Multiple choice

If A agrees to deliver 100 kg of sugar to B in exchange of 15 meters of cloth, then it is

  1. contract of sale

  2. agreement to sell

  3. sale on approval

  4. barter
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Barter involves exchange of goods for goods without money as the medium. Here, sugar is exchanged for cloth - no money changes hands, making it a pure barter transaction. Sale requires money payment; agreement to sale implies a contract for future sale; sale on approval is a conditional sale where buyer can return goods.

Keep practicing — related questions