Skip to content

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

Under the Sale of Goods Act, 1930, unless the parties have agreed otherwise, how are delivery of the goods and payment of the price related?

Delivery of goods and payment of price are concurrent conditions unless otherwise agreed. The seller must be ready to hand over possession in exchange for the price, and the buyer must be ready to pay in exchange for possession, so neither performs first.

  1. APayment must be made before delivery
  2. BDelivery must be made before payment
  3. CThey are concurrent conditionsCorrect
  4. DPayment is due only after the buyer resells the goods

Explanation

Section 32 states that, unless otherwise agreed, delivery and payment are concurrent conditions. The seller must be ready and willing to give possession in exchange for the price, and the buyer must be ready and willing to pay the price in exchange for possession. Neither party is entitled to demand that the other perform first.

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