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

A and B contract that B shall build a house for A for Rs. 9 Lakhs. B is ready and willing to construct the house, but A prevents him from doing so. In this case _________.

  1. B can opt to rescind the contract

  2. B is entitled to recover compensation for any loss suffered by him.

  3. either (a) or (b)

  4. both (a) and (b)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

If a promisor is prevented from performing by the promisee, the contract becomes voidable at the option of the promisor, and they are entitled to compensation for any loss sustained.

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

If the time is the essence of Contract and it is not performed with in specified time, then __________.

  1. the Contract cannot be performed later on

  2. the promisor can compel the promisee to accept the performance later on

  3. the Contract becomes voidable at the option of promise

  4. the Contract becomes voidable at the option of promisor
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

If time is of the essence and the contract is not performed within the specified time, the contract becomes voidable at the option of the promisee.

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

If any one of the joint promisors makes a default in making contribution. How will it be settle down by other promisors?

  1. Representative of promisor will be liable to contribution

  2. Contribution will be dismissed automatically

  3. Representative of a promisor will be liable along with other joint promisors

  4. The remaining joint promisors will be liable to contribute
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In the case of joint promisors, if one defaults, the remaining joint promisors are liable to contribute to the performance of the contract.

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

X, Y and Z are partners of software business jointly promise to pay Rs. 30,000 to A. Over a period of time Y became insolvent, but his assets are sufficient to pay 1/4th of his debts. Z is compelled to pay the whole.

  1. Z has to bear the entire amount of liability

  2. X has to bear the entire loss arising out of Y's insolvency

  3. X and Z have to bear equally, the loss arising out of Y's insolvency

  4. Z can recover back the entire amount from A.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When one joint promisor is insolvent, the loss arising from their insolvency must be shared equally by the remaining solvent joint promisors.

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

Ram, Lal and Shyam jointly promise to pay Mohan Rs. 30,000. Shyam paid the whole amount to Mohan. If Ram and Lal are solvent, Sham can recover _________.

  1. Rs. 50,000 from Lal

  2. Rs. 30,000 from Ram

  3. Rs. 20,000 from Lal

  4. Rs. 10,000 each from Ram and Lal
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Joint promisors are liable to contribute equally. If one pays the whole amount, they can recover the equal shares from the other solvent joint promisors.

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

Ashok owes Lakshmi Rs. 25,000/-. Lakshmi said that she will accept Rs. 15,000/- towards final statement. It is ___________ contract.

  1. voidable

  2. valid

  3. ollegal

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

The agreement to accept a lesser amount in full satisfaction of a debt is a valid contract (accord and satisfaction).

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

A business can be transacted at a board meeting even if it is not mentioned in the agenda

  1. True

  2. False

  3. Partly True

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

Generally, business transacted at a board meeting must be included in the agenda, or require specific procedures for items not on the agenda, to ensure transparency and proper notice.

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

A contract to do an act which, after the contract is made, becomes impossible

  1. becomes void when the act becomes impossible;

  2. becomes voidable when the act becomes impossible;

  3. becomes illegal when the act becomes impossible;

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

Under the Indian Contract Act, a contract to do an act which, after the contract is made, becomes impossible or unlawful, becomes void when the act becomes impossible or unlawful.

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

The directors appointed in a company on an application made under Sec. 241 are appointed by.

  1. Auditor

  2. Tribunal

  3. General Government

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

Under Section 241 of the Companies Act, the Tribunal has the power to appoint directors to prevent mismanagement or oppression.

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

The disqualification for being appointed as a director are contained in which section of Companies Act, 2013?

  1. Sec. 164

  2. Sec. 166

  3. Sec. 170

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

Section 164 of the Companies Act, 2013, specifically outlines the grounds for the disqualification of a person from being appointed as a director of a company.