CA Foundation Questions – The Sale of Goods Act, 1930

  1. Discuss the essential elements regarding the sale of unascertained goods and its appropriation as per the Sale of Goods Act, 1930.

    [2022 December – 4 Marks]

  2. What are the rights of unpaid seller in context to re-sale the goods under Sale of Goods Act, 1930?

    [2022 December – 6 Marks]

  3. Mr. K visited M/s Makrana Marbles for the purchase of marble and tiles for his newly built house. He asked the owner of the above shop Mr. J to visit his house prior to supply so that he can clearly ascertain the correct mix and measurements of marble and tiles. Mr. J agreed and visited the house on the next day. He inspected the rooms in the first floor and the car parking space. Mr. K insisted him to visit the second floor as well because the construction pattern was different, Mr. J ignored the above suggestion.Mr. J. supplied 146 blocks of marble as per the size for the rooms and 16 boxes of tiles with a word of caution that the tiles can bear only a reasonable weight. Marble and Tiles were successfully laid except on second floor due to different sizes of the marble. The tiles fitted in the parking space also got damaged due to the weight of the vehicle came for unloading cement bags. Mr. K asked Mr. J for the replacement of marble and tiles to which Mr. J refused, taking the plea that the marble were as per the measurement an d it was unsafe to fit tiles at the parking area as it cannot take heavy load. Discuss in the light of provisions of Sale of Goods Act 1930:
    (i) Can Mr. J refuse to replace the marble with reference to the doctrine of Caveat Emptor? Enlist the duties of both Mr. K. and Mr. J.
    (ii) Whether the replacement of damaged tiles be imposed on M/ s Makrana Marbles?
    Explain.

    [2022 December – 6 Marks]

  4. What are the consequences of destruction of specified goods, before making of contract and after the agreement to sell under the Sale of Goods Act, 1930.

    [2022 May – 4 Marks]

    Answer :
    (i) Goods perishing before making of Contract (Section 7 of the Sale of Goods Act, 1930): In accordance with the provisions of the Sale of Goods Act, 1930 as contained in Section 7, a contract for the sale of specific goods is void, if at the time when the contract was made; the goods without the knowledge of the seller, perished or become so damaged as no longer to answer to their description in the contract, then the contract is void ab initio.
    (ii) Goods perishing before sale but after agreement to sell (Section 8 of the Sale of Goods Act, 1930): Where there is an agreement to sell specific goods, and subsequently the goods without any fault on the part of the seller or buyer perish or become so damaged as no longer to answer to their description in the agreement before the risk passes to the buyer, the agreement is thereby avoided or becomes void.

  5. What are the implied conditions in a contract of ‘Sale by sample’ under the Sale of Goods Act, 1930? Also state the implied warranties operative under the Act?

    [2022 May – 6 Marks]

  6. (a) Sonal went to a Jewellery shop and asked the sales girl to show her diamond bangles with Ruby stones. The Jeweller told her that we have a lot of designs of diamond bangles but with red stones if she chooses for herself any special design of diamond bangle with red stones, they will replace red stones with Ruby stones. But for the Ruby stones they will charge some extra cost. Sonal selected a beautiful set of designer bangles and paid for them. She also paid the extra cost of Ruby stones. The Jeweller requested her to come back a week later for delivery of those bangles. When she came after a week to take delivery of bangles, she noticed that due to Ruby stones, the design of bangles has been completely disturbed. Now, she wants to terminate the contract and thus, asked the manager to give her money back, but he denied for the same. Answer the following questions as per the Sale of Goods Act, 1930.
    (i) State with reasons whether Sonal can recover the amount from the Jeweller.
    (ii) What would be your answer if Jeweller says that he can change the design, but he will charge extra cost for the same?

    [2022 May – 6 Marks]

  7. “A breach of condition can be treated as a breach of warranty”. Explain this statement as per relevant provisions of the Sale of Goods Act, 1930.

    [2021 December – 4 Marks]

  8. (a) Distinguish between ‘Sale’ and ‘Hire Purchase’ under the Sale of Goods Act, 1930.

    [2021 December – 6 Marks]

  9. AB sold 500 bags of wheat to CD. Each bag contains 50 Kilograms of wheat. AB sent 450 bags by road transport and CD himself took remaining 50 bags. Before CD receives delivery of 450 bags sent by road transport, he becomes bankrupt. AB being still unpaid, stops the bags in transit. The official receiver, on CD’s insolvency claims the bags. Decide the case with reference to the provisions of the Sale of Goods Act, 1930.

    [2021 December – 3 Marks]

  10. TK ordered timber of 1 inch thickness for being made into drums. The seller agreed to supply the required timber of 1 inch. However, the timber supplied by the seller varies in thickness from 1 inch to 1.4 inches. The timber is commercially fit for the purpose for which it was ordered. TK rejects the timber. Explain with relevant provisions of the Sale of Goods Act, 1930 whether TK can reject the timber.

    [2021 December – 3 Marks]

  11. “Risk Prima Facie passes with property.” Elaborate in the context of the Sales of Goods Act, 1930.

    [2021 July – 4 Marks]

  12. Discuss the rights of an unpaid seller against the buyer under the Sales of Goods Act, 1930.

    [2021 July – 6 Marks]

  13. Mr. Das, a general store owner went to purchase 200 kg of Basmati Rice of specific length from a whole seller. He saw the samples of rice and agreed to buy the one for which the price was quoted as Rs. 150 per kg. While examining the sample Mr. Das failed to notice that the rice contained a mix of long and short grain of rice.
    The whole seller supplied the required quantity exactly the same as shown in the sample. However, when Mr. Das sold the rice to one of his regular customers she complained that the rice contained two different qualities of rice and returned the rice.
    With reference to the provisions of the Sales of Goods Act, 1930, discuss the options open to Mr. Das for grievance redressal. What would be your answer in case Mr. Das specified his exact requirement as to length of rice?

    [2021 July – 6 Marks]