Skip to content

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

Ritu Enterprises agrees to sell 500 kg of wheat out of a larger heap in its godown, without identifying which wheat. Later, 500 kg in a deliverable state is set aside for the buyer, Anil, with Anil's assent, unconditionally appropriated to the contract. Which statement is correct?

Property passes to Anil at the time of appropriation. The wheat was unascertained goods, and under Section 23(1), when goods of that description in a deliverable state are unconditionally appropriated to the contract with the buyer's assent, property thereupon passes to the buyer.

  1. AThe goods remain unascertained and property has not passed
  2. BProperty passes to Anil at the time of appropriationCorrect
  3. CProperty passes only when Anil pays the price
  4. DProperty passes when the contract was originally signed

Explanation

Wheat from an unidentified heap is unascertained goods. Under Section 23(1), when goods of that description in a deliverable state are unconditionally appropriated with the other party's assent, property passes thereupon. Payment of price is not required, so the third option is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Sale of Goods Act, 1930 shows your real accuracy, how long you take and where you lose marks.

Practise Sale of Goods Act, 1930Free diagnostic mock

More Sale of Goods Act, 1930 questions