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

N, a film star, agreed to act exclusively for K, a film producer, for one year. During the year, she contracted to act for some other producer. In this case, K ________.

  1. cannot sue N at all

  2. cannot restrain N by an injunction

  3. can restrain N by an injunction

  4. has to produce the film with other actors only
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In cases of negative covenants in a contract for personal service, the court may grant an injunction to prevent the party from performing the service for others, even if it cannot specifically enforce the positive act.

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

Specific performance may be ordered by the Court when________.

  1. the contract is voidable

  2. damages are an adequate remedy

  3. damages are not an adequate remedy

  4. defaulting party is not ready to pay damages
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Specific performance is an equitable remedy granted by the court when monetary damages are inadequate to compensate the aggrieved party for the breach.

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

Suit for specific performance of contract can be instituted by the promisee, where ___________. 

  1. the promisor has breached the contract

  2. the promisor has suffered abnormal loss

  3. damages are not an adequate remedy to promisee

  4. parties agree to go to court for remedy
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A suit for specific performance is appropriate when the subject matter is unique or where damages would not provide an adequate remedy for the breach.

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 sell B "a hundred tons of oil".

  1. The agreement is valid.

  2. The agreement is void.

  3. The agreement is voidable.

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

An agreement to sell 'a hundred tons of oil' without specifying the type or quality of oil is void for uncertainty, as it is impossible to determine what exactly is being sold.

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

An agreement for rendering services entered into by a father on behalf of his minor daughter is _______.

  1. Void

  2. Voidable

  3. Valid

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

A minor is incompetent to contract. An agreement entered into by a father on behalf of his minor daughter for personal services is void because the minor cannot be bound by such a contract.

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

Demand Documentary Bill Limits _________.

  1. should be taken as a part of the permissible bank finance

  2. should be taken into account also for the purposes of receivable norms

  3. Both (a) and (b)

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

Demand Documentary Bill Limits are considered part of the permissible bank finance and must be accounted for in receivable norms to ensure accurate credit assessment.

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

Contract contingent upon the non- happening of an uncertain future event can be enforced __________.

  1. when the happening of event becomes impossible

  2. when the event has happened

  3. at the time of making the contact

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

A contract contingent upon the non-happening of an uncertain future event becomes enforceable when the happening of that event becomes impossible, as the condition for non-happening is then fulfilled.

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

Status quo obligations arise:

  1. In case of legal obligations

  2. When the contract is made

  3. Outside scope of the Indian Contract Act, 1872

  4. Within the scope of the Indian Contract Act, 1872
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Status quo obligations generally refer to legal duties that exist independently of the specific provisions of the Indian Contract Act, often arising from other areas of law or equity.

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

An agent who in receipt of extra commission gives guarantees to his principle that the purchaser of the goods on credit will pay for the goods, is called _____.

  1. Sub-agent

  2. Mercantile agent

  3. Brokers

  4. Del credere agent
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A del credere agent is an agent who, in consideration of an extra commission, guarantees the principal that the third party with whom they deal will perform their obligations.

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

When certain circumstances compel a person to act as an agent for another without his express authority, this type of agency is known as ________.

  1. agency by estoppel

  2. agency by implied authority

  3. agency by necessity

  4. agency by holding-out
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Agency by necessity arises when a person is compelled by circumstances to act on behalf of another to prevent loss, even without express authority.