MCQs

MCQs
Q. The goods that are identified at the time
of sale of contract are called_____?
A.Future goods
B.Movable
C.Immovable
D.Uncertain
 MCQs
Q. Identify the right to be created in case of
agreement to sell?
A.Right in things
B.Right in Personam
C. Right in rem
D.All of these
 MCQ

The Sale of Goods Act 1930, which of the

following does not come in the meaning of
goods?
A) Movable property
B) Growing crops
C) Actionable claims
D) Specific goods
 MCQ
Rare coins can not be considered as goods?

A.Yes
B.No
 Case
State of Gujrat Vs Raman Lal & Co

A partnership firm was dissolved and the surplus

assets including the stock in trade was divided
among the partners.
Is it contract of Sale?
a)Yes
b)No
State reasons.
 Ans-
Decision: No, As the partners themselves
were joint owner of goods.
Act- Sec 2(13) Buyer and seller should be
there.
Explanation (Hint)- They could not be both
buyer and seller.
 Case

A agreed to sell 100 quintals of groundnut oil to B. Before,

it could be delivered to B, The government of India banned
selling groundnut oil because of COVID19 crisis. B wants
to sue A. Should B do so?
a)A) Yes
b)B) No
c)State reasons.
 Ans-
Decision: B can’t be successful.
Act- Section 8, contract act
Explanation (Hint): The contract become
void.
MCQ
Q. “A stipulation(Prerequisite) essential to
the main purpose of the contract, the breach
of which gives rise to a right to treat the
contract as repudiated” Identify the situation?
a)A Condition
b)A Warranty
c)Both (a) and (b)
d)None of Above
 Q. Name the situation “A stipulation collateral to
the main purpose of the contract, the breach of
which gives rise to a claim for damages but not to
a right to reject the goods and treat the contract as
repudiated”.
a)A Condition
b)A Warranty
c)Both (a) and (b)
d)None of Above
 MCQ

Q. “If a sale by sample as well as by

description”, Tell the implied conditions is
that goods shall correspond with?
A.Sample
B.Description
C.Both Sample & Description
D.Either Sample or Description
 MCQ

Q. In case of breach of warranty, Identify the

option available to the buyer?
A.Repudiate the contract
B.Claim damages only
C.Return the goods
D.Refuse to pay the price
 Case

Q. A purchase car from B and uses it for

some time. It turns out that the car sold by B
was stolen one and had to be returned to
the rightful owner. A brings action against B
for return of price. Will he succed?

Rowland Vs Divall
 Ans

Decision: Yes, B has to payback to A.

Act- Sec 14(a), Condition as to title of
goods. B has no title to the car.

Explanation (Hint)- Held, A could recover the

price
 Case

Q. A purchases some chocolates from shop.

One of the chocolates contain poisonous
matter and as a result A’s wife falls seriously
ill. What remedy is available to A? State with
reasons.
 Ans

Decision: Yes, A could recover from the

seller.
Explanation (Hint)
Act- The chocolates are not of merchantable
quality Sec 16(2).
Held, A can repudiate the contract and
recover the damages.
 Case

Q. In a contract for the purchase of 3000 tins

of canned fruit to be packed in cases
containing 30 tins, a substantial part was
tendered in cases of 24 tins. Can the buyer
reject the cases?

Re Moore Co. Ltd vs Landauer & Co.

 Ans

Decision: Yes, the buyer can reject the

cases
Explanation (Hint):
Act- Sec 15, Sale by description.
Held, As the goods do not correspond to the
description ordered, the buyer can repudiate
the contract and recover the damages.
 Example
Case : Morelli V. Fitch & Gibbons:
X asked for a bottle of stone’s ginger wine
at Y’s shop, which was licensed for the
sale of wines. While X was using it, the
bottle broke at the neck & injured him.
Held X was entitled to damages as the bottle
was not of merchantable quality.
Think over it
• A manufacturer supplied 6 car under a contract.
car were found to be dented and scratched.
• Can buyer repudiate the contract??????
• Yes, as goods are not merchantable
 Case
(Frost v. Aylesbury Diary Co Ltd. 1905)

F bought milk from A. The milk contained germs of

typhoid fever. F’s wife took the milk and got
infection as a result of which she died. Can F sue A?
a)Yes
b)No
Give reasons
 Example
• A purchased a horse from B, for riding
purpose but he did not mention this fact to
B. The horse was not suitable for riding
but is suitable for being driven in the
carriage.

• Can A reject the goods????

• Can he claim for damages????
• Decision: No
• Explanation (Hint): because he did not
disclose the purpose. The rule of caveat
emptor will apply.
A contracts to sell B a piece of silk. B thinks
that it is Indian silk. A knows that B thinks
so and further knows that it is not Indian
silk.
A does not correct B’s impression. B
afterward discovers that it is not an Indian
silk.
Can he cancel the contract?
Decision: No,
Explanation (Hint): because he did not
disclose the purpose or description of the
type of silk. The rule of caveat emptor will
apply.