Sales Act(Direct And Indirect Taxation ) Questions and Answers

Question 1. Where the price is not determined by the parties to the contract of sale of goods, what price shall be paid by the buyer:
  1.    The buyer shall pay the seller a reasonable price.
  2.    The buyer shall determine the price at his discretion.
  3.    The seller shall determine the price at his discretion.
  4.    The seller shall charge the price according the market forces.
Explanation:-
Answer: Option A. -> The buyer shall pay the seller a reasonable price.


Question 2. When a seller can stop the goods in transit:
  1.    When the buyer of the goods informs that he will make payment after some time.
  2.    The seller has no right to stop the goods in transit.
  3.    When the buyer of goods becomes insolvent and goods are in transit.
  4.    When the buyer informs that he is now not in need of the goods.
Explanation:-
Answer: Option C. -> When the buyer of goods becomes insolvent and goods are in transit.


Question 3. Where there is a contract for the sale of specific or ascertained goods the property in them is transferred to the buyer:
  1.    At such time as the parties to the contract intend it to be transferred
  2.    At such time as the buyer only intend it to get it transferred.
  3.    It depends upon the circumstances of the case.
  4.    At such time as the seller only intend it to transfer to the buyer.
Explanation:-
Answer: Option A. -> At such time as the parties to the contract intend it to be transferred


Question 4. A seller of goods shall be deemed to be an “unpaid seller”:
  1.    When a bill of exchange or other negotiable instrument has been received as conditional payment, and the condition on which it was received has not been fulfilled by reason of the dishonour of the instrument or otherwise.
  2.    A seller who has obtained money decree for the price of the goods is still an unpaid seller, if the decree has not been satisfied.
  3.    When the whole of the price has not been paid or tendered.
  4.    All of the above.
Explanation:-
Answer: Option D. -> All of the above.


Question 5. When a buyer can sue the seller:
  1.    He may ask for the specific performance, if this being the part of the contract.
  2.    He may initiate for the breach of the warranty.
  3.    He may initiate suit for delivery of the goods, if not delivered.
  4.    All of the above.
Explanation:-
Answer: Option D. -> All of the above.


Question 6. A condition is a stipulation to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated.
  1.    Not essential
  2.    Not collateral
  3.    Essential
  4.    Collateral
Explanation:-
Answer: Option C. -> Essential


Question 7. Goods may be:
  1.    Future
  2.    Contingent
  3.    Existing
  4.    All of the above
Explanation:-
Answer: Option D. -> All of the above


Question 8. The Act relating to the sale of goods is called:
  1.    The Sale of Goods Act, 1930
  2.    The Selling of Goods Act, 1930
  3.    The Sale of Goods Act, 1830
  4.    The Goods Selling Act, 1930
Explanation:-
Answer: Option A. -> The Sale of Goods Act, 1930


Question 9. The contract of sale may provide for:
  1.    The immediate payment of the price.
  2.    The delivery or payment by installments, or that the delivery or payment or both shall be postponed
  3.    The immediate delivery of the goods.
  4.    All of the above.
Explanation:-
Answer: Option D. -> All of the above.


Question 10. An implied condition on the part of the seller that, in the case of a sale, and that, in the case of an agreement to sell,
  1.    he has a right to sell the goods/he may have a right to sell the goods at the time when the property is to pass.
  2.    he has a right to sell the goods/he will have a right to sell the goods at the time when the property is to pass.
  3.    he will have a right to sell the goods at the time when the property is to pass/he has a right to sell the goods.
  4.    he may have a right to sell the goods at the time when the property is to pass/he ha a right to sell the goods.
Explanation:-
Answer: Option B. -> he has a right to sell the goods/he will have a right to sell the goods at the time when the property is to pass.


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