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All questions of Unit 1: Formation of the Contract of Sale for CA Foundation Exam
Under the Sale of goods Act, 1930, which of these are not considered as goods.
- a)Immovable property and Money.
- b)Money and stock
- c)Growing Crop.
- d)Stock and shares.
Correct answer is option 'A'. Can you explain this answer?
Under the Sale of goods Act, 1930, which of these are not considered as goods.
a)
Immovable property and Money.
b)
Money and stock
c)
Growing Crop.
d)
Stock and shares.
|
Kavita Joshi answered |
“Goods’ have been defined under 2(7) of the Sale of Goods Act, 1930, to include every kind of movable property, including stocks, shares, crops, grass, severable objects, etc. It is supplemented by the definitions of movable and immovable property under 3(36) and 3(26) of the General Clauses Act, 1897. This paper lays down certain dilemmas that have not been resolved despite the definitions and examines the case laws that may shed light on the same. It also examines the difference between English and Indian law on this issue. Primarily, it seeks to clarify whether certain commodities such as electricity, lottery tickets, software programs, money. Etc can be included within the definition of “goods”.
When the goods are identified in a contract of sale, they are called _______.- a)Ascertained goods
- b)Unascertained goods
- c)Specific goods.
- d)None of these.
Correct answer is 'C'. Can you explain this answer?
When the goods are identified in a contract of sale, they are called _______.
a)
Ascertained goods
b)
Unascertained goods
c)
Specific goods.
d)
None of these.
|
Alok Mehta answered |
Specific goods identified and agreed upon at the time of a contract of sale is made. They are also called existing goods or ascertained goods.
Can you explain the answer of this question below:X purchased papers from Y and resold them to Z, who found that the papers were infected with white ants and returned them to X. Can X return the goods to Y?- A:No
- B:Yes
- C:Z has to return directly
- D:None of the above
The answer is a.
X purchased papers from Y and resold them to Z, who found that the papers were infected with white ants and returned them to X. Can X return the goods to Y?
A:
No
B:
Yes
C:
Z has to return directly
D:
None of the above
|
|
Arjun Singhania answered |
The seller can always claim the benefit of doctrine of Caveat Emptor i.e. let the buyer be aware.
If at the time of purchasing goods from X, Z pointed out that they were infected with white ants so Z can return them to X as he had been beware and diligent.
On the other hand X had already purchased the goods from Y and did not make any complain about the papers being infected .
Therefore, X cannot now return the goods to Y.
When the delivery of goods takes place by way of handing over the document of title to goods, it is called __________- a)Deemed Delivery
- b)Symbolic Delivery
- c)Constructive Delivery
- d)Physical Delivery.
Correct answer is option 'B'. Can you explain this answer?
When the delivery of goods takes place by way of handing over the document of title to goods, it is called __________
a)
Deemed Delivery
b)
Symbolic Delivery
c)
Constructive Delivery
d)
Physical Delivery.
|
Urvashi Porwal answered |
Correct answer is Option 'B'. As SYMBOLIC DELIVERY the name itself suggests that some token or a document comes in usage in this type of delivery. Although here document of title is transferred to buyer as a symbol of delivery of goods. For better understanding,take an e.g. if car is to be delivered to buyer then seller gives the keys of a car to buyer. This key is the symbol used for delivery of goods.
Can a hirer pass a good title to a bonafide purchaser?- a)Yes, hirer can pass a good title to a bonafide purchaser
- b)Yes, provided the vendor agrees to it.
- c)Yes, if he receives full consideration.
- d)No, hirer cannot pass a good title even to a bonafide purchaser.
Correct answer is option 'D'. Can you explain this answer?
Can a hirer pass a good title to a bonafide purchaser?
a)
Yes, hirer can pass a good title to a bonafide purchaser
b)
Yes, provided the vendor agrees to it.
c)
Yes, if he receives full consideration.
d)
No, hirer cannot pass a good title even to a bonafide purchaser.
|
Sai Kulkarni answered |
Correct Answer :- D
Explanation : In the case of a sale, the buyer can pass a good title to a bona fide purchaser from him but in a hire-purchase, the hirer cannot pass any title even to a bona fide purchaser.
A contracts to sell to B all the oil to be produced from groundnut harvested from A’s farm. The crops having been harvested and oil made there from, A fills the oil in the cans supplied by B. Does the property in oil pass to B?- a)No, goods are not in a deliverable state
- b)Yes, goods are in a deliverable state
- c)No, B has not taken the delivery
- d)None of the above
Correct answer is 'C'. Can you explain this answer?
A contracts to sell to B all the oil to be produced from groundnut harvested from A’s farm. The crops having been harvested and oil made there from, A fills the oil in the cans supplied by B. Does the property in oil pass to B?
a)
No, goods are not in a deliverable state
b)
Yes, goods are in a deliverable state
c)
No, B has not taken the delivery
d)
None of the above
|
|
Khushi Sahani answered |
I think correct answer is b because it is not mentioned in the question that b has taken the delivery or not...
upvote my answer and report this question if you really find my answer helpfull
upvote my answer and report this question if you really find my answer helpfull
Goods means every kind of movable property including: - a)Actionable claims and currency money
- b)Old Currency notes
- c)Goodwill and copyright
- d)Both (b) and (c)
Correct answer is option 'D'. Can you explain this answer?
Goods means every kind of movable property including:
a)
Actionable claims and currency money
b)
Old Currency notes
c)
Goodwill and copyright
d)
Both (b) and (c)
|
|
Kavita Joshi answered |
“goods’’ means every kind of movable property other than actionable claim and money but 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;
Explanation– For the purpose of 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 claim, money and intangible property.
Where by a contract of sale, the seller purports to effect a ………………the contract operates as an agreement to sell: - a)Future sale of existing goods
- b)Present sale of existing goods
- c)Future sale of future goods
- d)Present sale of future goods
Correct answer is option 'D'. Can you explain this answer?
Where by a contract of sale, the seller purports to effect a ………………the contract operates as an agreement to sell:
a)
Future sale of existing goods
b)
Present sale of existing goods
c)
Future sale of future goods
d)
Present sale of future goods
|
|
Alok Mehta answered |
Section 6(3) is as follows :
"Where by a contract of sale the seller purports to effect a present sale of future goods, the contract operates as an agreement to sell the goods." Section 18 refers to the transfer of property as between the seller and the buyer. It runs :
"Where there is a contract for the sale of unascertained goods, no property in the goods is transferred to the buyer unless and until the goods are ascertained."
In a contract of sale where goods are lying with the seller the risk of loss of goods will be borne by - a)Buyer only
- b)Seller only
- c)Either buyer or seller
- d)Both buyer and seller
Correct answer is option 'A'. Can you explain this answer?
In a contract of sale where goods are lying with the seller the risk of loss of goods will be borne by
a)
Buyer only
b)
Seller only
c)
Either buyer or seller
d)
Both buyer and seller
|
Ruchi Mishra answered |
Risk of Loss in a Contract of Sale
Introduction
When a contract of sale is made, the risk of loss of goods is an important consideration. The risk of loss refers to the possibility that the goods may be damaged or destroyed before they are delivered to the buyer. This risk may arise while the goods are still in the possession of the seller or during their transportation to the buyer. The allocation of this risk between the parties to the contract can have significant legal and financial consequences.
Buyer's Obligation to Pay
In a contract of sale, the buyer is generally obligated to pay for the goods before they are delivered. However, the obligation to pay does not necessarily mean that the buyer bears the risk of loss. The risk of loss may be allocated differently depending on the terms of the contract and the applicable law.
Risk of Loss Before Delivery
If the goods are damaged or destroyed before delivery, the question arises as to who bears the risk of loss. Generally, the risk of loss is borne by the party who has legal title to the goods at the time of the loss. However, if the contract provides otherwise, the risk of loss may be allocated differently.
Goods Lying with the Seller
If the goods are lying with the seller and have not yet been delivered to the buyer, the risk of loss generally remains with the seller. This is because legal title to the goods has not yet passed to the buyer. Therefore, if the goods are damaged or destroyed while still in the seller's possession, the seller bears the risk of loss.
Buyer's Obligation to Insure
While the risk of loss may be allocated differently in different contracts, it is generally advisable for the buyer to insure the goods against loss or damage during transportation. This can help to protect the buyer's financial interests in case of loss or damage to the goods.
Conclusion
In a contract of sale where goods are lying with the seller, the risk of loss of goods will be borne by the buyer only if the contract specifically provides for this allocation of risk. Otherwise, the risk of loss remains with the seller until the goods are delivered to the buyer.
Introduction
When a contract of sale is made, the risk of loss of goods is an important consideration. The risk of loss refers to the possibility that the goods may be damaged or destroyed before they are delivered to the buyer. This risk may arise while the goods are still in the possession of the seller or during their transportation to the buyer. The allocation of this risk between the parties to the contract can have significant legal and financial consequences.
Buyer's Obligation to Pay
In a contract of sale, the buyer is generally obligated to pay for the goods before they are delivered. However, the obligation to pay does not necessarily mean that the buyer bears the risk of loss. The risk of loss may be allocated differently depending on the terms of the contract and the applicable law.
Risk of Loss Before Delivery
If the goods are damaged or destroyed before delivery, the question arises as to who bears the risk of loss. Generally, the risk of loss is borne by the party who has legal title to the goods at the time of the loss. However, if the contract provides otherwise, the risk of loss may be allocated differently.
Goods Lying with the Seller
If the goods are lying with the seller and have not yet been delivered to the buyer, the risk of loss generally remains with the seller. This is because legal title to the goods has not yet passed to the buyer. Therefore, if the goods are damaged or destroyed while still in the seller's possession, the seller bears the risk of loss.
Buyer's Obligation to Insure
While the risk of loss may be allocated differently in different contracts, it is generally advisable for the buyer to insure the goods against loss or damage during transportation. This can help to protect the buyer's financial interests in case of loss or damage to the goods.
Conclusion
In a contract of sale where goods are lying with the seller, the risk of loss of goods will be borne by the buyer only if the contract specifically provides for this allocation of risk. Otherwise, the risk of loss remains with the seller until the goods are delivered to the buyer.
X purchased papers from Y and resold them to Z, who found that the papers were infected with white ants and returned them to X. Can X return the goods to Y?- a)No
- b)Yes
- c)Z has to return directly
- d)None of the above
Correct answer is 'A'. Can you explain this answer?
X purchased papers from Y and resold them to Z, who found that the papers were infected with white ants and returned them to X. Can X return the goods to Y?
a)
No
b)
Yes
c)
Z has to return directly
d)
None of the above
|
|
Kavita Joshi answered |
The seller can always claim the benefit of doctrine of Caveat Emptor i.e. let the buyer be aware.At the time of purchasing goods from X, Z pointed out that they were infected with white ants so Z can return them to X as he had beenbeware and diligent.On the other hand X had already purchased the goods from Yand did not make any complain about the papers being infected .Therefore, X cannot now return the goods to Y.
Which of the following is not a form of delivery?- a)constructive delivery.
- b)structured delivery.
- c)actual delivery.
- d)symbolic delivery.
Correct answer is option 'B'. Can you explain this answer?
Which of the following is not a form of delivery?
a)
constructive delivery.
b)
structured delivery.
c)
actual delivery.
d)
symbolic delivery.
|
Raghav Ghoshal answered |
Not a Form of Delivery
There are different forms of delivery that can be used in legal transactions such as sales, leases, and assignments. These forms of delivery are important because they establish when and how transfer of ownership or possession occurs. The question asks which of the following is not a form of delivery, and the correct answer is option 'B' which is structured delivery. Let us explain why this is the case.
Forms of Delivery
1. Actual Delivery
Actual delivery is the physical transfer of the subject matter of the transaction from the seller to the buyer. This form of delivery is common in the sale of tangible goods such as cars, furniture, and machinery. Actual delivery occurs when the seller hands over the goods to the buyer, or when the buyer takes possession of the goods at the seller's premises.
2. Symbolic Delivery
Symbolic delivery is the transfer of possession of the subject matter of the transaction without the physical transfer of the goods. This form of delivery is common in the sale of intangible goods such as shares, bonds, and intellectual property. Symbolic delivery occurs when the seller hands over the key or document that represents the ownership or possession of the goods.
3. Constructive Delivery
Constructive delivery is the transfer of possession of the subject matter of the transaction through the control of a third party. This form of delivery is common in the sale of goods stored in a warehouse, where the buyer takes possession of the goods by controlling the warehouse operator. Constructive delivery occurs when the seller notifies the buyer that the goods are available for pickup, and the buyer takes control of the warehouse operator.
4. Structured Delivery
Structured delivery is not a form of delivery used in legal transactions. It is not related to the transfer of ownership or possession of the subject matter of the transaction. Therefore, option 'B' is the correct answer to the question.
Conclusion
In summary, delivery is an important aspect of legal transactions that establishes the transfer of ownership or possession of the subject matter of the transaction. There are different forms of delivery, including actual delivery, symbolic delivery, and constructive delivery. Structured delivery is not a form of delivery used in legal transactions.
There are different forms of delivery that can be used in legal transactions such as sales, leases, and assignments. These forms of delivery are important because they establish when and how transfer of ownership or possession occurs. The question asks which of the following is not a form of delivery, and the correct answer is option 'B' which is structured delivery. Let us explain why this is the case.
Forms of Delivery
1. Actual Delivery
Actual delivery is the physical transfer of the subject matter of the transaction from the seller to the buyer. This form of delivery is common in the sale of tangible goods such as cars, furniture, and machinery. Actual delivery occurs when the seller hands over the goods to the buyer, or when the buyer takes possession of the goods at the seller's premises.
2. Symbolic Delivery
Symbolic delivery is the transfer of possession of the subject matter of the transaction without the physical transfer of the goods. This form of delivery is common in the sale of intangible goods such as shares, bonds, and intellectual property. Symbolic delivery occurs when the seller hands over the key or document that represents the ownership or possession of the goods.
3. Constructive Delivery
Constructive delivery is the transfer of possession of the subject matter of the transaction through the control of a third party. This form of delivery is common in the sale of goods stored in a warehouse, where the buyer takes possession of the goods by controlling the warehouse operator. Constructive delivery occurs when the seller notifies the buyer that the goods are available for pickup, and the buyer takes control of the warehouse operator.
4. Structured Delivery
Structured delivery is not a form of delivery used in legal transactions. It is not related to the transfer of ownership or possession of the subject matter of the transaction. Therefore, option 'B' is the correct answer to the question.
Conclusion
In summary, delivery is an important aspect of legal transactions that establishes the transfer of ownership or possession of the subject matter of the transaction. There are different forms of delivery, including actual delivery, symbolic delivery, and constructive delivery. Structured delivery is not a form of delivery used in legal transactions.
X agrees to deliver in future 100 computer sets for Rs. 30 lakhs in exchange of 200 fridge sets worth Rs. 40 lakhs and Rs. 60,000 in cash. This is a : - a)Barter
- b)Agreement to sale
- c)Executed contract of sale
- d)Sale
Correct answer is 'B'. Can you explain this answer?
X agrees to deliver in future 100 computer sets for Rs. 30 lakhs in exchange of 200 fridge sets worth Rs. 40 lakhs and Rs. 60,000 in cash. This is a :
a)
Barter
b)
Agreement to sale
c)
Executed contract of sale
d)
Sale
|
|
Rutuja Dasgupta answered |
**Explanation:**
The given scenario involves an exchange of goods and cash between two parties. Let's analyze each option to determine which one best describes the situation:
**a) Barter:**
In a barter system, goods are exchanged directly without the use of money. In this case, although goods are being exchanged, there is also cash involved. Thus, it cannot be considered as a barter.
**b) Agreement to Sale:**
An agreement to sale is a preliminary stage before the actual sale takes place. It is a contract where the seller agrees to transfer the ownership of goods to the buyer at a future date, subject to certain conditions. This option seems applicable to the given scenario as X agrees to deliver the computer sets in the future in exchange for the fridge sets and cash.
**c) Executed Contract of Sale:**
An executed contract of sale means that the sale transaction has already been completed, and the ownership of goods has been transferred from the seller to the buyer. In this case, the transaction is not yet completed as the delivery of computer sets is scheduled for the future. Therefore, it is not an executed contract of sale.
**d) Sale:**
A sale refers to the transfer of ownership of goods from the seller to the buyer in exchange for a price. While there is a transfer of goods and cash involved in this scenario, it is not an immediate transfer of ownership. The delivery of computer sets is yet to be made in the future. Hence, it cannot be considered a sale.
Based on the analysis, option **b) Agreement to Sale** is the most appropriate choice as it accurately describes the situation where X agrees to deliver the computer sets in the future in exchange for the fridge sets and cash.
The given scenario involves an exchange of goods and cash between two parties. Let's analyze each option to determine which one best describes the situation:
**a) Barter:**
In a barter system, goods are exchanged directly without the use of money. In this case, although goods are being exchanged, there is also cash involved. Thus, it cannot be considered as a barter.
**b) Agreement to Sale:**
An agreement to sale is a preliminary stage before the actual sale takes place. It is a contract where the seller agrees to transfer the ownership of goods to the buyer at a future date, subject to certain conditions. This option seems applicable to the given scenario as X agrees to deliver the computer sets in the future in exchange for the fridge sets and cash.
**c) Executed Contract of Sale:**
An executed contract of sale means that the sale transaction has already been completed, and the ownership of goods has been transferred from the seller to the buyer. In this case, the transaction is not yet completed as the delivery of computer sets is scheduled for the future. Therefore, it is not an executed contract of sale.
**d) Sale:**
A sale refers to the transfer of ownership of goods from the seller to the buyer in exchange for a price. While there is a transfer of goods and cash involved in this scenario, it is not an immediate transfer of ownership. The delivery of computer sets is yet to be made in the future. Hence, it cannot be considered a sale.
Based on the analysis, option **b) Agreement to Sale** is the most appropriate choice as it accurately describes the situation where X agrees to deliver the computer sets in the future in exchange for the fridge sets and cash.
Sale is different from : - a)Agreement to sell
- b)Hire purchase
- c)Bailment
- d)All of the above
Correct answer is option 'D'. Can you explain this answer?
Sale is different from :
a)
Agreement to sell
b)
Hire purchase
c)
Bailment
d)
All of the above
|
Shraddha Patil answered |
In agreement to sale ,sale is made on same future date .ln hire purchase agreement possession of goods transfers to person after payment of last installment. and in case of bailment bailor gives the goods to bailee on the condition that he must return the goods after performance of specific act for which bailment is made.
because of all this reasons sale is different.
because of all this reasons sale is different.
In an agreement to sell buyer __________ goods on insolvency of seller:- a)Cannot claim
- b)Can claim
- c)Conditional claim
- d)None
Correct answer is option 'A'. Can you explain this answer?
In an agreement to sell buyer __________ goods on insolvency of seller:
a)
Cannot claim
b)
Can claim
c)
Conditional claim
d)
None
|
Mohammed Bilal Hussain answered |
Agreement to sale is made for future goods if the buyer become insolvent the seller won't supply goods instead of claim hence the contract become void
A person is said to be insolvent when he ceased to pay his. - a)Damages
- b)Price
- c)Debts
- d)All of the above.
Correct answer is option 'C'. Can you explain this answer?
A person is said to be insolvent when he ceased to pay his.
a)
Damages
b)
Price
c)
Debts
d)
All of the above.
|
Priya Patel answered |
Insolvency is the legal term describing the situation of a debtor who is unable to pay his, her, or its debts. There are two primary types of insolvency: cash flow and balance sheet.In cash flow insolvency, the debtor suffers from a lack of financial liquidity making it impossible to pay debts as they fall due. This is the type of insolvency most individuals experience prior to filing for bankruptcy.Balance sheet insolvency, on the other hand, involves having negative net assets, where one's liabilities exceed their assets. This is the form of insolvency normally described by corporate entities prior to filing for bankruptcy.
The keys of a ware house where goods are stored is handed over to the buyer. It is called ________ delivery:- a)Actual
- b)Symbolic
- c)Constructive
- d)Conditional
Correct answer is 'B'. Can you explain this answer?
The keys of a ware house where goods are stored is handed over to the buyer. It is called ________ delivery:
a)
Actual
b)
Symbolic
c)
Constructive
d)
Conditional
|
|
Poonam Reddy answered |
Symbolic delivery refers to delivery of goods by way of gift or sale, when it is either inaccessible or cumbersome. Goods under symbolic delivery are offered through substitute article that indicates the donative's intent of the donor or seller and is accepted as the representative of the original item.
Where by a contract of sale, the seller purports to effect a ………………the contract operates as an agreement to sell: - a)Future sale of existing goods
- b)Present sale of existing goods
- c)Future sale of future goods
- d)Present sale of future goods
Correct answer is 'D'. Can you explain this answer?
Where by a contract of sale, the seller purports to effect a ………………the contract operates as an agreement to sell:
a)
Future sale of existing goods
b)
Present sale of existing goods
c)
Future sale of future goods
d)
Present sale of future goods
|
|
Priya Patel answered |
SALE OF GOODS ACT:
Existing or future goods
(1) The goods that form the subject of a contract of sale may be either existing goods, owned or possessed by the seller, or future goods.
(2) There may be a contract for the sale of goods, the acquisition of which by the seller depends on a contingency that may or may not happen.
(3) If by a contract of sale the seller purports to effect a present sale of future goods, the contract operates as an agreement to sell the goods.
Contract of Sale is _______________- a)executory Contract.
- b)executed Contract.
- c)both of the above.
- d)none of the above
Correct answer is option 'C'. Can you explain this answer?
Contract of Sale is _______________
a)
executory Contract.
b)
executed Contract.
c)
both of the above.
d)
none of the above
|
|
Maheshwar Goyal answered |
Contract of Sale is both an executory and executed contract.
Executory Contract
An Executory Contract is a contract in which one or both parties have yet to perform their obligations. In a Contract of Sale, it is an Executory Contract because the seller has an obligation to deliver the goods, and the buyer has an obligation to pay the price.
Executed Contract
An Executed Contract is a contract in which both parties have fulfilled their obligations. In a Contract of Sale, it is an Executed Contract when the seller has delivered the goods, and the buyer has paid the price.
Contract of Sale
A Contract of Sale is a legal agreement between a buyer and a seller, where the seller promises to deliver the goods, and the buyer agrees to pay the price. The agreement is typically in writing and outlines the terms and conditions of the sale, such as the price, quality, and quantity of the goods.
Conclusion
In conclusion, a Contract of Sale is both an Executory and Executed Contract. It is an Executory Contract until both parties fulfill their obligations, at which point it becomes an Executed Contract.
Executory Contract
An Executory Contract is a contract in which one or both parties have yet to perform their obligations. In a Contract of Sale, it is an Executory Contract because the seller has an obligation to deliver the goods, and the buyer has an obligation to pay the price.
Executed Contract
An Executed Contract is a contract in which both parties have fulfilled their obligations. In a Contract of Sale, it is an Executed Contract when the seller has delivered the goods, and the buyer has paid the price.
Contract of Sale
A Contract of Sale is a legal agreement between a buyer and a seller, where the seller promises to deliver the goods, and the buyer agrees to pay the price. The agreement is typically in writing and outlines the terms and conditions of the sale, such as the price, quality, and quantity of the goods.
Conclusion
In conclusion, a Contract of Sale is both an Executory and Executed Contract. It is an Executory Contract until both parties fulfill their obligations, at which point it becomes an Executed Contract.
The conditions and warranties may be in the form of- a)express.
- b)implied.
- c)either (a) or (b).
- d)none of the above.
Correct answer is option 'C'. Can you explain this answer?
The conditions and warranties may be in the form of
a)
express.
b)
implied.
c)
either (a) or (b).
d)
none of the above.
|
|
Pranav Gupta answered |
Conditions and Warranties:
Conditions and warranties are the terms of a contract. They define the rights and obligations of the parties to the contract. A condition is a term that is essential to the contract. A breach of a condition allows the innocent party to terminate the contract and claim damages. A warranty is a term that is not essential to the contract. A breach of a warranty allows the innocent party to claim damages but does not allow them to terminate the contract.
Forms of Conditions and Warranties:
Conditions and warranties can be expressed or implied in a contract. Express conditions and warranties are those that are expressly stated in the contract. Implied conditions and warranties are those that are not expressly stated but are implied by law or by the circumstances of the contract.
Either (a) or (b):
As per the Indian Contract Act, conditions and warranties may be expressed or implied. Therefore, the correct answer to the given question is option (c) either (a) or (b).
Conclusion:
In conclusion, conditions and warranties are the terms of a contract that define the rights and obligations of the parties to the contract. They can be expressed or implied in a contract. The correct answer to the given question is option (c) either (a) or (b).
Conditions and warranties are the terms of a contract. They define the rights and obligations of the parties to the contract. A condition is a term that is essential to the contract. A breach of a condition allows the innocent party to terminate the contract and claim damages. A warranty is a term that is not essential to the contract. A breach of a warranty allows the innocent party to claim damages but does not allow them to terminate the contract.
Forms of Conditions and Warranties:
Conditions and warranties can be expressed or implied in a contract. Express conditions and warranties are those that are expressly stated in the contract. Implied conditions and warranties are those that are not expressly stated but are implied by law or by the circumstances of the contract.
Either (a) or (b):
As per the Indian Contract Act, conditions and warranties may be expressed or implied. Therefore, the correct answer to the given question is option (c) either (a) or (b).
Conclusion:
In conclusion, conditions and warranties are the terms of a contract that define the rights and obligations of the parties to the contract. They can be expressed or implied in a contract. The correct answer to the given question is option (c) either (a) or (b).
In case of a hire- purchase, the hirer: - a)Can pass a good title to a bonafide purchaser
- b)Cannot pass a good title to a bonafide purchaser
- c)Can choose whether to pass or not to pass the title
- d)All of these
Correct answer is option 'B'. Can you explain this answer?
In case of a hire- purchase, the hirer:
a)
Can pass a good title to a bonafide purchaser
b)
Cannot pass a good title to a bonafide purchaser
c)
Can choose whether to pass or not to pass the title
d)
All of these
|
Jayant Mishra answered |
In the case of a sale, the buyer can pass a good title to a bonafide purchaser from him but in a hire-purchase, the hirer cannot pass any title even to a bonafide purchaser.
Goods means every kind of movable property including: - a)Actionable claims and currency money
- b)Old Currency notes
- c)Goodwill and copyright
- d)Both (b) and (c)
Correct answer is option 'D'. Can you explain this answer?
Goods means every kind of movable property including:
a)
Actionable claims and currency money
b)
Old Currency notes
c)
Goodwill and copyright
d)
Both (b) and (c)
|
|
Alok Mehta answered |
'Goods' is defined as per Section 2 (7) of the 'Act' as. “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.
In a hire-purchase agreement, the hirer- a)has an option to buy the goods.
- b)must buy the goods.
- c)must return the goods.
- d)is not given the possession of goods.
Correct answer is option 'A'. Can you explain this answer?
In a hire-purchase agreement, the hirer
a)
has an option to buy the goods.
b)
must buy the goods.
c)
must return the goods.
d)
is not given the possession of goods.
|
|
Sinjini Gupta answered |
Hire-purchase agreement and the Hirer's option to buy
A hire-purchase agreement is a type of agreement where the owner of goods allows the hirer to use the goods for a specified period of time in exchange for regular payments. The hirer does not own the goods until the final payment has been made. At the end of the agreement, the hirer is given the option to buy the goods.
Option to buy
The hirer has the option to buy the goods at the end of the hire-purchase agreement. This means that the hirer can choose whether or not to buy the goods. The hirer is not obligated to buy the goods and can choose to return them instead.
Ownership of goods
During the hire-purchase agreement, the owner of the goods retains ownership until the final payment has been made. This means that the hirer does not own the goods until the final payment has been made and the option to buy has been exercised.
Conclusion
In a hire-purchase agreement, the hirer has the option to buy the goods at the end of the agreement. The hirer is not obligated to buy the goods and can choose to return them instead. During the agreement, the owner of the goods retains ownership until the final payment has been made.
A hire-purchase agreement is a type of agreement where the owner of goods allows the hirer to use the goods for a specified period of time in exchange for regular payments. The hirer does not own the goods until the final payment has been made. At the end of the agreement, the hirer is given the option to buy the goods.
Option to buy
The hirer has the option to buy the goods at the end of the hire-purchase agreement. This means that the hirer can choose whether or not to buy the goods. The hirer is not obligated to buy the goods and can choose to return them instead.
Ownership of goods
During the hire-purchase agreement, the owner of the goods retains ownership until the final payment has been made. This means that the hirer does not own the goods until the final payment has been made and the option to buy has been exercised.
Conclusion
In a hire-purchase agreement, the hirer has the option to buy the goods at the end of the agreement. The hirer is not obligated to buy the goods and can choose to return them instead. During the agreement, the owner of the goods retains ownership until the final payment has been made.
When a person gives keys of his car to another person, what type of delivery is this?- a)Actual delivery
- b)Symbolic delivery
- c)Constructive delivery
- d)All of these
Correct answer is option 'B'. Can you explain this answer?
When a person gives keys of his car to another person, what type of delivery is this?
a)
Actual delivery
b)
Symbolic delivery
c)
Constructive delivery
d)
All of these
|
Rajat Patel answered |
Symbolic delivery refers to delivery of goods by way of gift or sale, when it is either inaccessible or cumbersome. Goods under symbolic delivery are offered through substitute article that indicates the donative’s intent of the donor or seller and is accepted as the representative of the original item.
Symbolic delivery is sufficient, where, under the circumstances, a seller is not in possession of the thing sold, or it is of such a nature that it is not susceptible of manual delivery.
So, When a person gives keys of his car to another person it is called symbolic delivery.
Under the Sale of Goods Act, 1930, the seller in a contract of sale transfers the _____ in the goods to the buyer for the price.- a)Possession
- b)Control
- c)Rights
- d)Property
Correct answer is option 'D'. Can you explain this answer?
Under the Sale of Goods Act, 1930, the seller in a contract of sale transfers the _____ in the goods to the buyer for the price.
a)
Possession
b)
Control
c)
Rights
d)
Property
|
Bhavadharini answered |
Property refers to ownership. Ownership is transferred when you buy goods
In a concluded sale, if the goods are destroyed, the loss is to be borne by- a)The seller
- b)The buyer
- c)Both seller and buyer in agreed proportions
- d)The party who is in possession of goods.
Correct answer is option 'B'. Can you explain this answer?
In a concluded sale, if the goods are destroyed, the loss is to be borne by
a)
The seller
b)
The buyer
c)
Both seller and buyer in agreed proportions
d)
The party who is in possession of goods.
|
|
Jayant Mishra answered |
The transfer of property in the goods from the seller to the buyer is the essence of a contract of sale. Therefore the moment when the property in goods passes from the seller to the buyer is significant for following reasons:
Ownership -- The moment the property in goods passes, the seller ceases to be their owner and the buyer acquires the ownership. The buyer can exercise the proprietary rights over the goods. For example, the buyer may sue the seller for non-delivery of the goods or when the seller has resold the goods, etc.
Risk follows ownership -- The general rule is that the risk follows the ownership, irrespective of whether the delivery has been made or not. If the goods are damaged or destroyed, the loss shall be borne by the person who was the owner of the goods at the time of damage or destruction. Thus the risk of loss prima facie is in the person in whom the property is.
Action Against Third parties -- When the goods are in any way damaged or destroyed by the action of third parties, it is only the owner of the goods who can take action against them.
Suit for Price - The seller can sue the buyer for the price, unless otherwise agreed, only after the gods have become the property of the buyer.
Insolvency - In the event of insolvency of either the seller or the buyer, the question whether the goods can be taken over by the Official Receiver or Assignee, will depend on whether the property in goods is with the party who has become insolvent.
Y purchased goods from X and asked Z to keep the goods and told him that he will take the goods after wards:- a)Constructive delivery.
- b)Symbolic delivery
- c)Actual delivery
- d)None of the above
Correct answer is 'A'. Can you explain this answer?
Y purchased goods from X and asked Z to keep the goods and told him that he will take the goods after wards:
a)
Constructive delivery.
b)
Symbolic delivery
c)
Actual delivery
d)
None of the above
|
|
Pranav Gupta answered |
Constructive Delivery
Constructive delivery is a type of delivery of goods where the transfer of possession takes place without the physical movement of goods. In this case, the goods are not physically delivered to the buyer, but the possession is transferred to the buyer by means of a document or other symbolic representation of the goods.
Explanation
In the given scenario, Y purchased goods from X and asked Z to keep the goods. Y did not take the physical possession of the goods, but he transferred the possession to Z by asking him to keep the goods. This type of transfer of possession is known as constructive delivery.
Constructive delivery is also known as symbolic delivery because the transfer of possession is done by means of a symbol or document representing the goods. In this case, the symbol or document is the instruction given by Y to Z to keep the goods for him.
Conclusion
Therefore, the correct answer to the question is option 'A' - Constructive delivery. Constructive delivery is a valid mode of delivery of goods, and it is widely used in commercial transactions where the physical movement of goods is not possible or practical.
Constructive delivery is a type of delivery of goods where the transfer of possession takes place without the physical movement of goods. In this case, the goods are not physically delivered to the buyer, but the possession is transferred to the buyer by means of a document or other symbolic representation of the goods.
Explanation
In the given scenario, Y purchased goods from X and asked Z to keep the goods. Y did not take the physical possession of the goods, but he transferred the possession to Z by asking him to keep the goods. This type of transfer of possession is known as constructive delivery.
Constructive delivery is also known as symbolic delivery because the transfer of possession is done by means of a symbol or document representing the goods. In this case, the symbol or document is the instruction given by Y to Z to keep the goods for him.
Conclusion
Therefore, the correct answer to the question is option 'A' - Constructive delivery. Constructive delivery is a valid mode of delivery of goods, and it is widely used in commercial transactions where the physical movement of goods is not possible or practical.
In case of hire-purchase, the hirer - a)Must return back the goods.
- b)Has an option to buy the goods.
- c)Must buy the goods.
- d)Does not have the possession of goods.
Correct answer is option 'B'. Can you explain this answer?
In case of hire-purchase, the hirer
a)
Must return back the goods.
b)
Has an option to buy the goods.
c)
Must buy the goods.
d)
Does not have the possession of goods.
|
|
Sohail Khan answered |
Yes he can buy but after the agreement of absolute sale so they correct option b .otherwise option a is also correct
The object of Sale is:- a)To pass the possession of the goods.
- b)To pass the property of the goods.
- c)Both (a) and (b)
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
The object of Sale is:
a)
To pass the possession of the goods.
b)
To pass the property of the goods.
c)
Both (a) and (b)
d)
None of the above
|
|
Arjun Singhania answered |
Once a property is passed to the buyer, then the risk in the goods sold is that of the buyer and not the seller. This is true even if the goods are in the possession of the seller. Let us learn more about the passing of property in the Sale of Goods Act.
In case of an agreement to sell, subsequent loss or destruction of the goods is the liability of __________:- a)The buyer
- b)The seller
- c)Both the buyer and seller
- d)The Insurance Company
Correct answer is option 'B'. Can you explain this answer?
In case of an agreement to sell, subsequent loss or destruction of the goods is the liability of __________:
a)
The buyer
b)
The seller
c)
Both the buyer and seller
d)
The Insurance Company
|
|
Lakshmi Kaur answered |
Liability in case of Agreement to Sell
Introduction:
An agreement to sell is a contract between a seller and a buyer where the seller agrees to sell the goods to the buyer at a future date or time. In case of an agreement to sell, the ownership of the goods still remains with the seller until the goods are actually delivered to the buyer.
Liability in case of Loss or Destruction of Goods:
If the goods covered under the agreement to sell are lost or destroyed before the delivery, the liability falls on the seller. The seller is responsible for any loss or damage to the goods until they are delivered to the buyer.
Reason for Liability on Seller:
The reason for this is that the seller still owns the goods until they are delivered to the buyer. Hence, it is the seller's responsibility to ensure that the goods are safe and secure until they are delivered to the buyer. If the goods are lost or destroyed due to the seller's negligence, the seller will be held liable.
Insurance:
However, if the seller has insured the goods, the insurance company will compensate the seller for the loss or damage to the goods. In this case, the liability does not fall on the seller but on the insurance company.
Conclusion:
In conclusion, in case of an agreement to sell, the liability for any loss or destruction of the goods falls on the seller until the goods are actually delivered to the buyer. If the seller has insured the goods, the liability falls on the insurance company.
Introduction:
An agreement to sell is a contract between a seller and a buyer where the seller agrees to sell the goods to the buyer at a future date or time. In case of an agreement to sell, the ownership of the goods still remains with the seller until the goods are actually delivered to the buyer.
Liability in case of Loss or Destruction of Goods:
If the goods covered under the agreement to sell are lost or destroyed before the delivery, the liability falls on the seller. The seller is responsible for any loss or damage to the goods until they are delivered to the buyer.
Reason for Liability on Seller:
The reason for this is that the seller still owns the goods until they are delivered to the buyer. Hence, it is the seller's responsibility to ensure that the goods are safe and secure until they are delivered to the buyer. If the goods are lost or destroyed due to the seller's negligence, the seller will be held liable.
Insurance:
However, if the seller has insured the goods, the insurance company will compensate the seller for the loss or damage to the goods. In this case, the liability does not fall on the seller but on the insurance company.
Conclusion:
In conclusion, in case of an agreement to sell, the liability for any loss or destruction of the goods falls on the seller until the goods are actually delivered to the buyer. If the seller has insured the goods, the liability falls on the insurance company.
A document of title of goods : - a)Bill of lading
- b)Dock warrant
- c)Railway Receipt
- d)All the above
Correct answer is option 'D'. Can you explain this answer?
A document of title of goods :
a)
Bill of lading
b)
Dock warrant
c)
Railway Receipt
d)
All the above
|
|
Sai Kulkarni answered |
Bill of lading:
- A bill of lading is a document issued by a carrier (such as a shipping line or airline) to acknowledge receipt of goods for shipment.
- It serves as evidence of the contract of carriage, receipt of the goods, and title to the goods.
- The bill of lading contains information such as the names of the shipper and consignee, the description and quantity of goods, the vessel or flight details, and the terms and conditions of the contract of carriage.
- It is commonly used in international trade and is often required by banks for financing purposes.
- The bill of lading can be negotiable or non-negotiable. A negotiable bill of lading allows the goods to be transferred to a third party by endorsement and delivery of the original document, while a non-negotiable bill of lading does not allow for such transfer.
Dock warrant:
- A dock warrant is a document issued by a warehouse operator or dock authority to acknowledge the receipt of goods for storage.
- It is used when goods are stored in a bonded warehouse or a public warehouse.
- The dock warrant serves as proof of ownership or title to the goods and can be used to transfer the goods to another party.
- It contains information such as the name of the warehouse operator, the description and quantity of goods, and the terms and conditions of storage.
Railway receipt:
- A railway receipt is a document issued by a railway company to acknowledge the receipt of goods for transport by rail.
- It serves as evidence of the contract of carriage, receipt of the goods, and title to the goods.
- The railway receipt contains information such as the names of the consignor and consignee, the description and quantity of goods, the train details, and the terms and conditions of the contract of carriage.
- It is commonly used for domestic transportation of goods by rail.
All the above:
- The correct answer is option 'D' because all three documents, i.e., bill of lading, dock warrant, and railway receipt, serve as documents of title of goods.
- They are issued by different carriers or warehouse operators to acknowledge the receipt of goods, provide evidence of ownership or title, and facilitate the transfer or transport of goods.
- These documents are essential in trade and commerce as they establish the rights and obligations of the parties involved in the transportation or storage of goods.
- A bill of lading is a document issued by a carrier (such as a shipping line or airline) to acknowledge receipt of goods for shipment.
- It serves as evidence of the contract of carriage, receipt of the goods, and title to the goods.
- The bill of lading contains information such as the names of the shipper and consignee, the description and quantity of goods, the vessel or flight details, and the terms and conditions of the contract of carriage.
- It is commonly used in international trade and is often required by banks for financing purposes.
- The bill of lading can be negotiable or non-negotiable. A negotiable bill of lading allows the goods to be transferred to a third party by endorsement and delivery of the original document, while a non-negotiable bill of lading does not allow for such transfer.
Dock warrant:
- A dock warrant is a document issued by a warehouse operator or dock authority to acknowledge the receipt of goods for storage.
- It is used when goods are stored in a bonded warehouse or a public warehouse.
- The dock warrant serves as proof of ownership or title to the goods and can be used to transfer the goods to another party.
- It contains information such as the name of the warehouse operator, the description and quantity of goods, and the terms and conditions of storage.
Railway receipt:
- A railway receipt is a document issued by a railway company to acknowledge the receipt of goods for transport by rail.
- It serves as evidence of the contract of carriage, receipt of the goods, and title to the goods.
- The railway receipt contains information such as the names of the consignor and consignee, the description and quantity of goods, the train details, and the terms and conditions of the contract of carriage.
- It is commonly used for domestic transportation of goods by rail.
All the above:
- The correct answer is option 'D' because all three documents, i.e., bill of lading, dock warrant, and railway receipt, serve as documents of title of goods.
- They are issued by different carriers or warehouse operators to acknowledge the receipt of goods, provide evidence of ownership or title, and facilitate the transfer or transport of goods.
- These documents are essential in trade and commerce as they establish the rights and obligations of the parties involved in the transportation or storage of goods.
Which one of the following is not true?- a)document showing title is different from document of title.
- b)bill of lading is a document of title to goods.
- c)agreed upon at the time of the contract of Sale.
- d)none of the above.
Correct answer is 'D'. Can you explain this answer?
Which one of the following is not true?
a)
document showing title is different from document of title.
b)
bill of lading is a document of title to goods.
c)
agreed upon at the time of the contract of Sale.
d)
none of the above.
|
Anand Dasgupta answered |
Document of Title and Title
The statement "document showing title is different from document of title" is not true. A document of title is a legal document that represents ownership of goods, while a document showing title is a legal document that represents ownership of property. These two concepts are not interchangeable.
Bill of Lading
A bill of lading is a document of title to goods. It is a legal document that represents ownership of the goods being shipped. The bill of lading serves as a receipt for the goods and provides evidence of the contract of carriage between the shipper and the carrier.
Agreement at the Time of Contract
Agreement at the time of the contract of sale is an essential element of a valid contract. The parties must agree on the terms of the sale, including the price, quantity, and delivery terms. This agreement can be in writing or verbal, but it must be clear and unequivocal.
Conclusion
In conclusion, the correct answer is D, none of the above. All of the statements are true except for the first one. It is important to understand the difference between a document showing title and a document of title, as well as the role of a bill of lading in a sale of goods transaction. Finally, agreement at the time of the contract of sale is a crucial element in any sale of goods transaction.
The statement "document showing title is different from document of title" is not true. A document of title is a legal document that represents ownership of goods, while a document showing title is a legal document that represents ownership of property. These two concepts are not interchangeable.
Bill of Lading
A bill of lading is a document of title to goods. It is a legal document that represents ownership of the goods being shipped. The bill of lading serves as a receipt for the goods and provides evidence of the contract of carriage between the shipper and the carrier.
Agreement at the Time of Contract
Agreement at the time of the contract of sale is an essential element of a valid contract. The parties must agree on the terms of the sale, including the price, quantity, and delivery terms. This agreement can be in writing or verbal, but it must be clear and unequivocal.
Conclusion
In conclusion, the correct answer is D, none of the above. All of the statements are true except for the first one. It is important to understand the difference between a document showing title and a document of title, as well as the role of a bill of lading in a sale of goods transaction. Finally, agreement at the time of the contract of sale is a crucial element in any sale of goods transaction.
An auction sale is complete on the- a)delivery of goods
- b)payment of price
- c)fall of hammer
- d)none of the above.
Correct answer is option 'C'. Can you explain this answer?
An auction sale is complete on the
a)
delivery of goods
b)
payment of price
c)
fall of hammer
d)
none of the above.
|
|
Poonam Reddy answered |
An auction sale is complete on the fall of hammer. This means that the sale is considered final and binding at the moment the auctioneer's hammer falls, indicating that the highest bidder has successfully won the item being auctioned.
Here is a detailed explanation of why the answer is C:
Definition of auction sale:
- An auction sale is a public sale in which goods or property are sold to the highest bidder.
Explanation of the options:
A: Delivery of goods
- Delivery of goods usually occurs after the auction sale is complete and the buyer has made the payment. It is not the event that signifies the completion of the auction sale.
B: Payment of price
- Payment of price is indeed an important part of the auction process, but it does not signify the completion of the auction sale. The sale is still considered ongoing until the fall of the hammer.
C: Fall of hammer
- The fall of the hammer is the moment when the auctioneer declares the item sold to the highest bidder. It indicates the completion of the auction sale and the transfer of ownership from the seller to the buyer.
D: None of the above
- Since the correct answer is C, option D is incorrect.
Conclusion:
In an auction sale, the completion of the sale is marked by the fall of the hammer. This event signifies that the highest bidder has successfully won the item being auctioned and the sale is considered final and binding.
Here is a detailed explanation of why the answer is C:
Definition of auction sale:
- An auction sale is a public sale in which goods or property are sold to the highest bidder.
Explanation of the options:
A: Delivery of goods
- Delivery of goods usually occurs after the auction sale is complete and the buyer has made the payment. It is not the event that signifies the completion of the auction sale.
B: Payment of price
- Payment of price is indeed an important part of the auction process, but it does not signify the completion of the auction sale. The sale is still considered ongoing until the fall of the hammer.
C: Fall of hammer
- The fall of the hammer is the moment when the auctioneer declares the item sold to the highest bidder. It indicates the completion of the auction sale and the transfer of ownership from the seller to the buyer.
D: None of the above
- Since the correct answer is C, option D is incorrect.
Conclusion:
In an auction sale, the completion of the sale is marked by the fall of the hammer. This event signifies that the highest bidder has successfully won the item being auctioned and the sale is considered final and binding.
A contract for the sale of “future goods” is- a)sale
- b)agreement to sell.
- c)void.
- d)hire-purchase contract.
Correct answer is option 'B'. Can you explain this answer?
A contract for the sale of “future goods” is
a)
sale
b)
agreement to sell.
c)
void.
d)
hire-purchase contract.
|
|
Gaurav Chatterjee answered |
Agreement to Sell as a Contract for the Sale of Future Goods
Contract for the sale of future goods is a type of contract where the seller agrees to sell and deliver goods to the buyer at a future date. The contract does not involve the immediate transfer of ownership or possession of the goods. Instead, it is an agreement to sell future goods. The contract for the sale of future goods is governed by the Sale of Goods Act, 1930.
Agreement to Sell
The contract for the sale of future goods is also known as an agreement to sell. The term "agreement to sell" means an agreement between the buyer and the seller for the sale of goods at a future date. In an agreement to sell, the seller promises to sell and deliver goods to the buyer at a future date, subject to certain conditions.
Features of Agreement to Sell
The features of an agreement to sell are as follows:
1. No Transfer of Ownership: In an agreement to sell, there is no immediate transfer of ownership of goods from the seller to the buyer. The ownership of the goods remains with the seller until the delivery of goods to the buyer.
2. Delivery at a Future Date: The delivery of goods takes place at a future date as agreed upon by the buyer and the seller.
3. Payment at a Future Date: The payment for the goods is made at a future date as agreed upon by the buyer and the seller.
4. Conditions: The agreement to sell is subject to certain conditions that must be fulfilled by the seller before the delivery of goods.
Conclusion
In conclusion, a contract for the sale of future goods is an agreement to sell where the seller agrees to sell and deliver goods to the buyer at a future date. The contract does not involve the immediate transfer of ownership or possession of the goods. The contract for the sale of future goods is governed by the Sale of Goods Act, 1930.
Contract for the sale of future goods is a type of contract where the seller agrees to sell and deliver goods to the buyer at a future date. The contract does not involve the immediate transfer of ownership or possession of the goods. Instead, it is an agreement to sell future goods. The contract for the sale of future goods is governed by the Sale of Goods Act, 1930.
Agreement to Sell
The contract for the sale of future goods is also known as an agreement to sell. The term "agreement to sell" means an agreement between the buyer and the seller for the sale of goods at a future date. In an agreement to sell, the seller promises to sell and deliver goods to the buyer at a future date, subject to certain conditions.
Features of Agreement to Sell
The features of an agreement to sell are as follows:
1. No Transfer of Ownership: In an agreement to sell, there is no immediate transfer of ownership of goods from the seller to the buyer. The ownership of the goods remains with the seller until the delivery of goods to the buyer.
2. Delivery at a Future Date: The delivery of goods takes place at a future date as agreed upon by the buyer and the seller.
3. Payment at a Future Date: The payment for the goods is made at a future date as agreed upon by the buyer and the seller.
4. Conditions: The agreement to sell is subject to certain conditions that must be fulfilled by the seller before the delivery of goods.
Conclusion
In conclusion, a contract for the sale of future goods is an agreement to sell where the seller agrees to sell and deliver goods to the buyer at a future date. The contract does not involve the immediate transfer of ownership or possession of the goods. The contract for the sale of future goods is governed by the Sale of Goods Act, 1930.
The law relating to sale of goods is contained in the Sale of Goods Act, 1930 which came into force on:- a)January 1,1930
- b)July 1,1930
- c)April 1, 1930
- d)September 1,1930
Correct answer is option 'B'. Can you explain this answer?
The law relating to sale of goods is contained in the Sale of Goods Act, 1930 which came into force on:
a)
January 1,1930
b)
July 1,1930
c)
April 1, 1930
d)
September 1,1930
|
|
Poonam Reddy answered |
The Sale of Goods Act, 1930
The Sale of Goods Act, 1930 is a legislation that governs the sale of goods in India. It came into force on July 1, 1930. Here is a detailed explanation of the Act:
Purpose of the Act:
The Sale of Goods Act, 1930 aims to regulate the rights and obligations of buyers and sellers in the sale of goods. It provides a legal framework for transactions involving the transfer of ownership of goods from a seller to a buyer.
Key provisions of the Act:
The Act covers various aspects related to the sale of goods, including:
1. Definition of goods: The Act defines goods as every kind of moveable property, except actionable claims and money.
2. Formation of the contract: The Act lays down rules for the formation of a valid contract of sale, including the essential elements such as offer, acceptance, consideration, and intention to create legal relations.
3. Conditions and warranties: The Act distinguishes between conditions (essential terms of the contract) and warranties (minor terms of the contract). It provides remedies for breach of conditions and warranties.
4. Transfer of ownership: The Act establishes rules for the transfer of ownership of goods from the seller to the buyer, including the concept of delivery and the passing of property.
5. Performance of the contract: The Act sets out the obligations of the buyer and seller regarding the delivery, payment, and acceptance of goods.
6. Rights of an unpaid seller: The Act grants certain rights to an unpaid seller, such as the right to withhold delivery of goods, stoppage in transit, and resale of goods.
7. Remedies for breach of contract: The Act provides various remedies for the parties in case of breach of contract, including damages, specific performance, and repudiation of the contract.
8. Exclusion and limitation of liability: The Act allows the parties to exclude or limit their liability under the contract, subject to certain conditions.
Importance of the Act:
The Sale of Goods Act, 1930 is essential for ensuring fair and transparent transactions in the sale of goods. It protects the rights of both buyers and sellers and provides a legal framework for resolving disputes. The Act is applicable to all sale transactions, unless specifically excluded by the parties.
In conclusion, the Sale of Goods Act, 1930, which came into force on July 1, 1930, is a significant legislation that governs the sale of goods in India. It establishes the rights, obligations, and remedies of the parties involved in the sale of goods, ensuring a fair and regulated marketplace.
The Sale of Goods Act, 1930 is a legislation that governs the sale of goods in India. It came into force on July 1, 1930. Here is a detailed explanation of the Act:
Purpose of the Act:
The Sale of Goods Act, 1930 aims to regulate the rights and obligations of buyers and sellers in the sale of goods. It provides a legal framework for transactions involving the transfer of ownership of goods from a seller to a buyer.
Key provisions of the Act:
The Act covers various aspects related to the sale of goods, including:
1. Definition of goods: The Act defines goods as every kind of moveable property, except actionable claims and money.
2. Formation of the contract: The Act lays down rules for the formation of a valid contract of sale, including the essential elements such as offer, acceptance, consideration, and intention to create legal relations.
3. Conditions and warranties: The Act distinguishes between conditions (essential terms of the contract) and warranties (minor terms of the contract). It provides remedies for breach of conditions and warranties.
4. Transfer of ownership: The Act establishes rules for the transfer of ownership of goods from the seller to the buyer, including the concept of delivery and the passing of property.
5. Performance of the contract: The Act sets out the obligations of the buyer and seller regarding the delivery, payment, and acceptance of goods.
6. Rights of an unpaid seller: The Act grants certain rights to an unpaid seller, such as the right to withhold delivery of goods, stoppage in transit, and resale of goods.
7. Remedies for breach of contract: The Act provides various remedies for the parties in case of breach of contract, including damages, specific performance, and repudiation of the contract.
8. Exclusion and limitation of liability: The Act allows the parties to exclude or limit their liability under the contract, subject to certain conditions.
Importance of the Act:
The Sale of Goods Act, 1930 is essential for ensuring fair and transparent transactions in the sale of goods. It protects the rights of both buyers and sellers and provides a legal framework for resolving disputes. The Act is applicable to all sale transactions, unless specifically excluded by the parties.
In conclusion, the Sale of Goods Act, 1930, which came into force on July 1, 1930, is a significant legislation that governs the sale of goods in India. It establishes the rights, obligations, and remedies of the parties involved in the sale of goods, ensuring a fair and regulated marketplace.
R, a grain merchant, displays wheat of different varieties. A after satisfying himself of the quality buys the wheat in the belief that the wheat is of earlier harvest. In fact the wheat is of recent harvest. A wants to return the wheat and refuses to pay the price. Which of the following is/are true?- a)A can return the wheat.
- b)A can refuse to pay the price.
- c)A cannot return the wheat.
- d)R cannot sue A to recover the money.
Correct answer is 'C'. Can you explain this answer?
R, a grain merchant, displays wheat of different varieties. A after satisfying himself of the quality buys the wheat in the belief that the wheat is of earlier harvest. In fact the wheat is of recent harvest. A wants to return the wheat and refuses to pay the price. Which of the following is/are true?
a)
A can return the wheat.
b)
A can refuse to pay the price.
c)
A cannot return the wheat.
d)
R cannot sue A to recover the money.
|
Laya Puvvada answered |
In this case buyer himself checked the wheat and he didn't ask any question whether it is earlier or recent.so he cannot returnthe goods he purchased as buyer should beware.
The Sale of Goods Act, 1930 came into force on:- a)September 1,1930
- b)Oct 2, 1930
- c)June 1. 1930
- d)July 1, 1930
Correct answer is option 'D'. Can you explain this answer?
The Sale of Goods Act, 1930 came into force on:
a)
September 1,1930
b)
Oct 2, 1930
c)
June 1. 1930
d)
July 1, 1930
|
|
Simran Pillai answered |
Introduction:
The Sale of Goods Act, 1930 is an important legislation that governs the sale of goods in India. This act came into force on July 1, 1930, and is applicable to the whole of India.
Explanation:
The Sale of Goods Act, 1930 is a comprehensive legislation that governs the sale of goods in India. This act defines the rights and duties of buyers and sellers, the conditions and warranties implied in contracts for the sale of goods, and the rules relating to the delivery and payment of goods. The act also provides for the remedies available to buyers and sellers in case of breach of contract.
The Sale of Goods Act, 1930 was enacted by the British Parliament and was made applicable to India. The act was first introduced in the Legislative Council on February 17, 1930, and was passed by both Houses of the Parliament on June 14, 1930. The act received the assent of the Governor-General on June 27, 1930, and came into force on July 1, 1930.
The Sale of Goods Act, 1930 has since undergone several amendments to keep pace with the changing times. The latest amendment to the act was made in 2003 to bring it in line with the provisions of the Indian Contract Act, 1872 and the Information Technology Act, 2000.
Conclusion:
The Sale of Goods Act, 1930 is an important legislation that provides a legal framework for the sale of goods in India. The act defines the rights and duties of buyers and sellers, and provides for the remedies available in case of breach of contract. The act has undergone several amendments to keep pace with the changing times and remains a relevant legislation even today.
The Sale of Goods Act, 1930 is an important legislation that governs the sale of goods in India. This act came into force on July 1, 1930, and is applicable to the whole of India.
Explanation:
The Sale of Goods Act, 1930 is a comprehensive legislation that governs the sale of goods in India. This act defines the rights and duties of buyers and sellers, the conditions and warranties implied in contracts for the sale of goods, and the rules relating to the delivery and payment of goods. The act also provides for the remedies available to buyers and sellers in case of breach of contract.
The Sale of Goods Act, 1930 was enacted by the British Parliament and was made applicable to India. The act was first introduced in the Legislative Council on February 17, 1930, and was passed by both Houses of the Parliament on June 14, 1930. The act received the assent of the Governor-General on June 27, 1930, and came into force on July 1, 1930.
The Sale of Goods Act, 1930 has since undergone several amendments to keep pace with the changing times. The latest amendment to the act was made in 2003 to bring it in line with the provisions of the Indian Contract Act, 1872 and the Information Technology Act, 2000.
Conclusion:
The Sale of Goods Act, 1930 is an important legislation that provides a legal framework for the sale of goods in India. The act defines the rights and duties of buyers and sellers, and provides for the remedies available in case of breach of contract. The act has undergone several amendments to keep pace with the changing times and remains a relevant legislation even today.
The unpaid seller has right of stoppage of goods in transit only where the buyer- a)becomes insolvent.
- b)refuses to pay price.
- c)acts fraudulently.
- d)all of these.
Correct answer is option 'A'. Can you explain this answer?
The unpaid seller has right of stoppage of goods in transit only where the buyer
a)
becomes insolvent.
b)
refuses to pay price.
c)
acts fraudulently.
d)
all of these.
|
Sai Joshi answered |
Unpaid Seller's Right of Stoppage of Goods in Transit
The right of stoppage in transit refers to the right of an unpaid seller to stop the goods while they are in transit to the buyer and to resume possession of the goods until payment or tender of the price. This right is available to the unpaid seller only in certain circumstances.
Circumstances under which the unpaid seller has the right of stoppage in transit:
1. Buyer becomes insolvent:
The unpaid seller has the right of stoppage of goods in transit only where the buyer becomes insolvent. Insolvency refers to a situation where the buyer is unable to pay his debts as they become due. In such a case, the unpaid seller can stop the goods in transit and demand payment of the price before delivering the goods to the buyer.
2. Buyer refuses to pay the price:
If the buyer refuses to pay the price of the goods, the unpaid seller can exercise his right of stoppage in transit. However, the right can be exercised only if the seller has a lien on the goods or the buyer has become insolvent.
3. Buyer acts fraudulently:
The unpaid seller can exercise his right of stoppage in transit if the buyer has acted fraudulently in relation to the goods. For example, if the buyer has obtained the goods by means of fraud or misrepresentation, the unpaid seller can stop the goods in transit.
Conclusion:
In conclusion, the unpaid seller has the right of stoppage of goods in transit only where the buyer becomes insolvent. The right can also be exercised if the buyer refuses to pay the price and the seller has a lien on the goods or the buyer has become insolvent. Finally, the right can be exercised if the buyer acts fraudulently in relation to the goods.
The right of stoppage in transit refers to the right of an unpaid seller to stop the goods while they are in transit to the buyer and to resume possession of the goods until payment or tender of the price. This right is available to the unpaid seller only in certain circumstances.
Circumstances under which the unpaid seller has the right of stoppage in transit:
1. Buyer becomes insolvent:
The unpaid seller has the right of stoppage of goods in transit only where the buyer becomes insolvent. Insolvency refers to a situation where the buyer is unable to pay his debts as they become due. In such a case, the unpaid seller can stop the goods in transit and demand payment of the price before delivering the goods to the buyer.
2. Buyer refuses to pay the price:
If the buyer refuses to pay the price of the goods, the unpaid seller can exercise his right of stoppage in transit. However, the right can be exercised only if the seller has a lien on the goods or the buyer has become insolvent.
3. Buyer acts fraudulently:
The unpaid seller can exercise his right of stoppage in transit if the buyer has acted fraudulently in relation to the goods. For example, if the buyer has obtained the goods by means of fraud or misrepresentation, the unpaid seller can stop the goods in transit.
Conclusion:
In conclusion, the unpaid seller has the right of stoppage of goods in transit only where the buyer becomes insolvent. The right can also be exercised if the buyer refuses to pay the price and the seller has a lien on the goods or the buyer has become insolvent. Finally, the right can be exercised if the buyer acts fraudulently in relation to the goods.
Contract of Sale is- a)executory Contract.
- b)executed Contract.
- c)both of the above.
- d)none of the above.
Correct answer is option 'C'. Can you explain this answer?
Contract of Sale is
a)
executory Contract.
b)
executed Contract.
c)
both of the above.
d)
none of the above.
|
Nikita Singh answered |
Correct Answer :- c
Explanation : An executed contract is when all parties have fulfilled their promises.
For example, a sales contract is complete when the transaction closes. The buyer has paid the money, and the seller has transferred the title.
An executory contract is when one or both parties have obligations still to be performed.
For example, a sales contract is an executory contract until the buyer has obtained financing-there are still obligations remaining to be performed before the contract can be considered executed.
A contract for the sale of goods where property would pass to the buyer on payment of total price would be- a)sale
- b)agreement to sell
- c)hire-purchase contract
- d)sale on approval.
Correct answer is option 'B'. Can you explain this answer?
A contract for the sale of goods where property would pass to the buyer on payment of total price would be
a)
sale
b)
agreement to sell
c)
hire-purchase contract
d)
sale on approval.
|
|
Palak Choudhary answered |
Explanation:
The question is related to the concept of sale of goods and different types of contracts related to it. Let us discuss each option one by one:
A) Sale: Sale is a contract in which the seller transfers the ownership of goods to the buyer for a price. In a sale, the property in goods passes from the seller to the buyer immediately at the time when the contract is made. The buyer becomes the owner of the goods as soon as the contract is concluded.
B) Agreement to Sell: An agreement to sell is a contract in which the seller agrees to transfer the ownership of goods to the buyer at a future date or on the happening of a certain event. In this type of contract, the property in goods does not pass to the buyer immediately. It will pass only when the conditions mentioned in the contract are fulfilled. An agreement to sell is also known as a conditional sale.
C) Hire-Purchase Contract: A hire-purchase contract is a type of agreement in which the seller agrees to transfer the ownership of goods to the buyer only when the buyer pays the total price in installments over a period of time. In this type of contract, the property in goods remains with the seller until the buyer makes the final payment. Hire-purchase contracts are commonly used for the sale of expensive items like cars, furniture, etc.
D) Sale on Approval: Sale on approval is a type of contract in which the buyer is given the opportunity to inspect the goods before making the final decision to buy them. The buyer can use the goods for a certain period of time and then decide whether to buy them or not. In this type of contract, the property in goods does not pass to the buyer until he/she approves the sale.
Answer: The correct answer is option B, i.e., agreement to sell. In an agreement to sell, the property in goods does not pass to the buyer immediately. It will pass only when the conditions mentioned in the contract are fulfilled.
The question is related to the concept of sale of goods and different types of contracts related to it. Let us discuss each option one by one:
A) Sale: Sale is a contract in which the seller transfers the ownership of goods to the buyer for a price. In a sale, the property in goods passes from the seller to the buyer immediately at the time when the contract is made. The buyer becomes the owner of the goods as soon as the contract is concluded.
B) Agreement to Sell: An agreement to sell is a contract in which the seller agrees to transfer the ownership of goods to the buyer at a future date or on the happening of a certain event. In this type of contract, the property in goods does not pass to the buyer immediately. It will pass only when the conditions mentioned in the contract are fulfilled. An agreement to sell is also known as a conditional sale.
C) Hire-Purchase Contract: A hire-purchase contract is a type of agreement in which the seller agrees to transfer the ownership of goods to the buyer only when the buyer pays the total price in installments over a period of time. In this type of contract, the property in goods remains with the seller until the buyer makes the final payment. Hire-purchase contracts are commonly used for the sale of expensive items like cars, furniture, etc.
D) Sale on Approval: Sale on approval is a type of contract in which the buyer is given the opportunity to inspect the goods before making the final decision to buy them. The buyer can use the goods for a certain period of time and then decide whether to buy them or not. In this type of contract, the property in goods does not pass to the buyer until he/she approves the sale.
Answer: The correct answer is option B, i.e., agreement to sell. In an agreement to sell, the property in goods does not pass to the buyer immediately. It will pass only when the conditions mentioned in the contract are fulfilled.
Which of the following is not an essential element of a contract to sale?- a)Existence of essential elements of a valid contract
- b)Payment of price at the time of contract
- c)Subject matter of contract must be goods
- d)Two parties i.e. seller and buyer.
Correct answer is option 'B'. Can you explain this answer?
Which of the following is not an essential element of a contract to sale?
a)
Existence of essential elements of a valid contract
b)
Payment of price at the time of contract
c)
Subject matter of contract must be goods
d)
Two parties i.e. seller and buyer.
|
Ritika Iyer answered |
Essential Elements of a Contract of Sale
A contract of sale is an agreement between two parties, wherein one party (seller) agrees to transfer ownership of goods to the other party (buyer) for a price. The essential elements of a contract of sale are as follows:
1. Two parties: A contract of sale requires two parties, namely the seller and the buyer.
2. Offer and acceptance: There must be an offer made by the seller and acceptance by the buyer. Both parties must agree to the terms and conditions of the contract.
3. Consideration: Consideration refers to the price that the buyer agrees to pay to the seller in exchange for the goods.
4. Capacity to contract: Both parties must have the capacity to enter into a contract. This means that they must be of the legal age, sound mind, and not disqualified by law.
5. Free consent: The consent of both parties must be free from coercion, undue influence, fraud, misrepresentation, or mistake.
6. Object: The subject matter of the contract must be goods. Goods refer to movable property that is capable of being bought and sold.
7. Intention to create legal relations: The parties must have the intention to create legal relations. This means that they must intend to be legally bound by the terms and conditions of the contract.
Why Option 'B' is not an Essential Element of a Contract of Sale?
Option 'B' states that payment of price at the time of contract is an essential element of a contract of sale. However, this is not entirely true. While it is true that consideration is an essential element of a contract of sale, it is not necessary for the payment to be made at the time of contract. The parties may agree on a deferred payment or payment in installments.
Thus, Option 'B' is not an essential element of a contract of sale because the time of payment can be agreed upon by the parties and may not necessarily be at the time of contract.
A contract of sale is an agreement between two parties, wherein one party (seller) agrees to transfer ownership of goods to the other party (buyer) for a price. The essential elements of a contract of sale are as follows:
1. Two parties: A contract of sale requires two parties, namely the seller and the buyer.
2. Offer and acceptance: There must be an offer made by the seller and acceptance by the buyer. Both parties must agree to the terms and conditions of the contract.
3. Consideration: Consideration refers to the price that the buyer agrees to pay to the seller in exchange for the goods.
4. Capacity to contract: Both parties must have the capacity to enter into a contract. This means that they must be of the legal age, sound mind, and not disqualified by law.
5. Free consent: The consent of both parties must be free from coercion, undue influence, fraud, misrepresentation, or mistake.
6. Object: The subject matter of the contract must be goods. Goods refer to movable property that is capable of being bought and sold.
7. Intention to create legal relations: The parties must have the intention to create legal relations. This means that they must intend to be legally bound by the terms and conditions of the contract.
Why Option 'B' is not an Essential Element of a Contract of Sale?
Option 'B' states that payment of price at the time of contract is an essential element of a contract of sale. However, this is not entirely true. While it is true that consideration is an essential element of a contract of sale, it is not necessary for the payment to be made at the time of contract. The parties may agree on a deferred payment or payment in installments.
Thus, Option 'B' is not an essential element of a contract of sale because the time of payment can be agreed upon by the parties and may not necessarily be at the time of contract.
Which one of the following is not a document of title of goods ?- a)Railway Receipt
- b)Wharfingers certificate
- c)Share certificate
- d)Multi modal transport document.
Correct answer is option 'C'. Can you explain this answer?
Which one of the following is not a document of title of goods ?
a)
Railway Receipt
b)
Wharfingers certificate
c)
Share certificate
d)
Multi modal transport document.
|
|
Kavita Joshi answered |
Document of Title of Goods
Under Sec 2(4), "A document of title of goods is one used in the ordinary course of business as proof of the possession or control of goods. It authorises, either by endorsement or delivery, its possessor to transfer or receive goods represented by it."
The common documents of title to goods are:
• Bill of Lading: It is a document which acknowledges the receipt of goods on board a ship and it is signed by the captain of the ship or his duly authorised representative.
• Dock Warrant: It is a document given by the owner of the dock, giving details of the goods and certifying that the goods are held to the order of the per son named in it or the endorsee. It authorises the person holding it to receive possession of the goods.
• Wharfinger's Certificate: It is a document issued by a warehouse keeper stating that the goods specified in the document are in his warehouse
• Railway Receipt: It is a document issued by the Railway Company acknowledging receipt of goods. It is to be presented by the holder or consignee at the destination to take delivery of goods.
• Delivery Order: It is a document containing an order by the owner of the goods to the holder of the goods on his behalf, asking him to deliver the goods to the person named in the document.
The essence of a right of lien is to- a)deliver the goods.
- b)retain the possession.
- c)regain the possession.
- d)none of the above.
Correct answer is option 'B'. Can you explain this answer?
The essence of a right of lien is to
a)
deliver the goods.
b)
retain the possession.
c)
regain the possession.
d)
none of the above.
|
Bhaskar Sharma answered |
The essence of a right of lien is to retain the possession of goods until the rightful claim of the owner is satisfied. This right is available to a person who is in lawful possession of goods belonging to another person.
Explanation:
• Right of Lien: The right of lien is a right available to a person who is in lawful possession of goods belonging to another person. This right allows the possessor to retain possession of the goods until the rightful owner pays the debt or fulfills the obligation for which the goods were held.
• Retain Possession: The essence of this right is to retain the possession of the goods until the rightful claim of the owner is satisfied. The possessor can keep the goods until the debt is paid or the obligation is fulfilled.
• Example: For instance, if a tailor repairs a suit for a customer, he can keep the suit until the customer pays the repair charges. This right of the tailor is called the right of lien. Once the customer pays the repair charges, the tailor has to return the suit to the customer.
• Types of Lien: There are two types of lien – particular lien and general lien. A particular lien is a right of lien available for a particular debt, while a general lien is a right of lien available for all the outstanding debts.
In conclusion, the essence of a right of lien is to retain the possession of goods until the rightful claim of the owner is satisfied. This right is available to a person who is in lawful possession of goods belonging to another person.
Explanation:
• Right of Lien: The right of lien is a right available to a person who is in lawful possession of goods belonging to another person. This right allows the possessor to retain possession of the goods until the rightful owner pays the debt or fulfills the obligation for which the goods were held.
• Retain Possession: The essence of this right is to retain the possession of the goods until the rightful claim of the owner is satisfied. The possessor can keep the goods until the debt is paid or the obligation is fulfilled.
• Example: For instance, if a tailor repairs a suit for a customer, he can keep the suit until the customer pays the repair charges. This right of the tailor is called the right of lien. Once the customer pays the repair charges, the tailor has to return the suit to the customer.
• Types of Lien: There are two types of lien – particular lien and general lien. A particular lien is a right of lien available for a particular debt, while a general lien is a right of lien available for all the outstanding debts.
In conclusion, the essence of a right of lien is to retain the possession of goods until the rightful claim of the owner is satisfied. This right is available to a person who is in lawful possession of goods belonging to another person.
Under the Sale of Goods Act, 1930, the seller in a contract of sale transfers the ________in the goods to the buyer for the price.- a)Possession
- b)Control
- c)Rights
- d)Property
Correct answer is option 'D'. Can you explain this answer?
Under the Sale of Goods Act, 1930, the seller in a contract of sale transfers the ________in the goods to the buyer for the price.
a)
Possession
b)
Control
c)
Rights
d)
Property
|
Somesh Bharti answered |
The main motive of a Contract of Sale is the passing of property and thus it implies ownership, merely possession may pass immediately or later
also property=ownership + possession
X agrees to sell Y, all crops to be grown in X’s farms in Haryana during 2006 season, for Rs. 1,00,000. In this case, the goods are : - a)Future goods
- b)Specific goods
- c)Unascertained goods
- d)Contingent goods
Correct answer is option 'A'. Can you explain this answer?
X agrees to sell Y, all crops to be grown in X’s farms in Haryana during 2006 season, for Rs. 1,00,000. In this case, the goods are :
a)
Future goods
b)
Specific goods
c)
Unascertained goods
d)
Contingent goods
|
|
Sounak Jain answered |
's farm for the next five years, at a fixed price of $10,000 per year. The agreement is binding and cannot be terminated by either party before the end of the five-year term. X is responsible for the maintenance and upkeep of the farm, while Y is responsible for the transportation and storage of the crops. Payment for the crops will be made at the end of each year, upon delivery and inspection of the crops. Any disputes arising from the agreement will be resolved through arbitration.
Where in an auction sale notified with reserve price, the auctioneer mistakenly knocks down the goods for less than the reserve price, then the auctioneer is- a)bound by auction
- b)not bound by auction
- c)liable for damages
- d)both (a) and (c)
Correct answer is option 'B'. Can you explain this answer?
Where in an auction sale notified with reserve price, the auctioneer mistakenly knocks down the goods for less than the reserve price, then the auctioneer is
a)
bound by auction
b)
not bound by auction
c)
liable for damages
d)
both (a) and (c)
|
|
Mihir Banerjee answered |
The Liability of an Auctioneer in a Sale with Reserve Price
In an auction sale notified with reserve price, the auctioneer has the responsibility to sell the goods at or above the reserve price. However, if the auctioneer mistakenly knocks down the goods for less than the reserve price, the liability of the auctioneer is a matter of legal consideration. The correct answer to the question is option 'B' - the auctioneer is not bound by auction.
Explanation
There are several reasons why an auctioneer is not bound by auction if they mistakenly knock down goods for less than the reserve price:
1. Auctioneer's Duty of Care
The auctioneer has a duty of care to the seller and the buyer to ensure that the auction is conducted in a fair and transparent manner. If the auctioneer makes a mistake that results in a lower sale price, they may be held liable for breaching their duty of care.
2. Reserve Price
The reserve price is the minimum price that the seller is willing to accept for the goods. If the auctioneer mistakenly knocks down the goods for less than the reserve price, the seller is not obligated to sell the goods at that price.
3. Auctioneer's Discretion
The auctioneer has the discretion to withdraw the goods from sale if they believe that the bidding has not reached the reserve price. If the auctioneer mistakenly knocks down the goods for less than the reserve price, they may exercise their discretion to withdraw the goods from sale.
Conclusion
In conclusion, an auctioneer is not bound by auction if they mistakenly knock down goods for less than the reserve price. However, the liability of the auctioneer depends on the circumstances of the sale, such as the auctioneer's duty of care, the reserve price, and the auctioneer's discretion.
In an auction sale notified with reserve price, the auctioneer has the responsibility to sell the goods at or above the reserve price. However, if the auctioneer mistakenly knocks down the goods for less than the reserve price, the liability of the auctioneer is a matter of legal consideration. The correct answer to the question is option 'B' - the auctioneer is not bound by auction.
Explanation
There are several reasons why an auctioneer is not bound by auction if they mistakenly knock down goods for less than the reserve price:
1. Auctioneer's Duty of Care
The auctioneer has a duty of care to the seller and the buyer to ensure that the auction is conducted in a fair and transparent manner. If the auctioneer makes a mistake that results in a lower sale price, they may be held liable for breaching their duty of care.
2. Reserve Price
The reserve price is the minimum price that the seller is willing to accept for the goods. If the auctioneer mistakenly knocks down the goods for less than the reserve price, the seller is not obligated to sell the goods at that price.
3. Auctioneer's Discretion
The auctioneer has the discretion to withdraw the goods from sale if they believe that the bidding has not reached the reserve price. If the auctioneer mistakenly knocks down the goods for less than the reserve price, they may exercise their discretion to withdraw the goods from sale.
Conclusion
In conclusion, an auctioneer is not bound by auction if they mistakenly knock down goods for less than the reserve price. However, the liability of the auctioneer depends on the circumstances of the sale, such as the auctioneer's duty of care, the reserve price, and the auctioneer's discretion.
Q sells 100 tons of rice to P @ Rs. 50,000 per ton. P makes the full payment & says that he will pick the goods next week. Before P could pick the goods, the goods got destroyed. The loss will be borne by - a)Q
- b)P
- c)Both P and Q equally
- d)None
Correct answer is option 'B'. Can you explain this answer?
Q sells 100 tons of rice to P @ Rs. 50,000 per ton. P makes the full payment & says that he will pick the goods next week. Before P could pick the goods, the goods got destroyed. The loss will be borne by
a)
Q
b)
P
c)
Both P and Q equally
d)
None
|
|
Dhruba Choudhary answered |
To Q immediately.
The total amount paid by P to Q is:
100 tons x Rs. 50,000/ton = Rs. 50,00,000
Therefore, Q receives Rs. 50,00,000 from P for the sale of 100 tons of rice.
The total amount paid by P to Q is:
100 tons x Rs. 50,000/ton = Rs. 50,00,000
Therefore, Q receives Rs. 50,00,000 from P for the sale of 100 tons of rice.
A stipulation which is collateral to the main purpose of the contract, and if proves false, gives the buyer only a right to claim damages, is known as- a)conditions.
- b)guarantee.
- c)warranty.
- d)none of these
Correct answer is option 'C'. Can you explain this answer?
A stipulation which is collateral to the main purpose of the contract, and if proves false, gives the buyer only a right to claim damages, is known as
a)
conditions.
b)
guarantee.
c)
warranty.
d)
none of these
|
Aman Chaudhary answered |
Warranty as a Collateral Stipulation
A warranty is a stipulation in a contract that relates to the quality of goods or services being sold. It is a collateral stipulation because it is not the main purpose of the contract but rather a secondary or additional promise made by the seller to the buyer. If the warranty proves false, the buyer only has a right to claim damages and not to terminate the contract.
Conditions, Guarantees, and Warranties
Conditions are essential terms of a contract that are so fundamental that their breach can result in termination of the contract. Guarantees, on the other hand, are promises made by a third party to the buyer to ensure the performance of the contract. They are not part of the contract itself but rather a separate agreement between the buyer and the guarantor.
Examples of Warranties
There are different types of warranties, including express warranties, implied warranties, and statutory warranties. Express warranties are made by the seller to the buyer and can be in writing or oral. Implied warranties, on the other hand, are not explicitly stated in the contract but are implied by law based on the nature of the transaction.
Statutory warranties, which are also known as consumer guarantees, are set out in legislation and apply to certain goods and services. They include warranties such as the guarantee of acceptable quality, the guarantee of fitness for purpose, and the guarantee of repairs and spare parts.
Conclusion
In conclusion, a warranty is a collateral stipulation that is secondary to the main purpose of the contract. If it proves false, the buyer only has a right to claim damages and not to terminate the contract. It is important for buyers and sellers to understand the different types of warranties and their implications in a contract.
A warranty is a stipulation in a contract that relates to the quality of goods or services being sold. It is a collateral stipulation because it is not the main purpose of the contract but rather a secondary or additional promise made by the seller to the buyer. If the warranty proves false, the buyer only has a right to claim damages and not to terminate the contract.
Conditions, Guarantees, and Warranties
Conditions are essential terms of a contract that are so fundamental that their breach can result in termination of the contract. Guarantees, on the other hand, are promises made by a third party to the buyer to ensure the performance of the contract. They are not part of the contract itself but rather a separate agreement between the buyer and the guarantor.
Examples of Warranties
There are different types of warranties, including express warranties, implied warranties, and statutory warranties. Express warranties are made by the seller to the buyer and can be in writing or oral. Implied warranties, on the other hand, are not explicitly stated in the contract but are implied by law based on the nature of the transaction.
Statutory warranties, which are also known as consumer guarantees, are set out in legislation and apply to certain goods and services. They include warranties such as the guarantee of acceptable quality, the guarantee of fitness for purpose, and the guarantee of repairs and spare parts.
Conclusion
In conclusion, a warranty is a collateral stipulation that is secondary to the main purpose of the contract. If it proves false, the buyer only has a right to claim damages and not to terminate the contract. It is important for buyers and sellers to understand the different types of warranties and their implications in a contract.
X purchased papers from Y and resold them to Z, who found that the papers were infected with white ants and returned them to X. Can X return the goods to Y?- a)No
- b)Yes
- c)Z has to return directly
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
X purchased papers from Y and resold them to Z, who found that the papers were infected with white ants and returned them to X. Can X return the goods to Y?
a)
No
b)
Yes
c)
Z has to return directly
d)
None of the above
|
|
Anjali Baby answered |
Answer is (A)
Actionable claims are claims which are enforced only by.- a)Action
- b)Suit
- c)(a) or (b)
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
Actionable claims are claims which are enforced only by.
a)
Action
b)
Suit
c)
(a) or (b)
d)
None of the above
|
|
Rajat Patel answered |
Actionable Claim is a claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of moveable property, or to any beneficial interest in moveable property not in possession either actual or constructive, of the claimant, which the civil courts recognise as affording grounds of relief whether such debt or beneficial interest be existent, accruing or conditional or contingent.
Chapter doubts & questions for Unit 1: Formation of the Contract of Sale - Business Laws for CA Foundation 2025 is part of CA Foundation exam preparation. The chapters have been prepared according to the CA Foundation exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for CA Foundation 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.
Chapter doubts & questions of Unit 1: Formation of the Contract of Sale - Business Laws for CA Foundation in English & Hindi are available as part of CA Foundation exam.
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Business Laws for CA Foundation
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