Test: The Sale Of Goods Act, 1930- 1 - CA Foundation MCQ

To determine the correct answer, let's analyze the options and their meanings:
A. Sale: A sale refers to the transfer of ownership of goods from the seller to the buyer in exchange for a price.
B. Agreement to sell: An agreement to sell refers to a contract where the seller agrees to transfer ownership of goods to the buyer at a future date or upon the fulfillment of certain conditions, such as payment of the total price.
C. Hire-purchase contract: A hire-purchase contract is a type of agreement where the buyer hires goods from the seller and has the option to purchase them at the end of the contract period, usually after paying installments.
D. Sale on approval: Sale on approval refers to a contract where the buyer has the right to test or evaluate the goods before deciding to purchase them. The ownership of the goods does not pass to the buyer until they approve the purchase.
Based on the definitions above, the correct answer would be B. Agreement to sell. In this type of contract, the ownership of the goods would pass to the buyer upon the payment of the total price, indicating a completed sale.
Therefore, a contract for the sale of goods where property would pass to the buyer on payment of the total price is an agreement to sell.

Goods under Sale of Goods Act, 1930

The Sale of Goods Act, 1930 defines the term "goods" in Section 2(7) as every kind of movable property that can be bought or sold, except for specific exclusions. Here, we will discuss what is not included in the definition:

• Goodwill: Goodwill refers to the reputation and value of a business, which cannot be physically transferred. Therefore, it is not considered a good under the Sale of Goods Act.


• Actionable claims: Actionable claims are rights that can be enforced through legal action, such as debts, contracts, and insurance policies. They do not qualify as goods under the Act.


• Stocks and shares: Stocks and shares represent ownership in a company, but they are considered as securities and not goods under the Sale of Goods Act.


• Harvested crops: Harvested crops are considered as goods and are included in the definition under the Sale of Goods Act. They can be bought and sold as movable property.

Therefore, the term "goods" under the Sale of Goods Act, 1930 does not include actionable claims, stocks and shares, and goodwill. The correct option among the given choices is B: actionable claims.

The correct answer is B: agreement to sell.
Explanation:
In contract law, the sale of future goods refers to an agreement to sell goods that the seller does not currently possess or own but expects to acquire in the future. This type of contract is commonly used in situations where the goods are not yet in existence or have not yet been produced.
Here's a more detailed explanation:
1. Definition of future goods: Future goods are those that are not yet in existence or not yet identified at the time the contract is made. They may be goods to be manufactured or produced, or they may be goods that have yet to be acquired by the seller.
2. Agreement to sell: A contract for the sale of future goods is considered an agreement to sell. This means that the parties have entered into a contractual agreement where the seller agrees to transfer ownership of the goods to the buyer at a future date when the goods become available.
3. Distinction from a sale: A sale, on the other hand, refers to a contract where the seller transfers the ownership of existing goods to the buyer immediately. In a sale of future goods, the ownership is not transferred immediately because the goods are not yet in existence or available.
4. Void contracts: A contract for the sale of future goods is not inherently void. However, there are certain circumstances where the contract may be considered void, such as when the goods are illegal or impossible to produce.
In conclusion, a contract for the sale of future goods is an agreement to sell, where the seller agrees to transfer ownership of goods that are not yet in existence or available. It is a valid contract as long as the goods can be produced or acquired in the future.

Explanation:
The stipulation in a contract of sale of goods that allows the buyer to rescind the contract if violated by the seller is called a condition. Here is a breakdown of the options and why the correct answer is C:
1. Guarantee: A guarantee is a promise made by the seller to the buyer that a certain condition or quality of the goods will be met. However, a violation of a guarantee does not necessarily give the buyer the right to rescind the contract.
2. Warranty: A warranty is similar to a guarantee, where the seller promises that the goods meet certain specifications or will perform in a certain manner. While a violation of a warranty may give the buyer the right to claim damages, it may not always result in the right to rescind the contract.
3. Condition: A condition is an essential term in a contract that must be fulfilled in order for the contract to be valid. If a condition is violated, the buyer has the right to rescind the contract and seek remedies.
4. Term: A term refers to any provision or clause in a contract. While a term can include conditions, not all terms give the buyer the right to rescind the contract.
Therefore, the correct answer is C: condition.

Unpaid Seller's Right of Stoppage of Goods in Transit
The right of stoppage of goods in transit is a legal remedy available to the unpaid seller when certain conditions are met. Let's explore these conditions in detail:
1. Becomes Insolvent:
- The unpaid seller has the right of stoppage of goods in transit if the buyer becomes insolvent.
- Insolvency refers to the situation where the buyer is unable to pay their debts and liabilities.
- This condition allows the unpaid seller to exercise their right to reclaim the goods in transit to protect their interest.
2. Refuses to Pay Price:
- The right of stoppage of goods in transit can also be exercised by the unpaid seller if the buyer refuses to pay the price.
- If the buyer explicitly states their refusal to pay or fails to make the payment within the agreed-upon timeframe, the unpaid seller can take action.
3. Acts Fraudulently:
- Another condition where the unpaid seller has the right of stoppage of goods in transit is when the buyer acts fraudulently.
- Fraudulent actions can include misrepresentation, deceit, or any other wrongful conduct intended to deceive the seller.
- In such cases, the unpaid seller can exercise their right to stop the goods in transit to prevent further harm or loss.
4. All of These:
- The statement "all of these" refers to the fact that the unpaid seller has the right of stoppage of goods in transit when any of the above conditions are met.
- In other words, if the buyer becomes insolvent, refuses to pay the price, or acts fraudulently, the unpaid seller can exercise their right of stoppage of goods in transit.
Therefore, the correct answer to the question is option A: becomes insolvent. This condition alone grants the unpaid seller the right of stoppage of goods in transit.

The Sale of Goods Act, 1930
The Sale of Goods Act, 1930 is an important legislation that governs the sale and purchase of goods in India. It provides various rights and responsibilities for both buyers and sellers, ensuring fair and transparent transactions.
Objective of the Sale of Goods Act, 1930:
The Act aims to regulate the sale of goods in India and provide a legal framework for resolving disputes related to the sale of goods. It covers various aspects such as the formation of a contract of sale, transfer of ownership, delivery of goods, and remedies available in case of breach of contract.
Scope of the Sale of Goods Act, 1930:
The Act primarily deals with movable goods, which are goods that can be physically transported from one place to another. It does not cover immovable goods such as land or buildings.
Key provisions of the Sale of Goods Act, 1930:
1. Formation of Contract: The Act provides guidelines for the formation of a valid contract of sale, including essential elements like offer, acceptance, consideration, and intention to create legal relations.
2. Transfer of Ownership: It specifies the rules for the transfer of ownership from the seller to the buyer, including when it occurs and the conditions for a valid transfer.
3. Conditions and Warranties: The Act distinguishes between conditions and warranties in a contract of sale and provides remedies for breach of these terms.
4. Delivery of Goods: It outlines the rules for the delivery of goods, including the time, place, and manner of delivery.
5. Passing of Property: The Act defines when the property in the goods passes from the seller to the buyer, which is crucial for determining the rights and liabilities of the parties involved.
6. Rights of Unpaid Seller: It safeguards the rights of an unpaid seller and provides remedies in case of non-payment by the buyer.
7. Remedies for Breach of Contract: The Act offers various remedies for breach of contract, such as damages, specific performance, and repudiation of the contract.
Conclusion:
The Sale of Goods Act, 1930 deals with the sale of movable goods in India. It provides a comprehensive legal framework for regulating the sale of goods and protecting the rights of buyers and sellers. It is essential for all parties involved in commercial transactions to understand the provisions of this Act to ensure fair and lawful business practices.

Under Sale of Goods Act, 1930, the term "Goods" means every kind of movable property and it includes:

A: Stock and share

B: Growing crops, grass

C: Both (a) and (b)

D: None of the above

Answer: C

Explanation:

The Sale of Goods Act, 1930 is an Indian legislation that governs the sale of goods. According to this act, the term "Goods" is defined as every kind of movable property. This includes various items and materials that can be bought and sold. The act specifically mentions two examples of goods that fall under this definition:

1. Stock and share:

- Stock and shares, which represent ownership in a company, are considered movable property and fall under the definition of goods under the Sale of Goods Act, 1930.

2. Growing crops, grass:

- Growing crops and grass, which can be harvested and sold, are also considered movable property and are included in the term "Goods" under the act.

Therefore, the correct answer is option C, which states that the term "Goods" includes both stock and share as well as growing crops and grass.

Answer:
The stipulation described in the question is known as a collateral warranty. Here is a detailed explanation:
Definition of a collateral warranty:
A collateral warranty is a stipulation or condition that is secondary or collateral to the main purpose of a contract. It is an additional promise or guarantee made by one party to another, usually relating to the quality, performance, or condition of the goods or services being provided.
Characteristics of a collateral warranty:
1. Not essential to the main purpose of the contract: A collateral warranty is not a fundamental or primary term of the contract but is rather an ancillary provision.
2. Gives the buyer a right to claim damages: If the stipulation of the collateral warranty is proven to be false, the buyer is entitled to seek compensation for any losses or damages suffered as a result.
3. Limited recourse for the buyer: Unlike a condition or guarantee, a collateral warranty does not give the buyer the right to terminate the contract or seek specific performance.
Comparison with other contract terms:
- Conditions: Conditions are essential terms of a contract that, if not fulfilled, give the innocent party the right to terminate the contract and claim damages.
- Guarantee: A guarantee is a promise made by one party (guarantor) to another (guarantee) to be responsible for the obligations or debts of a third party.
- Warranty: A warranty is a promise or representation made by a seller or manufacturer about the quality, performance, or condition of goods or services, which if breached, gives the buyer the right to claim damages or seek repair or replacement.
Conclusion:
In the given scenario, the stipulation is collateral to the main purpose of the contract and provides the buyer with the right to claim damages in case it is proven false. Therefore, the correct answer is option C: warranty.

The correct answer is (C) condition as to free from encumbrance.
Explanation:
In a contract of sale, there are several implied conditions that are typically included to protect the rights and interests of the buyer. These conditions are automatically assumed to be a part of the contract, even if they are not explicitly stated. However, one of the options listed does not represent an implied condition in a contract of sale.
Implied conditions in a contract of sale typically include:
A: Condition as to title - This means that the seller must have the legal right to transfer the ownership of the goods being sold. The buyer has the right to receive goods that are free from any legal claims or disputes.
B: Condition as to description - This means that the goods being sold must match the description provided by the seller. The buyer has the right to receive goods that correspond to their stated description.
C: Condition as to free from encumbrance - This is not an implied condition in a contract of sale. While it is always desirable for goods to be free from any encumbrances (such as liens or mortgages), it is not automatically assumed to be a condition in a contract of sale. If the buyer wants to ensure that the goods are free from encumbrances, they would need to explicitly include this condition in the contract.
D: Condition as to sample - This means that if the goods are sold based on a sample, the buyer has the right to receive goods that are similar to the sample shown or provided. The buyer has the right to rely on the sample as a representation of the goods being sold.
In summary, the condition that is not an implied condition in a contract of sale is (C) condition as to free from encumbrance.

The Sale of Goods Act, 1930 is a legislation in India that governs the sale of goods. It provides various rights and obligations for both buyers and sellers involved in a sale transaction. The Act covers several aspects related to the sale of goods, including:
1. Definition of Sale: The Act defines what constitutes a sale and the essential elements required for a valid sale.
2. Conditions and Warranties: It outlines the distinction between conditions and warranties in a sale contract and specifies the rights and remedies available to the parties in case of a breach.
3. Transfer of Ownership: The Act establishes rules regarding the transfer of ownership from the seller to the buyer, including when the ownership is deemed to pass and the consequences of such transfer.
4. Rights and Duties of the Seller: It lays down the rights and duties of the seller, such as the obligation to deliver the goods, the duty to disclose any defects, and the right to receive payment.
5. Rights and Duties of the Buyer: The Act also sets out the rights and duties of the buyer, including the obligation to accept and pay for the goods and the right to reject them in certain circumstances.
6. Unpaid Seller's Rights: It defines the rights of an unpaid seller, such as the right to withhold delivery, stop the goods in transit, and resell the goods in case of buyer's default.
7. Remedies for Breach of Contract: The Act provides remedies for breach of contract, including specific performance, damages, and repudiation of the contract.
In conclusion, the Sale of Goods Act, 1930 deals specifically with the sale of goods and does not cover other topics such as mortgage or pledge.

Explanation:
The correct answer is A: The provisions of Sale of Goods were originally with the Indian Contract Act, 1872.
- The Sale of Goods Act, 1930 is a separate legislation in India and it does not deal with mortgage. Therefore, option B is incorrect.
- Option C is also incorrect because the Sale of Goods Act allows the parties to modify the provisions of law through a contract.
- Option D is incorrect because option A is true.
Therefore, option A is the correct answer. The provisions of Sale of Goods were originally with the Indian Contract Act, 1872.

The conditions and warranties may be in the form of:
- Express: These are explicitly stated and agreed upon by the parties involved. They can be oral or written and are included in the contract.
- Implied: These are not explicitly stated but are assumed to be part of the contract based on the circumstances, nature of the transaction, or the law.

Therefore, the correct answer is C: either (a) or (b).

Answer: The correct answer is B: existing Goods.
Explanation:
Existing goods refer to the goods that are already in existence at the time of the Contract of Sale. These goods are readily available and can be identified and delivered to the buyer. Here are some key points to understand:
1. Definition of existing goods: Existing goods are those goods that are physically present and owned by the seller at the time of the contract. They are tangible and can be inspected, measured, and delivered to the buyer.
2. Importance in a contract of sale: Existing goods are crucial in a contract of sale as they ensure that the buyer receives the goods as described and agreed upon. They eliminate the risk of non-delivery or substitution of goods.
3. Identification of existing goods: The existing goods must be identified and agreed upon by both the buyer and the seller. This identification can be done through specific descriptions, labels, or any other mutually acceptable method.
4. Examples of existing goods: Examples of existing goods include items in stock, inventory, or any tangible products that are available for immediate delivery.
In conclusion, existing goods are the goods that are already in existence at the time of the Contract of Sale. They are tangible, identifiable, and ready for delivery to the buyer.

Explanation:

Delivery refers to the transfer of legal ownership or possession of goods from one party to another. There are various forms of delivery that can occur during a transaction. In this question, we are asked to identify the form of delivery that is not valid. Let's analyze each option:

• A: Constructive Delivery: Constructive delivery refers to the transfer of possession of goods without physically handing them over. This can occur through various means such as handing over the keys to a storage facility or providing access to the goods. Constructive delivery is a valid form of delivery.


• B: Structured Delivery: Structured delivery is not a recognized form of delivery. It is not a commonly used term in the context of transferring ownership or possession of goods. Therefore, B is the correct answer.


• C: Actual Delivery: Actual delivery involves physically handing over the goods from one party to another. This is a common form of delivery and is recognized legally.


• D: Symbolic Delivery: Symbolic delivery refers to the transfer of possession of goods through the use of symbols or representations. This can include handing over keys or documents that represent ownership or possession of the goods.

In summary, the correct answer is B: Structured Delivery, as it is not a recognized form of delivery.

Document of Title to Goods:
- A document of title to goods is a document that provides evidence of ownership or control over the goods.
- It allows the holder of the document to claim possession or transfer ownership of the goods.
Options:
A: Railway Receipt:
- A railway receipt is a document issued by a railway company acknowledging the receipt of goods for transportation.
- It serves as a proof of delivery and can be used as a document of title to goods.
B: Wharfinger's Certificate:
- A wharfinger's certificate is a document issued by a wharfinger or a person in charge of a wharf or dock.
- It certifies the receipt of goods for storage or shipment and can be used as a document of title to goods.
C: Warehouse Keeper's Certificate:
- A warehouse keeper's certificate is a document issued by a warehouse keeper, confirming the storage of goods in a warehouse.
- It represents ownership or control over the goods stored and can be used as a document of title to goods.
Conclusion:
- All of the above options, A, B, and C (railway receipt, wharfinger's certificate, and warehouse keeper's certificate), can be considered as documents of title to goods.
- These documents provide evidence of ownership or control over the goods and allow the holder to claim possession or transfer ownership.

Explanation:
To determine which statement is not true, let's analyze each option:
A:

document showing title is different from document of title.

This statement is true. A document showing title refers to a document that indicates ownership or right to possession of goods, such as an invoice or receipt. On the other hand, a document of title refers to a document that represents the goods themselves, such as a bill of lading or warehouse receipt.
B:

bill of lading is a document of title to goods.

This statement is true. A bill of lading is a document issued by a carrier to acknowledge the receipt of goods and serves as evidence of the contract of carriage. It also functions as a document of title to the goods, as it can be endorsed and transferred to another party.
C:

agreed upon at the time a contract of sale is made.

This statement is true. The price is one of the essential elements of a contract of sale, and it must be agreed upon by the parties involved. The agreed price determines the consideration for the transfer of ownership or title to the goods.
D:

none of the above.

This statement is not true. Based on the analysis of options A, B, and C, we can see that they are all true statements.
Therefore, the correct answer is D:

none of the above.

The authority of a Mercantile Agent
A mercantile agent is granted certain authorities and powers to carry out specific tasks related to goods and financial transactions. Their authority includes the following:
1. Selling or consigning goods:
- A mercantile agent has the authority to sell goods on behalf of the principal. This means they can enter into contracts and transfer ownership of the goods to a buyer.
- They can also consign goods, which involves sending the goods to another party for sale on behalf of the principal. The mercantile agent remains responsible for the goods until they are sold.
2. Raising money on the security of goods:
- Another authority of a mercantile agent is the ability to raise money by using goods as security. This means they can take loans or borrow money against the value of the goods.
- The agent can pledge the goods as collateral and use them to secure financing for the principal.
3. Buying or selling goods:
- In addition to selling goods, a mercantile agent can also buy goods on behalf of the principal. This authority enables them to negotiate purchases, enter into contracts, and acquire goods for the principal's business.
- They can also engage in the sale of goods, allowing them to act as intermediaries between buyers and sellers.
4. Any of the above:
- The authority of a mercantile agent is not limited to any single task mentioned above. They have the power to perform any or all of these tasks, depending on the specific instructions and agreement with the principal.
In conclusion, a mercantile agent has the authority to sell or consign goods, raise money on the security of goods, and buy or sell goods on behalf of the principal. Their authority is not limited to a single task and can encompass any or all of the mentioned activities.

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.

Property in the Goods Passing to the Buyer
In the context of a contract, the passing of property in the goods refers to the transfer of ownership from the seller to the buyer. There are several forms of contracts, but only one in which the property in the goods passes to the buyer immediately. That form is a sale.
Here is a breakdown of the options provided:
A. Agreement to sell: In this form of contract, the seller agrees to transfer the ownership of the goods to the buyer at a future date or upon certain conditions being met. The property in the goods does not pass immediately.
B. Hire purchase: In a hire purchase agreement, the buyer pays installments for the use of the goods and has the option to purchase the goods at the end of the contract. The property in the goods typically passes to the buyer upon the final payment being made.
C. Sale: In a sale contract, the property in the goods passes to the buyer immediately upon the agreement of the parties. The buyer becomes the owner of the goods without any further conditions or future obligations.
D. Installment to sell: This form of contract involves the sale of goods in installments, with the property in each installment passing to the buyer upon payment. The buyer does not immediately acquire full ownership of the goods.
Based on the above explanations, the correct answer is C: Sale.

Explanation:
Implied warranties are those that are automatically provided by law when goods are sold. They are not explicitly stated in the sales contract but are implied based on the circumstances of the sale.
The correct answer is B: warranty as to existence of encumbrance. This is not an implied warranty because it is not automatically provided by law.
Let's break down the other options to understand why they are implied warranties:
A: warranty as to undisturbed possession
- This warranty implies that the buyer will have the right to possess the goods without interference or claims from others.
C: disclosure of dangerous nature of goods
- This warranty implies that the seller must disclose any known dangers associated with the goods, especially if they are not apparent to the buyer.
D: warranty as to quality or fitness by usage of trade
- This warranty implies that the goods will be of a certain quality or fitness for a particular purpose, based on the standards and practices of the industry.
In conclusion, while warranties as to undisturbed possession, disclosure of dangerous nature of goods, and warranty as to quality or fitness by usage of trade are all implied warranties, warranty as to existence of encumbrance is not.

Doctrine of Caveat Emptor:
The doctrine of Caveat Emptor is a legal principle that governs the sale of goods. It places the responsibility on the buyer to exercise caution and perform due diligence before making a purchase. The term "Caveat Emptor" is derived from Latin, which translates to "let the buyer beware." Let's discuss this concept in detail:
Meaning:
The doctrine of Caveat Emptor means that the buyer is responsible for assessing the quality, condition, and suitability of the goods they intend to purchase. It implies that the seller has no obligation to disclose any defects or issues with the product unless specifically asked by the buyer.
Explanation:
The doctrine of Caveat Emptor is based on the following principles:
1. Buyer's Responsibility: It is the buyer's duty to examine the goods, ask relevant questions, and conduct inspections before finalizing the purchase. The buyer should be cautious and aware of potential risks or hidden flaws.
2. No Duty to Disclose: Sellers are not obligated to disclose any defects or issues with the product unless there is a deliberate misrepresentation or fraud involved.
3. Reduces Seller's Liability: The doctrine of Caveat Emptor limits the seller's liability for any defects or problems with the goods after the purchase is made. Once the buyer has taken possession, they are responsible for any issues that may arise.
4. Exceptions: Although Caveat Emptor is a general rule, there are certain exceptions where the seller may be held liable, such as when there is a warranty or guarantee provided, or if the seller intentionally conceals known defects.
Application:
The doctrine of Caveat Emptor is commonly applied in various commercial transactions, including the sale of goods, real estate, and used vehicles. It helps maintain a fair balance of responsibility between buyers and sellers and encourages buyers to make informed decisions.
In conclusion, the doctrine of Caveat Emptor means "let the buyer beware." It emphasizes the buyer's responsibility to thoroughly inspect and assess the goods before making a purchase. The seller is not obligated to disclose any defects unless there is a deliberate misrepresentation. However, there are exceptions to this rule, and sellers may still be held liable in certain circumstances.

Explanation:
Under the doctrine of Caveat Emptor, the buyer is responsible for examining the goods before purchasing them. This means that the seller is not responsible for any defects or shortcomings in the goods after the purchase has been made. Here is a detailed explanation:
Definition:
- Caveat Emptor is a Latin term that means "let the buyer beware."
- It is a principle of contract law that places the responsibility on the buyer to examine the goods before making a purchase.
Responsibilities of the seller:
- The seller is responsible for providing accurate and truthful information about the goods.
- The seller must not engage in any fraudulent or misleading practices.
Responsibilities of the buyer:
- The buyer is responsible for carefully inspecting the goods before purchasing them.
- The buyer should ask questions, seek clarification, and conduct any necessary tests or inspections to ensure that the goods meet their requirements.
Implications of Caveat Emptor:
- Once the buyer has purchased the goods, they cannot hold the seller responsible for any defects or issues that were not apparent during the inspection.
- The buyer cannot seek remedies or compensation from the seller based on the principle of Caveat Emptor.
Conclusion:
Under the doctrine of Caveat Emptor, the seller is not responsible for the bad selection of goods by the buyer. It is the buyer's responsibility to thoroughly inspect and assess the goods before making a purchase.

The doctrine of Caveat Emptor does not apply, when:
- When the goods are bought by sample:
- In this case, the buyer has the opportunity to inspect and test a sample of the goods before making the purchase. The buyer can rely on the sample to determine the quality and characteristics of the goods, and the seller cannot hide any defects or misrepresent the product.
- When the goods are bought by sample as well as description:
- Similar to the previous case, the buyer can rely on both the sample and the description provided by the seller to make an informed decision. The buyer has the right to expect that the actual goods will match the sample and description.
- When the goods are purchased under its brand name:
- When a buyer purchases goods under a specific brand name, they have certain expectations regarding the quality, reputation, and performance of the product. The seller cannot deceive the buyer by selling goods of inferior quality under a well-known brand name.
Therefore, in all of these cases, the doctrine of Caveat Emptor does not apply as the buyer has certain protections and expectations regarding the goods being purchased.

Explanation:
When there is an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods passes to the buyer when the contract is made. Let's break down the explanation into bullet points:
- An unconditional contract refers to a contract that does not have any conditions or contingencies attached to it.
- The sale of specific goods means that the contract is for the sale of particular goods that are identified and agreed upon by both the buyer and the seller.
- A deliverable state means that the goods are in a condition where they can be delivered to the buyer.
- When these conditions are met, the property in the goods passes to the buyer when the contract is made. This means that the buyer becomes the legal owner of the goods.
To summarize, in a situation where there is an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods passes to the buyer when the contract is made.

Selection of goods with the intention of using them in performance of the contract and with the mutual consent of the seller and the buyer is known as
The correct answer is B: appropriation.
Explanation:

- Appropriation refers to the act of selecting goods with the intention of using them in the performance of a contract. It involves the mutual consent of both the seller and the buyer.

- The process of appropriation is an essential step in the fulfillment of a contract, as it ensures that the appropriate goods are selected and allocated for the agreed-upon purpose.

- Appropriation can occur in various types of contracts, such as the sale of goods, where the buyer chooses specific products from the seller's inventory.

- The mutual consent between the buyer and seller is crucial in appropriation, as it establishes the agreement and understanding of both parties regarding the selected goods.

- Other terms mentioned in the options, such as distribution, amortization, and storage, are not synonymous with the act of selecting goods for use in the performance of a contract.

Acceptance of delivery of goods is deemed to take place when the buyer:
There are several scenarios in which the acceptance of delivery of goods can be deemed to have taken place. These scenarios include:
A: Intimation to the seller:
- When the buyer intimates to the seller that he has accepted the goods, it is deemed as acceptance of delivery.
- This can be done through direct communication or any other means that clearly indicates acceptance.
B: Act inconsistent with ownership of the seller:
- If the buyer performs any act on the goods that is inconsistent with the ownership of the seller, it is considered as acceptance of delivery.
- This could include using, selling, or altering the goods in a way that indicates ownership.
C: Retention of goods without rejection:
- If the buyer retains the goods for a reasonable period of time without explicitly rejecting them to the seller, it is deemed as acceptance of delivery.
- This implies that the buyer has had sufficient time to examine the goods and has chosen to keep them.
D: Any of the above:
- Acceptance of delivery can occur through any of the scenarios mentioned above.
- The buyer can choose to indicate acceptance to the seller, perform an act inconsistent with ownership, or simply retain the goods without rejection.
In conclusion, acceptance of delivery of goods can take place when the buyer intimates acceptance to the seller, performs an act inconsistent with ownership, or retains the goods without rejection.

An unpaid seller is having rights against both goods and buyer.
Unpaid sellers have certain rights against the goods and the buyer in case of non-payment. These rights are outlined in the Sale of Goods Act. Here is a detailed explanation of the rights of an unpaid seller:
1. Right of Lien:
- The unpaid seller has the right to retain possession of the goods until the payment is made.
- This right allows the seller to refuse delivery of the goods to the buyer unless the payment is made.
2. Right of Stoppage in Transit:
- If the buyer becomes insolvent, the unpaid seller has the right to stop the goods in transit and resume possession of them.
- This right can be exercised even if the seller has already delivered the goods to a carrier for transportation to the buyer.
3. Right to Resale:
- If the goods are perishable in nature or if the unpaid seller has given notice to the buyer of his intention to resell, the seller can resell the goods.
- The seller can recover any losses from the original buyer, including the cost of resale.
4. Right to Sue for Price:
- The unpaid seller can sue the buyer for the price of the goods if the payment is not made.
- This right can be exercised even if the property in the goods has not passed to the buyer.
5. Right to Claim Damages:
- The unpaid seller can claim damages from the buyer for any loss suffered due to non-payment.
- This can include any extra expenses incurred by the seller as a result of the buyer's default.
In conclusion, an unpaid seller has rights against both the goods and the buyer. These rights provide protection to the seller in case of non-payment and allow them to recover their losses.

Section 2, Subsection 7:
According to Section 2, Subsection 7 of the law, every kind of moveable property, except for actionable claims and money, is referred to by a specific term.
The given options:
The options provided are:
A. Goods
B. Future goods
C. Both (a) and (b)
D. None of the above
Explanation:
The correct answer to this question is option A, which is "Goods". Let's understand the meaning of each option:
1. Goods:
- Goods refer to any kind of moveable property that is not an actionable claim or money. It includes tangible items such as electronics, furniture, vehicles, etc.
2. Future goods:
- Future goods refer to goods that are not yet in existence but will come into existence at a later time. They are goods that are yet to be produced or acquired.
3. Both (a) and (b):
- This option suggests that both goods and future goods are the correct answers. However, since future goods are a subset of goods, the correct answer is option A, which covers both regular goods and future goods.
4. None of the above:
- This option is incorrect as it contradicts the definition stated in Section 2, Subsection 7 of the law.
Conclusion:
Based on the given information and the provisions of the law, the correct answer is option A, which states that every kind of moveable property other than actionable claim and money is called "Goods".

The unpaid seller refers to a seller who has not yet received payment for the goods they have sold. When the unpaid seller has already handed over the goods to a carrier and the buyer becomes insolvent (unable to pay their debts), the unpaid seller can exercise the following rights:
1. Right of lien:
- The right of lien allows the seller to retain possession of the goods until the buyer pays for them in full.
- This right can be exercised by the unpaid seller when the buyer becomes insolvent even after the goods have been handed over to the carrier.
- However, in this specific scenario, the right of lien cannot be exercised as the goods have already been handed over to the carrier.
2. Right of stoppage in transit:
- The right of stoppage in transit allows the unpaid seller to stop the goods in transit and regain possession of them.
- This right can be exercised when the buyer becomes insolvent after the goods have been dispatched but before they reach the buyer.
- In this case, since the goods have been handed over to the carrier, they are still in transit, and the unpaid seller can exercise the right of stoppage in transit.
3. Right of resale:
- The right of resale enables the unpaid seller to resell the goods to recover the unpaid amount.
- This right can be exercised when the buyer becomes insolvent and the goods have not been delivered to them.
- In this scenario, since the goods are still in transit, the unpaid seller can exercise the right of resale.
4. None of the above:
- This option is incorrect as both the right of stoppage in transit and the right of resale can be exercised by the unpaid seller in the given situation.
Therefore, the correct answer is option B: right of stoppage in transit.

The Essence of a Right of Lien:
The essence of a right of lien is to retain the possession of goods until a debt or obligation is satisfied. It is a legal right that allows a person to keep possession of someone else's property until a debt is paid or an obligation is fulfilled. Here are the key points explaining the essence of a right of lien:
1. Definition: A right of lien is a legal right that allows a person (lien holder) to retain possession of someone else's property (lien property) until a debt or obligation is discharged.
2. Possession: The essence of a right of lien is to retain possession of the goods or property. The lien holder has the right to keep the goods until the debt is fully paid or the obligation is fulfilled.
3. Security: Lien acts as a security for the debt or obligation. It provides the lien holder with a legal claim over the property, ensuring that they have a means to recover their dues.
4. Enforcement: If the debt or obligation is not satisfied within a specified time, the lien holder may have the right to sell the property to recover the amount owed.
5. Types of Lien: There are various types of lien, including possessory lien, equitable lien, legal lien, and statutory lien. Each type has its own specific requirements and conditions.
6. Scope and Limitations: The right of lien is subject to certain limitations and regulations. It cannot be used to retain possession indefinitely, and there may be specific laws governing the exercise of lien rights in different jurisdictions.
In conclusion, the essence of a right of lien is to retain possession of goods or property until a debt or obligation is satisfied. It provides a legal means for the lien holder to secure their rights and recover their dues.