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the party who has performed part of the obligations is entitled to payment for the work done before the contract was rescinded.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.