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Tamilnadu Samacheer Kalvi 12th Commerce Solutions Chapter 21 The Sale Of Goods Act 1930
Students can score good marks in the exam by preparing with Samacheer Kalvi Class 12th Commerce Solutions Chapter 21 The Sale Of Goods Act 1930 Questions and Answers. Your efforts can give you good results when you have the best resources. Samacheer Kalvi Class 12th Commerce Solutions Chapter 21 The Sale Of Goods Act 1930 is the best resource to learn Commerce. Have the best learning with Chapterwise Tamilnadu State Board Class 12th Commerce Solutions to have the best future ahead.
Samacheer Kalvi 12th Commerce The Sale Of Goods Act 1930 Textbook Exercise Questions and Answers
I. Choose the correct answer
Sale of Goods Act was passed in the year _______
Which of the below constitutes the essential element of contract of sale?
(a) Two parties
(b) Transfer of property
(d) All of the above
(d) All of the above
Which of the below is not a good?
(b) Dividend due
(b) Dividend due
In case of the sale, the _______ has the right to sell.
The property in the goods means the _______
(a) Possession of goods
(b) Custody of goods
(c) Ownership of goods
(d) Both (a) and (b)
(c) Ownership of goods
Specific goods denote goods identified upon the time of of sale.
In which of the following types, the ownership is immediately transferred to buyer?
(a) When goods are ascertained
(b) When goods are appropriate
(c) Delivery to the carrier
(d) Sale or return basis
(c) Delivery to the carrier
_______ is a stipulation which is collateral to main purpose of contract.
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
(d) All of these
The unpaid seller can exercise his right of stoppage of goods in transit where the buyer _______
(a) Becomes insolvent
(b) Refuses to pay price
(c) Payment of price
(d) Both (b) and (c)
(a) Becomes insolvent
II. Very Short Answer Questions
What is a contract of sale of goods?
When a seller transfers or agrees to transfer the rights (ownership) of the property (goods) to the buyer for a price is known as “Contract of sale of goods”.
List down the essential elements of a contract of sale.
Following essential elements are necessary for a contract of sale:
- Two Parties
- Transfer of Property
- Includes both ‘Sale’ and ‘Agreement to Sell’
What is meant by goods?
- Movable [Mobile] properties.
- Stocks and Shares.
- Growing crops
- Intangible Assets like Goodwill, Trademark, patent rights, Copyrights, etc.,
- Money [Cash]
- Immovable [Immobile] properties
- Actionable claims
- FDR, LIC policy, Receivable, and Dues in the future.
What is Contingent Goods?
Contingent goods are the goods, the acquisition of which by the seller depends upon a contingency (an event which may or may not happen). Contingent goods are a part of future goods.
What do you understand by warranty?
- Warranty is a stipulation which is collateral [Supportive] to the main purpose of the contract.
- It is of a subsidiary to the contract.
III. Short Answer Questions
Explain the meaning of the Agreement to sell.
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.
Discuss in detail existing goods.
These are the goods [stock – in – Trade] owned by the seller at the time of contract of sale or refer to sale by Agents or by pledger.
It denotes the goods identified [selected] and agreed upon at the time of contract of sale.
It is also used as similar in meaning to specific goods.
Unascertained Goods (or) Generic goods:
These are the goods that are not identified [not selected] and agreed upon at the time of contract of sale.
Discuss the implied conditions and warranties in the sale of goods contract.
1. Implied conditions:
a) Conditions as to Title:
In the case of a sale, (buyer can assume) the seller has a right to sell the goods.
b) Conditions as to Description:
In a contract of sale by description, there is an implied condition that goods supplied should agree with the description made by the seller.
c) Sale by Sample:
Where goods are sold by showing samples by the seller [eg. cloth, medicine etc] the bulk of goods supplied by the seller should be similar to the samples shown
2. Implied Warranties:
a) Free from any Encumbrances [Obstruction]
The goods bought must not have any charge or obstruction on right in favour of a third party.
If the buyer’s possession is disturbed by any obstruction, he is entitled to claim damages for breach of warranty.
Warranty in the case of Dangerous goods:
The seller Knows, the goods sold by him are dangerous or likely to be dangerous. But the buyer does not know the dangers.
Discuss in detail the rights of an unpaid seller against the buyer personally.
Where the Property in the Goods does not pass to the Buyer. Right of an Unpaid Seller against the Buyer Personally:
- Suit for price
- Suit for Damages for Non-acceptance
- Suit for Cancellation of the Contract before the Due Date- Where the buyer cancels the contract before the date of delivery, the seller may either treat the contract as continuing or wait till the due date.
- Suit for Interest
IV. Long Answer Questions
Explain in detail the elements of the Contract of sale.
- A contract of sale involves two parties Buyer and seller and they should be different persons.
- If a person takes his goods for his own, personal use it is not a sale.
Transfer of [Ownership] property [Goods]:
- Sale constitutes, the seller must transfer or agree to transfer the ownership of the goods to the buyer.
- Mere transfer of possession [hand over] does not amount to sale.
- The subject matter of contract of sale must be goods.
- It includes movable properties, stocks and shares, Growing crops, Intangible Assets such as Goodwill, Trade mark, copyrights, patent rights etc.
- It excludes Money [Cash] Immovable properties, Actionable claims etc.
- The monetary consideration for the goods sold is called ‘Price’.
- If goods are exchanged for goods it is Barter and not sale.
- But if goods are sold partly for cash and partly for goods it is contract of sale.
Includes both ‘Sale’ and ‘Agreement to Sell’:
- Contract of sale includes both sale and agreement to sell.
- The ownership of goods transferred to the buyer immediately it is sale.
- The ownership of goods transferred to a future date or fulfilment of certain conditions it is Agreement to sell.
Distinguish between sale and agreement to sell.
|Basis for Comparison||Sale||Agreement to Sell|
|1. Ownership||The property (ownership or title) in the goods passes from the seller to the buyer immediately.||The property (ownership or title) in the goods has to pass at a future time or after the fulfilment of certain conditions.|
|2. Risk of Loss
|Where the goods sold under the contract of sale are destroyed, the loss falls fully on the buyer as the owner has already passed.||Where the goods under the agreement to sell are destroyed, the loss falls fully on the seller as the ownership is still vested with seller.|
|3. Consequences of violating the contract||Where the buyer fails to pay the price, the seller cannot seize the goods.||Where the buyer violates the contract, the seller can repossess the goods from the former.|
|4. Nature of contract||It is an executed contract.||It is an executory contract, i.e., a contract yet to be performed.|
|5. Insolvency of the Buyer||In a sale, if a buyer becomes insolvent before he pays for the goods even though the goods sold are under the possession of the seller, the latter has to return them to the Official Receiver.||If the buyer becomes insolvent before the payment of the price, the seller can retain the goods if they are under his possession.|
Classify goods under the Sale of Goods Act.
- Existing Goods are those owned (stock – in – hand) and possessed by the seller, at the time of contract of sale.
- Goods possessed even refer to sale by Agents or by pledger.
a) Specific Goods:
- It denotes the goods are identified [Selected] and agreed upon at the time of contract of sale.
- (e.g) Examining several TVs, the selected one [ONIDA] denotes specific goods.
b) Ascertained Goods:
- The term “Ascertained goods” is also used as similar in meaning to specific goods.
- But it is ascertained [Selected] after the formation of the contract of sale.
- (e.g) ONIDA TV is to be selected after the formation of the contract of sale.
c) Unascertained Goods or Generic Goods:
- It denotes the goods are not identified [Not selected] and agreed upon at the time of contract of sale.
- (e.g) [Not selected] ONIDA, SAMSUNG, LG, etc, [may select any one]
- These are the goods which a seller does not possess at the time of contract of sale.
- But which will be manufactured of produced or supplied after entering into the contract of sale. [Supplied in Future date]
- (e.g) Noohu agrees to supply 100 bags of Basmati Rice to Nehan for giving Birthday Dinner. [Supplied when Nehan’s Date of Birth]
- It is part of Future goods.
- It is sold by the seller to a buyer, depends upon an event [contingency] which may happen or not happen.
- (e.g) Britto agrees to sell a TAB to Senthooran, provided if he gets from Nalla Tambi.
- In this TAB is contingent goods.
Distinguish between Condition and Warranty.
|Basis for Difference||Condition||Warranty|
|1. 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.|
|2. Significance||Condition is necessary to the contract that the breaking of which cancels out the contract.||The violation of warranty will not revoke the contract.|
|3. Transfer of Ownership||Ownership on goods cannot be transferred without fulfilling the conditions.||Ownership on goods can be transferred on the buyer without fulfilling the warranty.|
|4. Remedy||In case of breach of contract, the affected party can cancel the contract and claim damages.||In the ease of breach of warranty, the affected party cannot cancel the contract but can claim damages only.|
|5. Treatment||Breach of condition may be treated as a breach of warranty.||Breach of warranty cannot be treated as a breach of condition.|
Discuss in detail the rights of an unpaid seller against the goods.
A seller is deemed to be an unpaid seller when:
(a) the whole of the price has not been paid
(b) a bill of exchange or other negotiable instrument given to him has been dishonoured.
Rights of an Unpaid Seller against the Goods:
(I) Where the Property in the Goods has Passed to the Buyer:
A. Right of Lien: An unpaid seller has a right to retain the goods till he receives the price. But to exercise this lien-
- He must be in possession of goods
- The goods must have been sold without any condition.
B. Right of Stoppage in Transit: Where the seller has delivered the goods to a carrier or other bailee for the purpose of transmission to the buyer, but the buyer has not acquired them, then the seller can stop the goods.
C. Right of Resale: The unpaid seller can resell the goods-
- Where they are of a perishable nature or
- Where the seller has expressly reserved the right of resale in the contract itself.
X purchased a hot water bottle from Y, the retail chemist. X asked Y if it would stand boiling water. The chemist told him that the bottle was meant to hold hot water. The bottle burst when water was poured into it and injured his wife. State whether seller is liable for the injury suffered by the buyer and the consequent compensation, give your reasons.
The seller is not liable for the injury because he already told that the bottle is hot water bottle. X’s wife poured boiling water in the bottle, so she was injured. But there is no need for compensation.
X asked a car dealer to suggest him car suitable for touring purposes. The dealer suggested a ‘Buggati Car’. Accordingly, X purchased it but found it unsuitable for touring purposes. State whether the car dealer is liable for breach of the condition?
Yes, the car dealer is liable for breach of condition, because he told ‘Buggati Car’ was suitable for touring purpose. But in usage, it became unsuitable for touring purposes.
X, a dealer sold a plastic catapult to B. While using the catapult in the usual manner, it broke due to the fact that the materials used in its manufacture were unsuitable. As a result, the boy who was using it, blinded in one of his eyes. State whether the seller is liable or not.
The seller is liable because the materials used to manufacture the catapult were not of good quality. That is why the boy was blinded in one of his eyes.
X bought from Y a heap of wheat the weight of which is 1000 kg at the rate of Rs. 8 per kg. and agrees to pay the price on the first day of the next month and the wheat is to be delivered at X’s godown on the following day. A fire broke out and the entire quantity of wheat was destroyed. State whether X is liable to pay the price or not. Why?
X is not liable, because, before delivery, the goods were destroyed in Y’s godown. So X need not pay the price.
X bought from Y a heap of wheat (weight 100 kg) at the rate of Rs. 8 per kg. and Y had to put the wheat in bags to deliver it to X. Y filled some bags in X’s presence, but before the remainder could be filled, a fire broke out and the entire quantity of wheat was destroyed. State whether X is liable to pay the price or not. Why?
X is not liable, due to the non-delivery of the goods by Y. Before the wheat was filled in the bags, the godown caught fire. So X need not pay the price of wheat.
X bought from Y a heap of wheat at a rate of Rs. 8 per kg and Y had to weigh the wheat. Before weighing was completed, the wheat was destroyed by fire. State whether X is liable to pay the price or not. Why?
X is not liable, because the wheat was destroyed before weighing. So X need not pay the price.
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