Multiple choice

X agreed to exchange with 10 bags of sugar at Rs. 40, 000 for 40 bags of wheat at Rs. 42, 000 and difference of Rs. 2000 in cash and hence it is a contract of sale.

  1. True

  2. False

  3. Partly true

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

A barter transaction where goods are exchanged for goods with a cash adjustment for price difference is legally treated as a contract of sale under the Sale of Goods Act. In this case, 10 bags of sugar are exchanged for 40 bags of wheat with Rs. 2000 cash difference, which qualifies as a sale contract.

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