29 extra multiple-choice questions for The Sale of Goods Act, 1930 (12th Standard Commerce, Samacheer Kalvi), beyond the ones printed in the textbook — each with the correct option highlighted and a clear, worked explanation. Free to read in English and Tamil.
Q1
Before the Sale of Goods Act, 1930 was passed, contracts for the sale of goods were governed by the
- A. Indian Contract Act, 1872Correct
- B. Negotiable Instruments Act, 1881
- C. Indian Partnership Act, 1932
- D. Consumer Protection Act, 1986
Explanation. The lesson says that before 1930 the sale of goods was governed by the Indian Contract Act, 1872, whose general provisions still apply to contracts for the sale of goods.
Q2
When goods are exchanged only for other goods, the transaction is not a sale. Which essential element of a contract of sale is missing?
- A. Two parties
- B. Transfer of property
- C. PriceCorrect
- D. Goods
Explanation. Price is the monetary consideration for the goods. An exchange of goods for goods has no price, so it is not a sale; if goods are given partly for goods and partly for money, it is a sale.
Q3
Which of the following is excluded from the term 'goods' under the Sale of Goods Act?
- A. Growing crops
- B. Goodwill
- C. MoneyCorrect
- D. Electricity
Explanation. Goods means every kind of movable property other than money and actionable claims; immovable property is also excluded. Growing crops, goodwill and electricity are all named as goods.
Q4
Which of the following is an actionable claim and therefore does not come under 'goods'?
- A. Copyright
- B. Fixed Deposit ReceiptCorrect
- C. Shares
- D. Trade mark
Explanation. The lesson lists a Fixed Deposit Receipt, dividend due on shares and claims for future rent as actionable claims. Copyright, shares and trade marks are counted as goods.
Q5
Under an agreement to sell, the goods are destroyed while they are in the buyer's possession. Who bears the loss?
- A. The buyer
- B. The sellerCorrect
- C. The carrier
- D. The buyer and the seller equally
Explanation. In an agreement to sell, ownership is still with the seller even if the buyer holds the goods. So the loss falls on the seller, as shown in the difference table under risk of loss.
Q6
An agreement to sell is a/an
- A. executed contract
- B. executory contractCorrect
- C. barter
- D. pledge
Explanation. The difference table calls a sale an executed (completed) contract, and an agreement to sell an executory contract, one that is yet to be performed by the parties.
Q7
Assertion (A): In a sale, if the goods are destroyed while still in the seller's possession, the loss falls on the buyer.
Reason (R): In a sale, the ownership in the goods passes to the buyer immediately.
- A. Both A and R are true, and R is the correct explanation of ACorrect
- B. Both A and R are true, but R is not the correct explanation of A
- C. A is true, but R is false
- D. A is false, but R is true
Explanation. In a sale, ownership passes at once, so risk follows ownership and the buyer bears the loss even though the seller still holds the goods. R therefore explains A.
Q8
A wants to buy a car from a showroom where many models at different prices are displayed. The displayed models represent
- A. Specific goods
- B. Ascertained goods
- C. Unascertained goodsCorrect
- D. Contingent goods
Explanation. Unascertained or generic goods are not identified and agreed upon at the time of the contract. The book uses the displayed car models in a showroom as its example.
Q9
Contingent goods are a part of
- A. Future goodsCorrect
- B. Specific goods
- C. Ascertained goods
- D. Existing goods
Explanation. Contingent goods are goods whose acquisition by the seller depends on an event that may or may not happen. The lesson states that contingent goods are a part of future goods.
Q10
A rice merchant agrees to supply basmati rice from Pakistan if he gets supplies. The basmati rice here represents
- A. Existing goods
- B. Specific goods
- C. Contingent goodsCorrect
- D. Ascertained goods
Explanation. The merchant's supply depends on an uncertain event, getting the rice from Pakistan, which may or may not happen. The book uses this basmati rice case as its example of contingent goods.
Q11
Match the type of goods with its example:
a. Specific goods - 1. A contractor agrees to supply rice bags for a marriage feast
b. Unascertained goods - 2. A painting to be sold only if the seller gets it from C
c. Future goods - 3. One saree chosen after examining several others
d. Contingent goods - 4. Car models displayed in a showroom
- A. a-3, b-1, c-4, d-2
- B. a-3, b-4, c-1, d-2Correct
- C. a-4, b-3, c-2, d-1
- D. a-2, b-4, c-1, d-3
Explanation. The chosen saree is identified at the contract (specific); showroom models are not yet identified (unascertained); rice still to be acquired is future goods; the painting depends on getting it from C (contingent).
Q12
A delivers his scooter to B for a two-day trial run on approval, and B communicates his acceptance after two days. When does ownership pass to B?
- A. When the scooter was delivered to B
- B. From the time B communicates his approvalCorrect
- C. When B pays the price
- D. At the end of a reasonable time
Explanation. For goods sent on approval or on sale or return, where the buyer communicates his approval or acceptance, ownership passes from the time of that communication.
Q13
In a contract for the sale of specific goods that are not in a deliverable condition, ownership passes to the buyer
- A. at the time the contract is made
- B. when the seller has done what is needed to bring the goods into a deliverable conditionCorrect
- C. when the buyer pays the price
- D. when the goods are handed to a carrier
Explanation. Where the seller has to do something such as painting, quality checking or weighing to make the goods deliverable, ownership does not pass until those acts are completed.
Q14
Specific goods are in a deliverable state, but the seller has to weigh them to fix the price. When does ownership pass to the buyer?
- A. At the time of the contract
- B. As soon as the rate per kg is agreed
- C. Only after the weighing is done and the buyer is informed of itCorrect
- D. Only when the buyer pays the full price
Explanation. Where the seller must weigh, measure or test the goods to fix the price, ownership passes only after that act is completed and the buyer comes to know of it.
Q15
The process by which goods to be delivered are identified and set apart with the consent of both the seller and the buyer is called
- A. Ascertainment
- B. AppropriationCorrect
- C. Delivery to the carrier
- D. Right of lien
Explanation. Appropriation needs the buyer's consent as well as the seller's, for example goods filled into containers supplied by the buyer. Ascertainment is done by the seller alone.
Q16
A seller delivers goods to a carrier for transmission to the buyer, and the railway receipt is made out in the buyer's name. Ownership in the goods passes to the buyer
- A. when the goods reach the buyer
- B. immediately on delivery to the carrierCorrect
- C. when the buyer pays the price
- D. when the buyer collects the railway receipt
Explanation. A receipt in the buyer's name shows that the seller has not reserved the right of disposal. So the goods are treated as appropriated, and ownership passes as soon as they are delivered to the carrier.
Q17
Goods are sent on sale or return basis with no time fixed for their return. The buyer neither returns them nor rejects them. Ownership passes to the buyer
- A. at once, on delivery of the goods
- B. on the expiry of a reasonable timeCorrect
- C. only when the seller demands the price
- D. never, as no time was fixed
Explanation. Where no time is fixed for return, ownership passes on the expiry of a reasonable time; where a time is fixed, it passes on the expiry of that fixed term.
Q18
A delivers jewellery to B on sale or return basis, and B pledges the jewellery with C. When does ownership pass to B?
- A. When the jewellery was delivered to B
- B. When B does the act of adopting the transaction by pledging itCorrect
- C. When B communicates his approval to A
- D. On the expiry of a reasonable time
Explanation. Where the buyer does an act adopting the transaction, ownership passes when that act is done. By pledging the jewellery, B adopted the transaction, so A can only recover the price from B.
Q19
A insists that the motorbike he buys must give a mileage of 50 km per litre, and he prefers a red colour. B supplies a bike giving 55 km per litre but in green. Here the preference for red colour is a
- A. condition
- B. warrantyCorrect
- C. condition as to title
- D. encumbrance
Explanation. Mileage is essential to the main purpose, so it is a condition, and it was fulfilled. Colour is collateral, a warranty; A cannot cancel the contract but can make B bear the cost of repainting.
Q20
Consider the following statements on conditions and warranties:
1. On breach of a condition, the affected party can cancel the contract and claim damages.
2. On breach of a warranty, the affected party can cancel the contract.
3. Ownership cannot be transferred without fulfilling the conditions.
Which of these are correct?
- A. 1 and 2 only
- B. 1 and 3 onlyCorrect
- C. 2 and 3 only
- D. 1, 2 and 3
Explanation. The difference table says breach of a condition lets the party cancel and claim damages, and ownership cannot pass without fulfilling conditions. Breach of a warranty gives damages only; the contract cannot be cancelled.
Q21
"A watch that will not keep time or a pen that will not write" is the book's illustration of which implied condition?
- A. Condition as to merchantabilityCorrect
- B. Condition as to wholesomeness
- C. Condition as to description
- D. Condition as to title
Explanation. Where goods are bought by description from a dealer in such goods, they must be of merchantable quality, that is, saleable under that name. A watch that does not keep time is not merchantable.
Q22
F bought milk from a dairy owner. The milk carried typhoid germs, and F's wife died after drinking it. The dairy owner was held liable for breach of the condition as to
- A. sale by sample
- B. wholesomenessCorrect
- C. quiet possession
- D. trade usage
Explanation. For eatables, goods must be wholesome besides being merchantable. Contaminated milk broke the condition as to wholesomeness, so the dairy owner had to pay damages.
Q23
Find the odd one out with respect to the implied warranties in a contract of sale.
- A. Quiet possession
- B. Freedom from any encumbrance
- C. Warranty in the case of dangerous goods
- D. Sale by sampleCorrect
Explanation. Quiet possession, freedom from encumbrances and the warranty on dangerous goods are the implied warranties listed. Sale by sample is one of the implied conditions.
Q24
In a sale by sample, which of the following is NOT one of the conditions stated in the lesson?
- A. The bulk of the goods must correspond with the sample in quality
- B. The buyer should have a reasonable opportunity of comparing the bulk with the sample
- C. The goods must be free from any defect rendering them unsaleable
- D. The buyer must pay the full price before comparing the bulk with the sampleCorrect
Explanation. The three conditions for a sale by sample are correspondence of bulk with sample in quality, a reasonable chance to compare, and freedom from defects making the goods unsaleable. Advance payment is not one of them.
Q25
Consider the following statements:
1. A seller who has received only a part of the price is an unpaid seller.
2. A seller is an unpaid seller when a negotiable instrument given to him has been dishonoured.
3. A seller who has received the whole of the price is an unpaid seller.
Which of these are correct?
- A. 1 only
- B. 1 and 2 onlyCorrect
- C. 2 and 3 only
- D. 1, 2 and 3
Explanation. A seller is unpaid when the whole price has not been paid or when a bill of exchange or other negotiable instrument given to him is dishonoured. So part payment still leaves him unpaid; full payment does not.
Q26
An unpaid seller has transferred the documents of title to the buyer but still holds the goods. His right of lien is not affected so long as he
- A. has sent the buyer a notice
- B. continues to be in possession of the goodsCorrect
- C. has fixed the price
- D. has reserved a right of resale
Explanation. The right of lien depends on actual possession. Even after the documents of title pass to the buyer, the seller may retain the goods while they remain in his custody.
Q27
The unpaid seller's right of stoppage in transit can be exercised when the goods are
- A. still in the seller's own godown
- B. already with the buyer
- C. in the hands of a carrier, and the buyer has become insolventCorrect
- D. with the buyer's agent
Explanation. Stoppage in transit applies when the goods are with neither the seller nor the buyer but in the hands of a carrier for transmission, and the buyer has become insolvent.
Q28
In which of the following cases does the unpaid seller NOT lose his right of lien?
- A. He delivers the goods to a carrier without reserving the right of disposal
- B. The buyer or his agent lawfully obtains possession of the goods
- C. The seller waives his right of lien
- D. He transfers the documents of title to the buyer but keeps the goods in his custodyCorrect
Explanation. Lien is lost on delivery to a carrier without reserving disposal, when the buyer lawfully obtains possession, or when the seller waives it. Merely transferring documents of title does not end it while the seller holds the goods.
Q29
Match the unpaid seller's suits against the buyer personally with the situations:
a. Suit for price - 1. The buyer wrongfully refuses to accept the goods
b. Suit for damages for non-acceptance - 2. Ownership has passed and the buyer refuses to pay
c. Suit for interest - 3. A specific agreement exists for charging interest on the price
d. Suit for cancellation before the due date - 4. The buyer cancels the contract before the date of delivery
- A. a-1, b-2, c-3, d-4
- B. a-2, b-4, c-3, d-1
- C. a-2, b-1, c-3, d-4Correct
- D. a-3, b-1, c-2, d-4
Explanation. A suit for price lies where ownership has passed and payment is refused; damages for non-acceptance where the buyer wrongfully refuses goods; interest under a specific agreement; and a suit for cancellation where the buyer cancels before the delivery date.
