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

A, a singer enters into a contract with B, the manager of a theatre to sing at his theatre two nights in every week during the next two months and B engages to pay her Rs. 1,00,000 for each night's performance. On the sixth night, A willfully absents himself from the theatre. If A turns up after a week and B without saying anything allowed A to perform that night __________.

  1. B is at liberty to put an end to the contract

  2. B cannot put an end to the contract but can claim damages from A

  3. The contract is left at the liberty of A

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

If a party accepts performance after a breach, they waive their right to rescind the contract based on that breach, though they may still be entitled to claim damages for the loss suffered.

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 contract may be discharged by

  1. Lapse of time

  2. Operation of the law

  3. Mutual agreement

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

A contract can be discharged through various means, including performance, mutual agreement, operation of law, or breach. All the listed options are valid methods of 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 contract is discharged by operation of law:

  1. by death of the promisor;

  2. by insolvency of promisor;

  3. by death or insolvency of promisor.

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

Discharge by operation of law occurs in cases such as insolvency or the death of a promisor (in contracts involving personal skill), making all the listed options correct.