CMA Intermediate · Business Laws and Ethics · Sale of Goods Act, 1930
Under the Sale of Goods Act, 1930, when goods are put up for sale by auction in lots, how is each lot prima facie treated?
Each lot is prima facie deemed to be the subject of a separate contract of sale. This follows from Section 64(1), which treats lots put up at auction individually rather than as one combined contract covering all the lots offered.
- AAs part of one single contract covering all lots
- BAs the subject of a separate contract of saleCorrect
- CAs an agreement to sell only, with no transfer of property
- DAs a contract that is voidable at the buyer's option
Explanation
Section 64(1) provides that where goods are put up for sale in lots, each lot is prima facie deemed to be the subject of a separate contract of sale. The other options have no basis in the section.
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