Sale of Goods Questions and Answers

Answer: C

Goods do not include money.

Section 2(7) of the Sale of Goods Act, 1930 defines goods as every kind of movable property other than actionable claims and money, and it expressly includes stock and shares, growing crops, grass, and things attached to or forming part of the land that are agreed to be severed before sale or under the contract of sale.

So stock and shares, grass and growing crops are all named as goods, and only money is excluded.

Answer: A

A contract of sale comprises both executory and executed contracts of sale.

Section 4 of the Sale of Goods Act, 1930 says that a contract of sale may be absolute or conditional, and that where under it the property in the goods is transferred from seller to buyer, it is called a sale (an executed contract); where the transfer is to take place at a future time or on a condition, it is an agreement to sell (an executory contract). An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled.

So the term 'contract of sale' covers both, and the options naming only one of them are incomplete.

Answer: B

Ascertained goods are goods identified in accordance with the agreement after the contract of sale is made.

The Sale of Goods Act defines 'specific goods' in Section 2(14) as goods identified and agreed upon at the time the contract of sale is made. 'Ascertained goods' is not defined in the Act, but the courts have used it for goods that were unascertained when the contract was made and were later identified and appropriated to the contract in accordance with the agreement. Until goods are ascertained, no property in them can pass to the buyer (Section 18).

The first option is therefore the definition of specific goods, and goods identified before the contract are likewise specific, so neither option, nor 'either', defines ascertained goods.