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CSEET · Business Laws and Management · Elements of Law relating to Sale of Goods

Consider the statements about the form of a contract of sale under Section 5(2) of the Sale of Goods Act, 1930: I. A contract of sale may be made in writing or by word of mouth. II. A contract of sale may be partly in writing and partly by word of mouth. III. A contract of sale may be implied from the conduct of the parties. Which statements are correct?

All three statements are correct. Subject to any law in force, a contract of sale may be in writing, by word of mouth, partly both, or implied from the conduct of the parties, so no particular form is compulsory.

  1. AI and II only
  2. BII and III only
  3. CI, II and IIICorrect
  4. DI and III only

Explanation

Section 5(2), subject to any law in force, permits a contract of sale to be in writing, oral, partly written and partly oral, or implied from the conduct of the parties. All three statements are therefore correct.

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