Students get through the TN Board 12th Commerce Important Questions Chapter 21 The Sale of Goods Act, 1930 which is useful for their exam preparation.

TN State Board 12th Commerce Important Questions Chapter 21 The Sale of Goods Act, 1930

Very short answer questions

Question 1.
What is an agreement to sell?
Answer:
The property “ownership or title” in the goods has to pass at a future time or after the fulfillment of certain conditions specified in the contract.

Question 2.
List down the types of goods.
Answer:
The type of goods covered under the sale of goods act:

  1. Existing goods may be either Specific goods, Ascertained goods and Generic or unascertained goods.
  2. Future goods
  3. Contingent goods.

TN Board 12th Commerce Important Questions Chapter 21 The Sale of Goods Act, 1930

Question 3.
What is meant by the future goods?
Answer:
These are goods that 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 a contract of sale agreement.

Question 4.
What do you mean by “condition”?
Answer:
A condition is a stipulation that is essential to the main purpose of the contract. It is core to the contract. The non-fulfillment of the condition cancel every contract.

Question 5.
Explain the term unpaid seller.
Answer:
A seller is deemed to be an unpaid seller, (a) when the whole of the price has not been paid or a bill of exchange or other negotiable instrument given to him has dishonored. It would be obvious that a seller who has received only a part of the price is also an unpaid seller.

Question 6.
Define actionable claim.
Answer:
The term actionable claim means debt secured by a mortgage of immovable property, Fixed Deposit Receipt, Dividend Due on share amount due under LIC policy, claim for rent which falls due in future, etc.

TN Board 12th Commerce Important Questions Chapter 21 The Sale of Goods Act, 1930

Question 7.
What do you understand by “Transfer of ownership”?
Answer:
Transfer of property (ownership) in goods from the seller to the buyer is the main object of a contract of sale. Property in goods means the ownership of goods.

Question 8.
Mention a few rights of an unpaid seller?
Answer:
Rights of an unpaid seller:

  1. Rights of an unpaid seller against the goods. Where the property in the goods has passed to the buyer. Right to lien, Right to stoppage in transit, and Right to resale.
  2. Where the property in the goods doesn’t pass to the buyer.
  3. Right of an unpaid seller against the buyer personally suit for price, suit for damage for nonacceptance. Suit for cancellation of the contract before the due date and suit for interest.

Question 9.
Explain the passing of property?
Answer:
Transfer of title of a property is called as the passing of property.
TN Board 12th Commerce Important Questions Chapter 21 The Sale of Goods Act, 1930 1

Question 10.
When the goods are ascertained?
Answer:
Ascertainment is a process by which the goods to be delivered under the contract of sale are identified and set apart. It is a unilateral act of the seller alone to identify and isolate the goods.

TN Board 12th Commerce Important Questions Chapter 21 The Sale of Goods Act, 1930

Short answer questions

Question 1.
Explain about “sale of goods”?
Answer:

  1. The sale of goods is one of the most important acts coming under special contract.
  2. This act was passed in the year 1930.
  3. Contracts for the sale of goods are subjected to general legal principles applicable to all contracts.
  4. Hence the general provisions of the Indian contract act continue to apply to the contract for the sale of goods.

Question 2.
Explain the transfer of property or ownership with an example?
Answer:
Transfer of property (ownership) in goods from the seller to the buyer is the main object of a contract of sale. For example, “A” possesses the watch he cannot be the owner. He might have borrowed the watch from his friend or stolen the watch from somebody or found it on the highways. In this case, he cannot be called the owner. It is important to know the precise movement of time at which the ownership in goods passes from the seller to buyer.

Question 3.
Discuss warranty in the case of dangerous goods?
Answer:

  1. Where the seller knows that the goods he is selling are dangerous or likely to be dangerous to the buyer.
  2. The buyer is ignorant of the danger, the seller should warn the buyer of the probable danger, otherwise, he will be liable to compensate the buyer in case of any injury.
  3. If a good is liable in damage, as he should warn the person, the probable danger.

TN Board 12th Commerce Important Questions Chapter 21 The Sale of Goods Act, 1930

Long answer questions

Question 1.
Discuss in detail about “formation of the contract of sale”?
Answer:

  1. 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.
  2. The term “ownership” is of utmost importance in the sale of goods.
  3. Mere possession of the goods doesn’t entitle a person to ownership.
  4. Similarly, the purchase means buying the ownership of the goods from the seller for a price.
  5. The term ownership or property confers on the buyer absolute freedom to dispose of the assets in any way they like.
  6. Buyer has unlimited rights of the property purchased against the whole world.
  7. In this context, it is essential to leam the essential elements of a contract of sale.

Question 2.
Explain briefly about existing goods?
Answer:

  1. Existing goods: 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, and generic or unascertained goods.
  2. Specific goods: Specific goods identified and agreed upon at the time of contract of sale. Eg: If a buyer selects a particular variety of saree after examining several other sarees, the selected one denotes specific goods.
  3. Ascertained goods: The term “ascertained goods” is also used as similar in meaning to specific goods. But this term may even refer to goods that became ascertained subsequent to the formation of the contract.
  4. Unascertained or Generic goods: These are goods that are not identified and agreed upon at the time of contract of sale. For example, “A” wants to buy a car from a showroom, where different models at different prices have been displayed. All these displayed models represent unascertained goods.

TN Board 12th Commerce Important Questions Chapter 21 The Sale of Goods Act, 1930

Multiple-choice questions

1. A contract of sale involves:
(a) One party
(b) Two parties
(c) Three parties
(d) None
Answer:
(b) Two parties

2. Find out the goods:
(a) Stock
(b) Shares
(c) Growing crops
(d) All the above
Answer:
(d) All the above

3. The monetary consideration for the goods sold is called:
(a) Price
(b) Cost
(c) Factor
(d) Demand
Answer:
(a) Price

4. The term contract of sale includes:
(a) Sale
(b) Agreement to sell
(c) Both (a) and (b)
(d) Transfer
Answer:
(c) Both (a) and (b)

TN Board 12th Commerce Important Questions Chapter 21 The Sale of Goods Act, 1930

5. Those goods owned or possessed by the seller at the time of contract of sale known as:
(a) Contingent goods
(b) Existing goods
(c) Future goods
(d) All the above
Answer:
(b) Existing goods

6. Contingency goods are a part of:
(a) Future goods
(b) Existing goods
(c) Generic goods
(d) None
Answer:
(a) Future goods

7. Possession of goods refer the ……… goods.
(a) Custody
(b) Ownership
(c) Transfer
(d) None
Answer:
(a) Custody

8. Every kind of movable property other than actionable claim and money:
(a) Contract
(b) Ownership
(c) Goods
(d) Possessions
Answer:
(c) Goods

9. Goods identified and agreed upon at the time of contract of sale:
(a) Future goods
(b) Specific goods
(c) Contingent goods
(d) Existing goods
Answer:
(b) Specific goods

10. It is a stipulation that is collateral to the main purpose of the contract.
(a) Warranty
(b) Condition
(c) Ownership
(d) Possession
Answer:
(a) Warranty

TN Board 12th Commerce Important Questions Chapter 21 The Sale of Goods Act, 1930

11. Goods are owned or possessed by the seller at the time of contract of sale:
(a) Contingent goods
(b) Existing goods
(c) Future goods
(d) None
Answer:
(b) Existing goods

12. Where goods are sold by showing ………. by the seller.
(a) Conditions
(b) Samples
(c) Descriptions
(d) Weight
Answer:
(b) Samples

13. A seller is deemed to be an unpaid seller:
(a) Price is not paid fully
(b) A bill of exchange
(c) Both (a) and (b)
(d) None
Answer:
(c) Both (a) and (b)

14. An unpaid seller has a right to retain the goods till he receives the:
(a) Factor
(b) Price
(c) Warranty
(d) Delivery
Answer:
(b) Price

TN Board 12th Commerce Important Questions Chapter 21 The Sale of Goods Act, 1930

15. When will the buyer cancel the contract?
(a) Damage
(b) Before the date of delivery
(c) Defective
(d) Weight
Answer:
(b) Before the date of delivery