In performing a contract of sale of goods, there may be a situation where the seller fails to deliver the goods in the agreed quantity. Discuss the rights of the buyer upon such failure.
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- 1."A sale of Goods Contract once made can never come to an end".Discuss the above statement with relevant examples.Determine whether the statement is legally correct (true) or not (false). 1. Conditions, interest, penalty, time or place of payment are examples of natural elements in a contract of sale. 2. Where necessaries are those sold and delivered to a minor or other person without capacity to act, he must pay a reasonable price therefor.In deciding whether to accept a special order, freight charges paid by the buyer are relevant. a) True b) False
- According to PAS 18 Revenue, which of the following is not a criterionto be satisfied before revenue from the sale of goods should be recognized inprofit or loss?a. Revenue can be reliably measuredb.Control over the goods sold has been relinquished but managementmaintainscontinuing involvement over the goods soldc. C The risks and rewards of ownership has been transferred to the buyerd. D The outcome of the transaction is probableWhere goods are sold by a person who is not the owner thereof, and who does not sell them under the authority or with the consent of the ownerWhich one of the following statements is false? a. FOB shipping point means the buyer has legal title to the goods while they are in-transit b. FOB shipping point means the buyer has legal title to the goods when they are shipped c. FOB destination means the seller has legal title to the goods until they reach the buyer's place business d. FOB shipping means the buyer acquires legal title to the goods when they reachg the buyer's place of business
- True or False The term FOB shipping point means that the ownership of the goods is vested on the buyer upon receipt of the goods thereof.As a general rule, the buyer has the right to examine the goods before accepting them. The following are the exceptions to the general rule, except Group of answer choices When there is stipulation that the goods shall not be delivered to the buyer until he has paid the price When the good are marked with the words collect on delivery When there is an agreement to that effect When the usage of trade permits examination51. Which of the following is the proper legal remedy to be availed by the buyer if the seller committed a breach of contract of sale of specific thing by non-delivery of the subject matter to the buyer? Group of answer choices File an action for specific performance or exact fulfilment plus damages File an action for reformation of instrument plus damages File an action for annulment of contract of sale plus damages File an action for declaration of nullity of contract of sale plus damages
- Which of the following arises when the seller's right to consideration from a customer is conditional upon something other than the passage of time? A receivable A contract asset A contract liability None of these choicesAn encumbrance represents the estimated future liabilities for goods or services resulting from placing a purchase order or signing a contract. a. True b. Falset is generally agreed that sales revenue should only be ‘realized’ and so ‘recognized’ in the trading, profit and loss account when:1. The sale transaction is for a specific quantity of goods at a known price, so that the sales value of the transaction is known for certain.2. The sale transaction has been completed, or else it is certain that it will be completed (e.g. in the case of long-term contract work, when the job is well under way but not yet completed by the end of an accounting period).3. The critical event in the sale transaction has occurred. The critical event is the event after which: i) It becomes virtually certain that cash will eventually be received from the customer.ii) Cash is actually received.Usually, revenue is ‘recognized’i) When a cash sale is made.ii) The customer promises to pay on or before a specified future date, and the debt is legally enforceable.The prudence concept is applied here in the sense that revenue should not be anticipated, and included in the…