Tag: remedies for breach of contract

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Questions Related to remedies for breach 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

A Company announced a reward of Pounds 100 to anyone who contracted influenza after using its Smoke Balls for a certain period. Mrs. C used the Smoke Balls and contracted influenza. She claimed the reward but the Company rejected her claim stating that she did not communicate her acceptance to the Company. Here ____________.

  1. acceptance is not communicated and reward cannot be claimed

  2. offer is not communicated and reward cannot be claimed

  3. acceptance need not be communicated and reward can be claimed

  4. there is no claim since reward cannot be given for contracting diseases
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This is the classic Carlill v Carbolic Smoke Ball Co. case. In general offers, performance of the conditions of the offer constitutes acceptance, and communication of acceptance is not required.

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

Kedar promised to pay Rs. 5000 to car repairer for the incurred expenses but later Kedar refused to pay the agreed amount. Which of the following is true?

  1. Car repairer cannot claim the expenses.

  2. The car repairer can claim Rs. 5000.

  3. Car repairer cannot claim Rs. 500 as compensation.

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

Since the repairer performed the service and Kedar agreed to pay, the repairer is legally entitled to the agreed amount of 5000.

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

Rohan promises to make a gift of RS. 10,000 towards the repairs of a temple. The trustees of the temple on the faith of his promise incurs liabilities. Rohan does not pay. Can the trustees recover the promised amount from Rohan?

  1. The trustee cannot recover anything from Rohan.

  2. The trustee can recover to the extent of liabilities from Rohan.

  3. The trustee can recover Rs. 10,000 from Rohan.

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

Under the principle of promissory estoppel, if a person makes a promise and the other party acts upon it to their detriment (incurring liabilities), the promisor is bound to fulfill the promise to the extent of those liabilities.

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

Which of these constitute Fraud?

  1. Any act fitted to deceive

  2. Any such act or omission as specifically declared by law to be fraudulent

  3. Both (a) and (b)

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

Fraud includes any act fitted to deceive or any act or omission specifically declared by law to be fraudulent, both of which are intended to induce the other party to enter into a 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

A promise made without any intention of performing it cannot be regarded as Fraud

  1. True

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

A promise made without any intention of performing it is a classic example of fraud, as it involves a false representation of one's state of mind at the time of the 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

In case of Anticipatory Breach, the Promisee can ___________.

  1. put an end to the contract and treat the anticipatory breach as actual breach of contract.

  2. elect to keep the contract alive till the date of performance

  3. either (a) or (b)

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

In an anticipatory breach, the promisee has the option to either rescind the contract immediately or wait until the actual date of performance. Both options are legally valid under contract law.

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, where the Promise elects to keep the contract alive, if during the time the contract remains open, some event happens discharging the Promisor from his liability, the Contract becomes _________.

  1. Illegal

  2. Void

  3. Voidable

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

If the promisee keeps the contract alive, they remain subject to the risks of the contract. If a supervening event makes performance impossible or illegal during that time, the contract is discharged and becomes void.

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.