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 remedies for breach of contract performance, discharge, breach and remedies of contract business law and contract act

S, a singer, contracts with H, manager of a theatre, a sing at his theatre for two nights every week during next two months. H agrees to pay her Rs.1000 for each night's performance. On sixth night, S willfully absents herself, and H, in consequence, rescinds the contract. In this case ________.

  1. H has no obligations to S

  2. H must pay S for five nights on which she had performed

  3. S has no remedy against H

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

When a contract is divisible, the party who has performed part of the obligations is entitled to payment for the work done before the contract was rescinded. H must pay S for the nights she actually performed.

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

B chartered A's ship and agreed to load it with a cargo in Odessa within 45 days. B was unable to supply the cargo, but A continued to demand it. Meanwhile war broke out, rendering the performance impossible. In such case _________.

  1. contract is discharged

  2. A cannot sue for damages

  3. both (a) and (b)

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

When performance becomes impossible due to a supervening event like war, the contract is discharged by frustration. Consequently, neither party can sue the other for damages arising from the non-performance.

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 who was badly in need of money offered to sell his piano worth Rs. 8,500 to B fro Rs. 5,000. B refused to buy. A gradually lowered his price until Rs. 2500 was reached, which B accepted. Before the piano was delivered A received an offer of a larger sum from X and he refused to carry out the contract with B claiming that the consideration was inadequate. Is A liable to pay damages to B for faiiure to carry out part of contract?

  1. No, as the consideration was inadequate A cancelled the contract

  2. Yes, A is liable to pay damages to B for failure to carry out his part of the contract

  3. No, as the contract was made due to Undue Influence

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

Under contract law, the adequacy of consideration is not a requirement for a valid contract. If the parties freely agreed to the price, the contract is binding regardless of whether the price was lower than market value.

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

Which among the following is/are the type(s) of lien?

  1. Particular lien

  2. General Lien

  3. Both (a) and (b)

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

Lien is the right to retain possession of goods until a debt is paid. It is classified into particular lien (for specific services) and general lien (for any balance due).

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

Inadequacy of consideration may be taken into account by the Court to determine whether the consent or promisor was freely given.

  1. True

  2. Partly True

  3. False

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

Under the Indian Contract Act, inadequacy of consideration does not invalidate a contract, but it can be evidence to determine if consent was freely given. It is not strictly true or false, making 'partly true' the most accurate classification.

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

L says to J "I shall sell my house; will you buy?" A says, " Yes, I shall buy". The agreement is void due to ________.

  1. uncertainty of meaning

  2. uncertainty of price

  3. uncertainty of existence of subject matter

  4. uncertainty of quality of subject matter
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An agreement is void if its meaning is not certain or capable of being made certain. In this case, the price is not specified, making the agreement void due to uncertainty.

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

On the face of a ticket for a journey, the words, "For conditions see back" are printed in small print. The passenger ______.

  1. is bound by the conditions whether he takes care to read them or not

  2. is not bound by the conditions

  3. may not take note of the conditions

  4. may claim that he has not seen the conditions
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

If a document contains conditions and the party is notified of their existence (e.g., 'see back'), they are bound by those conditions even if they choose not to read them.

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

A agrees to pay B Rs. 10 Lakhs and B promises to bring for A, stars from heaven. The agreement is _______.

  1. void

  2. valid

  3. voidable

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

An agreement to do an act that is physically impossible (like bringing stars from heaven) is void under the law as it cannot be performed.