Business Law MCQ on Formation of Contract of Sale: Check the below Business Law MCQ on Formation of Contract of Sale with Answers Pdf free download. Business Law MCQ on Formation of Contract of Sale Questions for Business Law with Answers were prepared based on the latest exam pattern. We have provided Business Law MCQ on Formation of Contract of Sale with Answers to help students understand the concept very well.

Business Law MCQ on Formation of Contract of Sale

1. A valid sale must have two parties who ________.
(a) must be competent to contract
(b) may not be competent to contract
(c) must be Indian citizens
(d) must be residents of the same state

2.  ‘Future goods’ ________.
(a) can be the subject matter of sale
(b) cannot be subject matter of sale
(c) sometimes may be the subject matter of sale
(d) depends on circumstances

3. The code governing sale of goods was earlier contained in _________,
(a) the Indian Contract Act
(b) the Transfer of Property Act
(c) the Hire Purchase Act
(d) None of the above

4. An agreement to sell is ________.
(a) an executory contract
(b) an executed contract
(c) neither ‘a’ or ‘b’
(d) sometime ‘a’ or ‘b’

5. The Sale of Goods Act, 1930 governs the transfer of property in ________.
(a) movable property
(b) immovable property
(c) both movable and immovable property
(d) all type of properties

6. When there is a contract for unascertained goods, and goods perish without the fault of the seller or buyer before the risk passes to the buyer, the contract ________.
(a) can be avoided
(b) cannot be avoided
(c) becomes void
(d) becomes unenforceable

7. “Goods” means ________.
(a) every kind of movable property other than actionable claims and money
(b) some kinds of immovable property only
(c) every kind of movable property including actionable claims and money
(d) Both ‘a’ and ‘b’

8. To constitute a Contract of Sale, the transfer of property in goods ________.
(a) must be for monetary consideration
(b) may be for non-monetary consideration
(c) must be for both monetary and non¬monetary consideration
(d) may be either monetary or non-monetary consideration

9. Specific goods are such goods which are ________.
(a) existing and identified at the time of making the contract
(b) identified after the making of contract but before the performance of contract
(c) both ‘a’ and ‘b’
(d) neither ‘a’ nor ‘b’

10. Where under a contract of sale the property in goods is transferred from the seller to the buyer, the contract is called:
(a) an agreement to sell
(b) a sale
(c) both ‘a’ and ‘b’
(d) either ‘a’ or ‘b’

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By Team Learning Mantras