Formation of Contract of Sale – MCQ on Business Law with Answers

Students should practice Formation of Contract of Sale – CA Foundation Business Law MCQ Questions with Answers based on the latest syllabus.

Formation of Contract of Sale – Business Law MCQ Questions with Answers

1. The code governing sale of goods was earlier contained in _________,
(a) the Indian Contract Act
(b) the Transfer of Property Act
(c) the Hire Purchase Act
(d) None of the above
Answer:
(a) the Indian Contract Act

2. 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

3. “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

Formation of Contract of Sale – MCQ on Business Law with Answers

4. 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

5. 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

6. 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

7. 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

8. ‘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

Formation of Contract of Sale – MCQ on Business Law with Answers

9. 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

10. 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 non¬monetary consideration
(d) may be either monetary or non-monetary consideration
Answer:
(a) must be for monetary consideration

Formation of Contract of Sale – MCQ on Business Law with Answers

State Whether The Following are True or False:

  1. The term “goods” under Sale of Goods Act, 1930 includes actionable Claims.
  2. The Sale of Goods Act, 1930 deals with movable goods only.
  3. The Sale of Goods Act, 1930 covers mortgage and pledge of goods.
  4. The provisions of Sale of Goods were originally contained in the Indian Contract Act, 1872.
  5. In case of hire purchase the hirer can pass title to a bona fide purchaser.
  6. In a contract of sale, subject matter of the contract must always be money.
  7. In a contract of sale. The agreement may be expressed or implied from the conduct of the parties.
  8. The property in goods means possession of goods.
  9. The goods are at the risk of the party who has the ownership of the goods.
  10. A lady gave a plain saree to Jariwala Brothers for embroidering with jari, to be purchased by Jariwala Brothers. It was held by the court that it was contract of sale.

Answer:

  1. False
  2. True
  3. False
  4. True
  5. True
  6. False
  7. True
  8. False
  9. True
  10. False

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