In Agreement to Sell the Transfer of Property in Goods from the Seller to the Buyer Takes Place Mcq

Agreement to sell refers to a contract between the seller and the buyer, where the seller agrees to transfer the property of goods to the buyer at a future date, subject to certain conditions. In such a scenario, it becomes imperative for both parties to be well-versed with the process of the transfer of property in goods. This is where an MCQ (Multiple Choice Question) comes in handy. Let`s delve into the MCQ on the transfer of property in goods from the seller to the buyer.

Q. In agreement to sell, the transfer of property in goods from the seller to the buyer takes place:

A. Immediately upon the making of the contract.

B. Only upon the payment of the purchase price.

C. At the discretion of the seller.

D. Upon delivery of the goods to the buyer.

The correct answer is B. Only upon the payment of the purchase price.

Explanation:

In an agreement to sell, the transfer of property in goods from the seller to the buyer takes place only upon the payment of the purchase price. This means that until the buyer has paid the purchase price, the property in goods remains with the seller. It is only after the payment has been made that the buyer becomes the owner of the goods.

Option A is incorrect because the transfer of property in goods does not take place immediately upon the making of the contract in an agreement to sell. The seller merely agrees to transfer the property of goods to the buyer at a future date, subject to certain conditions.

Option C is incorrect as the discretion of the seller has no bearing on the transfer of property in goods. The transfer of property in goods takes place only upon the payment of the purchase price, as agreed upon in the contract.

Option D is also incorrect because the delivery of the goods to the buyer does not necessarily entail the transfer of property in goods. It is only upon the payment of the purchase price that the transfer of property in goods takes place.

In conclusion, the transfer of property in goods in an agreement to sell takes place only upon the payment of the purchase price. It is important for both the seller and the buyer to be aware of this fact to avoid any disputes or misunderstandings.