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Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Judiciary Exams MCQ


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10 Questions MCQ Test Civil Law for Judiciary Exams - Test: Suits for Breach of the Contract under Sale of Goods Act, 1930

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Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 1

What legal action can a seller take if the buyer refuses to accept goods under the Sale of Goods Act?

Detailed Solution for Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 1
If the buyer refuses to accept goods, the seller can sue for damages under the Sale of Goods Act. The compensation is determined based on the principles outlined in the Indian Contract Act sections 73 and 74. The damages are typically calculated based on the market price at the time of the breach, taking into account the impact of the non-performance.
Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 2

When can a seller sue for the price of goods under the Sale of Goods Act?

Detailed Solution for Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 2
A seller can sue for the price of goods under the Sale of Goods Act after the property has passed to the buyer. This legal action can be taken if the buyer fails to pay for the goods even after the property transfer. It is important to note that the seller's right to demand payment arises only after the goods are in the buyer's possession.
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Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 3

How are damages calculated when a buyer fails to pay for goods after the property has passed to them?

Detailed Solution for Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 3
Damages for non-payment when the property has passed are calculated based on the market price at the time of the breach. This means that the compensation the seller can claim is determined by the prevailing market value of the goods when the buyer fails to fulfill their payment obligation.
Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 4
What principle guides the determination of damages in cases where the buyer refuses to accept goods?
Detailed Solution for Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 4
In cases where the buyer refuses to accept goods, the damages are typically determined based on the market price at the time of the breach. This means that the difference between the market price at the time of breach and the contract price becomes a crucial factor in calculating the compensation owed. This principle helps in assessing the actual financial impact of the non-performance on the parties involved.
Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 5
What legal remedy can a buyer seek if the seller fails to deliver goods as per the contract?
Detailed Solution for Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 5
When a seller fails to deliver goods as per the contract, the buyer has the legal right to sue for damages. These damages typically involve claiming the difference between the contract price and the market price at the time of the breach. This remedy aims to compensate the buyer for the losses incurred due to the seller's non-delivery, ensuring that the buyer is not unfairly disadvantaged by the breach of contract.
Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 6

In the breach of warranty, what option does the buyer have besides claiming damages?

Detailed Solution for Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 6

In cases of breach of warranty, besides claiming damages, the buyer also has the option to seek a full refund of the payment made. This remedy allows the buyer to recover the entire amount paid for the goods that were not delivered as per the warranty terms. By opting for a refund, the buyer can mitigate their losses and seek alternative options to fulfill their requirements.

Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 7
If a buyer has accepted goods without rejecting them, what can they do if there is a breach of condition?
Detailed Solution for Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 7
When a buyer accepts goods without rejecting them and a breach of condition occurs, the buyer's recourse, as per the provided information, is to claim damages as if it were a breach of warranty. This legal principle helps define the buyer's rights and options in cases where goods are accepted despite potential issues, allowing for a remedy through the assessment of damages.
Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 8
What can the party affected by a breach of contract before the delivery date legally do?
Detailed Solution for Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 8
When one party breaches a sales contract before the delivery date, the affected party can legally regard the contract as canceled and pursue damages due to the breach. This legal recourse allows the party facing the breach to seek compensation for the damages incurred as a result of the contract violation. It is an essential aspect of contract law that provides protection and remedies for parties affected by breaches of contractual agreements.
Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 9
Under what circumstances can the court award interest on the price to either the seller or buyer in cases of breach of contract?
Detailed Solution for Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 9
The court can award interest on the price, depending on the circumstances, to either the seller or buyer in cases of breach of contract. This means that the court considers various factors surrounding the breach, such as the extent of financial harm caused, the nature of the breach, and the contractual terms involved, before deciding whether to grant interest on the price. It aims to provide fair compensation and resolve disputes related to breaches of contract effectively.
Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 10

What purpose do special damages serve of contract law?

Detailed Solution for Test: Suits for Breach of the Contract under Sale of Goods Act, 1930 - Question 10

Special damages in contract law serve to compensate for losses resulting from a breach that the parties anticipated when forming the contract. Unlike general damages that cover foreseeable losses that naturally arise from a breach, special damages specifically address losses that were within the contemplation of the parties when entering into the agreement. By awarding special damages, the legal system aims to ensure that parties are adequately compensated for the specific harms they suffered as a direct result of the breach.

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