Performance of a Contract: Delivery and Payment – MCQ on Business Law with Answers

Students should practice Performance of a Contract: Delivery and Payment – CA Foundation Business Law MCQ Questions with Answers based on the latest syllabus.

Performance of a Contract: Delivery and Payment – Business Law MCQ Questions with Answers

1. Voluntary transfer of possession from one person to another is called as __________.
(a) Ownership
(b) Delivery
(c) Gift
(d) License
Answer:
(b) Delivery

2. Delivery of goods means __________.
(a) Voluntary transfer of possession
(b) Compulsory transfer of possession
(c) Exchange of goods
(d) Voluntary transfer of ownership
Answer:
(a) Voluntary transfer of possession

3. For a valid contract of sale, delivery may be:
(a) Actual delivery
(b) Symbolic delivery
(c) Constructive delivery
(d) All of these
Answer:
(d) All of these

4. Delivery of the keys of a godown where goods are kept amounts to:
(a) Actual delivery
(b) Symbolic delivery
(c) Constructive delivery
(d) All of these
Answer:
(b) Symbolic delivery

5. __________ delivery involves change in the possession of goods without any change in their actual custody.
(a) Actual delivery
(b) Symbolic delivery
(c) Constructive delivery
(d) None of these
Answer:
(c) Constructive delivery

Performance of a Contract: Delivery and Payment – MCQ on Business Law with Answers

6. Which of the following is not a form of delivery __________.
(a) Actual delivery
(b) Symbolic delivery
(c) Constructive delivery
(d) Systematic delivery
Answer:
(d) Systematic delivery

7. When goods are in possession of third person, delivery is complete:
(a) When such third party acknowledges to the buyer that he holds the goods on his behalf
(b) Even though such third party does not acknowledge
(c) When the physical possession of the goods is given
(d) None of the above
Answer:
(a) When such third party acknowledges to the buyer that he holds the goods on his behalf

8. Where the part delivery is made in progress of the whole delivery, then:
(a) It is treated as delivery of the whole
(b) It is treated as delivery of the part
(c) It is not treated as delivery at all
(d) None of these
Answer:
(a) It is treated as delivery of the whole

9. Unless otherwise agreed, the expenses of making delivery are borne by:
(a) The carrier
(b) The buyer
(c) The seller
(d) The agent
Answer:
(c) The seller

Performance of a Contract: Delivery and Payment – MCQ on Business Law with Answers

10. Unless otherwise agreed, the expenses of obtaining delivery are borne by:
(a) The carrier
(b) The buyer
(c) The seller
(d) The agent
Answer:
(b) The buyer

11. If the seller delivers to the buyer a quantity less than he contracted to sell, the buyer may __________.
(a) reject the goods
(b) accept the goods
(c) either ‘a’ or ‘b’
(d) neither ‘a’ nor ‘b’
Answer:
(c) either ‘a’ or ‘b’

12. If the seller delivers to the buyer a quantity larger than he contracted to sell, the buyer may __________.
(a) reject the whole
(b) accept the whole
(c) accept the quantity he ordered and reject the rest
(d) either ‘a’, ‘b’ or ‘c’
Answer:
(d) either ‘a’, ‘b’ or ‘c’

13. If the seller delivers to the buyer goods ordered mixed with goods of a different description, the buyer may __________.
(a) reject the whole
(b) accept the agreed goods and reject the remaining goods
(c) either ‘a’ or ‘b’
(d) neither ‘a’ nor ‘b’
Answer:
(c) either ‘a’ or ‘b’

14. In case of carriage of goods by sea, where the [ seller has to put the goods on board a ship at his own expenses, the contract is known as __________.
(a) F.O.B. Contract
(b) C.I.F. Contract
(c) Ex-ship Contract
(d) FAS Contract
Answer:
(a) F.O.B. Contract

15. In case of carriage of goods by sea, where the seller has to deliver the goods to the buyer at the port of destination, the contract is known as __________.
(a) F.O.B. Contract
(b) C.I.F. Contract
(c) Ex-ship Contract
(d) FAS Contract
Answer:
(c) Ex-ship Contract

16. Under a __________ contract the seller is required to insure the goods, deliver them to the shipping company, and arrange for their affreightment.
(a) F.O.B. Contract
(b) C.I.F. Contract
(c) Ex-ship Contract
(d) FAS Contract
Answer:
(b) C.I.F. Contract

Performance of a Contract: Delivery and Payment – MCQ on Business Law with Answers

17. The general principle regarding transfer of title in case of sale of goods is that __________.
(a) The seller cannot transfer to the buyer a better title than he himself has
(b) The seller can transfer to the buyer a better title than he himself has
(c) The buyer can transfer to the seller a better title than he himself has
(d) The seller’s representative can transfer to the buyer no title
Answer:
(a) The seller cannot transfer to the buyer a better title than he himself has

18. Diamond necklace valued ₹ 10 lacs was sent by S to B on sale or return basis. B pledged the diamond necklace with money lender M for ₹ 6 lacs. Discuss the rights and liability of the parties.
(a) B is not bound to pay the price to S
(b) B is bound to pay the price to S and M will remain as pawnee
(c) B is bound to pay the price to S and M will not have rights as pawnee
(d) B is not bound to pay anything to M
Answer:
(b) B is bound to pay the price to S and M will remain as pawnee

State Whether The Following are True or False:

  1. It is not the duty of the seller to deliver the goods.
  2. Delivery by acknowledgement is an actual delivery.
  3. There are three modes of delivery.
  4. Unless otherwise agreed, goods shall be delivered before payment of price.
  5. Unless otherwise agreed, the buyer must apply for the delivery.
  6. The place of delivery can be the place where the goods are lying at the time of sale.
  7. When means of obtaining possession are handed over to the buyer, it amounts to symbolic delivery.
  8. When goods are delivered to the buyer and the buyer refuses to accept them, having a right to do so, then the buyer is bound to return them to the seller.
  9. It is the duty of seller to take back the goods in case where buyer rightfully refuses to accept the goods.
  10. Any risk of deterioration in the goods necessarily incident to the course of transit shall be borne by the seller.
  11. The delivery of goods to a carrier in pursuance of a contract of sale, is prima facie deemed to be the delivery of goods to the buyer.

Answer:

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

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