Nature And Formation Of Contract Of Sale

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  • 1/112 Questions

    There can be no valid sale without the price.

    • True
    • False
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Nature And Formation Of Contract Of Sale - Quiz

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  • 2. 

    The term 'property' in goods means _________________  of goods.

    • Possession

    • Ownership

    • Custody

    • Subject - matter

    Correct Answer
    A. Ownership
    Explanation
    The term 'property' in goods refers to ownership of goods. Possession refers to physically having the goods, custody refers to being responsible for the goods, and subject-matter refers to the goods themselves. However, ownership specifically implies having legal rights and control over the goods.

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  • 3. 

    A contract of sale which provides for the immediate  payment of price and immediate delivery of goods, is a

    • Valid

    • Void

    • Voidable

    • Forbidden

    Correct Answer
    A. Valid
    Explanation
    A contract of sale that includes immediate payment of the price and immediate delivery of goods is considered valid. This means that both parties involved have willingly agreed to the terms and conditions of the contract, and there are no legal or ethical issues that would render the contract void or voidable. The contract is legally enforceable and both parties are obligated to fulfill their respective obligations as stated in the contract.

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  • 4. 

    Legally, the contract of sale includes 

    • Sale

    • Agreement to sell

    • Barter

    • Both (a) and (b).

    Correct Answer
    A. Both (a) and (b).
    Explanation
    The contract of sale legally includes both the sale and agreement to sell. The sale refers to the transfer of ownership of goods from the seller to the buyer for a price, while the agreement to sell refers to a contract where the ownership transfer will take place at a future date or upon certain conditions. Therefore, the correct answer is both (a) and (b).

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  • 5. 

    A contract for the sale of 'future goods' is 

    • Sale

    • Agreement to sell

    • Sale on approval

    • Hire-purchase

    Correct Answer
    A. Agreement to sell
    Explanation
    A contract for the sale of 'future goods' refers to an agreement where the seller agrees to transfer ownership of goods to the buyer at a future date or upon the occurrence of a specific event. In this type of contract, the goods are not yet in existence or are not yet owned by the seller at the time of making the agreement. The agreement to sell is the appropriate term for such a contract, as it signifies the intention to transfer ownership in the future rather than an immediate sale.

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  • 6. 

    Money consideration for the sale of goods is known as _______________   

    • Consideration

    • Cash sale

    • Price

    • None of these.

    Correct Answer
    A. Price
    Explanation
    The correct answer is "Price". In the context of the sale of goods, the term "price" refers to the monetary value that is agreed upon between the buyer and seller as the consideration for the goods being sold. It represents the amount of money that the buyer has to pay in order to acquire the goods. The price is an essential element in any transaction involving the sale of goods, as it determines the financial value of the goods and is a key factor in determining the profitability of the seller.

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  • 7. 

    A contract of sale may be made party in writing and partly by words of mouth.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    A contract of sale can be partially written and partially verbal. This means that some parts of the contract can be documented in writing, while other aspects can be agreed upon orally. This flexibility allows for negotiations and agreements to take place in a combination of written and spoken form, as long as the essential terms and conditions of the sale are clearly understood and agreed upon by both parties.

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  • 8. 

    Where property in the goods (i.e., legal ownership of the goods) is immediately transferred form the seller to the buyer, it is legally know as

    • Barter

    • Agreement to sell

    • Sale

    • Exchange of goods.

    Correct Answer
    A. Sale
    Explanation
    The correct answer is "Sale." In a sale transaction, the property in the goods is immediately transferred from the seller to the buyer. This means that the legal ownership of the goods is transferred to the buyer at the time of the sale. This is different from other options such as barter, where goods are exchanged without the transfer of legal ownership, or an agreement to sell, where the transfer of ownership happens at a later point in time.

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  • 9. 

    A contract of sale which provides for the immediate delivery of goods, but the payment of price at some future date, is a __________  contract of sale.

    • Valid

    • Void

    • Voidable

    • Forbidden

    Correct Answer
    A. Valid
    Explanation
    A contract of sale which provides for the immediate delivery of goods, but the payment of price at some future date, is a valid contract of sale because it meets the essential requirements of a contract. The parties have agreed on the terms and conditions, including the delivery of goods and the future payment of the price. Both parties are legally bound by this agreement, and it can be enforced by law if necessary.

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  • 10. 

    A contract of sale for the sale of 'future goods' is _________    

    • Sale

    • Agreement to sell

    • Void

    • Voidable

    Correct Answer
    A. Agreement to sell
    Explanation
    A contract of sale for the sale of 'future goods' is an agreement to sell. This means that the parties involved have agreed to transfer ownership of the goods at a future date or upon the occurrence of a specific event. It is not a completed sale at the time of the contract, but rather a promise to sell in the future. Once the conditions are met, the agreement to sell can be converted into a sale.

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  • 11. 

    The consideration for a contract of sale is 

    • Price

    • Buyer's promise

    • Seller's promise

    • Exchange of promises.

    Correct Answer
    A. Price
    Explanation
    The consideration for a contract of sale is the price. In a contract of sale, the price is the amount of money or something of value that the buyer agrees to pay to the seller in exchange for the goods or services being sold. It is an essential element of the contract as it represents the value of the transaction and is necessary for the agreement to be legally enforceable. Without a price, there would be no clear understanding of the terms of the sale and the obligations of the parties involved.

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  • 12. 

    Which of the following is the essential requirement of a contract of sale?

    • All the requirements of a valid contract must be fulfilled.

    • There must be two parties to the contract of sale.

    • Both of these.

    • None of these.

    Correct Answer
    A. Both of these.
    Explanation
    The essential requirement of a contract of sale is that all the requirements of a valid contract must be fulfilled, and there must be two parties to the contract of sale. Both of these conditions must be met for a contract of sale to be considered valid.

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  • 13. 

    Where the price is to be fixed by the third party, but such third party is prevented by the seller or the buyer from fixing the price. Then the innocent party may recover damages form the defaulting party,

    • True

    • False

    Correct Answer
    A. True
    Explanation
    If a third party is supposed to determine the price of a transaction, but either the seller or the buyer prevents them from doing so, the innocent party (the party not at fault) has the right to seek compensation for damages from the party that caused the default. This means that if one party interferes with the fair determination of the price, the other party can take legal action to recover any losses they may have suffered as a result. Therefore, the statement "True" is the correct answer.

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  • 14. 

    Where in an agreement to sell, the ownership of the goods is to be transferred on the fulfillment of some condition, the agreement to sell become sales

    • On the fulfillment of the conditions.

    • On the expiry of 30 days after conditions are fulfilled.

    • On the expiry of 60 days after the conditions are fulfilled.

    • None of these, as such a conditional agreement ever becomes sale.

    Correct Answer
    A. On the fulfillment of the conditions.
    Explanation
    In an agreement to sell, the ownership of the goods is not immediately transferred. It is only transferred when certain conditions mentioned in the agreement are fulfilled. Therefore, the agreement becomes a sale when these conditions are fulfilled and ownership is transferred. The correct answer states that the agreement becomes a sale "On the fulfillment of the conditions," which accurately reflects the concept of a conditional agreement becoming a sale.

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  • 15. 

    A contract of sale is made by an offer to buy of sell by one person and its acceptance by another person.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    This statement is true because a contract of sale requires an offer to buy or sell from one person and the acceptance of that offer by another person. Both parties must agree on the terms and conditions of the sale for the contract to be valid.

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  • 16. 

    A contract of sale may be made in writing or by .words of mouth.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    A contract of sale can be made either in writing or orally. This means that it is possible for parties to enter into a valid contract of sale by expressing their agreement through spoken words, without the need for a written document. Therefore, the statement is true.

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  • 17. 

    _________ are the subject -matter of contract of sale under the Sale of Goods Act, 1930.

    • Movable goods only

    • Both movable and immovable goods.

    • Immovable goods only

    • AII goods except ornaments.

    Correct Answer
    A. Movable goods only
    Explanation
    The correct answer is "Movable goods only." According to the Sale of Goods Act, 1930, the subject-matter of a contract of sale is limited to movable goods. Movable goods are items that can be physically transported from one place to another, such as furniture, electronics, or clothing. This means that immovable goods, such as land or buildings, are not included in the scope of the contract of sale under this act. The answer "Movable goods only" accurately reflects this provision of the law.

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  • 18. 

    Where an agreement to sell provides that the ownership of the goods shall be transferred at some future date, it becomes sale

    • When that date arrives

    • After 30 days that date

    • After 60 days that date

    • None of these

    Correct Answer
    A. When that date arrives
    Explanation
    The given correct answer suggests that the ownership of the goods will be transferred when the agreed future date arrives. This implies that the agreement to sell will be considered a sale only when the specified date mentioned in the agreement is reached. Until that date arrives, the ownership of the goods remains with the seller.

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  • 19. 

    The goods which are to be manufactured the seller after tne contract of sale is made, are know as

    • Contingent goods.

    • Unascertained goods

    • Future goods

    • None of these

    Correct Answer
    A. Future goods
    Explanation
    Future goods refer to goods that are not yet in existence or are not yet identified at the time of the contract of sale. These goods will be produced or acquired by the seller after the contract is made. The buyer agrees to purchase these goods based on their description or category rather than their specific identity. Therefore, the correct answer is "Future goods."

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  • 20. 

    A contract of sale which provides that the buyer shall pay the price fixed by some third parry, is

    • Void

    • Valid

    • Uncertain

    • Voidable

    Correct Answer
    A. Valid
    Explanation
    A contract of sale which provides that the buyer shall pay the price fixed by some third party is considered valid because it meets the essential elements of a valid contract. Although the price is determined by a third party, the contract still includes an offer, acceptance, consideration, and mutual agreement between the buyer and seller. The involvement of a third party in determining the price does not invalidate the contract as long as both parties agree to abide by the decision made by the third party.

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  • 21. 

    The term 'goods' for the purposes of Salesof Goods Act, 1930, does not include (I)       Money (ii)     Actionable claims (iii)    Immovable property (iv)   Growing corps, grass

    • (i), (ii), (iii)

    • (ii),(iii),(iv)

    • (i), (ii),(iv)

    • (i),(iii),(iv).

    Correct Answer
    A. (i), (ii), (iii)
    Explanation
    The term 'goods' for the purposes of Sales of Goods Act, 1930, does not include money, actionable claims, and immovable property. This means that these items are not considered as goods under the act.

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  • 22. 

    A contract of sale is _____________ if it provides that buyer shall pay the price fixed by some third party, 

    • Valid

    • Void

    • Voidable

    • Illegal

    Correct Answer
    A. Valid
    Explanation
    A contract of sale is considered valid if it provides that the buyer shall pay the price fixed by some third party. This means that the contract is legally binding and enforceable by law. Both parties involved in the contract are obligated to fulfill their respective obligations, and any breach of the contract can result in legal consequences.

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  • 23. 

    The legal provisions relating to the sate of movable goods are contained in

    • The Sale of Goods Act, 1930

    • The Indian Sale of Goods Act, 1S3C

    • The Sale of Goods Act, 1932

    • The Indian sale of Goods Act, 1932.

    Correct Answer
    A. The Sale of Goods Act, 1930
    Explanation
    The correct answer is The Sale of Goods Act, 1930. This act contains the legal provisions relating to the state of movable goods. It provides regulations and guidelines for the sale and purchase of goods, including the transfer of ownership, warranties, and remedies for breach of contract. The act applies to transactions involving movable goods and aims to protect the rights of both buyers and sellers in such transactions.

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  • 24. 

    A agreed to sell 100 coolers to B at Rs.2,000 per cooler after six months from date. And B also agreed to pay the price after six months i.e., on delivery. This contract of sale is 

    • Void

    • Voidable

    • Valid

    • Contingent

    Correct Answer
    A. Valid
    Explanation
    The contract of sale between A and B is considered valid because it meets the essential elements required for a valid contract. Both parties have agreed on the terms and conditions, including the price and delivery date. The fact that the payment is due on delivery does not invalidate the contract as long as both parties have mutually agreed to this arrangement. Therefore, the contract is legally binding and enforceable.

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  • 25. 

    The term 'goods' means every king of movable property and includes

    • Stock and shares

    • Growing crops, grass

    • The things attached to or forming a part of the land which can be severed form land

    • All of these.

    Correct Answer
    A. All of these.
    Explanation
    The term 'goods' refers to any type of movable property, including stock and shares, growing crops and grass, as well as things attached to or forming a part of the land that can be severed from it. Therefore, the correct answer is "All of these" as it encompasses all the mentioned items.

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  • 26. 

    For the validity of a contract of sale, there must be transfer of

    • Possession of goods to the a buyer.

    • Custody of goods to the buyer.

    • Property in the goods to the buyer.

    • Possession and custody of goods to the buyer.

    Correct Answer
    A. Property in the goods to the buyer.
    Explanation
    For a contract of sale to be valid, there must be a transfer of property in the goods to the buyer. This means that ownership and title of the goods must be transferred from the seller to the buyer. Possession and custody of the goods may or may not be transferred depending on the terms of the contract, but the transfer of property is essential for the validity of the sale.

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  • 27. 

    The specific goods are those gods which are identified

    • At the time of contract of sale.

    • After the formation of contract of sale.

    • During the performance of contract of sale.

    • At the time of enforcement of contract of sale.

    Correct Answer
    A. At the time of contract of sale.
    Explanation
    The correct answer is "At the time of contract of sale." This means that the specific goods are identified and agreed upon by both parties at the moment the contract of sale is made. It is important to determine the specific goods to avoid any confusion or disputes later on. The identification of specific goods allows for a clear understanding of what is being bought and sold, ensuring that both parties are on the same page regarding the transaction.

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  • 28. 

    In an agreement to sell, the property in the goods is transferred to the buyer at some future time and legally it is included in

    • Sale

    • Hire purchase agreement

    • Contract of sale

    • Executed agreement.

    Correct Answer
    A. Contract of sale
    Explanation
    In an agreement to sell, the property in the goods is transferred to the buyer at some future time. This means that the ownership of the goods will be transferred to the buyer only when certain conditions are met, such as full payment or delivery of the goods. This type of agreement is legally known as a "contract of sale" as it involves the sale of goods with a future transfer of ownership. It differs from a sale where the property is immediately transferred to the buyer upon agreement.

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  • 29. 

    The Sale of Goods Act, 1930 deals with the

    • Movable goods only

    • Immovable goods only

    • Both movable and immovable-goods

    • All goods except ornaments.

    Correct Answer
    A. Movable goods only
    Explanation
    The correct answer is "Movable goods only." The Sale of Goods Act, 1930 specifically focuses on the sale and purchase of movable goods. This means that the act does not cover immovable goods such as land or buildings. The act provides regulations and guidelines for the sale of goods that can be physically moved or transferred from one person to another. It ensures that buyers and sellers are protected and have legal remedies in case of any disputes or issues related to the sale of movable goods.

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  • 30. 

    A contract of sale made without consideration, is __________

    • Void

    • Voidable

    • Valid

    • None of these.

    Correct Answer
    A. Void
    Explanation
    A contract of sale made without consideration is void because consideration is an essential element of a valid contract. Consideration refers to something of value exchanged between the parties involved in the contract. Without consideration, there is no mutual exchange of benefits or obligations, rendering the contract unenforceable. Therefore, a contract of sale made without consideration is considered void.

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  • 31. 

    Where the third party fails to fix the price, but the buyer has received and appropriated the goods, then the buyer is liable to pay ?

    • Penalty

    • Damages

    • Reasonable price

    • According to seller's demand.

    Correct Answer
    A. Reasonable price
    Explanation
    When the third party fails to fix the price, but the buyer has already received and used the goods, the buyer is liable to pay a reasonable price. This means that the buyer must pay an amount that is considered fair and just for the goods received, taking into account factors such as market value, quality, and any other relevant considerations. The buyer cannot escape payment by claiming that a fixed price was not established, as they have already benefited from the goods and must compensate the seller accordingly.

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  • 32. 

    A contract of sale is a contract for the sale of

    • Movable goods

    • Immovable goods

    • Both (a) and (b)

    • None of these.

    Correct Answer
    A. Movable goods
    Explanation
    A contract of sale is a legal agreement between two parties where one party agrees to transfer ownership of movable goods to the other party in exchange for payment. Movable goods refer to items that can be physically moved or transferred, such as vehicles, furniture, and electronics. This type of contract does not apply to immovable goods, which are properties or assets that cannot be easily moved, such as land or buildings. Therefore, the correct answer is "Movable goods."

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  • 33. 

    A contract of sale which provides for the immediate payment of price, but delivery to be made at some future date, is a________ contract of sale.

    • Valid

    • Void

    • Voidable

    • Forbidden

    Correct Answer
    A. Valid
    Explanation
    A contract of sale which provides for the immediate payment of price, but delivery to be made at some future date, is considered a valid contract of sale. This means that the contract is legally enforceable and binding on both parties involved. The agreement meets the essential requirements for a valid contract, including an offer, acceptance, consideration, and intention to create legal relations. Although delivery is postponed, the immediate payment of the price ensures that both parties have fulfilled their obligations under the contract.

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  • 34. 

    A contract of sale which provides for the payment of price and the delivery of goods in instilment, is not a valid contract of sale.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement is false because a contract of sale that includes provisions for the payment of price and the delivery of goods in installments can still be a valid contract of sale. The validity of a contract of sale is determined by meeting certain legal requirements, such as offer and acceptance, consideration, and an intention to create legal relations. As long as these requirements are fulfilled, the contract of sale remains valid, regardless of whether the payment and delivery are made in installments.

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  • 35. 

    A agrees to sell to B his Maruthi 800 car at a price fixed by C, a car dealer, This contract of sale is

    • Void

    • Valid

    • Uncertain

    • Voidable

    Correct Answer
    A. Valid
    Explanation
    The contract of sale between A and B for the Maruthi 800 car is considered valid because it meets the essential elements required for a valid contract. The agreement involves an offer (A agreeing to sell the car), acceptance (B agreeing to buy the car), and consideration (the price fixed by C, the car dealer). As long as there are no other legal issues or invalidating factors present, such as fraud or duress, the contract can be enforced by both parties.

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  • 36. 

    _______ is legally included in contract of sale.

    • Agreement to sell

    • Hire- purchase agreement

    • Sale

    • Both (a) and (c).

    Correct Answer
    A. Both (a) and (c).
    Explanation
    Both (a) and (c) are legally included in a contract of sale. An agreement to sell refers to a contract where the seller agrees to transfer ownership of the goods to the buyer at a future date or upon the fulfillment of certain conditions. On the other hand, a sale refers to a contract where the ownership of goods is immediately transferred from the seller to the buyer. Therefore, both types of contracts, agreement to sell and sale, are legally recognized and included in a contract of sale.

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  • 37. 

    Which of the following type of goods can form the subject-matter of contract of sale?

    • Existing goods

    • Specific goods

    • Unascertained goods

    • All of these.

    Correct Answer
    A. All of these.
    Explanation
    All of these types of goods can form the subject matter of a contract of sale. Existing goods refer to goods that are already owned or possessed by the seller at the time of the contract. Specific goods are goods that are identified and agreed upon by both the buyer and seller at the time of the contract. Unascertained goods are goods that are not yet identified or specifically agreed upon at the time of the contract, but will be determined later. Therefore, all three types of goods can be the subject matter of a contract of sale.

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  • 38. 

    A contract for the sale of 'future goods',is

    • Void

    • Voidable

    • Sale

    • Agreement to sell.

    Correct Answer
    A. Agreement to sell.
    Explanation
    In this scenario, the correct answer is "Agreement to sell." This is because a contract for the sale of 'future goods' refers to an agreement where the goods are not presently available but will be delivered or transferred at a later date. This type of contract is categorized as an "agreement to sell" rather than a "sale" because the goods are not yet in existence or available for immediate transfer. Therefore, the contract is not considered void or voidable, but rather an agreement to sell the goods in the future.

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  • 39. 

    A contract of sale by a party not competent to contract, is _________               

    • Void

    • Voidable

    • Valid

    • None of these.

    Correct Answer
    A. Void
    Explanation
    A contract of sale by a party not competent to contract is considered void. This means that the contract is not legally binding and has no legal effect. This is because a party who is not competent to contract, such as a minor or a person of unsound mind, lacks the legal capacity to enter into a contract. As a result, the contract is deemed invalid from the beginning and cannot be enforced by either party.

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  • 40. 

    A agreed to sell to B certain standing trees grown in A's field. They agreed that upon payment of price, B may cut the trees and take them away. It is a

    • Valid contract of sale as the trees can be severed from land.

    • Void contract of sale as the trees are not included in growing crop.

    • Voidable at B's option as he may enforce the contract if he so withes .

    • Contingent contract of sale dependent on B's act of cutting the trees.

    Correct Answer
    A. Valid contract of sale as the trees can be severed from land.
    Explanation
    The correct answer is a valid contract of sale as the trees can be severed from the land. This means that the trees can be physically separated from the land without causing any damage or harm. In such a case, the contract is considered valid as the subject matter of the contract can be transferred from the seller to the buyer.

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  • 41. 

    In agreement to sell, the property in the goods is transferred to the buyer

    • At the time of contract

    • At some future time

    • At the desire of seller

    • On the payment of price.

    Correct Answer
    A. At some future time
  • 42. 

    In a sale, if the goods are destroyed, the loss falls on the ____________          

    • Buyer

    • Seller

    • Both(a) &(b)

    • None

    Correct Answer
    A. Buyer
    Explanation
    In a sale, if the goods are destroyed, the loss falls on the buyer. This is because once the buyer has taken possession of the goods, they become responsible for any damage or loss that may occur. The seller's responsibility typically ends once the goods have been delivered to the buyer. Therefore, in the event of destruction, it is the buyer who bears the loss.

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  • 43. 

    Price means

    • Currency in circulation.

    • Old silver and gold coins.

    • Cheques of nationalized banks.

    • Both (b) and (c).

    Correct Answer
    A. Currency in circulation.
    Explanation
    The correct answer is "Currency in circulation" because price refers to the amount of money that is required to purchase a product or service. It is the value that is assigned to goods and services in terms of money. Currency in circulation refers to the total amount of money that is currently in circulation in an economy, including coins and banknotes. Therefore, this option accurately represents the concept of price.

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  • 44. 

    35.    Which of the following are not the essential elements of a contract of sale? (a)    Movable goods and price. (b)   Transfer of property in the goods. (c)    Transfer of possession of goods (d)    Three distinct parties i.e., buyer seller and guarantor.

    • (i), (ii)

    • (ii), (iii)

    • (iii), (iv)

    • (i), (iv)

    Correct Answer
    A. (iii), (iv)
    Explanation
    The essential elements of a contract of sale include movable goods and price, transfer of property in the goods, and transfer of possession of goods. However, the presence of three distinct parties, i.e., buyer, seller, and guarantor, is not necessary for a contract of sale. Therefore, options (iii) and (iv) are not the essential elements of a contract of sale.

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  • 45. 

    Which of the following is not included in the tern goods? 

    • Money

    • Actionable claim

    • Stock and shares

    • Both (a) & (b).

    Correct Answer
    A. Both (a) & (b).
    Explanation
    Both money and actionable claim are not included in the term goods. Goods refer to tangible items that can be physically touched, seen, and felt. Money, on the other hand, is a medium of exchange and does not fall under the category of goods. Similarly, an actionable claim is a legal right to obtain a certain payment or performance from another party, which is not a tangible item and therefore not considered as goods.

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  • 46. 

    The goods which have identified by the parties at the time of contract of sale, are know as

    • Ascertained goods

    • Specific goods

    • Unascertained goods

    • None of these.

    Correct Answer
    A. Specific goods
    Explanation
    Specific goods refer to the goods that have been identified and agreed upon by the parties at the time of the contract of sale. These goods are clearly defined and distinguished from other goods. Unlike unascertained goods, which are not yet identified or specified, specific goods have a clear description or identification, such as a specific brand, model, or quantity. Therefore, the correct answer is specific goods.

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  • 47. 

    The Sale of Goods Act came into force on  

    • 1st Mar, 1930

    • 1st July, 1930

    • 31st Mar 1930

    • 31st July, 1930

    Correct Answer
    A. 1st July, 1930
    Explanation
    The correct answer is 1st July, 1930. This date marks the day when the Sale of Goods Act was officially implemented. This act is a significant piece of legislation that governs the sale of goods in the United Kingdom. It outlines the rights and responsibilities of both buyers and sellers in a transaction and provides legal protection to consumers. The act covers various aspects such as the quality and fitness for purpose of goods, the transfer of ownership, and the remedies available in case of breach of contract.

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  • 48. 

    The term 'property' as used in the Sale of Good At means

    • Possession

    • Possession & ownership

    • Ownership

    • Subject matter of sale

    Correct Answer
    A. Ownership
    Explanation
    The term 'property' as used in the Sale of Goods Act refers to ownership. This means that when a person owns a property, they have the legal right to possess, use, and dispose of it as they see fit. Ownership is a key aspect in the sale of goods because it determines who has the right to transfer ownership of the goods to another party.

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  • 49. 

    Legally, the 'sale' is included in

    • Agreement to sell

    • Hire purchase agreement

    • Contract of sale

    • Executed contract.

    Correct Answer
    A. Contract of sale
    Explanation
    The correct answer is "Contract of sale". In legal terms, a contract of sale refers to an agreement between a buyer and a seller where the seller agrees to transfer ownership of a specific item or property to the buyer in exchange for a price. This type of contract is commonly used in various commercial transactions and is governed by specific laws and regulations. The other options listed, such as agreement to sell, hire purchase agreement, and executed contract, do not specifically encompass the concept of a sale as defined in a contract of sale.

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  • Current Version
  • Sep 15, 2023
    Quiz Edited by
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  • Aug 25, 2011
    Quiz Created by
    Sweetsalman123

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