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If A agrees to deliver 100 kg of sugar to B in exchange of 15 meters of cloth, then it is
  • a)
    contract of sale
  • b)
    agreement to sell
  • c)
    sale on approval
  • d)
    barter
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
If A agrees to deliver 100 kg of sugar to B in exchange of 15 meters o...
Explanation:

Contract of Sale:
A contract of sale is a contract in which one party agrees to transfer the ownership of goods to another party in exchange for money. In this case, A is agreeing to deliver 100 kg of sugar to B, but there is no mention of any monetary consideration or payment involved. Therefore, it cannot be considered a contract of sale.

Agreement to Sell:
An agreement to sell is a contract in which one party agrees to transfer the ownership of goods to another party at a future date or upon the occurrence of a certain event. In this case, A is agreeing to deliver 100 kg of sugar to B, but there is no mention of a future date or any specific event upon which the transfer of ownership will occur. Therefore, it cannot be considered an agreement to sell.

Sale on Approval:
A sale on approval is a type of sale where the buyer has the option to approve or disapprove the goods after taking possession of them. In this case, there is no mention of B having the option to approve or disapprove the sugar after delivery. Therefore, it cannot be considered a sale on approval.

Barter:
Barter is a system of exchange where goods or services are directly exchanged for other goods or services without the use of money. In this case, A agrees to deliver 100 kg of sugar to B in exchange for 15 meters of cloth. This exchange of goods without the involvement of money is an example of barter. Therefore, the correct answer is option D - barter.

In conclusion, the agreement between A and B can be categorized as a barter agreement since it involves the exchange of goods (sugar and cloth) without the involvement of money.
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If A agrees to deliver 100 kg of sugar to B in exchange of 15 meters of cloth, then it isa)contract of saleb)agreement to sellc)sale on approvald)barterCorrect answer is option 'D'. Can you explain this answer?
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If A agrees to deliver 100 kg of sugar to B in exchange of 15 meters of cloth, then it isa)contract of saleb)agreement to sellc)sale on approvald)barterCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If A agrees to deliver 100 kg of sugar to B in exchange of 15 meters of cloth, then it isa)contract of saleb)agreement to sellc)sale on approvald)barterCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If A agrees to deliver 100 kg of sugar to B in exchange of 15 meters of cloth, then it isa)contract of saleb)agreement to sellc)sale on approvald)barterCorrect answer is option 'D'. Can you explain this answer?.
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