THE SALE OF GOODS ACT, 1872

Unit 1 - FORMATION OF THE CONTRACT OF SALE

Question 1

State briefly the essential element of a contract of sale under the Sale of Goods Act,
1930.

Question 2

Referring to the provisions of the Sale of Goods Act, 1930, state the circumstances under
which when goods are delivered to the buyer "on approval" or "on sale or return" or
other similar terms, the property therein passes to the buyer and examine the below
cases,

a) Ms. Preeti owned a motor car which she handed over to Mr. Joshi on sale or return
basis. After a week, Mr. Joshi pledged the motor car to Mr. Ganesh. Ms. Preeti now
claims back the motor car from Mr. Ganesh. Will she succeed? Referring to the
provisions of the Sale of Goods Act, 1930, decide and examine what recourse is
available to Ms. Preeti.
b) Ms. R owns a two-Wheeler which she handed over to her friend Ms. K on sale or
return basis. Even after a week, Ms. K neither returned the vehicle nor made
payment for it. She instead pledged the vehicle to Mr. A to obtain a loan. Ms. R
now wants to claim the two-Wheeler from Mr. A. Will she succeed?
(i) Examine with reference to the provisions of the Sale of Goods Act, 1930, what
recourse is available to Ms. R?
(ii) Would your answer be different if it had been expressly provided that the
vehicle would remain the property of Ms. R until the price has been paid?

Question 3

Classify the following transactions according to the types of goods they are:

(i) A wholesaler of cotton has 100 bales in his godown. He agrees to sell 50 bales and
these bales were selected and set aside.

(ii) A agrees to sell to B one packet of salt out of the lot of one hundred packets lying
in his shop.

(iii)T agrees to sell to S all the oranges which will be produced in his garden this year.

Question 4

Archika went to a jewellery shop and asked the shopkeeper to show the gold bangles
with white polish. The shopkeeper informed that he has gold bangles with lots of designs
but not in white polish rather if Archika select gold bangles in his shop, he will arrange
white polish on those gold bangles without any extra cost. Archika select a set of designer
bangles and pay for that. The shopkeeper requested Archika to come after two days for
delivery of those bangles so that white polish can be done on those bangles. When
Archika comes after two days to take delivery of bangles, she noticed that due to white
polishing, the design of bangles has been disturbed. Now, she wants to avoid the contract
and asked the shopkeeper to give her money back but shopkeeper has denied for the
same.
(a) State with reasons whether Archika can recover the amount under the Sale of
Goods Act, 1930.

(b) What would be your answer if shopkeeper says that he can repair those bangles
but he will charge extra cost for same?

Question 5

Akansh purchased a Television set from Jethalal, the owner of Gada Electronics on the
condition that first three days he will check its quality and if satisfied he will pay for that
otherwise he will return the Television set. On the second day, the Television set was
spoiled due to an earthquake. Jethalal demands the price of Television set from Akansh.
Whether Akansh is liable to pay the price under the Sale of Goods Act,1930? If not, who
will ultimately bear the loss?

Question 6

X contracted to sell his car to Y. They did not discuss the price of the car at all. X later
refused to sell his car to Y on the ground that the agreement was void being uncertain
about price. Can Y demand the car under the Sale of Goods Act, 1930?

Question 7

Classify the following transactions according to the types of goods they are:

a) A wholesaler of cotton has 100 bales in his godown. He agrees to sell 50 bales and
these bales were selected and set aside.
b) A agrees to sell to B one packet of sugar out of the lot of one hundred packets lying
in his shop.
c) T agrees to sell to S all the apples which will be produced in his garden this year.

Question 8

Avyukt purchased 100 Kgs of wheat from Bhaskar at ₹ 30 per kg. Bhaskar says that
wheat is in his warehouse in the custody of Kishore, the warehouse keeper. Kishore
confirmed Avyukt that he can take the delivery of wheat from him and till then he is
holding wheat on Avyukt’s behalf. Before Avyukt picks the goods from warehouse, the
whole wheat in the warehouse has flowed in flood. Now Avyukt wants his price on the
contention that no delivery has been done by seller. Whether Avyukt is right with his
views under the Sale of Goods Act, 1930.

Question 9

Mr. Arun contracted to sell his swift car to Mr. Nikhil. Both missed to discuss the price of
the said swift car. Later, Mr. Arun refused to sell his swift car to Mr. Nikhil on the ground
that the agreement was void, being uncertain about the price. Does Mr. Nikhil have any
right against Mr. Arun under the Sale of Goods Act, 1930?
 Unit 2 - CONDITIONS & WARRANTIES
Question 1

What are the differences between a ‘Condition’ and ‘Warranty’ in a contract of sale? Also
explain, when shall a ‘breach of condition’ be treated as ‘breach of warranty’ under the
provisions of the Sale of Goods Act, 1930?
Question 2

Ram consults Shyam, a motor-car dealer for a car suitable for touring purposes to
promote the sale of his product. Shyam suggests ‘Maruti’ and Ram accordingly buys it
from Shyam. The car turns out to be unfit for touring purposes. What remedy Ram is
having now under the Sale of Goods Act, 1930?
Question 3

For the purpose of making uniform for the employees, Mr. Yadav bought dark blue
coloured cloth from Vivek, but did not disclose to the seller the purpose of said purchase.
When uniforms were prepared and used by the employees, the cloth was found unfit.
However, there was evidence that the cloth was fit for caps, boots and carriage lining.
Advise Mr. Yadav whether he is entitled to have any remedy under the sale of Goods Act,
1930?
Question 4

Mr. Amit was shopping in a self-service Super market. He picked up a bottle of cold drink
from a shelf. While he was examining the bottle, it exploded in his hand and injured him.
He files a suit for damages against the owner of the market on the ground of breach of
condition. Decide under the Sale of Goods Act, 1930, whether Mr. Amit would succeed in
his claim?
Question 5

Mr. T was a retailer trader of fans of various kinds. Mr. M came to his shop and asked for
an exhaust fan for kitchen. Mr. T showed him different brands and Mr. M approved of a
particular brand and paid for it. Fan was delivered at Mr. M’s house; at the time of opening
the packet he found that it was a table fan. He informed Mr. T about the delivery of the
wrong fan. Mr. T refused to exchange the same, saying that the contract was complete
after the delivery of the fan and payment of price.

(i) Discuss whether Mr. T is right in refusing to exchange as per provisions of the Sale
of Goods Act, 1930?

(ii) What is the remedy available to Mr. M?

Question 6

Mrs. G bought a tweed coat from P. When she used the coat, she got rashes on her skin
as her skin was abnormally sensitive. But she did not make this fact known to the seller
i.e. P. Mrs. G filled a case against the seller to recover damages. Can she recover
damages under the Sale of Goods Act, 1930?
Question 7

Prashant reaches a sweet shop and ask for 1 Kg of ‘Burfi’ if the sweets are fresh. Seller
replies’ “Sir, my all sweets are fresh and of good quality.” Prashant agrees to buy on the
condition that first he tastes one piece of ‘Burfi’ to check the quality. Seller gives him one
piece to taste. Prashant, on finding the quality is good, ask the seller to pack. On reaching
the house, Prashant finds that ‘Burfi’ is stale not fresh while the piece tasted was fresh.
Now, Prashant wants to avoid the contract and return the ‘Burfi’ to seller.

(a) State with reason whether Prashant can avoid the contract under the Sale of Goods
Act, 1930?

(b) Will your answer be different if Prashant does not taste the sweet?
Question 8

AB Cloth House, a firm dealing with the wholesale and retail buying and selling of various
kinds of clothes, customized as per the requirement of the customers. They dealt with
Silk, Organdie, cotton, khadi, chiffon and many other different varieties of cloth. Mrs.
Reema, a customer came to the shop and asked for specific type of cloth suitable for
making a saree for her daughter's wedding. She specifically mentioned that she required
cotton silk cloth which is best suited for the purpose. The Shop owner agreed and
arranged the cloth pieces cut into as per the buyers' requirements.

When Reema went to the tailor for getting the saree stitched, she found that seller has
supplied her cotton organdie material, cloth was not suitable for the said purpose. It has
heavily starched and not suitable for making the saree that Reema desired for. The Tailor
asked Reema to return the cotton organdie cloth as it would not meet his requirements.

The Shop owner refused to return the cloth on the plea that it was cut to specific
requirements of Mrs. Reema and hence could not be resold.

With reference to the doctrine of "Caveat Emptor' explain the duty of the buyer as well
as the seller. Also explain whether Mrs. Reema would be able to get the money back or
the right kind of cloth as per the requirement?
Question 9

Certain goods were sold by sample by A to B, who in turn sold the same goods by sample
to C and C by sample sold the goods to D. The goods were not according to the sample.
Therefore, D who found the deviation of the goods from the sample rejected the goods
and gave a notice to C. C sued B and B sued A. Advise B and C under the Sale of Goods
Act, 1930.
Question 10

(i) C bought a bun from a baker’s shop. The piece of bun contained a stone in it which
broke C’s tooth while eating. What are the rights available to the buyer against the seller
under the Sale of Goods Act, 1930?

(ii) A contract with B to buy 50 chairs of a certain quality. B delivers 25 chairs of the type
agreed upon and 25 chairs of some other type. Under the circumstances, what are the
rights of A against B under the Sale of Goods Act, 1930?
Question 11

Ankit needs a black pen for his exams. He went to a nearby stationery shop and told the
seller for a black pen. Seller gives him a pen saying that it is a black pen but it was
clearly mentioned on the packet of pen that “Blue Ink Pen”. Ankit ignores that and takes
the pen. After reaching his house, Ankit finds that the pen is actually a blue pen. Now
Ankit wants to return the pen with the words that the seller has violated the implied
conditions of sale by description. Whether Ankit can do what he wants as per the Sale of
Goods Act, 1930
Question 12

Priyansh orders an iron window to an Iron Merchant for his new house. Iron merchant
sends his technician to take the size of windows. The technician comes at the site and
takes size of area where window to be fitted. Afterwards, iron merchant on discussion
with his technician intimates Priyansh that cost of the window will be ₹ 5,000 and he will
take ₹ 1,000 as advance. Priyansh gives ₹ 1,000 as advance and rest after fitting of
window. After three days when technician try to fit the window made by him at the site
of Priyansh, it was noticed that the size of window was not proper. Priyansh requests the
Iron merchant either to remove the defect or return his advance. Iron merchant replies
that the window was specifically made for his site and the defect cannot be removed nor
can it be of other use. So, he will not refund the advance money rather Priyansh should
give him the balance of ₹ 4,000. State with reason under the provisions of the Sale of
Goods Act, 1930, whether Priyansh can take his advance back?
Question 13

Shubhangi went to a Jewellery shop and asked the salesgirl to show her diamond
necklace with Sapphire stones. The Jeweller told her that we have a lot of designs of
diamond necklace but with blue stones. If she chooses for herself any special design of
diamond necklace with blue stones, they will replace blue stones with Sapphire stones.
But for the Sapphire stones they will charge some extra cost. Shubhangi selected a
beautiful designer necklace and paid for it. She also paid the extra cost of Sapphire
stones. The Jeweller requested her to come back a week later for delivery of that
necklace. When she came after a week to take delivery of necklace, she noticed that due
to Sapphire stones, the design of necklace had 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 Shubhangi 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?
Question 14

Mrs. Kanchan went to the local rice and wheat wholesale shop and asked for 100 kgs of
Basmati rice. The Shopkeeper quoted the price of the same as ₹ 125 per kg to which she
agreed. Mrs. Kanchan insisted that she would like to see the sample of what would be
provided to her by the shopkeeper before she agreed upon such purchase.
The shopkeeper showed her a bowl of rice as sample. The sample exactly corresponded
to the entire lot.

Mrs. Kanchan examined the sample casually without noticing the fact that even though
the sample was that of Basmati Rice but it contained a mix of long and short grains.

The cook on opening the bags complained that the dish if prepared with the rice would
not taste the same as the quality of rice was not as per requirement of the dish.

Now Mrs. Kanchan wants to file a suit of fraud against the seller alleging him of selling a
mix of good and cheap quality rice. Will she be successful?

Decide the fate of the case and options open to Mrs. Kanchan for grievance redressal as
per the provisions of Sale of Goods Act 1930?

What would be your answer in case Mrs. Kanchan specified her exact requirement as to
length of rice?
 Unit 3 - TRANSFER OF OWNERSHIP AND DELIVERY OF GOODS
Question 1

J the owner of a Fiat car wants to sell his car. For this purpose, he hands over the car to
P, a mercantile agent for sale at a price not less than ₹ 50, 000. The agent sells the car
for ₹ 40, 000 to A, who buys the car in good faith and without notice of any fraud. P
misappropriated the money also. J sues A to recover the Car. Decide given reasons
whether J would succeed.
Question 2

Mr. S agreed to purchase 100 bales of cotton from V, out of his large stock and sent his
men to take delivery of the goods. They could pack only 60 bales. Later on, there was
an accidental fire and the entire stock was destroyed including 60 bales that were already
packed. Referring to the provisions of the Sale of Goods Act, 1930 explain as to who will
bear the loss and to what extent?
Question 3

"Nemo Dat Quod Non Habet" - "None can give or transfer goods what he does not himself
own." Explain the rule and state the cases in which the rule does not apply under the
provisions of the Sale of Goods Act, 1930.
Question 4

Suraj sold his car to Sohan for ₹ 75,000. After inspection and satisfaction, Sohan paid ₹
25,000 and took possession of the car and promised to pay the remaining amount within
a month. Later on, Sohan refuses to give the remaining amount on the ground that the
car was not in a good condition. Advise Suraj as to what remedy is available to him
against Sohan.
Question 5

A went to B's shop and selected some jewellery. He falsely represented himself to be a
man of credit and thereby persuaded B to take the payment by cheque. He further
requested him to hand over the particular type of ring immediately. On the due date,
when the seller, B presented the cheque for payment, the cheque was found to be
dishonoured. Before B could avoid the contract on the ground of fraud by A, he had sold
the ring to C. C had taken the ring in good faith and without any notice of the fact that
the goods with A were under a voidable contract. Discuss if such a sale made by non-
owner is valid or not as per the provisions of Sale of Goods Act, 1930?
Question 6

Akansh purchased a Television set from Jethalal, the owner of Gada Electronics on the
condition that first three days he will check its quality and if satisfied he will pay for that
otherwise he will return the Television set. On the second day, the Television set was
spoiled due to an earthquake. Jethalal demand the price of Television set from Akansh.
Whether Akansh is liable to pay the price under the Sale of Goods Act, 1930? Who will
ultimately bear the loss?
Question 7

Ayushman is the owner of a residential property situated at Indraprastha Marg, New

Delhi. He wants to sell this property and for this purpose he appoints Ravi, a mercantile
agent with a condition that Ravi will not sell the house at a price not less than ` 5 crores.
Ravi sells the house for ` 4 crores to Mudit, who buys in good faith. Ravi misappropriated
the money received from Mudit. Ayushman files a suit against Mudit to recover his
property. Decide with reasons, can Ayushman do so under the Sale of Goods Act, 1930?
 Unit 4 - UNPAID SELLER
Question 1

Ram sells 200 bales of cloth to Shyam and sends 100 bales by lorry and 100 bales by
Railway. Shyam receives delivery of 100 bales sent by lorry, but before he receives the
delivery of the bales sent by railway, he becomes bankrupt. Ram being still unpaid, stops
the goods in transit. The official receiver, on Shyam’s insolvency claims the goods. Decide
the case with reference to the provisions of the Sale of Goods Act, 1930
Question 2

Rachit arranges an auction to sale an antic wall clock. Megha, being one of the bidders,
gives highest bid. For announcing the completion of sale, the auctioneer falls the hammer
on table but suddenly hammer brakes and damages the watch. Megha wants to avoid
the contract. Can she do so under the provisions of the Sale of Goods Act, 1930?
Question 3

When can an unpaid seller of goods exercise his right of lien over the goods under the
Sale of Goods Act? Can he exercise his right of lien even if the property in goods has
passed to the buyer? When such a right is terminated? Can he exercise his right even
after he has obtained a decree for the price of goods from the court?
Question 4

A agrees to sell certain goods to B on a certain date on 10 days credit. The period of 10
days expired and goods were still in the possession of A. B has also not paid the price of
the goods. B becomes insolvent. A refuse to deliver the goods to exercise his right of lien
on the goods. Can he do so under the Sale of Goods Act, 1930?
Question 5

Ravi sold 500 bags of wheat to Tushar. Each bag contains 50 Kilograms of wheat. Ravi
sent 450 bags by road transport and Tushar himself took remaining 50 bags. Before
Tushar receives delivery of 450 bags sent by road transport, he becomes bankrupt. Ravi
being still unpaid, stops the bags in transit. The official receiver, on Tushar's insolvency
claims the bags. Decide the case with reference to the provisions of the Sale of Goods
Act, 1930.
Question 6

Mr. Shankar sold 1000 Kgs wheat to Mr. Ganesh on credit of 3 months. Wheat was to be
delivered after 10 days of contract. After 5 days of contract, a friend of Mr. Shankar
secretly informed him that Mr. Ganesh may default in payment. On the information of
friend, Mr. Shankar applied the right to lien and withheld the delivery. With referring to
the provisions of the Sale of Goods Act, 1930:

(i) State, whether Mr. Shankar was right in his decision?

(ii) What would be your answer if Mr. Ganesh became insolvent within five days of
contract?