Tag: performance of contract

Quizzes (2) Questions (76)

Questions Related to performance 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

If time is the essence of the contract and the Promisor fails to perform the contract by the specified time, the contract _________.

  1. becomes void

  2. remains valid

  3. becomes voidable at the instance of the Promisee

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

If time is of the essence and the promisor fails to perform by the specified time, the contract becomes voidable at the option of the promisee. The promisee can choose to accept late performance or treat the contract as ended.

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 entered between Promisor and Promisee becomes impossible to perform due to destruction of subject matter. In this case __________.

  1. promisee is entitled for compensation

  2. contract continues to be valid

  3. contract is void

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

Under the doctrine of frustration, if the subject matter of a contract is destroyed without the fault of either party, the contract becomes void as it is impossible to perform.

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

Change in some or all terms of the Contract is ______.

  1. novation

  2. alteration

  3. merger

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

Alteration refers to a change in one or more of the terms of a contract, while the parties remain the same. Novation involves the substitution of a new contract or parties.

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

Novation of a contract under Indian Contract Act, means _______.

  1. cancellation of contract

  2. alteration of the contract

  3. the renewal of original contract

  4. substitution of a new contract in place of original contract
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Novation occurs when a new contract is substituted for an existing one, either between the same parties or with new parties, thereby discharging the original contract.

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

The original contract need not  be performed if there is _________.

  1. rescission of contract

  2. novation of contract

  3. alteration of contract

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Rescission, novation, and alteration all result in the original contract being discharged or modified, meaning the original terms no longer need to be performed as they were.

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.