Tag: business law and contract act

Quizzes (5) Questions (176)

Questions Related to business law and contract act

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

X leaves his goods at Y's place who consumes them. Y is bound to pay the price. Y's act of consumption of goods constitutes an implied promise to pay, under the principle of __________.

  1. Contractual Obligations

  2. Quasi Contractual Obligations

  3. Semi Contractual Obligations

  4. Deemed Contractual Obligations
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

This scenario describes a quasi-contractual obligation. Even without a formal contract, the law imposes an obligation on a person who enjoys the benefit of non-gratuitous acts to pay for them.

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

______ arises obligations where no Contract is originally entered.

  1. Wagering Contract

  2. Contingent Contract

  3. Quasi Contract

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

A quasi-contract is not a true contract but an obligation imposed by law to prevent one person from being unjustly enriched at the expense of another, even though no contract was originally entered into.

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 contracts with B to deliver possession of a house under construction within a period of 6 months; failing which he would pay the monthly rental of B, The monthly rental payable by B for A is in the nature of ___________.

  1. Exemplary Damages

  2. Special Damages

  3. Liquidated Damages

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

Liquidated damages are a pre-estimated amount agreed upon by the parties at the time of contract formation to be paid in the event of a breach. Since the rental amount is fixed as a consequence of the delay, it qualifies as liquidated 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

Quasi Contractual Obligations arise by the principle of ______.

  1. Equity, Justice & Good conscience

  2. Restitution

  3. Recession

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

Quasi-contracts are based on the principle of equity, justice, and good conscience, ensuring that no person is unjustly enriched at the expense of another.

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 is incorrect?

  1. Ordinary damages are recoverable

  2. Special damages are recoverable only if both the parties knew about them

  3. Indirect damages are not recoverable

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

Ordinary damages are recoverable, special damages are recoverable if known to both parties, and indirect (remote) damages are generally not recoverable. Since all statements A, B, and C are correct, 'none of the above' is the correct choice for an 'incorrect' question.

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.