Tag: business law and contract act

Questions Related to business law and contract act

If time is the essence of the contract and the Promisor fails to perform the contract by the specified time, the contract _________.

commerce performance of contract who will perform the contract performance, discharge, breach and remedies of contract business law and contract act

  1. becomes void

  2. remains valid

  3. becomes voidable at the instance of the Promisee

  4. becomes unenforceable

Show answer
Correct Option: C

A Contract entered between Promisor and Promisee becomes impossible to perform due to destruction of subject matter. In this case __________.

commerce performance of contract who will perform the contract performance, discharge, breach and remedies of contract business law and contract act

  1. promisee is entitled for compensation

  2. contract continues to be valid

  3. contract is void

  4. none of the above

Show answer
Correct Option: C

Change in some or all terms of the Contract is ______.

commerce performance of contract who will perform the contract performance, discharge, breach and remedies of contract business law and contract act

  1. novation

  2. alteration

  3. merger

  4. rescission

Show answer
Correct Option: B

Novation of a contract under Indian Contract Act, means _______.

commerce performance of contract who will perform the contract performance, discharge, breach and remedies of contract business law and contract act

  1. cancellation of contract

  2. alteration of the contract

  3. the renewal of original contract

  4. substitution of a new contract in place of original contract

Show answer
Correct Option: D

The original contract need not  be performed if there is _________.

commerce performance of contract who will perform the contract performance, discharge, breach and remedies of contract business law and contract act

  1. rescission of contract

  2. novation of contract

  3. alteration of contract

  4. all of the above

Show answer
Correct Option: D

If a new contract is substituted in place of an existing contract it is called _______.

commerce performance of contract who will perform the contract performance, discharge, breach and remedies of contract business law and contract act

  1. alteration

  2. rescission

  3. novation

  4. waiver

Show answer
Correct Option: C

N, a film star, agreed to act exclusively for K, a film producer, for one year. During the year, she contracted to act for some other producer. In this case, K ________.

commerce performance of contract who will perform the contract performance, discharge, breach and remedies of contract business law and contract act

  1. cannot sue N at all

  2. cannot restrain N by an injunction

  3. can restrain N by an injunction

  4. has to produce the film with other actors only

Show answer
Correct Option: C

Specific performance may be ordered by the Court when________.

commerce performance of contract who will perform the contract performance, discharge, breach and remedies of contract business law and contract act

  1. the contract is voidable

  2. damages are an adequate remedy

  3. damages are not an adequate remedy

  4. defaulting party is not ready to pay damages

Show answer
Correct Option: C

Suit for specific performance of contract can be instituted by the promisee, where ___________. 

commerce performance of contract who will perform the contract performance, discharge, breach and remedies of contract business law and contract act

  1. the promisor has breached the contract

  2. the promisor has suffered abnormal loss

  3. damages are not an adequate remedy to promisee

  4. parties agree to go to court for remedy

Show answer
Correct Option: C

A agrees to sell B "a hundred tons of oil".

commerce performance of contract who will perform the contract performance, discharge, breach and remedies of contract business law and contract act

  1. The agreement is valid.

  2. The agreement is void.

  3. The agreement is voidable.

  4. The agreement is illegal.

Show answer
Correct Option: B