McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 451. |
The Sale of Goods Act, 1930 governs the transfer of property in |
| A. | movable property |
| B. | immovable property |
| C. | both movable and immovable property |
| D. | all type of properties |
| Answer» A. movable property | |
| 452. |
"Goods" means |
| A. | every kind of movable property other than actionable claims and money |
| B. | some kinds of immovable property only |
| C. | every kind of movable property including actionable claims and money |
| D. | Both 'a' and 'b' |
| Answer» A. every kind of movable property other than actionable claims and money | |
| 453. |
Which one of the following does not connote 'goods' as defined in the Sale of Goods Act. |
| A. | Money |
| B. | animals |
| C. | debt |
| D. | both 'a' and 'c' |
| Answer» D. both 'a' and 'c' | |
| 454. |
Which of the following is/are not included in the meaning of 'goods' as defined in the Sale of Goods Act. |
| A. | stocks and shares |
| B. | actionable claims |
| C. | legal tender money |
| D. | both 'b' and 'c' |
| Answer» D. both 'b' and 'c' | |
| 455. |
A contract of sale of goods is a contract whereby |
| A. | the seller transfers the property in goods to the buyer for a price. |
| B. | the seller delivers the goods to the buyer in exchange of certain goods. |
| C. | the seller transfers or agrees to transfer the property in goods to the buyer for a price. |
| D. | the seller gives possession of goods to the buyer |
| Answer» C. the seller transfers or agrees to transfer the property in goods to the buyer for a price. | |
| 456. |
A valid contract of sale |
| A. | includes 'an agreement to sell' |
| B. | does not include 'an agreement to sell' |
| C. | includes hire purchase contract |
| D. | includes contract a work and labour |
| Answer» A. includes 'an agreement to sell' | |
| 457. |
An essential element of a contract of sale is |
| A. | transfer of ownership in goods |
| B. | delivery of goods |
| C. | both 'a' and 'b' |
| D. | either 'a' or 'b' |
| Answer» A. transfer of ownership in goods | |
| 458. |
Where under a contract of sale the property in goods is transferred from the seller to the buyer, the contract is called. |
| A. | an agreement to sell |
| B. | a sale |
| C. | both 'a' and 'b' |
| D. | either 'a' or 'b' |
| Answer» B. a sale | |
| 459. |
Where under a contract of sale the property in goods is to be transferred at a future time, the contract is called. |
| A. | an agreement to sell |
| B. | a sale |
| C. | neither 'a' nor 'b' |
| D. | both 'a' and 'b' |
| Answer» A. an agreement to sell | |
| 460. |
A valid sale must have two parties who |
| A. | must be competent to contract |
| B. | may not be competent to contract |
| C. | must be Indian citizens |
| D. | must be residents of the same state |
| Answer» A. must be competent to contract | |
| 461. |
In a valid sale |
| A. | absolute ownership must be transferred to the buyer. |
| B. | absolute ownership with the goods must be transferred to the buyer |
| C. | conditional transfer of ownership to the buyer |
| D. | contingent transfer of ownership to the buyer |
| Answer» B. absolute ownership with the goods must be transferred to the buyer | |
| 462. |
The subject matter of a valid sale are such goods which are |
| A. | transferred by seller to the buyer for a price |
| B. | transferred by succession |
| C. | transferred by a will |
| D. | transferred by a buyer to the seller |
| Answer» A. transferred by seller to the buyer for a price | |
| 463. |
An agreement to sell is |
| A. | an executory contract |
| B. | an executed contract |
| C. | neither 'a' or 'b' |
| D. | sometime 'a' or 'b' |
| Answer» A. an executory contract | |
| 464. |
An 'agreement to sell' becomes 'sale' when |
| A. | the conditions are satisfied |
| B. | the parties agree to change the terms of agreement |
| C. | when the court orders |
| D. | when the agreement is in writing |
| Answer» A. the conditions are satisfied | |
| 465. |
'Goods' as defined in Sale of Goods Act will include |
| A. | rare coins, goodwill and money |
| B. | growing crops agreed to be severed before sale, old coins, and copyrights |
| C. | goodwill, copyright, patent and foreign currency |
| D. | both 'b' and 'c' |
| Answer» B. growing crops agreed to be severed before sale, old coins, and copyrights | |
| 466. |
Specific goods are such goods which are |
| A. | existing and identified at the time of making the contract |
| B. | identified after the making of contract but before the performance of contract |
| C. | both 'a' and 'b' |
| D. | neither 'a' nor 'b' |
| Answer» A. existing and identified at the time of making the contract | |
| 467. |
'Future goods' |
| A. | can be the subject matter of sale |
| B. | cannot be subject matter of sale |
| C. | sometimes may be the subject matter of sale |
| D. | depends on circumstances |
| Answer» A. can be the subject matter of sale | |
| 468. |
Where a contract of sale purports to effect a present sale of future goods, the contract operates as |
| A. | a sale |
| B. | an agreement to sell |
| C. | both 'a' and 'b' |
| D. | all the above |
| Answer» B. an agreement to sell | |
| 469. |
Where there is a contract for the sale of specific goods, and the goods perish before the making of contract, without the knowledge of the seller, the contract is |
| A. | voidable at the option of the buyer |
| B. | void |
| C. | illegal |
| D. | unenforceable |
| Answer» B. void | |
| 470. |
When there is a contract for unascertained goods, and goods perish without the fault of the seller or buyer before the risk passes to the buyer, the contract |
| A. | can be avoided |
| B. | cannot be avoided |
| C. | becomes void |
| D. | becomes unenforceable |
| Answer» B. cannot be avoided | |
| 471. |
To constitute a Contract of Sale, the transfer of property in goods |
| A. | must be for monetary consideration |
| B. | may be for non-monetary consideration |
| C. | must be for both monetary and nonmonetary consideration |
| D. | may be either monetary or non monetary consideration |
| Answer» A. must be for monetary consideration | |
| 472. |
Price must either be certain or definite or |
| A. | determined by some method or criterion prescribed in the contract |
| B. | by valuation of a third party |
| C. | All the above |
| D. | None of the above |
| Answer» C. All the above | |
| 473. |
If a contract of sale stipulates that price will be fixed by a third party on valuation of the goods, and the third party shows inability to do so, then, |
| A. | the agreement is void |
| B. | the buyer shall pay reasonable price |
| C. | the buyer shall pay market price |
| D. | the agreement is valid |
| Answer» A. the agreement is void | |
| 474. |
Where there is an agreement to sell goods on the price fixed by a third party on valuation, but the third party refuses to do so, and the buyer appropriates part of the goods delivered to him. |
| A. | the buyer shall pay reasonable price |
| B. | the agreement is avoided |
| C. | the buyer shall pay market price |
| D. | none of the above |
| Answer» A. the buyer shall pay reasonable price | |
| 475. |
The Sale of Goods Act, 1930 extends to the whole of India, except the state of— |
| A. | Maharashtra |
| B. | Jammu and Kashmir |
| C. | Tamilnadu |
| D. | Uttar Pradesh |
| Answer» B. Jammu and Kashmir | |
| 476. |
The Sale of Goods Act, 1930 came into force on — |
| A. | 1st day of July 1930 |
| B. | 1st day of September 1930 |
| C. | 1st day of January 1930 |
| D. | 31st day of December 1930 |
| Answer» A. 1st day of July 1930 | |
| 477. |
The Sale of Goods Act, 1930 deals with — |
| A. | Cash Sales |
| B. | Credit Sales |
| C. | Hire Purchase Sales |
| D. | Sale of Goods in general |
| Answer» D. Sale of Goods in general | |
| 478. |
Conditions are stipulations |
| A. | essential to the main purpose of the contract |
| B. | collateral to the main purpose of the contract |
| C. | either 'a' or 'b' |
| D. | neither 'a' nor 'b' |
| Answer» A. essential to the main purpose of the contract | |
| 479. |
A warranty is stipulation |
| A. | essential to the main purpose of the contract |
| B. | collateral to the main purpose of the contract |
| C. | very important to the seller |
| D. | very important to the buyer |
| Answer» B. collateral to the main purpose of the contract | |
| 480. |
Breach of a condition gives rise to |
| A. | claim for damages |
| B. | a right to treat the contract as repudiated |
| C. | both 'a' and 'b' |
| D. | either 'a' or 'b' |
| Answer» C. both 'a' and 'b' | |
| 481. |
Breach of a warranty gives rise to |
| A. | claim for damages |
| B. | a right to treat the contract as repudiated |
| C. | both 'a' and 'b' |
| D. | either 'a' or 'b' |
| Answer» A. claim for damages | |
| 482. |
Whether a stipulation is a condition or a warranty depends on |
| A. | the construction of the contract |
| B. | the conduct of the parties |
| C. | the trade custom |
| D. | the local law |
| Answer» A. the construction of the contract | |
| 483. |
If a contract of a sale contains a stipulation which is impossible to fulfill then |
| A. | the contract becomes illegal |
| B. | the law excuses such a stipulation by reason of impossibility |
| C. | either 'a' or 'b' |
| D. | both 'a' and 'b' |
| Answer» B. the law excuses such a stipulation by reason of impossibility | |
| 484. |
Where a contact of sale is subject to any condition to be fulfilled by the seller and the seller commits a breach of that condition |
| A. | the buyer has to compulsorily treat the breach of condition as breach of warranty only |
| B. | the buyer may voluntarily waive the condition |
| C. | the buyer may do nothing |
| D. | the buyer may contact another seller |
| Answer» B. the buyer may voluntarily waive the condition | |
| 485. |
What are implied stipulations of a contract? |
| A. | agreed by the parties. |
| B. | incorporated by law unless specifically agreed otherwise. |
| C. | implied by the circumstances |
| D. | implied by trade customs |
| Answer» B. incorporated by law unless specifically agreed otherwise. | |
| 486. |
Once the buyer decides to waive the condition |
| A. | he can insist on its fulfillment later on |
| B. | he cannot insist on its fulfillment thereafter |
| C. | he is bound by the waiver |
| D. | both 'b' and 'c' |
| Answer» B. he cannot insist on its fulfillment thereafter | |
| 487. |
When will breach of condition be treated as breach of warranty only? |
| A. | when the contract is severable and buyer accepts the goods in full. |
| B. | when the contract is indivisible and the buyer accepts the goods in full or part. |
| C. | Either 'a' or 'b' |
| D. | Both 'a' and 'b' |
| Answer» B. when the contract is indivisible and the buyer accepts the goods in full or part. | |
| 488. |
What is the implied condition as to the title of goods? |
| A. | that seller has the right to sell if it is a case of sale |
| B. | he will have a right to sell in case of agreement to sell |
| C. | that the buyer will have the right to reject the goods |
| D. | both 'a' and 'b' |
| Answer» D. both 'a' and 'b' | |
| 489. |
If the condition as to the title of goods is not fulfilled, the buyer |
| A. | may reject the goods |
| B. | has no alternative but to buy the goods |
| C. | may reject the goods and claim damages |
| D. | all the above |
| Answer» C. may reject the goods and claim damages | |
| 490. |
The implied condition as to the description of goods means that |
| A. | the goods shall perfectly correspond to the description |
| B. | the goods should be capable of being sold in the market by that description |
| C. | both 'a' and 'b' |
| D. | neither 'a' nor 'b' |
| Answer» A. the goods shall perfectly correspond to the description | |
| 491. |
In a sale by sample and description, there is an implied condition |
| A. | that bulk of the goods correspond with the sample |
| B. | that bulk of goods must correspond to the description as well as the sample thereof |
| C. | the bulk of goods must correspond either to the description or to the sample |
| D. | the bulk of goods must correspond to the description only |
| Answer» B. that bulk of goods must correspond to the description as well as the sample thereof | |
| 492. |
"If you contract to sell peas, you cannot oblige a party to have beans": this statement applies to |
| A. | a implied condition as to be description of goods |
| B. | the implied condition as to fitness of goods for a particular purpose |
| C. | implied condition as to sample |
| D. | implied condition as to title |
| Answer» A. a implied condition as to be description of goods | |
| 493. |
Where goods are bought by description from a seller who deals in goods of that description, what is the implied condition? |
| A. | that goods shall be of merchantable quality |
| B. | that the buyer shall have reasonable opportunity of comparing the bulk with the sample |
| C. | the goods shall be in excellent quality |
| D. | the goods shall be free from defects |
| Answer» A. that goods shall be of merchantable quality | |
| 494. |
In a contract of sale, unless otherwise stated, there is an implied warranty. |
| A. | that the buyer can reject the goods if goods do not conform to his purpose |
| B. | that the buyer shall have and enjoy quiet possession, and if there is a breach of this warranty, he is entitled to sue the seller for damages |
| C. | that the buyer shall have right to terminate the contract in the event of non-compliance with the warranties |
| D. | none of the above |
| Answer» B. that the buyer shall have and enjoy quiet possession, and if there is a breach of this warranty, he is entitled to sue the seller for damages | |
| 495. |
Where goods are known to be dangerous to the seller, and he also knows that the buyer is ignorant about it, there is an implied warranty |
| A. | that buyer must be informed about the dangerous nature of goods |
| B. | that the buyer must examine the goods before taking delivery |
| C. | the seller must warn the buyer |
| D. | both 'a' and 'c' |
| Answer» D. both 'a' and 'c' | |
| 496. |
Under section 11 of the Sale of Goods Act, 1930, the time of payment can be of the essence of the contract — |
| A. | by agreement between the parties |
| B. | by operation of law |
| C. | both (a) and (b) |
| D. | either (a) or (b) |
| Answer» A. by agreement between the parties | |
| 497. |
Whether or not any stipulation other than time of payment is of the essence of the contract depends upon — |
| A. | application of section 11 |
| B. | operation of law |
| C. | terms of the contract |
| D. | all of the above |
| Answer» C. terms of the contract | |
| 498. |
The doctrine of Caveat emptor is not applicable |
| A. | in case of sale under a patent name |
| B. | in case of sale under a trade name |
| C. | where the seller is guilty of fraud |
| D. | where the buyer relies on the skill and judgment of the seller |
| Answer» C. where the seller is guilty of fraud | |
| 499. |
A stipulation in a contract of sale which is collateral to the main purpose of contract is called as |
| A. | Guarantee |
| B. | warranty |
| C. | condition |
| D. | term |
| Answer» B. warranty | |
| 500. |
Merchantable quality of goods means |
| A. | that the goods are commercially saleable |
| B. | they are fit for the purpose for which they are generally used |
| C. | both 'a' and 'b' |
| D. | the quality should be of high standard |
| Answer» C. both 'a' and 'b' | |
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