MCQ 1: Which one of the following is/are document of title to goods?
(a) Railway receipt.
(b) Wharfinger's certificate.
(c) Warehouse keeper's certificate.
(d) All of the above.
Ans: (d) All of the above.
Solution: Under Section 2(4) of the Sale of Goods Act, 1930, documents of title to goods include railway receipts, wharfinger's certificates, and warehouse keeper's certificates, as they represent ownership and allow transfer of goods without physical delivery.
MCQ 2: Contract of sale is
(a) Executory Contract.
(b) Executed Contract.
(c) Both of the above.
(d) None of the above.
Ans: (c) Both of the above.
Solution: As per Section 4(1) and 4(3) of the Act, a contract of sale can be executory (agreement to sell in future) or executed (actual sale where property passes immediately), making both applicable depending on the stage of performance.
MCQ 3: Where there is an unconditional contract for the sale of specific goods in a deliverable state-
(a) Property in the goods passes to the buyer when the contract is made.
(b) Property in the goods does not pass to the buyer when the contract is made.
(c) Property in the goods remains with the seller when the contract is made.
(d) None of the above.
Ans: (a) Property in the goods passes to the buyer when the contract is made.
Solution: Section 19(1) of the Act states that in an unconditional contract for specific goods in a deliverable state, property passes at the time the contract is made, unless otherwise agreed, as intention is presumed from the terms.
MCQ 4: Under which of the circumstances unpaid seller loses his right of lien
(a) By estoppel.
(b) Where seller waived the right of lien.
(c) Where the buyer or his agent lawfully obtains possession of the goods.
(d) Any of the above.
Ans: (d) Any of the above.
Solution: Section 47(1) outlines that the unpaid seller's lien ends by estoppel (representation leading to belief), waiver by the seller, or lawful possession by buyer/agent. All these scenarios terminate the lien over unpaid goods.
MCQ 5: The Sale of Goods Act, 1930 came into force on
(a) 15th March, 1930.
(b) 1st July, 1930.
(c) 30th July, 1930.
(d) 30th June, 1930.
Ans: (b) 1st July, 1930.
Solution: The Act was enacted on 15th March 1930 but came into force on 1st July 1930, as notified under Section 1(3), marking the effective date for its provisions.
MCQ 6: A agrees to deliver his old car valued at 80,000 to B, a car dealer, in exchange for a new car, and agrees to pay the difference in cash. It is
(a) Contract of sale.
(b) Agreement to sell.
(c) Exchange.
(d) Barter.
Ans: (a) Contract of sale.
Solution: Section 4(1) defines a sale as transfer of property for a price. Here, part-exchange with cash difference constitutes a monetary price, distinguishing it from pure barter (goods for goods without money).
MCQ 7: Voluntary transfer of possession by one person to another is popularly known as
(a) Transfer.
(b) Possession.
(c) Delivery.
(d) None of the above.
Ans: (c) Delivery.
Solution: Section 2(2) defines delivery as voluntary transfer of possession from seller to buyer. It is essential for performance under Section 33, focusing on possession rather than mere transfer or ownership.
MCQ 8: The person who buys or agrees to buy goods is known as
(a) Consumer.
(b) Buyer.
(c) Both (a) and (b).
(d) None of the above.
Ans: (b) Buyer.
Solution: Section 2(1) explicitly defines "buyer" as the person who buys or agrees to buy goods under a contract of sale. "Consumer" is a broader term under separate consumer laws, not the Act's definition.
MCQ 9: The property in the goods means the
(a) Possession of goods.
(b) Custody of goods.
(c) Ownership of goods.
(d) Both (a) and (b).
Ans: (c) Ownership of goods.
Solution: Section 2(11) defines "property" as the general property in goods, i.e., ownership or title, distinct from possession (physical control) or custody (temporary holding).
MCQ 10: The goods are at the risk of a party who has the
(a) Ownership of goods.
(b) Possession of goods.
(c) Custody of goods.
(d) Both (b) and (c).
Ans: (a) Ownership of goods.
Solution: The maxim "res perit domino" (risk follows owner) under Section 26 implies that unless otherwise agreed, goods remain at the owner's risk until property passes, regardless of possession or custody.
MCQ 11: The goods are at the risk of a party who has the
(a) Ownership of goods.
(b) Possession of goods.
(c) Custody of goods.
(d) Both (b) and (c).
Ans: (a) Ownership of goods.
Solution: Identical to MCQ 10; risk prima facie follows ownership per Section 26, as loss/damage affects the title holder, not just the possessor or custodian.
Additional Questions
Q1: "Res perit domine" means:
(a) Seller has a right to resale.
(b) Risk follows ownership.
(c) Buyer beware.
(d) None of the above.
Ans: (b) Risk follows ownership.
Solution: This Latin maxim, incorporated in Section 26 of the Act, means "the thing perishes with the owner," establishing that risk of loss or damage lies with the owner until property transfer.
Q2: In a contract of sale of specific goods ownership transfers:
(a) After delivery of goods.
(b) After payment of price.
(c) When parties intended.
(d) None of the above.
Ans: (c) When parties intended.
Solution: Section 18 provides rules for ascertaining intention regarding transfer of property in specific goods, emphasizing parties' intent over automatic transfer post-delivery or payment.
Q3: In a contract of sale of unascertained goods ownership transfers:
(a) After delivery of goods.
(b) After payment of price.
(c) When parties intended.
(d) After unconditional appropriation of goods.
Ans: (d) After unconditional appropriation of goods.
Solution: Section 18, Rule 5 states that for unascertained goods, property passes when goods are unconditionally appropriated to the contract with assent of both parties, fulfilling the intention to identify specific goods.
Q4: Goods are deemed to be in deliverable state.................
(a) Packing.
(b) Determination of price.
(c) In a state that buyer would be bound to take delivery of goods.
(d) Any of the above.
Ans: (c) In a state that buyer would be bound to take delivery of goods.
Solution: Section 2(7) defines "deliverable state" as when goods are in such condition that the buyer is bound to accept them under the contract, irrespective of packing or price fixation.
Q5: When goods sold on approval basis property in goods passes on:
(a) Acceptance by buyer.
(b) Retaining of goods by buyer after specified period without notice.
(c) Resale by buyer.
(d) Any of the above.
Ans: (d) Any of the above.
Solution: Section 24 specifies that in a sale on approval (or "sale or return"), property passes upon buyer's acceptance, retention beyond the period without rejection, or any act adopting the transaction like resale.
Q6: In case of sale on approval basis property in goods transfers...............
(a) On acceptance.
(b) On delivery.
(c) On payment.
(d) All of the above.
Ans: (a) On acceptance.
Solution: Under Section 24, transfer occurs primarily on buyer's acceptance or equivalent act (e.g., retention), not merely on delivery or payment, as it's conditional until approval.
Q7: Nemo dat quod non habet " refers to...........
(a) Risk follows ownership.
(b) Let the buyer beware.
(c) No one can give the better title than he himself has.
(d) Transfer of ownership.
Ans: (c) No one can give the better title than he himself has.
Solution: This maxim, embodied in Section 27, means "no one can give what they do not have," preventing transfer of better title than the seller possesses, subject to exceptions in Sections 28-30.
Q8: Transfer of property in goods means ......
(a) Transfer of ownership.
(b) Transfer of possession.
(c) Any of them.
(d) None of them.
Ans: (a) Transfer of ownership.
Solution: Section 41 clarifies that "transfer of property" refers to ownership/title, not possession, which is separate (delivery under Section 33). The Act distinguishes these throughout Chapter IV.
Q9: For appropriation of goods..................
(a) Goods must be according to description.
(b) Goods must be in deliverable state.
(c) It must be done with the consent of both parties.
(d) All of the above.
Ans: (d) All of the above.
Solution: Section 18, Rule 5 requires unconditional appropriation for unascertained goods: matching description, deliverable condition, and mutual assent, ensuring clear identification and intent.
Q10: No one can transfer a better title then he himself has:
(a) Res perit domin.
(b) Nemo dat quod non habet.
(c) Quantum meruit.
(d) None of the above.
Ans: (b) Nemo dat quod non habet.
Solution: This principle (Section 27) is directly termed "nemo dat quod non habet," limiting title transfer to what the seller holds, unlike "res perit domino" (risk) or "quantum meruit" (reasonable payment).
Q11: If goods are damaged by accident, who shall bear the loss:
(a) Buyer.
(b) Seller.
(c) Owner.
(d) None of the above.
Ans: (c) Owner.
Solution: Section 26 provides that unless otherwise agreed, goods remain at the seller's risk until property passes; post-passage, at buyer's. The owner bears accidental loss per "res perit domino."
Q12: If seller reserves the right of disposal:
(a) Property in goods passes in specific goods.
(b) Property in goods passes in unascertained goods.
(c) Property in goods does not pass in specific or unascertained goods.
(d) None of the above.
Ans: (c) Property in goods does not pass in specific or unascertained goods.
Solution: Section 25(1) states that reservation of disposal right (e.g., via documents) prevents property passage until conditions are met, overriding default rules for both specific and unascertained goods.
Q13: Until ownership passes risk remain with:
(a) Seller.
(b) Buyer.
(c) Third party.
(d) Carrier.
Ans: (a) Seller.
Solution: Section 26(1) mandates that risk lies with the seller until property transfer, unless agreed otherwise, aligning with ownership principles.
Q14: Appropriation can be done:
(a) By the seller with the consent of buyer.
(b) By the buyer with the consent of seller.
(c) By any of them.
(d) None of the above.
Ans: (c) By any of them.
Solution: Section 18(2) allows appropriation by either party (seller or buyer) provided it's unconditional and with the other's assent, facilitating property transfer in unascertained goods contracts.
Q15: If delivery has been delayed by fault of any party:
(a) Risk will be of seller.
(b) Risk will be of defaulter.
(c) Risk will be of buyer.
(d) None of the above.
Ans: (b) Risk will be of defaulter.
Solution: Section 26(2) specifies that if delay in delivery is due to the fault of either party, the goods and risk remain with the party at fault, preventing benefit from their own default.
Q16: In case of sale through Super market, the ownership of goods transferred ........
(a) On acceptance.
(b) On delivery.
(c) On payment.
(d) All of the above.
Ans: (a) On acceptance.
Solution: In self-service supermarkets, property passes on acceptance (taking goods to counter), per Section 18 Rule 4 and 19, as it's an unconditional appropriation, not requiring delivery or payment.
Q17: In case of sale by unpaid seller the buyer shall .........
(a) Get good title of goods.
(b) Get bad title of goods.
(c) Get partly title of goods.
(d) None of the above.
Ans: (b) Get bad title of goods.
Solution: Under the nemo dat rule (Section 27), an unpaid seller reselling cannot confer better title than they hold against the original buyer, so the second buyer gets defective title unless exceptions apply.
Q18: Which is not an exception of "Nemo dat quod non habet "
(a) Sale by mercantile agent.
(b) Sale by co-owners.
(c) Sale by Unpaid seller.
(d) Sale by tenant.
Ans: (d) Sale by tenant.
Solution: Exceptions under Sections 27-30 include mercantile agents (s.27), joint owners (s.28), unpaid sellers (s.29), and sellers in possession (s.30). Sale by tenant is not an exception; it violates nemo dat.
Q19: Where the goods are delivered to a common carrier goods are deemed to be................
(a) Appropriated.
(b) Not appropriated.
(c) Delivered to the buyer.
(d) None of the above.
Ans: (a) Appropriated.
Solution: Section 23 deems shipment to a carrier (without reserving right of disposal) as appropriation to the contract, passing property if assented, especially for unascertained goods under s.18 Rule 5.
Q20: Delivery of goods may be:
(a) Actual.
(b) Symbolic.
(c) Constructive.
(d) Any of the above.
Ans: (d) Any of the above.
Solution: Section 33 recognizes delivery as actual (physical handover), symbolic (e.g., key transfer), or constructive (e.g., via third party), as long as it effects voluntary possession transfer per Section 2(2).
