Chapter Exam

Chapter 21: The Sale of Goods Act 1930 — Online MCQ Test

Q: Under the Sale of Goods Act, 1930, what is meant by a 'sale'?

Answer: B. Transfer of ownership of goods for a price — A sale means the transfer of ownership in goods from the seller to the buyer for a price. Mere delivery or future promise is not enough.

Q: Which of the following is a characteristic of goods under the Sale of Goods Act?

Answer: C. Every kind of movable property is included — The Act defines goods as every kind of movable property other than actionable claims and money. Therefore, movable property is covered.

Q: In an agreement to sell, ownership of goods is transferred:

Answer: C. At a future time or subject to a condition — In an agreement to sell, the transfer of ownership is postponed to a future time or until a condition is fulfilled. It becomes a sale only later.

Q: A buyer accepts goods and later finds a breach of warranty. What is the usual legal remedy?

Answer: B. Claim damages for the breach — A breach of warranty does not usually allow rejection of goods. The buyer’s remedy is to claim damages for the loss caused.

Q: A buyer pays the price, but the seller still has possession of the goods. Later the seller discovers the buyer has become insolvent. Which remedy is most appropriate?

Answer: A. Right of lien — If the seller still has possession of the goods, the correct remedy is lien, not stoppage in transit. Stoppage in transit applies only when goods are already with the carrier.

COMMERCE · CLASS 12th · Tamil Nadu State Board

Practice Chapter 21: The Sale of Goods Act 1930 with a free chapter-wise online MCQ test for Tamil Nadu State Board CLASS 12th COMMERCE. This chapter covers: Focusing on commercial law this chapter covers sales contract formation differences between sale and agreement to sell and ownership transfer. Students study conditions warranties.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 21: The Sale of Goods Act 1930 — Important Questions & Answers (FAQ)

Frequently asked questions from Tamil Nadu State Board CLASS 12th COMMERCE — Chapter 21: The Sale of Goods Act 1930, with answers and explanations. These are sample questions; the exam has its own separate question set.

Under the Sale of Goods Act, 1930, what is meant by a 'sale'?

A. Transfer of possession only for a temporary period
B. Transfer of ownership of goods for a price ✓
C. Transfer of goods without consideration
D. Agreement to transfer goods in future only

Answer: B. Transfer of ownership of goods for a price
A sale means the transfer of ownership in goods from the seller to the buyer for a price. Mere delivery or future promise is not enough.

Which of the following is a characteristic of goods under the Sale of Goods Act?

A. Only immovable property is included
B. Only shares and debentures are included
C. Every kind of movable property is included ✓
D. Only intangible property is included

Answer: C. Every kind of movable property is included
The Act defines goods as every kind of movable property other than actionable claims and money. Therefore, movable property is covered.

In an agreement to sell, ownership of goods is transferred:

A. Immediately on making the contract
B. Only after payment of full price
C. At a future time or subject to a condition ✓
D. Only when the goods are destroyed

Answer: C. At a future time or subject to a condition
In an agreement to sell, the transfer of ownership is postponed to a future time or until a condition is fulfilled. It becomes a sale only later.

A buyer accepts goods and later finds a breach of warranty. What is the usual legal remedy?

A. Reject the goods and cancel the contract
B. Claim damages for the breach ✓
C. Force the seller to buy them back immediately
D. Avoid all payment permanently

Answer: B. Claim damages for the breach
A breach of warranty does not usually allow rejection of goods. The buyer’s remedy is to claim damages for the loss caused.

A buyer pays the price, but the seller still has possession of the goods. Later the seller discovers the buyer has become insolvent. Which remedy is most appropriate?

A. Right of lien ✓
B. Right of stoppage in transit
C. No remedy is available
D. Right of sale by auction

Answer: A. Right of lien
If the seller still has possession of the goods, the correct remedy is lien, not stoppage in transit. Stoppage in transit applies only when goods are already with the carrier.

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