SOGA MCQ

1. When did the Sale of Goods Act come into force?

a) 1st July, 1929
b) 1st July, 1930
c) 1st July, 1947
d) 1st July, 1950
Answer: b) 1st July, 1930

2. To which geographical area is the Sale of Goods Act applicable?

a) Northern India
b) Southern India
c) Whole of India
d) Western India
Answer: c) Whole of India

3. Which Act contained the laws relating to the Sale of Goods before the Sale of Goods Act?
a) Indian Penal Code
b) Indian Contract Act, 1872
c) Transfer of Property Act, 1882
d) Companies Act, 1956
Answer: b) Indian Contract Act, 1872

4. If the Sale of Goods Act is silent on any point, which laws apply?
a) Law of Tort
b) Law of Agency
c) Law of Contract
d) Law of Equity
Answer: c) Law of Contract

5. According to Section 2(1), who is a buyer?

a) A person who sells goods
b) A person who buys or agrees to buy goods
c) A person who transports goods
d) A person who insures goods
Answer: b) A person who buys or agrees to buy goods

6. According to Section 2(13), who is a seller?

a) A person who buys goods
b) A person who sells or agrees to sell goods
c) A person who transports goods
d) A person who insures goods
Answer: b) A person who sells or agrees to sell goods

7. What does "Goods" include?

a) Money and actionable claims
b) Actionable claims and immovable property
c) Movable property including stocks, shares, growing crops
d) Immovable property and shares
Answer: c) Movable property including stocks, shares, growing crops
8.What does "Goods" exclude?
a) Stocks and shares
b) Growing crops and grass
c) Actionable claims and money
d) Things attached to the land
Answer: c) Actionable claims and money

9.What is a contract of sale?

a) An agreement to rent goods
b) An agreement where the seller transfers or agrees to transfer property in goods to the buyer for a
price
c) An agreement to lease goods
d) An agreement to exchange goods for other goods
Answer: b) An agreement where the seller transfers or agrees to transfer property in goods to the
buyer for a price

10.What is a sale?
a) A future transfer of property in goods
b) An immediate transfer of property in goods from seller to buyer
c) An exchange of goods for goods
d) A transfer of property in goods subject to a condition
Answer: b) An immediate transfer of property in goods from seller to buyer

11.What is barter?
a) An exchange of money for goods
b) An exchange of goods for goods
c) A transfer of property in goods
d) An agreement to sell goods
Answer: b) An exchange of goods for goods

12.What is an exchange?
a) An exchange of goods for goods
b) An exchange of money for goods
c) An exchange of money for money
d) An agreement to sell goods
Answer: c) An exchange of money for money

13.What is an agreement to sell?

a) An immediate transfer of property in goods
b) A future transfer of property in goods or subject to a condition
c) An exchange of goods for goods
d) A transfer of ownership without a price
Answer: b) A future transfer of property in goods or subject to a condition

14.What are existing goods?

a) Goods to be manufactured in the future
b) Goods in existence at the time of the contract of sale
c) Goods to be acquired after making the contract
d) Goods whose acquisition depends on an uncertain event
Answer: b) Goods in existence at the time of the contract of sale
15.What are specific goods?
a) Goods not identified at the time of the contract of sale
b) Goods identified and agreed upon at the time a contract of sale is made
c) Goods to be manufactured or produced
d) Goods whose acquisition depends on a future event
Answer: b) Goods identified and agreed upon at the time a contract of sale is made

16.What are ascertained goods?

a) Goods identified at the time of the contract of sale
b) Goods identified in accordance with the agreement after the contract of sale
c) Goods to be manufactured in the future
d) Goods not specifically identified
Answer: b) Goods identified in accordance with the agreement after the contract of sale

17.What are unascertained goods?

a) Goods specifically identified at the time of the contract
b) Goods not specifically identified at the time of the contract
c) Goods identified and agreed upon
d) Goods whose acquisition depends on an uncertain event
Answer: b) Goods not specifically identified at the time of the contract

18.What are future goods?

a) Goods in existence at the time of the contract of sale
b) Goods to be manufactured, produced, or acquired by the seller after the contract of sale
c) Goods identified and agreed upon at the time of the contract
d) Goods whose acquisition depends on an uncertain event
Answer: b) Goods to be manufactured, produced, or acquired by the seller after the contract of sale

19.What are contingent goods?

a) Goods identified and agreed upon at the time of the contract
b) Goods whose acquisition depends on an uncertain event
c) Goods in existence at the time of the contract
d) Goods identified after the contract is made
Answer: b) Goods whose acquisition depends on an uncertain event

20.What must be present for a valid contract of sale?

a) Only one party
b) No goods as subject-matter
c) No price for the goods
d) Two parties, some goods, and a price
Answer: d) Two parties, some goods, and a price

21.What does 'property in the goods' mean?

a) Possession of the goods
b) Ownership of the goods
c) Transfer of goods
d) Exchange of goods
Answer: b) Ownership of the goods

22.What is necessary for a valid contract of sale?

a) Offer and acceptance
b) Only offer
c) Only acceptance
d) No need for offer and acceptance
Answer: a) Offer and acceptance

23.What should a contract of sale fulfill?

a) Only some requirements of a valid contract
b) No requirements of a valid contract
c) All requirements of a valid contract
d) Only the payment requirement
Answer: c) All requirements of a valid contract

24.What happens in a sale regarding the transfer of property?

a) Property in the goods passes to the buyer immediately
b) Property in the goods never passes to the buyer
c) Property in the goods passes on a future date
d) Property in the goods passes only after payment
Answer: a) Property in the goods passes to the buyer immediately

25.What happens in an agreement to sell regarding the transfer of property?

a) Property in the goods passes immediately
b) Property in the goods never passes
c) Property in the goods passes on a future date or on fulfillment of a condition
d) Property in the goods passes only after partial payment
Answer: c) Property in the goods passes on a future date or on fulfillment of a condition

26.What type of contract is a sale?

a) Executory contract
b) Executed contract
c) Conditional contract
d) Void contract
Answer: b) Executed contract

27.What type of contract is an agreement to sell?

a) Executory contract
b) Executed contract
c) Conditional contract
d) Void contract
Answer: a) Executory contract

28.In case of a breach of sale, what can the seller do?

a) Sue for damages only
b) Sue for the price of the goods
c) Not sue at all
d) Only cancel the contract
Answer: b) Sue for the price of the goods

29.In case of a breach of an agreement to sell, what can the aggrieved party do?
a) Sue for the price of the goods
b) Sue for damages only
c) Not sue at all
d) Only cancel the contract
Answer: b) Sue for damages only

30.Who bears the liability in case of loss or destruction of goods in a sale?

a) The seller
b) The buyer
c) The transporter
d) The insurer
Answer: b) The buyer

31.Who bears the liability in case of loss or destruction of goods in an agreement to sell?
a) The seller
b) The buyer
c) Both the seller and buyer
d) The insurer
Answer: a) The seller

32.What right does an unpaid seller have?

a) Right to repossess the goods from the buyer
b) Right to withhold delivery of the goods
c) Right to sue for specific performance
d) Right to force the buyer to take the goods
Answer: b) Right to withhold delivery of the goods

33.What right does an unpaid seller have against the goods?

a) Right to resell the goods
b) Right to destroy the goods
c) Right to retain the goods
d) Right to return the goods to the manufacturer
Answer: c) Right to retain the goods

34.Who is considered an unpaid seller?

a) A seller who has been fully paid
b) A seller who has not been paid or a negotiable instrument has been dishonored
c) A seller who has received payment but refuses to deliver goods
d) A seller who has received a partial payment
Answer: b) A seller who has not been paid or a negotiable instrument has been dishonored

35.What is a condition in a contract of sale?

a) A stipulation essential to the main purpose of the contract
b) A non-essential term of the contract
c) A guarantee about the quality of goods
d) A secondary term of the contract
Answer: a) A stipulation essential to the main purpose of the contract

36.What is a warranty in a contract of sale?

a) A stipulation essential to the main purpose of the contract
b) A non-essential term of the contract
c) A condition to be fulfilled by the seller
d) A secondary term of the contract
Answer: b) A non-essential term of the contract
37.What happens when a condition is breached in a contract of sale?
a) The buyer can reject the goods and treat the contract as repudiated
b) The buyer can only claim damages
c) The buyer cannot take any action
d) The buyer must accept the goods
Answer: a) The buyer can reject the goods and treat the contract as repudiated

38.What happens when a warranty is breached in a contract of sale?

a) The buyer can reject the goods and treat the contract as repudiated
b) The buyer can only claim damages
c) The buyer cannot take any action
d) The buyer must accept the goods
Answer: b) The buyer can only claim damages

39.What is an express condition?

a) A condition explicitly stated in the contract
b) A condition implied by law
c) A warranty explicitly stated in the contract
d) A warranty implied by law
Answer: a) A condition explicitly stated in the contract

40.What is an implied condition?

a) A condition explicitly stated in the contract
b) A condition implied by law based on the nature of the contract
c) A warranty explicitly stated in the contract
d) A warranty implied by law
Answer: b) A condition implied by law based on the nature of the contract

41.What is the right of lien?

a) The right to resell goods
b) The right to retain possession of goods until payment is made
c) The right to deliver goods to the buyer
d) The right to return goods to the manufacturer
Answer: b) The right to retain possession of goods until payment is made

42.What is the right of stoppage in transit?

a) The right to retain possession of goods until payment is made
b) The right to stop the goods in transit and regain possession until payment is made
c) The right to resell the goods
d) The right to return goods to the manufacturer
Answer: b) The right to stop the goods in transit and regain possession until payment is made

43.What is the right of resale?

a) The right to sell goods to another buyer without any conditions
b) The right to sell goods to another buyer after the first buyer has defaulted
c) The right to retain possession of goods until payment is made
d) The right to return goods to the manufacturer
Answer: b) The right to sell goods to another buyer after the first buyer has defaulted

44.Who can exercise the right of resale?

a) Any seller
b) An unpaid seller
c) Any buyer
d) Any third party
Answer: b) An unpaid seller

45.When does the risk of loss transfer in a contract of sale?

a) When the goods are shipped
b) When the contract is made
c) When the goods are delivered to the buyer
d) When the buyer makes payment
Answer: c) When the goods are delivered to the buyer

46.What does 'property in the goods' mean?

a) Physical possession of the goods
b) Legal ownership of the goods
c) Right to use the goods
d) Right to sell the goods
Answer: b) Legal ownership of the goods

47.What is the significance of passing of property in goods?

a) It determines who has the right to use the goods
b) It determines who has the right to sell the goods
c) It determines who bears the risk of loss
d) It determines who can return the goods
Answer: c) It determines who bears the risk of loss