Multiple choice

Where the price of the goods under a contract of sale is to be fixed by the valuation of a third party who fails to fix the valuation, but goods are supplied to the buyer, under section 10 of the Sale of Goods Act, 1930, the buyer is

  1. liable to pay the reasonable price of the goods

  2. liable to pay the minimum price of the goods

  3. not liable to pay any price until fixed by the valuer

  4. liable to pay the maximum retail price

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A Correct answer
Explanation

Under Section 10 of Sale of Goods Act, 1930, when a third party fails to value goods that are supplied to the buyer, the buyer must pay the reasonable price. The buyer cannot refuse payment pending valuation or demand minimum/maximum prices.