Transfer Of Ownership And Delivery Of Goods
__________________________________________________ No. Of Questions to be Answered : Random 20 out of 117
Questions and Answers
- 1.
The term 'property' as used in the Sale of Goods Act, 1930 means
- A.
Ownership
- B.
Possession
- C.
Custody
- D.
Both (b) and (c).
Correct Answer
A. OwnershipExplanation
The term 'property' as used in the Sale of Goods Act, 1930 refers to ownership. This means that when a good is sold, the ownership of that good is transferred from the seller to the buyer. Possession and custody are related concepts but do not necessarily imply ownership. Possession refers to physically having control over the item, while custody refers to the responsibility of taking care of the item. Therefore, the correct answer is ownership, as it specifically refers to the transfer of rights and control over the goods.Rate this question:
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- 2.
The term 'possession of goods' means
- A.
Ownership of goods
- B.
Custody of goods
- C.
Both (a) and (b)
- D.
None of these.
Correct Answer
B. Custody of goodsExplanation
The term 'possession of goods' refers to the act of having physical control or custody over goods, without necessarily implying ownership. This means that a person can have possession of goods without actually being the owner. Therefore, the correct answer is "Custody of goods."Rate this question:
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- 3.
The main object of a contract of sale is
- A.
Transfer of ownership of goods to the buyer
- B.
Transfer of possession of goods to the buyer.
- C.
Payment of price of goods to the seller
- D.
To help the seller in selling the goods.
Correct Answer
A. Transfer of ownership of goods to the buyerExplanation
In a contract of sale, the main objective is the transfer of ownership of goods to the buyer. This means that the seller transfers the legal rights and ownership of the goods to the buyer, making the buyer the rightful owner of the goods. This transfer of ownership is a fundamental aspect of a sale contract and distinguishes it from other types of contracts. It ensures that the buyer has the legal right to use, possess, and dispose of the goods as they see fit.Rate this question:
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- 4.
On transfer of property in goods form seller to the buyer, the
- A.
Buyer becomes the owner of the goods.
- B.
Buyer becomes agent of the seller.
- C.
Seller ceases to be the owner of the goods.
- D.
Both (a) and (c).
Correct Answer
D. Both (a) and (c).Explanation
When property in goods is transferred from the seller to the buyer, the buyer becomes the owner of the goods. This means that the buyer now has full ownership rights and responsibilities over the goods. At the same time, the seller ceases to be the owner of the goods, as ownership has been transferred to the buyer. Therefore, both options (a) and (c) are correct.Rate this question:
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- 5.
'Risk passes with the ownership' is an important rule in contract of sale, which means that in case of loss of or destruction of subject-matter of contract of sale (i.e., goods). The loss falls upon the person having.
- A.
Ownership of goods.
- B.
Physical custody of goods.
- C.
Both (a) and (b).
- D.
Capacity to bear the risk.
Correct Answer
A. Ownership of goods.Explanation
The correct answer is ownership of goods because according to the rule "Risk passes with the ownership," the person who owns the goods is responsible for any loss or destruction that may occur. This means that if the subject-matter of the contract of sale is lost or destroyed, the owner of the goods will bear the risk. Physical custody of the goods may not necessarily determine who bears the risk, as ownership is the key factor. Therefore, both options (a) and (b) are not correct. Capacity to bear the risk is not the correct answer because it is the ownership of the goods that determines who bears the risk.Rate this question:
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- 6.
The goods are at the risk of a party who has the
- A.
Possession of goods.
- B.
Custody of goods.
- C.
Ownership of goods.
- D.
Both (a) and (b).
Correct Answer
C. Ownership of goods.Explanation
The correct answer is ownership of goods. When a party owns the goods, they bear the risk associated with it. This means that if any damage or loss occurs to the goods, the owner will be responsible for it. On the other hand, possession refers to physical control or holding of the goods, while custody refers to the care and protection of the goods. Although possession and custody may involve some level of responsibility, the ultimate risk lies with the owner. Therefore, ownership of goods is the determining factor for risk.Rate this question:
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- 7.
The delivery of goods should
- A.
Be voluntary and lawful.
- B.
Have the effect of putting the goods in buyer's possession.
- C.
Both of these.
- D.
None of these.
Correct Answer
C. Both of these.Explanation
The correct answer is "Both of these." This means that the delivery of goods should be both voluntary and lawful, and it should also have the effect of putting the goods in the buyer's possession. In other words, the delivery should be done willingly and legally, and it should result in the buyer actually receiving and having control over the goods.Rate this question:
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- 8.
The seller becomes entitled to recover the price of the goods when the
- A.
Goods are delivered to the buyer.
- B.
Ownership is transferred to the buyer.
- C.
Seller is in need of money.
- D.
Goods are valued in terms of money.
Correct Answer
B. Ownership is transferred to the buyer.Explanation
When ownership of the goods is transferred to the buyer, the seller becomes entitled to recover the price of the goods. This means that once the buyer assumes ownership, they are responsible for paying the agreed-upon price to the seller. This is a common practice in sales transactions, where ownership is a key factor in determining when payment is due.Rate this question:
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- 9.
The general rule is that the transfer of ownership depends upon the intention of the parties.
- A.
True, Section 19 contains a provision in this regard.
- B.
False, no such provision is there in the Sale of Goods Act.
Correct Answer
A. True, Section 19 contains a provision in this regard.Explanation
The explanation for the given correct answer is that Section 19 of the Sale of Goods Act does indeed contain a provision regarding the transfer of ownership. This provision states that the transfer of ownership depends on the intention of the parties involved. Therefore, it is true that the transfer of ownership is determined by the intention of the parties, as stated in Section 19 of the Act.Rate this question:
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- 10.
Which of the following statement is incorrect ?
- A.
The parties may fix the time for the transfer of ownership from seller to the buyer.
- B.
If the parties do not fix any time for the transfer of ownership, then it is governed by the provisions of the Sale of Goods Act.
- C.
The rules for the transfer of ownership in case of both the specific goods as well as unascertained good are provided in the Sale of Goods Act
- D.
There is no provision in the Sale of Goods Act providing rules for the transfer of ownership in case of sale of goods on approval.
Correct Answer
D. There is no provision in the Sale of Goods Act providing rules for the transfer of ownership in case of sale of goods on approval.Explanation
The statement "There is no provision in the Sale of Goods Act providing rules for the transfer of ownership in case of sale of goods on approval" is incorrect. The Sale of Goods Act does provide rules for the transfer of ownership in case of sale of goods on approval.Rate this question:
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- 11.
In case of sale specific goods, me general rule is that the ownership -of the goods is transferred form the seller to the buyer at the time of
- A.
Making the contract.
- B.
Making payment of price.
- C.
Delivery of goods to the buyer.
- D.
Completion of payment and delivery formalities.
Correct Answer
A. Making the contract.Explanation
In the case of sale specific goods, the ownership of the goods is transferred from the seller to the buyer at the time of making the contract. This means that once the contract is agreed upon by both parties, the ownership of the goods is legally transferred to the buyer, regardless of whether payment has been made or the goods have been delivered.Rate this question:
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- 12.
The ownership of goods is transferred to the buyer at the time of making the contract only if the following condition is/are satisfied:
- A.
The sale is of specific goods
- B.
The goods are in a deliverable state
- C.
The contract of sale is unconditional
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
The correct answer is "All of the above." This means that in order for the ownership of goods to be transferred to the buyer at the time of making the contract, all three conditions mentioned in the question must be satisfied. These conditions include the sale being of specific goods, the goods being in a deliverable state, and the contract of sale being unconditional. Only when all of these conditions are met, the ownership of goods is transferred to the buyer.Rate this question:
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- 13.
The goods are said to be in a deliverable state when they are in such a condition that the buyer would, under the contract, be bound to take delivery of them.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement is true because when goods are in a deliverable state, it means that they are in a condition that meets the requirements of the contract between the buyer and the seller. In this state, the buyer is obligated to accept and take delivery of the goods as agreed upon in the contract.Rate this question:
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- 14.
In an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods passes to the buyer when the
- A.
Price is paid by the buyer.
- B.
Goods are delivered by the seller.
- C.
Goods are accepted by the buyer.
- D.
Contract is made.
Correct Answer
D. Contract is made.Explanation
In an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods passes to the buyer when the contract is made. This means that once the buyer and seller have agreed on the terms of the contract, including the price and the goods being sold, the property in the goods transfers to the buyer. This is different from the other options as payment, delivery, or acceptance of the goods by the buyer are not the determining factors for the transfer of property.Rate this question:
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- 15.
In case of unconditional contract of sale, the property passes to the buyer at the time of making the contract. For the application of this rule, the goods must be
- A.
Specific
- B.
In a deliverable state
- C.
Physically transferred to buyer
- D.
Both (a) and (b).
Correct Answer
D. Both (a) and (b).Explanation
In the case of an unconditional contract of sale, the property passes to the buyer at the time of making the contract. This means that the buyer becomes the legal owner of the goods immediately, regardless of whether they have been physically delivered or are in a deliverable state. Therefore, for the application of this rule, the goods must meet both conditions: they must be specific and in a deliverable state. This ensures that the buyer assumes ownership and responsibility for the goods from the moment the contract is made.Rate this question:
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- 16.
In case of sale of standing trees, the property passes to the buyer when the trees are
- A.
Counted and ascertained.
- B.
Felled and ascertained.
- C.
Earmarked but not felled.
- D.
None of these.
Correct Answer
B. Felled and ascertained.Explanation
When the question refers to the sale of standing trees, it means that the trees are still standing and have not been cut down. The correct answer states that the property passes to the buyer when the trees are "felled and ascertained." This means that the trees must be cut down (felled) and their quantity, quality, or value must be determined (ascertained) before the property can be transferred to the buyer. This is logical because until the trees are felled and assessed, their exact characteristics and value cannot be determined accurately.Rate this question:
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- 17.
Where the specific goods are to be put in a deliverable state by some act of the seller, the property in the goods is transferred to the buyer when the
- A.
Seller has done his act of putting the goods in a deliverable state.
- B.
Buyer comes to know that the goods have been put in a deliverable state.
- C.
Both of these, as it is the requirement of law.
- D.
None of these, as in such a case the contract of sale is void.
Correct Answer
C. Both of these, as it is the requirement of law.Explanation
The correct answer is "Both of these, as it is the requirement of law." This means that the property in the goods is transferred to the buyer when both the seller has done their act of putting the goods in a deliverable state and the buyer comes to know that the goods have been put in a deliverable state. This is in accordance with the requirement of the law for the transfer of property in such cases.Rate this question:
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- 18.
Where the specific goods are in a deliverable state but the seller has to do some act to ascertain the price, the property in the goods is transferred to the buyer when the
- A.
Seller does that act.
- B.
Buyer comes to know about the same.
- C.
Both (a) and (b).
- D.
Only (a).
Correct Answer
C. Both (a) and (b).Explanation
In this scenario, the property in the goods is transferred to the buyer when the seller does the act to ascertain the price. This means that once the seller performs the necessary action to determine the price of the goods, ownership of the goods is transferred to the buyer. Additionally, the buyer also needs to be aware of this transfer of ownership, which is indicated by the buyer coming to know about the same. Therefore, both (a) and (b) are correct.Rate this question:
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- 19.
In case of sale of specific goods on instalments, the ownership is transferred to the buyer at the time of
- A.
Making the contract
- B.
Paying the first installment
- C.
Either (a) or (b)
- D.
None of these.
Correct Answer
D. None of these.Explanation
In the case of sale of specific goods on instalments, the ownership is not transferred to the buyer at the time of making the contract or paying the first installment. Instead, the ownership is transferred to the buyer only after the full payment of all instalments has been made. Therefore, the correct answer is "None of these."Rate this question:
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- 20.
In case of sale on instalments, the intention of the parties is that the ownership should not be transferred until the last installment is paid
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
In a sale on instalments, the intention of the parties involved is to ensure that ownership of the item being sold is not transferred until the final installment payment is made. This means that the buyer does not become the owner of the item until they have completed all of the required payments. This arrangement protects the seller's interests and ensures that they retain ownership until the buyer fulfills their financial obligations. Therefore, the statement "True" is correct.Rate this question:
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- 21.
The legal provisions relating to transfer of ownership in case of sale of specific goods, are contained in
- A.
Section 17 to 19
- B.
Section 20 to 22
- C.
Section 23
- D.
Section 24.
Correct Answer
B. Section 20 to 22Explanation
The correct answer is Section 20 to 22. These sections contain the legal provisions relating to the transfer of ownership in the case of the sale of specific goods. These provisions outline the conditions and requirements for the transfer of ownership, including the passing of property, delivery of goods, and the rights and obligations of both the buyer and the seller.Rate this question:
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- 22.
In case of sale of unascertained goods the ownership is transferred to the buyer, when the goods are
- A.
Ascertained
- B.
Appropriated to the contract
- C.
Weighed and measured
- D.
Both (a) and (b).
Correct Answer
D. Both (a) and (b).Explanation
In the case of sale of unascertained goods, the ownership is transferred to the buyer when the goods are ascertained and appropriated to the contract. This means that the buyer must know and identify the specific goods that are being sold, and the goods must be set aside or allocated for the buyer's use. Weighing and measuring the goods may be part of the process of ascertaining and appropriating them, but it is not the sole requirement for ownership transfer. Therefore, the correct answer is both (a) and (b).Rate this question:
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- 23.
The ascertainment of goods is a
- A.
Unilateral act of seller.
- B.
Bilateral act of both.
- C.
Unilateral act of buyer.
- D.
None of these.
Correct Answer
A. Unilateral act of seller.Explanation
The correct answer is "Unilateral act of seller" because the ascertainment of goods refers to the process of determining the specific goods that will be included in a contract. This is typically done by the seller, who selects and identifies the goods that will be delivered to the buyer. It is a unilateral act because it is performed by one party (the seller) without requiring any input or agreement from the buyer.Rate this question:
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- 24.
The 'ascertainment ' is a process by which the goods to be delivered under the contract are
- A.
Delivered by the seller,
- B.
Identified by the seller.
- C.
Identified by the buyer.
- D.
Accepted by the buyer.
Correct Answer
B. Identified by the seller.Explanation
The correct answer is "Identified by the seller." In the process of ascertainment, it is the responsibility of the seller to identify the goods that will be delivered under the contract. This means that the seller must determine and specify which goods are to be delivered, ensuring that they match the agreed-upon terms and conditions of the contract. The buyer's role in ascertainment is to accept the identified goods once they have been presented by the seller.Rate this question:
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- 25.
The 'appropriation' of goods is a
- A.
Unilateral act of seller.
- B.
Bilateral act of both.
- C.
Unilateral act of buyer.
- D.
None of these.
Correct Answer
B. Bilateral act of both.Explanation
The term "appropriation" refers to the act of taking possession or control of something. In the context of goods, it typically involves the transfer of ownership from the seller to the buyer. Therefore, it is a bilateral act involving both the seller and the buyer.Rate this question:
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- 26.
The 'appropriation' is a process by which the goods to be delivered under the contract are identified and set apart by the
- A.
Seller only
- B.
Buyer only,
- C.
Mutual consent of both.
- D.
3rd party.
Correct Answer
C. Mutual consent of both.Explanation
The term "appropriation" refers to the process of identifying and setting apart the goods to be delivered under a contract. In this context, it is necessary for both the seller and the buyer to mutually agree on the goods that will be delivered. This ensures that both parties are in agreement and have consented to the specific goods being allocated for delivery. Therefore, the correct answer is mutual consent of both the seller and the buyer.Rate this question:
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- 27.
The appropriation of goods is always done with the mutual consent of both, the seller and the buyer
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement implies that the appropriation of goods requires the agreement or consent of both the seller and the buyer. This means that both parties must agree on the transfer of ownership or possession of the goods. Therefore, the statement is true as it highlights the importance of mutual consent in the appropriation process.Rate this question:
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- 28.
The appropriation of goods may be done
- A.
Only by the seller with the consent of the buyer.
- B.
Either by the seller with the consent of the buyer.
- C.
Either by the buyer with the consent of the seller.
- D.
Both (b) and (c).
Correct Answer
D. Both (b) and (c).Explanation
The correct answer is "Both (b) and (c)." This means that the appropriation of goods can be done either by the seller with the consent of the buyer or by the buyer with the consent of the seller. In other words, both parties have the ability to agree on the appropriation of goods, and it can be initiated by either the seller or the buyer, as long as there is mutual consent.Rate this question:
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- 29.
Ordinarily, the act appropriation is done by the seller because the goods are generally in his possession
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The explanation for the given correct answer is that the act of appropriation is typically carried out by the seller because they are the ones who usually have possession of the goods. This means that they have the ability to transfer ownership of the goods to the buyer.Rate this question:
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- 30.
The act of setting apart the goods by the seller is 'ascertainment', and it would amount to appropriation if it is done
- A.
At the time of contract.
- B.
During performance of contract.
- C.
Within 30 day s of making contract.
- D.
With the consent of buyer.
Correct Answer
D. With the consent of buyer.Explanation
The act of setting apart the goods by the seller is called 'ascertainment'. This act would amount to appropriation if it is done with the consent of the buyer.Rate this question:
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- 31.
A agreed to sell to B 100 bottles of oil to be produced by him. A filled the 100 bottles and informed B about the same. B took delivery of 30 bottles and promised to take the delivery of the rest after one week. Before B could take delivery, the oil was destroyed in a fire. In this case, the loss falls upon the.
- A.
Seller
- B.
Buyer
- C.
Both in equal shares
- D.
Both in the ratio of 30:70
Correct Answer
B. BuyerExplanation
The buyer, B, is responsible for the loss in this case because they took delivery of 30 bottles of oil before the fire occurred. Once the buyer takes possession of the goods, they assume the risk of any damage or loss that may occur. Therefore, B is liable for the loss of the remaining bottles of oil.Rate this question:
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- 32.
A contract for the sale of unascertained goods is
- A.
Complete sale.
- B.
Agreement to sell
- C.
Voidable agreement
- D.
Conditional agreement.
Correct Answer
B. Agreement to sellExplanation
The correct answer is "Agreement to sell." This means that the contract is not yet a complete sale, but rather an agreement between the parties to sell the goods in the future. The goods have not been identified or ascertained at the time of the contract, and therefore the sale is not yet complete.Rate this question:
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- 33.
A contract for the sale of unascertained goods is an agreement to sell. It becomes sale when the goods are
- A.
Ascertained
- B.
Appropriated
- C.
Delivered only
- D.
Both (a) & (b)
Correct Answer
D. Both (a) & (b)Explanation
When a contract for the sale of unascertained goods is made, it is initially considered an agreement to sell. However, it becomes a sale when two conditions are met: (a) the goods are ascertained, meaning they are identified and specified, and (b) the goods are appropriated, which means they are set aside or allocated to the buyer. Therefore, both conditions (a) and (b) must be fulfilled for the agreement to become a sale. The option "Both (a) & (b)" correctly captures this requirement.Rate this question:
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- 34.
The legal provisions relating to transfer of ownership in case of unascertained goods are contained in
- A.
Sec 20 to 22
- B.
Sec 18 and 23
- C.
Section 24
- D.
None of these.
Correct Answer
B. Sec 18 and 23Explanation
The correct answer is Sec 18 and 23. These sections contain the legal provisions relating to the transfer of ownership in the case of unascertained goods. Section 18 deals with the transfer of ownership when there is an unconditional contract for the sale of specific goods in a deliverable state, while Section 23 deals with the transfer of ownership when there is an unconditional contract for the sale of unascertained goods. These sections outline the conditions and rules for the transfer of ownership in such cases.Rate this question:
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- 35.
The 'sale on approval' means the sale in which the buyer may return the goods if
- A.
He is incapable of paying the price
- B.
He is not satisfied with seller's behavior.
- C.
The goods do not serve his purpose.
- D.
The seller fails to give special discount on acceptance of goods.
Correct Answer
C. The goods do not serve his purpose.Explanation
The correct answer is "The goods do not serve his purpose." In a sale on approval, the buyer has the right to return the goods if they do not meet their intended purpose or if they are not suitable for the buyer's needs. This allows the buyer to test the goods and determine if they are suitable before committing to the purchase.Rate this question:
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- 36.
In case, of 'sale on approval' the buyer can return the goods if the goods do not serve his purpose, but he must exercise the option of returning the goods within
- A.
7 days of sale.
- B.
15 days of sale.
- C.
30 days of sale.
- D.
Reasonabletime.
Correct Answer
D. Reasonabletime.Explanation
The correct answer is "Reasonable time". In a sale on approval, the buyer has the right to return the goods if they do not serve his purpose. However, there is no specific time limit mentioned in the question for exercising the option of returning the goods. The time limit for returning the goods would depend on what is considered reasonable in the specific circumstances of the sale.Rate this question:
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- 37.
The 'sale on approval' is also known as
- A.
Hire-purchase agreement
- B.
'Sale on returns' basis
- C.
Restricted sale
- D.
None of these.
Correct Answer
B. 'Sale on returns' basisExplanation
The term 'sale on approval' refers to a sales agreement where the buyer has the option to return the purchased goods if they are not satisfied with them. This is commonly known as a 'sale on returns' basis, as the buyer can return the goods and receive a refund. It is different from a hire-purchase agreement, where the buyer pays installments to eventually own the goods, and it is also different from a restricted sale, which implies limitations or conditions on the sale. Therefore, the correct answer is 'Sale on returns' basis.Rate this question:
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- 38.
In case of sale on approval, if the goods are not returned within a reasonable time. The seller
- A.
Can ask for return of goods.
- B.
Can recover compensation for failure to return goods
- C.
Become entitled to recover the price of goods.
- D.
Both (a) and (b).
Correct Answer
C. Become entitled to recover the price of goods.Explanation
In the case of a sale on approval, if the goods are not returned within a reasonable time, the seller becomes entitled to recover the price of the goods. This means that if the buyer does not return the goods within the agreed-upon timeframe, the seller has the right to demand payment for the goods as if they were sold outright. This is because the buyer has essentially accepted the goods by keeping them beyond the approved period, and the seller should be compensated for the sale.Rate this question:
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- 39.
In case of 'sale on approval' the . ownership of goods is transferred to the buyer when he
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
In a "sale on approval" arrangement, the ownership of goods is transferred to the buyer when he takes possession of them. This means that once the buyer physically receives the goods, they become the owner, regardless of whether they decide to keep or return them. Therefore, the statement "True" is the correct answer.Rate this question:
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- 40.
In case of 'sale on approval' the ownership of goods is transferred to the buyer when he
- A.
Accepts the goods.
- B.
Adopts the transaction.
- C.
Fails to return the gods.
- D.
In all the above cases.
Correct Answer
D. In all the above cases. -
- 41.
A delivered some jewellery to B on 'sale or return' basis. B sold the jewellery to C on similar terms; In this case, the ownership passes to B
- A.
On sale by B to C.
- B.
If C fails to return the goods to B.
- C.
If C returns the goods and B accepts return.
- D.
If C pays the price to B.
Correct Answer
A. On sale by B to C.Explanation
When B sells the jewelry to C on similar terms of "sale or return," the ownership of the jewelry passes from A to B. This means that B becomes the rightful owner of the jewelry, regardless of whether C returns the goods or pays the price to B. The statement "On sale by B to C" accurately reflects this transfer of ownership.Rate this question:
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- 42.
A delivered a house to B on 'sale or return'basis.It was agreed that B should try it for 8 days and then return If is did not serve his purpose. The horse died on the 3rd day without any fault of B. In this case, the loss shall fall on the owner i.e.
- A.
Seller
- B.
Buyer
- C.
Both in equal shares
- D.
Government
Correct Answer
A. SellerExplanation
In this case, the loss shall fall on the seller because the agreement was made on a "sale or return" basis. This means that the seller bears the risk of any loss or damage to the item during the trial period. Since the horse died on the 3rd day without any fault of the buyer, it is the seller's responsibility to bear the loss.Rate this question:
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- 43.
The legal provisions relating to the transfer of ownership in case of 'sale on approval' are contained in
- A.
Section 23
- B.
Section 24
- C.
Section 25
- D.
Section 26
Correct Answer
B. Section 24Explanation
The correct answer is Section 24. This section contains the legal provisions relating to the transfer of ownership in case of 'sale on approval'. It specifies the conditions and procedures for transferring ownership when goods are sold on approval, where the buyer has the option to return the goods if not satisfied.Rate this question:
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- 44.
Which of the following statement is incorrect in relation to 'sale on approval'
- A.
The seller cannot ask for the return of the goods sold.
- B.
The seller cannot recover the price if the goods are not returned within a reasonable time.
- C.
The seller can recover the price if the goods are not returned within a reasonable time.
- D.
The ownership of goods is transferred to the buyer if he fails to return the goods within fixed time to or reasonable time.
Correct Answer
B. The seller cannot recover the price if the goods are not returned within a reasonable time.Explanation
In a sale on approval, the seller allows the buyer to take possession of the goods for a trial period. If the buyer decides to keep the goods, the ownership is transferred to the buyer. However, if the buyer fails to return the goods within a fixed or reasonable time, the ownership remains with the seller and the seller can recover the price of the goods. Therefore, the statement "The seller cannot recover the price if the goods are not returned within a reasonable time" is incorrect.Rate this question:
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- 45.
The 'reasonable time' in case of sale on approval
- A.
Is three months form the date of contract.
- B.
Is six months from the date of contract.
- C.
Depends upon the facts and circumstances of each case.
- D.
Is always fixed in the contract.
Correct Answer
C. Depends upon the facts and circumstances of each case.Explanation
The 'reasonable time' in the case of sale on approval depends upon the facts and circumstances of each case. This means that there is no fixed time period specified in the contract or by law. Instead, it will vary based on factors such as the nature of the goods, the industry standards, and the intentions of the parties involved. The determination of a reasonable time will be made on a case-by-case basis, taking into account all relevant factors.Rate this question:
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- 46.
Where it is expressly agreed between the seller and the buyer that the ownership shall not be transferred to the buyer until the price is paid, then the
- A.
Transaction is known as 'sale for cash only or return
- B.
Ownership transfer only on the payment of price
- C.
None of these, as imposition of such a condition makes the contract void.
- D.
Both (a) and (b) as such a contract is perfectly valid.
Correct Answer
D. Both (a) and (b) as such a contract is perfectly valid.Explanation
When it is expressly agreed between the seller and the buyer that the ownership of the goods will only be transferred to the buyer upon full payment of the price, it is known as a 'sale for cash only or return' transaction. This means that the buyer must pay the full price in cash in order to become the owner of the goods. This condition does not make the contract void, but rather it is a valid contractual agreement between the seller and the buyer. Therefore, the correct answer is both (a) and (b) as such a contract is perfectly valid.Rate this question:
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- 47.
The delivery of contract quality goods to a carrier operates as transfer of ownership to the buyer if the
- A.
Goods are delivered to a carrier for the purposes of transmission to the buyer.
- B.
Seller delivers the goods to carrier without reserving the right of disposal.
- C.
Both (a) and (b).
- D.
Either (a) or (b).
Correct Answer
C. Both (a) and (b).Explanation
Both (a) and (b) are correct because according to the given information, the delivery of contract quality goods to a carrier operates as a transfer of ownership to the buyer if the goods are delivered to a carrier for transmission to the buyer and if the seller delivers the goods to the carrier without reserving the right of disposal. Both of these conditions need to be met for the transfer of ownership to occur.Rate this question:
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- 48.
Where the seller imposes a condition that the ownership shall not pass to the buyer until price is paid, the
- A.
Contract is void being conditional
- B.
Seller is said to have reserved his right of disposal.
- C.
Buyer becomes the owner only when the goods are delivered to him.
- D.
Condition is inoperative being unreasonable.
Correct Answer
B. Seller is said to have reserved his right of disposal.Explanation
When the seller imposes a condition that the ownership of the goods will not pass to the buyer until the price is paid, it means that the seller has reserved the right to dispose of the goods until the payment is made. This means that the seller still has control over the goods and can decide whether or not to transfer ownership to the buyer.Rate this question:
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- 49.
Which of the following is correct regarding reservation of right of disposal by the seller?
- A.
The ownership is not transferred to the buyer until the conditions imposed by the seller are fulfilled.
- B.
The ownership is not transferred to the buyer even if the goods are delivered to a carrier for the purpose of transmission to the buyer.
- C.
Both (a) and (b) are correct.
- D.
None of these is correct.
Correct Answer
C. Both (a) and (b) are correct.Explanation
Both (a) and (b) are correct. The reservation of the right of disposal by the seller means that the ownership of the goods is not transferred to the buyer until certain conditions imposed by the seller are fulfilled. This includes the condition that even if the goods are delivered to a carrier for the purpose of transmission to the buyer, the ownership is still not transferred. In both cases, the seller retains the right to dispose of the goods until the conditions are met.Rate this question:
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- 50.
While delivering the goods to a carrier, in which of the following cases, the seller is I presumed to have reserved his right of disposal ?
- A.
Where he takes documents of title in his own name.
- B.
Where along with the documents of title, he also sends the bill of exchange for price.
- C.
Both of these.
- D.
None of these.
Correct Answer
C. Both of these.Explanation
In both cases mentioned, the seller is presumed to have reserved his right of disposal. When the seller takes documents of title in his own name, it indicates that he still has control over the goods and can dispose of them as he wishes. Similarly, when the seller sends the bill of exchange for the price along with the documents of title, it suggests that he has not transferred ownership of the goods yet and can still exercise his right to dispose of them. Therefore, in both scenarios, the seller is presumed to have reserved his right of disposal.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
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Aug 27, 2011Quiz Created by
Sweetsalman123
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