. Transit ends when buyer or his agent:
a. Pays price
b. Inspects goods
c. Takes delivery from carrier or bailee
d. Rejects goods
84. If buyer obtains delivery before arrival at destination, transit:
a. Continues
b. Ends
c. Suspends
d. Is void
85. After arrival at destination, transit ends when carrier:
a. Delivers goods
b. Acknowledges holding goods on behalf of buyer
c. Stores goods
d. Inspects goods
86. In such case, further destination indicated by buyer is:
a. Relevant
b. Binding
c. Immaterial
d. Mandatory
87. If goods are rejected and carrier continues in possession, transit:
a. Ends
b. Continues
c. Is void
d. Is suspended
88. This applies even if seller:
a. Accepts return
b. Refuses to receive goods back
c. Sues buyer
d. Delivers goods
89. Where goods are delivered to a ship chartered by buyer, possession depends on:
a. Contract only
b. Law only
c. Circumstances of case (carrier or agent of buyer)
d. Court order
90. If carrier wrongfully refuses delivery to buyer, transit:
a. Continues
b. Ends
c. Suspends
d. Is void
91. Where part delivery is made, remainder:
a. Cannot be stopped
b. May be stopped in transit
c. Must be delivered
d. Is void
92. Exception applies where part delivery shows:
a. Delay
b. Agreement to give up possession of whole goods
c. Breach
d. Payment
93. The unpaid seller may exercise stoppage in transit by:
a. Filing suit
b. Taking actual possession of goods
c. Cancelling contract
d. Withholding delivery
94. Stoppage may also be effected by:
a. Delivery to buyer
b. Notice to carrier or other bailee
c. Payment
d. Inspection
95. Notice may be given to:
a. Buyer only
b. Court
c. Person in actual possession of goods or his principal
d. Seller’s agent only
96. Where notice is given to principal, it must be given:
a. At any time
b. After delivery
c. In such time and circumstances that principal can communicate it to agent to prevent delivery
d. Only in writing
97. On receiving notice, the carrier or bailee shall:
a. Deliver to buyer
b. Store goods
c. Re-deliver goods to seller or according to his directions
d. Sell goods
98. Expenses of re-delivery shall be borne by:
a. Buyer
b. Carrier
c. Seller
d. Court
99. Unpaid seller’s right of lien or stoppage in transit is:
a. Always defeated by sub-sale
b. Not affected by any sale or disposition by buyer
c. Always transferred
d. Always void
100. Exception applies where seller:
a. Refuses delivery
b. Assents to such sale or disposition
c. Delays delivery
d. Files suit
101. Where document of title is transferred to a person as buyer or owner and then transferred further:
a. Rights remain unchanged
b. Rights depend on good faith and consideration
c. Rights are void
d. Rights are suspended
102. If last transfer is by way of sale to a person in good faith and for consideration, unpaid seller’s right:
a. Continues
b. Is defeated
c. Is suspended
d. Is voidable
103. If last transfer is by way of pledge or other disposition for value, unpaid seller’s right:
a. Is defeated
b. Can be exercised subject to rights of transferee
c. Is void
d. Is absolute
104. Where transfer is by way of pledge, unpaid seller may require:
a. Immediate payment
b. Return of goods
c. Amount secured by pledge to be satisfied first from other goods or securities of buyer
d. Cancellation of pledge
105. Exercise of lien or stoppage in transit:
a. Rescinds contract automatically
b. Does not rescind contract of sale
c. Makes contract void
d. Suspends contract
106. This rule applies:
a. Always
b. Subject to provisions of this section
c. Only by agreement
d. Only by court order
107. Where goods are perishable, unpaid seller may:
a. Retain goods
b. Re-sell goods
c. Destroy goods
d. Deliver goods
108. Where seller gives notice of intention to re-sell and buyer fails to pay within reasonable time, seller may:
a. Sue only
b. Re-sell goods within reasonable time
c. Cancel contract
d. Deliver goods
109. In such case, seller may recover:
a. Price only
b. Damages for loss caused by buyer’s breach
c. Penalty
d. Interest only
110. Buyer is not entitled to:
a. Goods
b. Refund
c. Profit on re-sale
d. Delivery
111. If notice of re-sale is not given, seller:
a. Can recover damages
b. Cannot recover damages
c. Can rescind contract
d. Can sue carrier
112. In such case, buyer is entitled to:
a. Damages
b. Profit on re-sale
c. Goods
d. Refund
113. On re-sale, new buyer acquires:
a. Conditional title
b. No title
c. Good title as against original buyer
d. Void title
114. This applies even if:
a. Notice is given
b. Notice is not given
c. Payment is made
d. Contract is void
115. Where seller reserves right of re-sale and buyer defaults, re-sale:
a. Suspends contract
b. Rescinds original contract
c. Makes contract voidable
d. Continues contract
116. Such rescission is without prejudice to:
a. Buyer’s rights
b. Seller’s claim for damages
c. Carrier’s rights
d. Court’s powers
117. Seller may sue for price where property in goods:
a. Has not passed
b. Has passed to buyer
c. Is transferred later
d. Is disputed
118. Seller may sue when buyer:
a. Delays delivery
b. Wrongfully neglects or refuses to pay
c. Rejects goods
d. Inspects goods
119. Payment must be:
a. At market rate
b. According to terms of contract
c. After delivery only
d. Optional
120. Seller may sue even if property has not passed when:
a. Goods are delivered
b. Price is payable on a day certain irrespective of delivery
c. Buyer accepts goods
d. Goods are appropriated
121. In such case, goods:
a. Must be delivered
b. Must be appropriated
c. Need not be appropriated to the contract
d. Must be inspected
122. Seller may sue even if:
a. Delivery is made
b. Goods are appropriated
c. Property has not passed and goods not appropriated
d. Buyer accepts goods
123. Seller may sue for damages when buyer:
a. Delays inspection
b. Wrongfully neglects or refuses to accept and pay for goods
c. Rejects defective goods
d. Negotiates price
124. Buyer may sue seller when seller:
a. Delays delivery
b. Wrongfully neglects or refuses to deliver goods
c. Increases price
d. Stores goods
125. Specific performance applies to:
a. Any goods
b. Future goods only
c. Specific or ascertained goods
d. Perishable goods
126. Court may direct:
a. Payment of damages only
b. Specific performance of contract
c. Cancellation only
d. Delivery after payment
127. Court may order performance:
a. With option to retain goods on damages
b. Without giving defendant option to retain goods on payment of damages
c. Only with consent
d. Only after delivery
128. Decree may be:
a. Conditional only
b. Unconditional only
c. Unconditional or on terms and conditions
d. Void
129. Application for specific performance may be made:
a. After decree
b. Before decree
c. After delivery
d. After payment
130. On breach of warranty, buyer is:
a. Entitled to reject goods
b. Not entitled to reject goods by reason only of such breach
c. Bound to accept goods
d. Entitled to rescind contract
131. Buyer may set up breach of warranty:
a. To reject goods
b. In diminution or extinction of price
c. To rescind contract
d. To delay payment
132. Buyer may:
a. Reject goods
b. Sue for damages for breach of warranty
c. Cancel contract
d. Return goods
133. Setting up breach of warranty does not prevent buyer from:
a. Rejecting goods
b. Suing for damages if further damage is suffered
c. Cancelling contract
d. Avoiding contract
134. Where contract is repudiated before delivery date, the other party may:
a. Ignore breach
b. Treat contract as subsisting or rescinded
c. Cancel automatically
d. Wait for court order
135. If treated as rescinded, the party may:
a. Demand delivery
b. Sue for damages for breach
c. Enforce contract
d. Inspect goods
136. This Act does not affect the right of parties to recover:
a. Price only
b. Interest or special damages where recoverable by law
c. Delivery charges
d. Penalty
137. Parties may recover money paid where:
a. Contract is valid
b. Consideration has failed
c. Goods are delivered
d. Price is fixed
138. Court may award interest:
a. Always
b. Only by agreement
c. In absence of contract to the contrary
d. Only after decree
139. Interest may be awarded at:
a. Fixed statutory rate
b. Market rate
c. Rate as court thinks fit
d. Contract rate only
140. In suit by seller for price, interest is awarded from:
a. Date of contract
b. Date of delivery
c. Date of tender of goods or date when price was payable
d. Date of decree
141. In suit by buyer for refund of price, interest is awarded from:
a. Date of contract
b. Date of delivery
c. Date of payment
d. Date of decree
142. Buyer may sue for refund when there is:
a. Delay
b. Breach of contract by seller
c. Inspection
d. Acceptance
143. Rights, duties or liabilities arising by implication of law may be:
a. Enforced only
b. Negatived or varied
c. Ignored
d. Cancelled automatically
144. Such exclusion or variation may be by:
a. Court order only
b. Express agreement
c. Statute only
d. Seller’s discretion
145. Such exclusion or variation may also be by:
a. Delivery terms
b. Course of dealing between parties
c. Price agreement
d. Inspection
146. Such exclusion or variation may also be by:
a. Custom only
b. Usage binding one party
c. Usage binding both parties to the contract
d. Trade practice only
147. Where this Act refers to “reasonable time”, it is:
a. Fixed by statute
b. Question of law
c. Question of fact
d. Determined by contract only
148. What is reasonable time depends on:
a. Court discretion only
b. Facts of each case
c. Seller’s opinion
d. Buyer’s opinion
149. Where goods are sold in lots, each lot is:
a. Part of one contract
b. Separate contract of sale
c. Conditional contract
d. Void contract
150. Sale is complete when auctioneer:
a. Accepts payment
b. Delivers goods
c. Announces completion by fall of hammer or customary manner
d. Registers sale
151. A bidder may retract his bid:
a. After sale
b. Before announcement of completion
c. After payment
d. After delivery
152. Right to bid may be reserved:
a. Impliedly only
b. Expressly by or on behalf of seller
c. By court
d. By buyer
153. Where such right is reserved, seller:
a. Cannot bid
b. May bid personally or through one person
c. Must not bid
d. Can appoint multiple bidders
154. Where sale is not notified subject to right to bid, seller:
a. May bid freely
b. May appoint agents
c. Cannot bid or employ any person to bid
d. Can bid secretly
155. Auctioneer shall not knowingly take bid from:
a. Buyer
b. Seller or his agent in such case
c. Carrier
d. Broker
156. Sale in contravention of this rule may be treated as:
a. Void
b. Illegal
c. Fraudulent by buyer
d. Valid
157. Sale may be subject to:
a. Fixed price only
b. Reserved or upset price
c. Market price
d. Cost price
158. Pretended bidding by seller makes sale:
a. Void
b. Voidable at option of buyer
c. Valid
d. Illegal
159. This section applies:
a. Always
b. Unless a different intention appears from the terms of the contract
c. Only by court order
d. Only in writing
160. This section applies where tax is:
a. Fixed
b. Imposed, increased, decreased or remitted after contract
c. Negotiated
d. Waived
161. It applies to contracts:
a. With tax clause only
b. Without stipulation as to payment of tax or where goods are tax-paid
c. Only for export
d. Only for import
162. Where tax is imposed or increased, seller may:
a. Reduce price
b. Add amount of tax to contract price
c. Cancel contract
d. Sue buyer
163. Seller is entitled to:
a. Retain goods
b. Be paid and recover such addition
c. Reject contract
d. Avoid contract
164. Where tax is decreased or remitted, buyer may:
a. Increase price
b. Deduct amount from contract price
c. Cancel contract
d. Refuse delivery
165. Buyer shall not be liable for:
a. Delivery
b. Payment of deducted amount
c. Inspection
d. Transport
166. This section applies to:
a. Income tax
b. Customs or excise duty on goods
c. Property tax
d. Service tax only
167. It also applies to:
a. Wealth tax
b. Tax on sale or purchase of goods
c. Stamp duty
d. Income tax
168. Section 65 has been:
a. Amended
b. Substituted
c. Repealed
d. Modified
169. Section 65 was repealed by:
a. ale of Goods Amendment Act
b. Repealing Act, 1938
c. Indian Contract Act
d. Specific Relief Act
170. The Repealing Act is:
a. Act No. 2 of 1938
b. Act No. 1 of 1938
c. Act No. 5 of 1938
d. Act No. 10 of 1938
171. The repeal is effected under:
a. Section 1
b. Section 2 and Schedule
c. Section 3 only
d. Section 4 only
172. This Act does not affect rights, title, interest, obligation or liability:
a. Created after commencement
b. Already acquired, accrued or incurred before commencement
c. Future rights only
d. Contractual rights only
173. This Act does not affect:
a. New proceedings
b. Legal proceedings or remedies in respect of existing rights
c. Court powers
d. Seller’s rights
174. This Act does not affect:
a. Future acts
b. Anything done or suffered before commencement
c. Delivery terms
d. Payment terms
175. This Act does not affect enactments:
a. Expressly repealed
b. Not expressly repealed relating to sale of goods
c. New enactments
d. Foreign laws
176. This Act does not affect:
a. All rules of law
b. Rules inconsistent with Act
c. Rules of law not inconsistent with this Act
d. Judicial precedents
177. Rules of insolvency relating to contracts of sale:
a. Are repealed
b. Continue to apply
c. Are modified
d. Are suspended
178. This applies:
a. Subject to agreement
b. Notwithstanding anything in this Act
c. Only by court
d. Only in writing
179. Provisions of this Act do not apply to transactions intended as:
a. ale only
b. Lease
c. Mortgage, pledge, charge or other security
d. Gift
180. Such transactions though in form of contract of sale:
a. Are valid sales
b. Are excluded from application of this Act
c. Are void
d. Are illegal
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