Tag: discharge and breach of a contract

Quizzes (2) Questions (54)

Questions Related to discharge and breach of a contract

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

Quasi Contractual liabilities lead to ____. 

  1. Prevention of unjust enrichment

  2. Counter Offer

  3. Cross Offer

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

The primary purpose of quasi-contractual obligations is to prevent unjust enrichment, where one party benefits at the expense of another without a valid legal basis.

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

Which of the following give(s) a right to claim damages for its breach?

  1. Conditions

  2. Warranties

  3. Both (A) and (B) above

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

A breach of a condition gives the right to rescind the contract and claim damages, while a breach of warranty gives the right to claim damages only. Both allow for a claim of damages.

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

A person choosen by disputing parties to settle their differences is called ______.

  1. Agent

  2. Partner

  3. Arbitrator

  4. Owner
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An arbitrator is a neutral third party chosen by the disputing parties to resolve their differences outside of the court system, often as part of an arbitration agreement.

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

A Company announced a reward of Pounds 100 to anyone who contracted influenza after using its Smoke Balls for a certain period. Mrs. C used the Smoke Balls and contracted influenza. She claimed the reward but the Company rejected her claim stating that she did not communicate her acceptance to the Company. Here ____________.

  1. acceptance is not communicated and reward cannot be claimed

  2. offer is not communicated and reward cannot be claimed

  3. acceptance need not be communicated and reward can be claimed

  4. there is no claim since reward cannot be given for contracting diseases
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This is the classic Carlill v Carbolic Smoke Ball Co. case. In general offers, performance of the conditions of the offer constitutes acceptance, and communication of acceptance is not required.

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

Kedar promised to pay Rs. 5000 to car repairer for the incurred expenses but later Kedar refused to pay the agreed amount. Which of the following is true?

  1. Car repairer cannot claim the expenses.

  2. The car repairer can claim Rs. 5000.

  3. Car repairer cannot claim Rs. 500 as compensation.

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

Since the repairer performed the service and Kedar agreed to pay, the repairer is legally entitled to the agreed amount of 5000.

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

Rohan promises to make a gift of RS. 10,000 towards the repairs of a temple. The trustees of the temple on the faith of his promise incurs liabilities. Rohan does not pay. Can the trustees recover the promised amount from Rohan?

  1. The trustee cannot recover anything from Rohan.

  2. The trustee can recover to the extent of liabilities from Rohan.

  3. The trustee can recover Rs. 10,000 from Rohan.

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

Under the principle of promissory estoppel, if a person makes a promise and the other party acts upon it to their detriment (incurring liabilities), the promisor is bound to fulfill the promise to the extent of those liabilities.

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

Which of these constitute Fraud?

  1. Any act fitted to deceive

  2. Any such act or omission as specifically declared by law to be fraudulent

  3. Both (a) and (b)

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

Fraud includes any act fitted to deceive or any act or omission specifically declared by law to be fraudulent, both of which are intended to induce the other party to enter into a contract.

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

A promise made without any intention of performing it cannot be regarded as Fraud

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A promise made without any intention of performing it is a classic example of fraud, as it involves a false representation of one's state of mind at the time of the contract.

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

In case of Anticipatory Breach, the Promisee can ___________.

  1. put an end to the contract and treat the anticipatory breach as actual breach of contract.

  2. elect to keep the contract alive till the date of performance

  3. either (a) or (b)

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

In an anticipatory breach, the promisee has the option to either rescind the contract immediately or wait until the actual date of performance. Both options are legally valid under contract law.

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

In case of anticipatory breach, where the Promise elects to keep the contract alive, if during the time the contract remains open, some event happens discharging the Promisor from his liability, the Contract becomes _________.

  1. Illegal

  2. Void

  3. Voidable

  4. contingent
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If the promisee keeps the contract alive, they remain subject to the risks of the contract. If a supervening event makes performance impossible or illegal during that time, the contract is discharged and becomes void.