Samacheer Kalvi 12th Commerce Guide Chapter 21 The Sale of Goods Act, 1930

Tamilnadu State Board New Syllabus Samacheer Kalvi 12th Commerce Guide Pdf Chapter 21 The Sale of Goods Act, 1930 Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 12th Commerce Solutions Chapter 21 The Sale of Goods Act, 1930

12th Commerce Guide The Sale of Goods Act, 1930 Text Book Back Questions and Answers

I. Choose the Correct Answers

Question 1.
Sale of Goods Act was passed in the year
a) 1940
b) 1997
c) 1930
d) 1960
Answer:
c) 1930

Question 2.
Which of the below constitutes the essential element of contract of sale?
a) Two parties
b) Transfer of property
c) Price
d) All of the above
Answer:
d)All of the above

Question 3.
Which of the below is not good?
a) Stocks
b) Dividend due
c) Crops
d) Water
Answer:
b) Dividend due

Question 4.
In case of the sale, the ……………. has the right to sell
a) Buyer
b) Seller
c) Hirer
d) Consignee
Answer:
b) Seller

Question 5.
The property in the goods means the
a) Possession of goods
c) Ownership of goods
b) Custody of goods
d) Both (a) and (b)
Answer:
c) Ownership of goods

Question 6.
Specific goods denote goods identified upon the time of …………… of sale
a) Agreement
b) Contract
c) Order
d) Obligation
Answer:
b) Contract

Question 7.
In which of the following types, the ownership is immediately transferred to the buyer?
a) When goods are ascertained
b) When goods are, appropriate
c) Delivery to the carrier
d) Sale or return basis
Answer:
c)Delivery to the carrier

Question 8.
…………………….. is a stipulation which is collateral to the main purpose of the contract.
a) Warranty
b) Condition
c) Right
d) Agreement
Answer:
a) Warranty

Question 9.
The unpaid seller can exercise his right of lien over the goods, where he is in possession of the goods as
a) Owner of goods
b) Agent of buyer
c) Bailee for buyer
d) All of these
Answer:
d) All of these

Question 10.
The unpaid seller can exercise his right of stoppage of goods in transit where the buyer
a) Becomes insolvent
b) Refuses to pay the price
c) Payment of the price
d) Both (b) and (c)
Answer:
a) Becomes insolvent

II. Very Short Answer Question

Question 1.
What is a contract of sale of goods?
Answer:
A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property (ownership) of the goods to the buyer for a price.

Question 2.
List down the essential elements of a contract of sale.
Answer:

Two parties
Goods
Price
Transfer [ownership] of property [Goods]
Includes both ‘Sale’ and ‘Agreement to sell’.

Question 3.
What is meant by Goods?
Answer:
The term goods mean every kind of movable property other than actionable claim and money.

Question 4.
What are contingent goods?
Answer:

Contingent goods are a part of future goods.
It is sold by the seller to the buyer, depends upon an event (contingency) which may happen or not happen.
(e.g) Britto agrees to sell a TAB to Senthuran, provided if he gets from Nallathambi.
In this TAB is “contingent Goods”.

Question 5.
What do you understand by Warranty?
Answer:
Warranty represents a stipulation which is collateral to the main purpose of the contract. It is of secondary importance to the contract.

III. Short Answer Questions

Question 1.
Explain the meaning of the Agreement to sell.
Answer:

The property (ownership or title) in the goods has to pass (transfer) at a future time
(or)
After the fulfillment of certain conditions mentioned in the contract is called “Agreement to sell”.
It is an executory contract. [Yet to be performed]

Question 2.
Discuss in detail about the Existing Goods.
Answer:
Existing goods are those owned or possessed by the seller at the time of contract of sale. Goods possessed even refer to sale by agents or by pledgers. Existing goods may be either:

Specific Goods
Ascertained Goods
Generic or Unascertained Goods

Question 3.
Discuss the implied conditions and warranties in the sale of goods contract.
Answer:
In every contract of sale, there are certainly expressed and implied conditions and warranties. The term implied conditions means conditions which can be inferred from or guessed from the context of the contract.
Following are the implied conditions:

Conditions as to Title
Conditions as to Description
Sale by Sample
Conditions as to Quality or Fitness
Conditions as to Merchantability
Condition as to Wholesomeness
Condition Implied by Trade Usage

Following are the implied warranties:

Quiet Possession
Free from Any Encumbrances
Warranty in the case of Dangerous Goods

IV. Long Answer Questions

Question 1.
Explain in detail the elements of the contract of sale. [TTGPI]
Answer:
The sale means selling the ownership of the goods to the buyer for a price. Similarly, the purchase means buying the ownership of the goods from the seller for a price. Following essential elements are necessary for a contract of sale:

Two Parties: A contract of sale involves two parties – the seller and the buyer. The buyer and the seller should be two different persons.
Transfer of Property: To constitute a sale, the seller must transfer or agree to transfer the ownership of the goods to the buyer.
Goods: The subject matter of the contract of sale must be goods. It excludes money, actionable claims, and immovable property.
Price: The monetary consideration for the goods sold is called price

Question 2.
Distinguish between Sale and Agreement to Sell. [IRONIC]
Answer:

No Basis of difference	Sale	Agreement to Sale
1. Insolvency of the Buyer	In a sale, if a buyer becomes insolvent before he pays the price of the goods even though sold under the possession of the seller, he has to return the goods to the official receiver or Assignee as ownership of goods has already been transferred to the Buyer.	If the buyer becomes insolvent before he pays the price of the goods, the seller can retain the goods if they are under his possession or even he can repossess the goods even if it is transferred to the buyer
2. Risk of Loss	If the goods sold are destroyed, the loss falls on the buyer, as the owner already transferred to him	If the goods are destroyed, the loss falls on the seller, as the owner is still vested with him even the possessîon of goods with the buyer
3. Ownership Transference	The ownership of goods transferred from the seller to the buyer immediately.	The ownership of goods transferred from the seller to the buyer not immediately [in Future date]
4. Nature of contract	It is an Executed [completed] contract	It is an Executory [Yet to be performance contract].
5. Insolvency of the Seller	If the seller becomes insolvent before delivering the goods to the buyer, the buyer can claim the delivery of the goods from the seller, the owner is already transferred	The Buyer cannot do so if h has paid the price or made any advance of the goods he can claim for cash paid and not the goods.
6. Consequence of violation	Where the buyer fails to pay the price, the seller can not seize the goods. He can file a suit.	Where the Buyer violates the contract the seller can seize the goods and can file a suit for damages for violation.

Question 3.
Classify the goods under the Sale of Goods Act.
Answer:
The term goods mean every kind of movable property other than actionable claim and money. The goods are classified as follows:

Existing Goods- These goods are owned or possessed by the seller at the time of contract of sale. Existing goods may again be divided as:
- Specific Goods- It denotes goods identified and agreed upon at the time of contract of sale.
- Ascertained Goods- The term ‘ascertained goods’ is also used as similar in meaning to specific goods.
- Unascertained Goods- These are goods which are not identified and agreed upon at the time of contract of sale.
Future Goods- These are goods which a seller does not possess at the time of contract of sale, but which will be manufactured or produced or acquired by him after entering into the contract.
Contingent Goods- These are the goods, the acquisition of which by the seller depends upon a contingency (an event which may or may not happen).

Question 4.
Distinguish between Conditions and Warranty. [STORM]
Answer:

Basis of difference	Conditions	Warranty
1. Significance	The violation of conditions will revoke the contract. It is too essential	The violations of the Warranty will not revoke the contract. It is a subsidiary.
2. Treatment	Breach of condition may be treated as a breach of warranty	Breach of warranty cannot be treated as a breach of conditions.
3. Ownership	Ownership cannot be transferred without fulfilling the conditions	Ownership can be transferred without fulfilling the warranty
4. Remedy	The affected party can cancel the contract and claim damages	The affected party cannot cancel the contract but can claim damages
5. Meaning	It is a stipulation which is essential to the main purpose of the contract of sale	It is a stipulation which is collateral to the main purpose of the contract.

12th Commerce Guide The Sale of Goods Act, 1930 Additional Important Questions and Answers

I. Choose the Correct Answers

Question 1.
A contract of sale involves ……………………. parties
a) 2
b) 3
c) 4
d) 5
Answer:
a) 2

Question 2.
The transferred property takes place at a future date or on fulfillment of certain conditions, it is called.
a) Sale
b) Purchase
c) Agreement
d) All of these
Answer:
c) Agreement

Question 3.
………………………. mean every kind of movable property other than actionable claim and money.
a) Goods
b) Cash
c) LIC policy
d) Buildings
Answer:
a) Goods

Question 4.
………………….. Goods owned and possessed by the seller at the time of contract of sale.
a) Existing
b) Future
c) Un ascertained
d) All of these
Answer:
a) Existing

Question 5.
…………………….. goods denote goods identified and agreed upon at the time of contract of sale
a) Future
b) Specific
c) Generic
d) NOTA
Answer:
b) Specific

Question 6.
Which of the following excluded from goods?
a) Crops
b) Money
c) Claims
d) Stocks and Share
Answer:
b) money

Question 7.
…………………… contract is Sale under Sale of Goods Act:
a) Executed
b) Executory
c) Executable
d) NOTA
Answer:
a) Executed

Question 8.
……………….. represents a stipulation which is collateral to the main purpose of the contract
a) Warranty
b) Condition
c) Valid
d) None of the above
Answer:
a) Warranty

Question 9.
Monetary consideration for the goods sold is called ……………………
a) Price
b) Product
c) Goodwill
d) Sales
Answer:
a) Price

Question 10.
Choose the correct statement:
i) Condition is a stipulation is essential to the main purpose of the contract of sale.
ii) Warranty is a stipulation is a collateral to the main purpose of the contract of sale.
iii) There must be three parties to a contract of sale.
a) All the three are correct
b) All the three are incorrect
c) (i) and (ii) are correct
d) (i) and (iii) are correct
Answer:
c) (i) and (ii) are correct

II. Match

Question 1.

List-I	List – II
i. Ascertained Goods	1. After agreement
ii. Un ascertained Goods	2. Depends upon a contingency
iii. Contingent Goods	3. Not ascertained
iv. Future Goods	4. Similar to specific goods

a) (i) – 4 (ii) – 3 (iii) – 2 (iv) – 1
b) (i) – 4 (ii) – 2 (iii) – 3 (iv) – 1
c) (i) – 4 (ii) – 3 (iii) – 1 (iv) – 2
d) (i) – 3 (ii) – 4 . (iii) – 2 (iv) – 1
Answer:
a) (i) – 4 (ii) – 3 (iii) – 2 (iv) – 1

III. Assertion and Reason

Question 1.
Assertion (A) : A contract of sale involves two parties. The seller and the Buyer,
Reason (R) : The Buyer and seller should be two different persons.
a) (A) and (R) are true. (R) is the correct explanation of (A)
b) (A) and (R) are False.
c) (A) and (R) are true. (R) is not the correct explanation of (A)
d) (A) is true and (R) is false.
Answer:
a) (A) and (R) are true. (R) is the correct explanation of (A)

IV. Short Answer Questions.

Question 1.
Discuss in detail the right of an unpaid seller against the Buyer personally.
Answer:
i) Suit for price:
The seller can sue against the buyer for the price when the ownership of goods has passed to the buyer and he refuses to pay for the goods.

ii) Suit for damages for non-acceptance:
Where the buyer willfully refuses to accept the goods, the seller can sue him for damages for non-acceptance of the goods.

iii) Suit for cancellation of contract: [Before Due Date]
The seller can sue against the buyer when the buyer cancels the contract before the date of delivery (Due date).

V. Long Answer Questions.

Question 1.
Discuss in detail the rights of an unpaid seller against the goods.
Answer:
Right to Lien:

He must be in possession of goods.
The goods must have been sold on credit [No stipulation]
It must be remembered that the right of lien depends on the actual possession.

Circumstances under which the right of lien is lost:

When the seller delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer without reserving the right of disposal.
The buyer took delivery from the carrier. (Booking office)
When the seller waives his right of lien.

Right to Stoppage in Transit:

Goods are delivered to carrier or bailee for the purpose of transmission to the buyer, but the buyer has not acquired them, the seller can stop the goods and regain the possession.

Termination of Right of stoppage:

The right to stop the goods comes to an end when goods are delivered to the buyer or his agent of the carrier intimates that he is holding the goods on his behalf.

Right to Resale:

The unpaid seller can resell the goods.
Where they are of perishable nature.
The seller has reserved the right to resale in the contract.