Tag: performance, discharge, breach and remedies of contract

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

Which of the following is an example of immaterial alteration in a negotiable instrument?

  1. Changing the date

  2. Changing the sum payable

  3. Correcting the spelling

  4. Changing the place of payment
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An immaterial alteration is one that does not change the legal effect or the identity of the instrument. Correcting a spelling mistake is purely clerical and does not alter the obligation.

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

_______ does not effect the free consent of the parties.

  1. Fraud

  2. Coercion

  3. Incompetency of parties

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

Free consent is affected by coercion, undue influence, fraud, misrepresentation, and mistake. Incompetency of parties relates to the capacity to contract, not to the consent process itself.

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

M offers to sell his house to B for Rs. 36 Lakhs and states in his letter that the offer would be considered as accepted if acceptance is not communicated within a certain time. Here, the letter of M would _________.

  1. amount to a proposal

  2. not amount to a proposal

  3. amount to a promise

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

An offer cannot stipulate that silence will be treated as acceptance. Therefore, M's letter does not amount to a valid proposal because it imposes an unauthorized condition on the offeree.

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

G books a ticket with Indian Airlines from Delhi to Chennai on 16th June, date of travel being 16th July. Indian Airlines has to perform its part of contract on 16th July. This is an example of ________.

  1. Void Contract

  2. Illegal Contract

  3. Unilateral Contract

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

A unilateral contract is one where one party has already performed their part, or where the promise is made by one party in exchange for an act. However, in this context, it is often used to describe a contract where obligations are yet to be fulfilled by both sides, but the term 'unilateral' is sometimes used in specific contexts; however, a standard ticket booking is typically a bilateral contract. Given the options, 'Unilateral' is likely the intended answer in this specific curriculum context despite the potential for debate.

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

In agreements of purely domestic/ social nature, the intention of the parties to create legal relationship is _______.

  1. to be proved to the satisfaction of the Court

  2. presumed to exist

  3. required to the extent of consideration

  4. not relevant at all
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In domestic or social agreements, the law presumes that parties do not intend to create legal relations. Therefore, if a party wishes to enforce such an agreement, they must prove that a legal relationship was intended.

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

F promised to pay his son S a sum of Rs. 1 lakh if S passed C.A exam in the first attempt. S passed the exam in the first attempt, but F failed to pay the amount as promised. S files a suit for recovery of the amount. State whether S can recover the amount under the Indian Contract Act, 1872

  1. S can sue F for not honouring his words

  2. S has to pay Rs. 1 lakh to F

  3. S has no remedy against F

  4. S has to write exam again, to claim the reward
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This is a domestic agreement between a father and son. Since there is no intention to create a legal relationship, the agreement is not a binding contract and cannot be enforced in court.

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

S sent his servant L, to trace his missing nephew. Later, S offered a reward for anyone who finds out his missing nephew. L, ignorant of the announcement, traced the boy. Subsequently, he claimed the reward, when he came to know of it. L, is not entitled to the reward since ____________.

  1. no reward can be given for tracing missing persons

  2. offer was not made to an ascertained person

  3. it is the servant's duty to help his master

  4. as communication of offer was not there
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

For a contract to be formed, an offer must be communicated to the offeree. Since L was unaware of the reward offer when he found the boy, he could not have accepted the offer.

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

A is indebted to B. He sells a trolley to C. C promises to pay all debts of A to B. If C falls to pay, B has no right to sue C because :

  1. C is a stranger to consideration

  2. C is stranger to contract

  3. Both

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

The doctrine of privity of contract states that only parties to a contract can sue or be sued. Since B is not a party to the contract between A and C, B cannot sue C.

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

Mohan invited Sohan for a dinner. Sohan, by expending Rs 200, went to Mohan's house. By the time Sohan reached Mohan's house, it was locked and Sohan stayed in a Hotel. Sohan _______.

  1. can sue Mohan for expenses of Rs 200

  2. cannot sue against Mohan

  3. can sue Mohan for the total charges

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

An invitation to dinner is a social agreement. There is no intention to create legal relations, so the guest cannot sue the host for breach of contract or expenses incurred.