Tag: performance, discharge, breach and remedies of contract

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Questions Related to performance, discharge, breach and remedies 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

Which of these are not opposed to Public Policy?

  1. Champerty & Maintenance

  2. Agreements in restraint of parental rights

  3. Agreements in restraint of marriage

  4. Agreements to refer disputes to arbitration
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Agreements to refer disputes to arbitration are generally considered valid and are not opposed to public policy. In contrast, agreements in restraint of marriage or parental rights are typically void as against public policy.

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 contractors to sell his car to B for Rs. 4,00,000 and B agrees to pay on delivery. Once the car is delivered to B and B pays Rs. 4,00,000, contract comes to an end. This is called __________

  1. waiver of a Contract

  2. breach of a Contract

  3. rescission of a Contract

  4. discharge of a Contract
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When both parties have fulfilled their respective obligations under a contract, the contract is said to be discharged by performance.

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

When an inferior right accruing to a party in a contract merges into a superior right accruing to the same party, then________.

  1. the contract conferring the inferior right is discharged

  2. the contract conferring the superior right is discharged

  3. both contracts are discharged

  4. both contracts are not discharged
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Merger occurs when an inferior right and a superior right in the same subject matter meet in the same person. The inferior right is extinguished or merged into the superior one, thus discharging the contract related to the inferior right.

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 holds a house on lease. After that he buys the house and became owner. the contract is discharged by __________ .

  1. rescission

  2. merger

  3. waiver

  4. remission
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When a tenant (who has an inferior right of lease) buys the property (acquiring the superior right of ownership), the lease contract is discharged by the operation of law through merger.

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 can be discharged by __________.

  1. frustration of the contract

  2. performance of the contract

  3. both (a) & (b)

  4. neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A contract can be discharged through various methods, including performance (both parties fulfill their duties) and frustration (an unforeseen event makes performance impossible).

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

_________ signifies that the parties are not further bound under the contract.

  1. Waiver of a Contract

  2. Breach of a Contract

  3. Rescission of a Contract

  4. Discharge of a Contract
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Discharge of a contract means that the parties are no longer bound by the obligations created by the 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

When both the parties have decided to cancel the contract, it is known as _______ .

  1. remission

  2. novation

  3. rescission

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

Rescission is the act of canceling or terminating a contract by mutual agreement, effectively releasing both parties from their future obligations.

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 & Y entered into an agreement to buy an imported car for Rs. 30,000. Later on they cancelled the agreement. This is known as ______ .

  1. recission

  2. merger

  3. waiver

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

This describes rescission - the mutual cancellation of a contract by both parties. X and Y agreed to cancel their car purchase agreement, which is the essence of rescission. The term 'recission' here is a variant spelling of 'rescission'.

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

Rescission of a Voidable Contract may also be revoked and the parties can get back on the original contract.

  1. True

  2. Partly true

  3. False

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

Rescission of a voidable contract allows the aggrieved party to set aside the contract. Once rescinded, the contract is no longer binding, and the parties are released from their obligations.

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

Damages which an aggrieved party claims, besides general damages for any loss he has suffered owing to special circumstances known to both the parties at the time of signing the contract are called ________.

  1. vindictive damages

  2. nominal damages

  3. general damages

  4. special damages
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Special damages are those that arise from the special circumstances of the case, which were known to the parties at the time of the contract. These are distinct from general damages, which arise naturally from the breach itself.