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

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.

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

When a party to a contract refuses for fails to perform his obligation when it is due, is called ___________.

  1. actual breach of contract

  2. anticipatory breach of contract

  3. both (A) and (B)

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

An actual breach occurs when a party fails to perform their contractual obligations at the time performance is due. Anticipatory breach, by contrast, occurs before the performance date.

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

An intentional Misrepresentation will amount to -

  1. Fraud

  2. Coercion

  3. Undue Influence

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

Fraud is defined in contract law as an intentional misrepresentation or concealment of facts made by a party to induce another to enter into a contract. Coercion and undue influence involve pressure rather than deception.

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

A contracts to marry B. Before the agreed date of marriage, A marries C. Here, B is entitled to sue A for ___________.

  1. actual breach in an express manner

  2. anticipatory breach in an express manner

  3. actual breach in an implied manner

  4. anticipatory breach in an implied manner
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An anticipatory breach occurs when a party repudiates their obligation before the due date. Since A married someone else, they have made performance impossible, which is an implied act of repudiation.

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

In case of anticipatory breach of contract, the ___________..

  1. contract automatically comes to an end

  2. promisor is discharged of his liability

  3. promisee has no remedy

  4. promisee can claim damages
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When an anticipatory breach occurs, the promisee has the option to treat the contract as rescinded and sue for damages immediately, or wait until the due date. The promisee is not left without a remedy.

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

In case of anticipatory breach remedies available to aggrieved party is ________.

  1. he cannot claim damages

  2. he can wait till due date

  3. he has no right at all

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

In an anticipatory breach, the aggrieved party has choices: they can either rescind the contract and claim damages immediately, or wait until the due date for performance. Since the options provided are restrictive or incorrect, 'none of the above' is the correct choice.

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

N singer contracted with a theatre manager to sing a song. due to her illness she failed to perform the contract she received 20000 as advance _________.

  1. N must refund 20000

  2. N need not refund 20000

  3. they must enter into new agreement

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

Under the doctrine of frustration of contract, if a contract becomes impossible to perform due to unforeseen circumstances like illness, the party who received an advance must refund it to prevent unjust enrichment.

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

Quantum Meruit means _______.

  1. a non-gratuitous promise

  2. as implied promise

  3. as much as is earned

  4. as much as is paid
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Quantum Meruit is a Latin phrase meaning 'as much as he has earned'. It is a claim for the reasonable value of services rendered when a contract is discharged or found to be void.