Tag: commerce

Quizzes (249) Questions (753)

Questions Related to commerce

Multiple choice commerce discharge and breach of a contract discharge of contract performance, discharge, breach and remedies of contract business law and contract act

A contract can be discharged by __________.

  1. frustration of the contract

  2. performance of the contract

  3. both (a) & (b)

  4. neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A contract can be discharged through various methods, including performance (both parties fulfill their duties) and frustration (an unforeseen event makes performance impossible).

Multiple choice commerce discharge and breach of a contract discharge of contract performance, discharge, breach and remedies of contract business law and contract act

_________ signifies that the parties are not further bound under the contract.

  1. Waiver of a Contract

  2. Breach of a Contract

  3. Rescission of a Contract

  4. Discharge of a Contract
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Discharge of a contract means that the parties are no longer bound by the obligations created by the contract.

Multiple choice commerce discharge and breach of a contract discharge of contract performance, discharge, breach and remedies of contract business law and contract act

When both the parties have decided to cancel the contract, it is known as _______ .

  1. remission

  2. novation

  3. rescission

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Rescission is the act of canceling or terminating a contract by mutual agreement, effectively releasing both parties from their future obligations.

Multiple choice commerce discharge and breach of a contract discharge of contract performance, discharge, breach and remedies of contract business law and contract act

X & Y entered into an agreement to buy an imported car for Rs. 30,000. Later on they cancelled the agreement. This is known as ______ .

  1. recission

  2. merger

  3. waiver

  4. remission
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

This describes rescission - the mutual cancellation of a contract by both parties. X and Y agreed to cancel their car purchase agreement, which is the essence of rescission. The term 'recission' here is a variant spelling of 'rescission'.

Multiple choice commerce discharge and breach of a contract discharge of contract performance, discharge, breach and remedies of contract business law and contract act

Rescission of a Voidable Contract may also be revoked and the parties can get back on the original contract.

  1. True

  2. Partly true

  3. False

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Rescission of a voidable contract allows the aggrieved party to set aside the contract. Once rescinded, the contract is no longer binding, and the parties are released from their obligations.

Multiple choice commerce discharge and breach of a contract discharge of contract performance, discharge, breach and remedies of contract business law and contract act

Damages which an aggrieved party claims, besides general damages for any loss he has suffered owing to special circumstances known to both the parties at the time of signing the contract are called ________.

  1. vindictive damages

  2. nominal damages

  3. general damages

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

Special damages are those that arise from the special circumstances of the case, which were known to the parties at the time of the contract. These are distinct from general damages, which arise naturally from the breach itself.

Multiple choice commerce discharge and breach of a contract discharge of contract performance, discharge, breach and remedies of contract business law and contract act

To claim reimbursement of money paid on behalf of another person, which of the following is not required? 

  1. There should be some legal or other coercive process compelling the payment.

  2. Original liability should be of another person.

  3. Payment must be made to a third party to whom the another party was liable.

  4. The payment must be voluntary
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

To claim reimbursement under Section 69 of the Indian Contract Act, the payment must be made to protect one's own interest, not voluntarily. A voluntary payment does not create a right to reimbursement from another person.

Multiple choice commerce discharge and breach of a contract discharge of contract performance, discharge, breach and remedies of contract business law and contract act

In case of necessaries supplied to a person incompetent to contract, which of the following is true?

  1. Only the property (movable and immovable) of the incapable person shall be liable.

  2. The incapable person cannot be held liable personally.

  3. Where the incapable person does not own any property, nothing shall be payable.

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under the Indian Contract Act, a person incapable of contracting is not personally liable for necessaries supplied; however, their property is liable for reimbursement. If they have no property, the supplier cannot recover the cost.

Multiple choice commerce discharge and breach of a contract discharge of contract performance, discharge, breach and remedies of contract business law and contract act

Surety may be discharged from liability:

X. By notice of revocation of guarantee
Y. On the failure of payment by the main creditor
Z. If the creditor does any act which is against the rights of the surety
Correct option is ____.

  1. X and Y

  2. Y and Z

  3. X and Z

  4. X, Y and Z.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A surety is discharged by notice of revocation (X) and by any act of the creditor that impairs the surety's eventual remedy against the principal debtor (Z). Failure of payment by the main creditor is the reason the surety is called upon, not a ground for discharge.

Multiple choice commerce discharge and breach of a contract discharge of contract performance, discharge, breach and remedies of contract business law and contract act

A person incurred expenses of RS. 5,000 for the necessaries supplied to a Minor. Which of the following is true?

  1. Cannot claim the expenses.

  2. Minor can be held liable for the necessaries supplied to him.

  3. It is not a valid claim.

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under the Indian Contract Act, a minor is not personally liable for necessaries, but their estate is liable to reimburse the supplier. Therefore, the claim is valid against the minor's property.