Sale of Goods Act, 1930

The Sale of Goods Act, 1930 (SGA) is a statute that governs the sale of goods in India. It was enacted in 1930 and has been amended several times since then. The SGA applies to all contracts for the sale of goods, except for contracts for the sale of goods that are specifically excluded from its scope.

The main provisions of the SGA are as follows:

  • Definition of sale: The SGA defines a sale as “a contract whereby the seller transfers the ownership in goods to the buyer for a price.”
  • Conditions and warranties: The SGA distinguishes between conditions and warranties. A condition is a fundamental term of the contract, the breach of which entitles the buyer to terminate the contract and sue for damages. A warranty is a minor term of the contract, the breach of which does not entitle the buyer to terminate the contract but only to sue for damages.
  • Transfer of ownership: The SGA provides that the ownership in goods passes from the seller to the buyer when the goods are delivered to the buyer or to a person authorized to receive them on the buyer’s behalf.
  • Risk of loss: The SGA provides that the risk of loss of the goods passes from the seller to the buyer when the goods are delivered to the buyer or to a person authorized to receive them on the buyer’s behalf.
  • Rights of the buyer: The SGA gives the buyer certain rights, such as the right to inspect the goods, the right to reject the goods if they are not as described, and the right to sue the seller for damages if the goods are defective.
  • Rights of the seller: The SGA also gives the seller certain rights, such as the right to payment of the price and the right to recover the goods if the buyer wrongfully rejects them.

Here are some MCQs on the Sale of Goods Act, 1930:

  1. Which of the following is not a condition under the Sale of Goods Act, 1930?
    • The quality of the goods must be satisfactory.
    • The goods must be fit for the purpose for which they are bought.
    • The goods must be free from defects.
    • The goods must be delivered on time.
    • The answer is (d). The time of delivery is not a condition under the SGA. It is a warranty.
  2. A buyer buys a car from a seller. The car turns out to be defective. Can the buyer reject the car?
    • Yes, the buyer can reject the car.
    • No, the buyer cannot reject the car because he has already taken delivery of it.
    • The answer is (a). The buyer can reject the car even if he has already taken delivery of it.
  3. A seller sells goods to a buyer. The goods are damaged in transit. Who is liable for the loss?
    • The seller is liable for the loss.
    • The buyer is liable for the loss.
    • The answer is (a). The seller is liable for the loss because the risk of loss passed to the buyer when the goods were delivered to the carrier.