Tag: discharge of contract

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Questions Related to discharge of contract

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

To claim reimbursement of money paid on behalf of another person, which of the following is not required? 

  1. There should be some legal or other coercive process compelling the payment.

  2. Original liability should be of another person.

  3. Payment must be made to a third party to whom the another party was liable.

  4. The payment must be voluntary
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

To claim reimbursement under Section 69 of the Indian Contract Act, the payment must be made to protect one's own interest, not voluntarily. A voluntary payment does not create a right to reimbursement from another person.

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

In case of necessaries supplied to a person incompetent to contract, which of the following is true?

  1. Only the property (movable and immovable) of the incapable person shall be liable.

  2. The incapable person cannot be held liable personally.

  3. Where the incapable person does not own any property, nothing shall be payable.

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under the Indian Contract Act, a person incapable of contracting is not personally liable for necessaries supplied; however, their property is liable for reimbursement. If they have no property, the supplier cannot recover the cost.

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

Surety may be discharged from liability:

X. By notice of revocation of guarantee
Y. On the failure of payment by the main creditor
Z. If the creditor does any act which is against the rights of the surety
Correct option is ____.

  1. X and Y

  2. Y and Z

  3. X and Z

  4. X, Y and Z.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A surety is discharged by notice of revocation (X) and by any act of the creditor that impairs the surety's eventual remedy against the principal debtor (Z). Failure of payment by the main creditor is the reason the surety is called upon, not a ground for discharge.

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

A person incurred expenses of RS. 5,000 for the necessaries supplied to a Minor. Which of the following is true?

  1. Cannot claim the expenses.

  2. Minor can be held liable for the necessaries supplied to him.

  3. It is not a valid claim.

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

Under the Indian Contract Act, a minor is not personally liable for necessaries, but their estate is liable to reimburse the supplier. Therefore, the claim is valid against the minor's property.

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

X is a minor who had broken his left arm then doctor had treated him, how can the doctor regain his cost of treatment?

  1. Minor can be held liable for the necessities supplied to him.

  2. The Doctor cannot recover his fees because the agreement with minor is void-ab-initio.

  3. Contract has to be entered into by the minor's parent to make it valid and to recover fee.

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

Medical treatment is considered a necessary. While agreements with minors are generally void, the law provides an exception for necessaries, allowing the supplier to recover costs from the minor's property.

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

A minor got injured in his left leg in Football match. He engaged a doctor for treatment of leg. The doctor's claim for his services under the Indian Contract Act 1872 is _______.

  1. Valid

  2. Invalid

  3. Void

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

Medical services provided to a minor are classified as necessaries. Consequently, the claim for payment is legally valid under the Indian Contract Act, specifically regarding the minor's estate.

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

F, a money lender, advances RS. 10,000 to J, an agriculturist and by undue influence, induces J to sign a bond for Rs. 20,000 with interest at 6% p.m. The court may set the Bond aside, ordering J to repay only Rs. 10,000 at such nominal interest as it may deem fit.

  1. True

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

When a contract is induced by undue influence, the court has the discretion to set the contract aside or enforce it on modified terms that are equitable to both parties.

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

Claim for necessaries of life supplied to a minor can be enforced against _________.

  1. the Minor's property or estate

  2. any relative

  3. the minor personally on attaining majority

  4. the guardian, if any, of the minor
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The law regarding necessaries for a minor is that the minor is not personally liable, but their property or estate can be held liable for the reasonable value of the goods or services supplied.

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

An illiterate old woman made a gift deed of practically her entire property to her nephew who managed her affairs. The gift can be set aside on the grounds of -

  1. Mistake

  2. Coercion

  3. Fraud

  4. Undue Influence
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

As the nephew may have influenced her to make a contract under such circumstances the contract is invalid.

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

X bought shares in a Company on the faith of a prospectus that contained an untrue statement as to the Directorship of J. X had never heard of J and hence such statement was immaterial from his view point. X claimed damages for fraud. His claim will be dismissed on the ground that ______.

  1. there was no fraud at all

  2. fraud in Company Prospectus is not covered by Indian Contract Act

  3. the untrue statement had not induced him to buy the shares

  4. all of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For a claim of fraud to succeed, the misrepresentation must have induced the party to enter into the contract. If the statement was immaterial to the party, there is no inducement, and the claim fails.