Multiple choice

Ram sells to Rahim 1000 gross of 1000 yards reels of swing cotton. After taking delivery, Rahim finds that the length of cotton per reel is less than 1000 yards, the average being shortage of about 9%. In this situation, Rahim (i) may reject the goods and (ii) Ram is liable to pay the price of the goods at the contract rate if Rahim rejects.

  1. True

  2. False

  3. Partly true

  4. Cannot say
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When goods don't conform to contract specifications (here, 1000 yards per reel), the buyer can rightfully reject them. If the buyer rejects non-conforming goods, the seller must pay the contract price, as the breach was due to the seller's failure to meet agreed terms. This is a standard remedy for breach of condition.

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