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

S, a singer, contracts with H, manager of a theatre, a sing at his theatre for two nights every week during next two months. H agrees to pay her Rs.1000 for each night's performance. On sixth night, S willfully absents herself, and H, in consequence, rescinds the contract. In this case ________.

  1. H has no obligations to S

  2. H must pay S for five nights on which she had performed

  3. S has no remedy against H

  4. The contract is illegal
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When a contract is divisible, the party who has performed part of the obligations is entitled to payment for the work done before the contract was rescinded. H must pay S for the nights she actually performed.

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

B chartered A's ship and agreed to load it with a cargo in Odessa within 45 days. B was unable to supply the cargo, but A continued to demand it. Meanwhile war broke out, rendering the performance impossible. In such case _________.

  1. contract is discharged

  2. A cannot sue for damages

  3. both (a) and (b)

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

When performance becomes impossible due to a supervening event like war, the contract is discharged by frustration. Consequently, neither party can sue the other for damages arising from the non-performance.

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 who was badly in need of money offered to sell his piano worth Rs. 8,500 to B fro Rs. 5,000. B refused to buy. A gradually lowered his price until Rs. 2500 was reached, which B accepted. Before the piano was delivered A received an offer of a larger sum from X and he refused to carry out the contract with B claiming that the consideration was inadequate. Is A liable to pay damages to B for faiiure to carry out part of contract?

  1. No, as the consideration was inadequate A cancelled the contract

  2. Yes, A is liable to pay damages to B for failure to carry out his part of the contract

  3. No, as the contract was made due to Undue Influence

  4. Any of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under contract law, the adequacy of consideration is not a requirement for a valid contract. If the parties freely agreed to the price, the contract is binding regardless of whether the price was lower than market value.

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

The phase 'Quantum Meruit' Literally means:

  1. As soon as possible

  2. As much as is earned

  3. According to merit

  4. Quantity of goods
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Quantum Meruit is a Latin legal phrase that literally translates to as much as is earned or deserved. It is commonly applied in contract law to allow a party to recover the reasonable value of services rendered when no precise contract price was established.