Skip to content

CMA Intermediate · Business Laws and Ethics · Sale of Goods Act, 1930

Under the Sale of Goods Act, 1930, a contract of sale of goods may be made in which of the following ways?

A contract of sale may be made in writing, orally, partly in writing and partly oral, or implied from the parties' conduct, subject to any other law in force. The Act does not require writing, witnesses or registration as a general condition.

  1. AOnly in writing signed by both parties
  2. BOnly by word of mouth in the presence of witnesses
  3. CIn writing, by word of mouth, partly both, or implied from the conduct of the parties, subject to any other law in forceCorrect
  4. DOnly by registered deed when the price exceeds a fixed amount

Explanation

Section 5(2) states that, subject to any law in force, a contract of sale may be in writing, by word of mouth, partly both, or implied from conduct. The Act prescribes no mandatory writing, signature or registration for sale of goods, so the other options add requirements that do not exist.

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