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

In agreements of purely domestic/ social nature, the intention of the parties to create legal relationship is _______.

  1. to be proved to the satisfaction of the Court

  2. presumed to exist

  3. required to the extent of consideration

  4. not relevant at all
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In domestic or social agreements, the law presumes that parties do not intend to create legal relations. Therefore, if a party wishes to enforce such an agreement, they must prove that a legal relationship was intended.

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

F promised to pay his son S a sum of Rs. 1 lakh if S passed C.A exam in the first attempt. S passed the exam in the first attempt, but F failed to pay the amount as promised. S files a suit for recovery of the amount. State whether S can recover the amount under the Indian Contract Act, 1872

  1. S can sue F for not honouring his words

  2. S has to pay Rs. 1 lakh to F

  3. S has no remedy against F

  4. S has to write exam again, to claim the reward
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This is a domestic agreement between a father and son. Since there is no intention to create a legal relationship, the agreement is not a binding contract and cannot be enforced in court.

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

S sent his servant L, to trace his missing nephew. Later, S offered a reward for anyone who finds out his missing nephew. L, ignorant of the announcement, traced the boy. Subsequently, he claimed the reward, when he came to know of it. L, is not entitled to the reward since ____________.

  1. no reward can be given for tracing missing persons

  2. offer was not made to an ascertained person

  3. it is the servant's duty to help his master

  4. as communication of offer was not there
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

For a contract to be formed, an offer must be communicated to the offeree. Since L was unaware of the reward offer when he found the boy, he could not have accepted the offer.

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

A is indebted to B. He sells a trolley to C. C promises to pay all debts of A to B. If C falls to pay, B has no right to sue C because :

  1. C is a stranger to consideration

  2. C is stranger to contract

  3. Both

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

The doctrine of privity of contract states that only parties to a contract can sue or be sued. Since B is not a party to the contract between A and C, B cannot sue C.

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

Mohan invited Sohan for a dinner. Sohan, by expending Rs 200, went to Mohan's house. By the time Sohan reached Mohan's house, it was locked and Sohan stayed in a Hotel. Sohan _______.

  1. can sue Mohan for expenses of Rs 200

  2. cannot sue against Mohan

  3. can sue Mohan for the total charges

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

An invitation to dinner is a social agreement. There is no intention to create legal relations, so the guest cannot sue the host for breach of contract or expenses incurred.

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

A person who is usually of unsound mind, but occasionally of sound mind _______.

  1. may enter into a contract when he is of sound mind

  2. may not make a contract even when he is of sound mind

  3. cannot enter into a contract at all

  4. can enter into a contract any time but can not plead innocence
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A person who is usually of unsound mind but occasionally of sound mind can enter into a contract during those intervals when they are of sound mind.

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

N threatens L's wife that their son M would be abducted if L did not lease out their land to him (N).
This is an example of ______.

  1. Undue influence

  2. Coercion

  3. Duress

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

Coercion involves committing or threatening to commit any act forbidden by the Indian Penal Code, or the unlawful detaining of property, to prejudice any person with the intention of causing them to enter into an agreement.

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

A sum of money was agreed to be paid to the father in consideration of his giving his daughter in marriage. agreement is void on grounds of being __________.

  1. restraint of marriage

  2. marriage brokerage contract

  3. restraint of personal liberty

  4. restraint of legal proceedings.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An agreement to pay money to a parent in consideration of giving their daughter in marriage is a marriage brokerage contract, which is against public policy and void.