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CMA Foundation · Fundamentals of Business Laws and Business Communication · Sale of Goods Act, 1930

Goods are put up for auction in lots by Sharma Auctioneers, and Rohan is the highest bidder for Lot 5 and Lot 6. Unless a contrary intention appears, how will the sale be treated?

Each lot is prima facie treated as the subject of a separate contract of sale. So Rohan's purchases of Lot 5 and Lot 6 are two distinct contracts, not one combined contract, unless a contrary intention appears.

  1. AEach lot is prima facie a separate contract of saleCorrect
  2. BAll the lots together form a single contract of sale
  3. CThe sale is void unless all lots are sold to one buyer
  4. DThe sale is a contract of sale only for the first lot

Explanation

Section 64(1) provides that where goods are put up for sale in lots, each lot is prima facie deemed the subject of a separate contract of sale. So Lot 5 and Lot 6 are two contracts, not a single combined contract.

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