Sale Of Goods Act MCQ Quiz in తెలుగు - Objective Question with Answer for Sale Of Goods Act - ముఫ్త్ [PDF] డౌన్‌లోడ్ కరెన్

The correct option is structured delivery.

Key Points

• Delivery-its forms and derivatives:-
  • Delivery means voluntary transfer of possession from one person to another (Section 2(2)).
  • As a general rule, delivery of goods may be made by doing anything, which has the effect of putting the goods in the possession of the buyer, or any person authorized to hold them on his behalf.

• Forms of delivery:
  • The following are the kinds of delivery for transfer of possession: 
    • Actual delivery:
      • When the goods are physically delivered to the buyer.
    • Constructive delivery:
      • When it is effected without any change in the custody or actual possession of the thing as in the case of delivery by attornment (acknowledgement) e.g., where a warehouseman holding the goods of A agrees to hold them on behalf of B, at A's request.
    • Symbolic delivery:
      • When there is a delivery of a thing in token of a transfer of something else, delivery of goods in the course of transit may be made by handing over documents of title to goods, like the bill of lading or railway receipt or delivery orders or the key of a warehouse containing the goods is handed over to the buyer.
• Goods are said to be in a deliverable state when they are in such a condition that the buyer would, under the contract, be bound to take delivery of them (Section 2(3)).
• Example:
  • When A contracts to sell timber and make bundles thereof, the goods will be in a deliverable state after A has put the goods in such a condition.

The correct option is the existing Goods.

Key Points

• EXISTING GOODS:-
  • These are such goods as are in existence at the time of the contract of sale, ie, those owned or possessed by the seller at the time of the contract of sale (Section 6).
• The existing goods may be of the following kinds:
  1. Specific goods:
     • It means goods identified and agreed upon at the time a contract of sale is made [Section 2(14)].
     • Example:
       • Any specified and finally decided goods like a Samsung Galaxy S7 Edge, Whirlpool washing machine of 7 kg etc.
       • 'Amit' had five cars of different models. He agreed to sell his 'first' car to 'Babita' and 'Babita' agreed to purchase the same car. In this case, the sale is for specific goods as the car has been identified and agreed to at the time of the contract of sale.
  2. Ascertained Goods:
     • These are those goods which are identified by the agreement after the contract of sale is made.
     • This term is not defined in the Act but has been judicially interpreted.
     • In actual practice, the term 'ascertained goods' is used in the same sense as 'specific goods.
     • When from a lot or out of large quantity of unascertained goods, the number or quantity contracted for is identified, such identified goods are called ascertained goods. 
     • Example:
       • A wholesaler of jute has 500 bales in his godown. He agreed to sell 250 bales and these bales were selected and set aside. On selection, the goods become ascertained. In this case, the contract is for the sale of ascertained goods, as the jute bales to be sold are identified and agreed upon after the formation of the contract.
         • It may be noted that before the ascertainment of the goods, the contract was for the sale of unascertained goods.
  3. Unascertained goods:
     • These are the goods which are not specifically identified or ascertained at the time of the making of the contract.
     • They are indicated or defined only by description or sample.
     • Example:
       • If Ankit agrees to sell to Bobby one packet of salt out of the lot of one hundred packets lying in his shop, it is a sale of unascertained goods because it is not known which packet is to be delivered. As soon as a particular packet is separated from the lot, it becomes ascertained or specific goods.

The correct option is that the provisions of the Sale of Goods were originally with the Indian Contract Act of 1872.

Key Points

• Before the Sale of Goods Act, which came into force in India in 1930, regulations concerning the sale of goods were primarily found in the Indian Contract Act of 1872.
• The Indian Contract Act of 1872 is a foundational law that governs contracts in India, including the sale of goods.
• It contains provisions related to the formation, performance, and enforcement of contracts, including those for the sale of goods.
• Therefore, the correct answer is' Indian Contract Act, 1872'

Additional Information

• Mortgages typically fall under property law and are governed by separate statutes and regulations, depending on the jurisdiction.
• The Sales of Goods Act contains certain provisions that cannot be modified or overridden by agreement between the parties.
  • These provisions often pertain to fundamental rights and protections for consumers or standard practices in commercial transactions.
  • Example: Provisions related to the quality of goods, implied warranties, and remedies for breach of contract may be considered non-negotiable or only modifiable to a limited extent.

The correct option is a sale.

Key Points

• The Sale of Goods Act of 1930 primarily pertains to the regulation and governance of sales transactions.
• This legislation encompasses various aspects related to the sale of goods, including but not limited to the transfer of ownership, warranties, conditions and the rights and obligations of both buyers and sellers in a sale transaction.
• The Act provides guidelines and regulations regarding the sale of goods, outlining the rights and responsibilities of parties involved in a sale transaction.
• It establishes the rules governing the formation and execution of sales contracts, as well as the rights of buyers and sellers concerning the quality, quantity, and delivery of goods.
• The Sale of Goods Act of 1930 provides detailed regulations concerning sales transactions, it does not directly address mortgages or pledges, which are governed by separate legal principles.

Additional Information

• Pledge:-
  • ​Pledge is always of movable property.
  • It involves the physical transfer of goods, not the ownership of goods.
  • The contract is not essential to be in written form.
• Mortgage:-
  • ​Mortgage is only for immovable property
  • The ownership of property can be transferred under certain conditions.
  • It is essential for the contract to be written, testified by two witnesses and registered

The correct option is both (a) and (b).

Key Points

• "Goods" means every kind of movable property other than actionable claims and money; and includes stock and shares, growing crops, grass and things attached to or forming part of the land, which are agreed to be severed before sale or under the contract of sale. [Section 2(7)]
• This is a wider definition than contained in the English law which does not consider ' stock' and shares as goods, though it includes a ship.
• 'Actionable claims are claims, which can be enforced only by an action or suit, e.g., debt.
  • A debt is not a movable property or goods.
• Explanation–
  • Fof this clause, the term ‘moveable property’ shall not include any intangible property.”
• The above definition defines goods as every kind of movable property which also includes securities, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under the contract of supply.
• Further, the definition of goods specifically excludes actionable claims and intangible property.

The correct option is an agreement to sell.

Key Points

• FUTURE GOODS:-
  • Future goods mean goods to be manufactured produced or acquired by the seller after making the contract of sale [Section 2 (6)].
  • A contract for the sale of future goods is always an agreement to sell. 
  • It is never an actual sale because a man cannot transfer what is not in existence.
• Example:
  • 1,000 quintals of potatoes to be grown on A's field, is not illegal, though the actual sale of future goods is not possible. This is an example of an agreement to sell.
  • P agrees to sell to Q all the milk that his cow may yield during the coming year. This is a contract for the sale of future goods.
  • T agrees to sell to S all the oranges which will be produced in his garden this year. It is a contract of sale of future goods, amounting to ' an agreement to sell!

The correct option is movable goods only.

Key Points

• The Sale of Goods Act of 1930 deals with movable goods only.
• Movable goods, also known as personal property, are items that can be physically moved from one location to another.
• These include goods such as electronics, clothing, furniture, and vehicles.
• The Act does not cover immovable goods, which are items that cannot be moved from one place to another without causing damage or alteration to their structure.
• Immovable goods include land, buildings, and other fixtures attached to the land.
• The Sale of Goods Act of 1930 is primarily concerned with regulating the sale of movable goods, ensuring that transactions involving such goods are fair and legally binding.
• It establishes rules regarding the transfer of ownership, warranties, conditions, and other aspects related to the sale of movable goods.

Additional Information

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

The correct option is Section 2(7).

Key Points

• "Goods" means every kind of movable property other than actionable claims and money; and includes stock and shares, growing crops, grass and things attached to or forming part of the land, which are agreed to be severed before sale or under the contract of sale. [Section 2(7)]
• This is a wider definition than contained in the English law which does not consider 'stock' and 'shares as goods, though it includes a ship.
• 'Actionable claims are claims, which can be enforced only by an action or suit, e.g., debt.
  • A debt is not a movable property or goods.
• Even the Fixed Deposit Receipts (FDR) are considered goods under Section 176 of the Indian Contract Act read with Section 2(7) of the Sales of Goods Act.

The correct option is Agreement to Sell.

Key Points

• Agreement to sell at valuation (Section 10):-
  1. Where there is an agreement to sell goods on the terms that the price is to be fixed by the valuation of the third party and such third party cannot or does not make such valuation, the agreement is thereby avoided:
     • Provided that, if the goods or any part thereof have been delivered to, and appropriated by, the buyer, he shall pay a reasonable price therefore. 
  2. Where such a third party is prevented from making the valuation by the fault of the seller or buyer, the party not at fault may maintain a suit for damages against the party in default.
• Section 10 provides for the determination of price by a third party.

Additional Information

• Where there is an agreement to sell goods on the terms that the price has to be fixed by the third party and he either does not or cannot make such a valuation, the agreement will be void.
• In case the third party is prevented by the default of either party from fixing the price, the party at fault will be liable for the damages to the other party who is not at fault.
• However, a buyer who has received and appropriated the goods must pay a reasonable price for them in any eventuality.
• Example:
  • P has two bikes. He agrees to sell both of the bikes to S at a price to be fixed by Q He gives delivery of one bike immediately. Q refuses to fix the price. As such Pask S to return the bike already. delivered while 5 claims for the delivery of the second bike too. In the given instance buyer S shall pay a reasonable price to P for the bike already taken. As regards the Second bike, the contract can be avoided.

The correct option is Voluntary transfer of possession.

Key Points

• Delivery-its forms and derivatives:-
  • Delivery means voluntary transfer of possession from one person to another (Section 2(2)).
  • As a general rule, delivery of goods may be made by doing anything, which has the effect of putting the goods in the possession of the buyer, or any person authorized to hold them on his behalf.

Additional Information

• Forms of delivery:
  • Following are the kinds of delivery for transfer of possession: 
    • Actual delivery:
      • When the goods are physically delivered to the buyer.
    • Constructive delivery:
      • When it is effected without any change in the custody or actual possession of the thing as in the case of delivery by attornment (acknowledgement) e.g., where a warehouseman holding the goods of A agrees to hold them on behalf of B, at A's request.
    • Symbolic delivery:
      • When there is a delivery of a thing in token of a transfer of something else, delivery of goods in the course of transit may be made by handing over documents of title to goods, like the bill of lading or railway receipt or delivery orders or the key of a warehouse containing the goods is handed over to buyer.
• Goods are said to be in a deliverable state when they are in such a condition that the buyer would, under the contract, be bound to take delivery of them (Section 2(3)).
• Example:
  • ​When A contracts to sell timber and make bundles thereof, the goods will be in a deliverable state after A has put the goods in such a condition.