Indian Contract Act-Chapter 1B - Practice Problems

7/28/2019 Indian Contract Act-Chapter 1B - Practice Problems

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FINPREP Practice QuestionsChapter Name Indian Contract ActChapter No. 1B

For Private Circulation to registered students. Page 1 of 31

FINPREP A CPT preparatory program from

Practice Questions

Subject: Mercantile Law


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Performance of Contract

Q. 1 A Contract can be discharged by performance in which of the following ways?A. Offer to Perform i.e. TenderB. Actual performanceC. (a) or (b)D. (a) and (b)

Q. 2 A contract stands dischargedA. by performance of the contractB. by breach of the contract

C. by agreement and novationD. by all of these

Q. 3 On the valid performance of the contractual obligation by the parties, the contractA. is dischargedB. becomes enforceableC. becomes voidD. None of these

Q. 4 A contract stands discharged byA. Performance of the contractB. Frustration of the contractC. both (a) & (b)D. Neither (a) nor (b)

Q. 5 If a Promisee accepts performance from a third person, heA. Can sue the third person for performing the contractB. Can also claim performance from the PromisorC. Should apologise to the PromisorD. Cannot afterwards enforce the promise against the Promisor

Q. 6 An agency can be created by the following ways:A. Agency by actual authority.B. Agency by ratification.C. Agency by ostensible authority.D. All of the above


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Q. 7 The rights of an agent against the principal are the following..............A. Right of indemnificationB. Right to compensationC. Right of stoppage in transitD. All of the above

Q. 8 X promises to deliver 10 T.V. sets to Y. In case of X's death before performance, X'srepresentativesA. Shall be bound to deliver the T.V. to YB. Shall be bound to deliver the T.V. to Y but their liability is limited to the value of the

property inherited from the deceasedC. Are not bound by the promiseD. Shall terminate the contract

Q. 9 A Promisee can accept the performance from. A. Promisor himself B. Representative of the Promisor competent to performC. A third personD. Any of the above

Q. 10 A contract between A, B and C was executed whereby A pays money to B for deliveringsome goods to C. C has not paid any consideration. Can C enforce the agreement?A. Yes, as he is the beneficiary of TrustB. Yes but the same can only be done jointly with AC. No as C did not pay the considerationD. A and only A can enforce the agreement

Q. 11 An agent may retain, out of sums received on account of the principal in the business of agency:A. Remuneration as may be payableB. Expenses properly incurredC. All sums due to himself D. All of the above

Q. 12 Which of the following persons can perform the contractA. Promisor aloneB. Legal representatives of promisorC. Agent of the promisorD. All of these


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Q. 13 The following contractual rights cannot be assigned:A. Under a contract not involving personal skillB. An actionable claimC. Upon death of a party-upon his heirs and legal representativesD. Contracts involving personal skill

Q. 14 An agency coupled with interest does not come to an end in case of A. Death of the principalB. Insanity of the principalC. Insolvency of the principalD. Death or Insanity or Insolvency of the principal

Q. 15 A person employed to do any act for another or to represent another in dealings with thethird parties isA. PrincipalB. AgentC. ServantD. Bailee

Q. 16 A directs B who is a solicitor to sell his estate by auction and to employ an auctioneer forthis purpose. B names C, an auctioneer, to conduct the sale. The status of C for the saleisA. C is an agent of AB. C is a sub-agent of AC. C is an agent of BD. C is neither an agent of A nor or B

Q. 17 The relationship of principal and agent may arise byA. Express or implied agreementB. RatificationC. Operation of lawD. All of the above

Q. 18 _________ can perform the contractA. Promisor aloneB. Legal representative of promisorC. Agent of the promisorD. All of these


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Q. 19 A promisor can perform the promiseA. Through his representatives irrespective of the competency of that representativeB. Through his representative component to performC. Himself D. None of the above

Q. 2o Where price of goods sold is to be fixed by a third party refuses to fix the price, thecontract becomesA. VoidB. VoidableC. IllegalD. Void and Illegal

Q. 21 A contract can be performed byA. An agent of the promisorB. The promisor himself C. (a) or (b)D. Both (a) and (b)

Q. 22 When both the benefits and burden devolve on the legal heir, it would be calledA. WillB. AssignmentC. DelegationD. Succession

Q. 23 X, Y and Z jointly promise to give Rs.10, 000 Mr. A. Mr. A can enforce the contractA. JointlyB. SeverallyC. SpecificallyD. Both Jointly and severally

Q. 24 A, B and C jointly promised to pay Rs.60, 000 to D. Before performance of the contract, C

dies. Here, the contractA. Becomes void on Cs death B. Should be performed by A and B along with Cs C. Should be performed by A and B aloneD. Should be renewed between A, B and D


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Q. 25 If two or more persons have made a joint promise, then, unless a contrary intentionappears from the contract, the promise shall be performed fulfilled, after the death of any of them by. A. The surviving Promisor(s)B. The Representative of the deceased PromisorsC. (a) or (b)D. (a) and (b)

Q. 26 X, Y and Z jointly promise to pay Rs.3, 000 to A. In the absence of express agreement tothe contrary A can bring an action againstA. any two of them onlyB. all of them togetherC. any one of them, at this choiceD. the oldest amongst them

Q. 27 In case of joint promises, the performance must be generally byA. One not authorized to performB. Any one of them individuallyC. All the promisors jointlyD. None of the above

Q. 28 X, Y and Z jointly promise to pay Mr. A Rs.10, 000 Mr. A may compelA. X, Y and Z jointly and separately to pay Rs.10, 000B. X to pay him Rs.10, 000

C. X, Y and Z jointly to pay him Rs.10, 000D. X or Y or Z to pay him Rs.10, 000

Q. 29 Ram, Rohit and Kiran jointly borrowed Rs. 2,00,000/- from Rahim by executing apromissory note, Rohit and Kiran are not traceable. Rahim wants to recover the entireamount from Ram, Ram objected this move by saying he is liable to pay 1/3 of the debtonly. Which of the following statement(s) is correct ?A. Rahim can recover the entire amount from RamB. Rahim can only recover 1/3 of Rs. 2,00,000/- from RamC. Rahim cannot recover any amount from RamD. The promissory note is not executable against Ram as Rohit and Kiran are not

traceable

Q. 30 In case of joint promise, a promise can compelA. All the joint promisors to performB. Any one of them to performC. Some of them to performD. Any of the above


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Q. 31 The right of joint promisees to demand performance isA. JointB. SeveralC. Joint or severalD. Joint and several

Q. 32 What is reasonable time for performance of a contract?A. is a mixed question of fact and lawB. is a question of factC. is a question of lawD. All of the above

Q. 33 Reasonable time for a performance of a contract is aA. Question of factB. Question of prudenceC. Question of lawD. Mixed question of fact and law

Q. 34 X contracts to repair Y's car Y does not show him the car that require repair. In such caseA. X must request Y to show the carB. X is excused for non-performance where it is so caused by Y's neglectC. Y can sue X for non-performanceD. X can sue Y for non-co-operation.

Q. 35 Where the performance of a promise by one party depends on the prior performance of promise by the other party, such reciprocal promises fall under the category of A. Mutual and concurrentB. Conditional and dependentC. Mutual and independentD. Can't be determined

Q. 36 When a contract expressly provides for the order of performance of reciprocal promises,

the promises shall be performed in _______A. Any reasonable orderB. Any appropriate orderC. Any orderD. The order mentioned and not otherwise


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Q. 43 A owes Rs.100 to B. He promises to pay Rs.20 to C, the servant of B, who in turn promisesto discharge A from the debt.A. This is legally impossibleB. A can be recover the balance of Rs.80 from CC. A can be recover the balance of Rs.80 from BD. B can recover the balance of Rs.80 from A

Q. 44 A contract is not discharged on the ground of supervening impossibility:A. On difficulty performanceB. Strikes, lock outs and civil disturbancesC. Outbreak of warD. (A) and (B) above

Q. 45 When after the formation of a valid contract, an event happens which makes theperformance of contract impossible, and then the contract becomesA. VoidB. VoidableC. ValidD. Illegal

Q. 46 Where the debtor does not intimate about appropriation, the creditor may apply thepayment:A. To a disputed debtB. To an unlawful debtC. To a debt barred by Law of LimitationD. To the payment of interest

Q. 47 X owes Y totally Rs.50, 000. He sends a cheque for Rs.20, 000 stating that it shall beappropriated towards he first sum of Rs.20,000 he took from Y. Y shall appropriate ittowardsA. That debt as indicated byB. Any debt due from XC. Any disputed debt due from X

D. Any time barred debt due from X

Q. 48 Which of the following statements are true?A. At the time of payment, the debtor has the right of appropriating the paymentB. In default of debtor, the creditor has the option of electionC. In default of either, the law will allow appropriation of debts in order of timeD. All of the above


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Q. 49 Rule in Claytons case is: Unless there is a contrary intention, the items on the credit of an account must be appropriatedA. Against the items on debit in order of dateB. In any order as the creditor wantsC. As per the directions of the courtD. None of the above

Q. 50 A contract is discharged by novation which means theA. Cancellation of the existing contractB. Change in one or more terms of the contractC. Substitution of existing contract for a new

D. None of these

Q. 51 A contract in discharged by rescission when:A. Some of the terms of the contract are cancelledB. When a new contract is entered intoC. When there is difficulty of performanceD. All of the above

Q. 52 When one or more of the terms of the contract is/are altered by mutual consent of theparties, itA. AlterationB. RescissionC. NovationD. Merger

Q. 53 A person having possession of goods under voidable contract can sell the goods beforetheof the contract by the aggrieved party A. ConfirmationB. ExecutionC. rescission

D. ratification

Q. 54 When a new contract is substituted for an existing one between the same parties, it is:A. AlterationB. NovationC. AmendmentD. Rescission


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Q. 55 means Termination of Contract. A. RescissionB. InjunctionC. Specific PerformanceD. Quantum Meruit

Q. 56 Recession means..........................A. Substituting a new contract for the old oneB. Cancellation of the old contractC. Modifying or altering the terms of contract such that it has the effect of substituting a

new contract for the old oneD. Dispensing away the performance of the promise made by the other party

Q. 57 Restitution means:A. Return of the benefit received from the plaintiff under a void contractB. Restoring the contractC. Making alterations in the terms of the contractD. Revoking the contract

Q. 58 Contracting parties may not remain same in......A. RemissionB. RecessionC. NovationD. Alteration

Q. 59 A contract need not be performed:A. When its performance becomes impossibleB. When it is altered/rescinded/substituted for a new oneC. When the promisee disperses with itD. All of the above

Q. 60 Which of the following is correct

A. Recession must be communicated to the other party in the same manner as aproposal is communicated

B. Recession must be revoked in the same manner as a proposal is communicatedC. Communication of recession is optionalD. Both (a) & (b)


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Q. 61 Contract can be discharged by agreement between parties by the wayA. RemissionB. WaiverC. (a) or (b)D. (a) and (b)

Q. 62 When any partly makes any material alteration to the terms of contract, without theconsent of the other party, the contract isA. ValidB. VoidC. VoidableD. Discharged

Q. 63 A change of nature of obligation of a Contract known asA. AlterationB. repudiationC. NovationD. rescission

Q. 64 A contract is discharged by novation which means theA. Cancellation of the existing contractB. Change in one or more terms of the contractC. Substitution of existing contract for a new oneD. None of these

Q. 65 Novation meansA. Substituting a new contract for the old oneB. Cancellation of the old contractC. Modifying or altering the terms of contract such that it has the effect of substituting a

new contract for the old one.D. Dispensing away the performance of the promise made by the other party

Q. 66 Total substitution of new contract in place of the old contract takes place in case of A. RemissionB. RecessionC. NovationD. Alteration


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Q. 67 Where the parties to the contract mutually agree to cancel the contract, it is calledA. RemissionB. RecessionC. NovationD. Alteration

Q. 68 A contract is discharged by alteration which means theA. Acceptance of loser performanceB. Cancellation of the existing contractC. Change in one or more terms of contractD. abandonment of rights by a party

Q. 69 Which of the example is the case of contracts need not be performedA. a party substitutes a new contract for the oldB. when the parties to a contract agree to rescind itC. when the parties to a contract agree to alter itD. All of these

Q. 70 Novation may take place betweenA. Different partiesB. The same partiesC. (a) or (b)D. (a) and (b)

Q. 71 On substitution of a new contract, the old contract is discharged is known asA. RescissionB. NovationC. Alteration of ContractD. Waiver

Q. 72 __________ means termination of contractA. Rescission

B. InjunctionC. Specific performanceD. Quantum meriut


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Q. 73 In case of __________ the term of contract may be altered by mutual consent, but theparties to the contract will remain the same.A. NovationB. RemissionC. RescissionD. Alteration

Q. 74 Specific Performance may be ordered by the Court when the A. damages are an adequate remedyB. defaulting party is not ready to pay damagesC. damages are not an adequate remedyD. the contract is voidable

Q. 75 A contract may be discharged by:A. PerformanceB. ImpossibilityC. Operation of the lawD. All of the above

Q. 76 X promises to drop prosecution which he has instituted against R for robbery and Rpromises to restore the value of things taken.A. X can enforce this promise because they have mutually agreed.B. No, X cant enforce because it would defeat the very provisions of lapse.C. No, it cannot be enforced because both parties cause to the original positionD. Yes, X can enforce the promise to over bake to the original position

Q. 77 Discharge by mutual agreement may involveA. NovationB. RescissionC. AlterationD. All of the above

Ans. D. All of the above


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Q. 78 A contract can be discharged by operation of law byA. Death of promisorB. By insolvency of promisorC. By Lunacy of promisorD. By death or insolvency of promisor

Q. 79 Where a certain amount is deposited as securing for performance of a contract, it iscalledA. Earnest moneyB. Cash moneyC. Hard moneyD. All of these

Q. 80 Assignment of contract may be byA. Operation lf lawB. The act of partiesC. (a) or (b)D. None of the above

Q. 81 ___________ signifies that the parties are not further bound under the contractA. Discharge of a contractB. Breach of a contractC. Waiver of a contractD. Recession of a contract

Q. 82 A contract to perform a promise could arise byA. Standard form of contracts by promiseB. Agreement and contractC. Promissory EstoppelD. All of the above

Q. 83 A contract can be discharged ___________

A. By mutual agreementB. By impossibility of performanceC. By breach of contractD. By all the above


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Q. 84 _________ signifies that the parties are not further bound under the contractA. Discharge of contractB. Breach of contractC. Waiver of contractD. Recession of a contract

Q. 85 Specific performance may be ordered by court if A. there is no standard to ascertain actual damageB. Pecuniary compensation is not adequate relief C. The act is done wholly on part of trustD. (a) or (b) or (c)

Q. 86 Discharge of contracts by implied consent does not includeA. NovationB. Actual performanceC. MergerD. Waiver


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Q. 7 Which of the following is correctA. Free consent is not important, if consideration is present, even if the consideration is

inadequateB. Anticipatory breach and anticipatory bail are actually the same thingC. The concept of damage allows one to make some gain of itD. All of the above are incorrect

Q. 8 In case of breach of contract of saleA. buyer can always sue for interest on the amount of price paid in advanceB. nobody can sue for interestC. seller can always sue for interest on the amount of price

D. seller can sue for interest on the amount of price or buyer for interest on the amountof price paid in advance, as the case may be

Q. 9 Under a anticipatory breach, the Promisee opts to put an end to the contract and treatthe anticipatory breach as actual breach, the amount of damages shall Price prevailing ason the date of refusal to perform -Contract Price.A. TrueB. Partly TrueC. FalseD. Partly False

Q. 10 X agrees to deliver 10 bags of Wheat to Y at a certain price on 2nd Oct. If X hasperformed part of the contract, say 80 bags, and then refuses or fails to deliver theremaining goods, it amounts toA. Anticipatory Breach during the course of performanceB. Actual Breach during the course the performanceC. Anticipatory Breach on the due date of performanceD. Actual Breach on the due date of performance

Q. 11 A sold a tin of disinfectant powder to K without warning knowing fully that if the tin was

not opened with care, it will likely to cause injury. K was injured while opening the tin.Which of the following statement(s) is/are correct?A. A is not liable to K under the Doctrine of caveat emptorB. A is liable for the damagesC. A has not duty to disclose the facts to KD. The buyer has the responsibility to enquire about all the things before purchasing the

goods.


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Q. 12 When prior to the due date of performance, the promisor absolutely refuses to performthe contract, it is known asA. Abandonment of contractB. Remission of contractC. Actual breach of contractD. Anticipatory breach of contract

Q. 13 Breach of contract may beA. Actual breach of contractB. Anticipatory breach of contractC. (a) or (b)

D. (a) not (b)

Q. 14 An anticipatory breach does not give any right to claimA. DamagesB. CompensationC. Either (a) or (b)D. Both (a) and (b)

Q. 15 Anticipatory breach comes underA. Law of Contractual relationshipB. Law of Mutual consentC. Law of Mutual agencyD. Law of limitation

Q. 16 In case of anticipatory breach the agreed party may treat the contractA. as operative and wait till the time for performance arrivesB. As discharged and bring an immediate auction for damagesC. Exercise option either (a) or (b)D. Only option (a) is available

Q. 17 Actual breach may beA. During the course of performanceB. On the date of performanceC. (a) and (b)D. (a) or (b)


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Q. 18 Only such damage are recoverable for the breach of contract asA. Arise naturally in the usual course of the thingsB. Arise remotely from the breach of contractC. Arise naturally as well as remotely form the breach of contractD. Arise only specially from the breach of contract

Q. 19 In breach of contract, compensation is claimed forA. the proximate and natural consequences of breachB. indirect consequence of the breachC. remote consequence of the breachD. All of the above

Q. 20 Penalty associated with contract isA. a payment of money stipulated as in agreementB. a genuine converted pre-estimate of damagesC. punishment for breach of contractD. damages awarded for breach of contract in special circumstances

Q. 21 A party entitled to rescind the contract, loses the remedy whenA. He has ratified the contractB. The third party has acquired right in good faithC. Contract is not separableD. All of these

Q. 22 A invited B to a Birthday party. B promised to attend and give A Rs. 500 as a present onhis birthday. B failed to attend. What are remedies for AA. A cannot recover any damages from BB. A can file suit for recovery of Rs. 500C. A can file a suit for breaking the promiseD. A cannot file a suit for breaking the promise

Q. 23 Which is true statement in voidable contract, the injured partyA. Is entitled to recover compensationB. Has a right to sue for damagesC. Has a right to rescind the contractD. All of these


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Q. 24 A' lends a Horse to 'B' for his own riding only 'B' and 'C', his wife, to ride the horse, 'C'rides with care, but the horse accidentally falls and is injured. Decide the liabilityA. A will not be liableB. A's wife will be liableC. A is liable to make compensationD. Nobody will be liable

Q. 25 A invites B to stay with him during winter vacation. B accepts the invitation and informsA accordingly when B reaches A's house he finds it locked and he has to stay in a hotel.Can B claim damages from AA. B can claim damages

B. B cannot claim any damagesC. B can file a suit against AD. None of these

Q. 26 Compensation shall not be given for any remote and indirect loss sustained by reason of breach it isA. TRUEB. Partly trueC. FALSED. Partly false

Q. 27 A' buys readymade shirt for his son, The shirt does not exactly fit his son. DecideA. A has no right to return or exchange the sameB. A has right to return the sameC. He will demand for damagesD. He may file a suit for exchange

Q. 28 In case ofthe measure of damages depends upon the shock to the sentiments of the Promisee.A. Special Damages

B. Nominal DamagesC. Vindictive DamagesD. General Damages


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Q. 29 X was shopping in a self-service super market. He picked up a bottle of mango squashfrom a shelf. While he was examining it, the bottle exploded in his hand and injured him.Can X claim damages for the injury?A. X cannot claim damagesB. X can claim damagesC. X has to pay price for the bottleD. None of the above

Q. 30 Ordinarily the following damages are not recoverable:A. Ordinary damagesB. Special damagesC. Nominal DamagesD. Exemplary damages

Q. 31 Generally, which of the following damages are not recoverable?A. Ordinary damagesB. Special damagesC. Remote DamagesD. Nominal Damages

Q. 32 When there is breach of contract, special damages are awarded only whenA. there are special circumstancesB. There is special lossC. there is a notice of the likely special lossD. in all cases

Q. 33 A bought a motor car from B He used it for 3 months and thereafter the car was detectedto hire been stolen A was compelled to return the car to the true owner:A. A could recover the price from B.B. A can claim damages from BC. A cannot recover anything from BD. B will replace the car

Q. 34 Damages awarded to compensate the injured party for the actual amount of losssuffered by him for breach of contract are known as A. Special DamagesB. General / Ordinary DamagesC. Nominal DamagesD. Vindictive Damages


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Q. 35 Special Damages can be claimed if the party breaking the contract is made known of thespecial circumstances at any time after the breach. It is A. TrueB. Partly TrueC. FalseD. Partly False

Q. 36 Which of the following statements is not correctA. Ordinary damages are recoverableB. Special damage are recoverable only if the parties knew about themC. Remote or indirect damages are not recoverableD. None of these statements is incorrect

Q. 37 Damages awarded with a view to punish the defendant, and not solely with theidea of awarding compensation isA. Nominal DamagesB. Special damagesC. Exemplary or Vindictive DamagesD. Ordinary Damages

Q. 38 Which of the following statement is incorrect?A. Indirect damages are not coverableB. Ordinary damages are recoverableC. Special damages are recoverable only if the parties know about themD. None of them

Q. 39 Special damages can be claimedA. As a matter of rightB. When special circumstances resulting in a special loss in case of breach of contract

are brought to notice of the other partyC. By way of punishment for wrong inflictedD. For loss of reputation

Q. 40 In a breach of contract, if the promisee did not suffer any real damage, he can claimA. Exemplary damagesB. General damagesC. Nominal damagesD. No damages


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Q. 41 Damages arising naturally and directly in the usual course of things are called:A. Ordinary damagesB. Special damagesC. Exemplary damagesD. Nominal Damages

Q. 42 Damages which are given when special circumstances are within the contemplation of parties at the times of contract are:A. vindictive damagesB. Ordinary damagesC. Special damagesD. None of the above

Q. 43 X promises Y to perform a music concert for 4 days continuously. A wilfully absents onthe 4th day Y rescinds the contract. In such case, for the loss sustained due to non-performance in 4th dayA. Y can claim compensationB. X can claim compensationC. X cannot claim compensationD. X cannot claim compensation

Q. 44 X had bought cloth for making bags for sale during hot season. Due to delay in transit Ywas unable to utilize it to his benefit during the tasking season. X sued to recover

damages for deterioration (fall in value of cloth arrived after tasking season). Suchdamages are in the nature of A. vindictive damagesB. Nominal DamagesC. General DamagesD. Special Damages

Q. 45 ____________ does not existA. Liability for special damagesB. Liability for exemplary damagesC. Liability for nominal damages

D. Liability for disciplinary damages

Q. 46 The damage awarded by way of punishment isA. Vindictive damagesB. Special damagesC. Nominal damagesD. Ordinary damages


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Q. 47 Vindictive or exemplary damages may not be awardedA. For breach of promise to divorceB. For breach of promise to marryC. Wrongful dishonor by a banker of his customer's chequeD. None of these

Q. 48 Where there is breach of contract, special damages are awarded only whenA. There are special circumstancesB. There is special lossC. There is notice of the likely special lossD. In all cases

Q. 49 Vindictive damages are awardedA. For wrongful dishonour of cheque by a bankerB. For a breach of promise to marryC. Neither (a) nor (b)D. Either (a) or (b)

Q. 50 The essence of liquidated damages isA. Damages payable in cashB. Genuine pre-estimate of probable loss that much ensure as a break of contractC. Loss suffered on non - performance of the contractD. Lump sum payment on an injury caused

Q. 51 Which of the statement is true?A. A penalty is the sum disproportionate to the damage likely to accrue as result of

breachB. No damages are payable for breach of a contractC. No damages can be recovered for physical lossD. None of these

Q. 52 A contract is discharged by rescission which means theA. Change in one or more terms of the contractB. Acceptance of lesser performanceC. Abandonment of rights by a party

D. Cancellation of the existing contract

Q. 53 X, a Shopkeeper leaves his goods at Y's place by mistake. Y treats the same as his ownand uses it. Y is bound to compensate X for it, under the principles of A. Quantum MeruitB. DamagesC. Specific PerformanceD. Rescission


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Q. 54 Quantum Meruit meansA. As much as gainedB. As much as earnedC. A contract for the saleD. The fact in itself

Q. 55 To file a suit under Quantum Meruit, the original contract must have been discharged, bythe breach of a party by non-performance. It isA. TrueB. Partly TrueC. False

D. Partly False

Q. 56 A claim on quantum meruit arisesA. when an agreement is discovered to be voidB. when a contract is divisibleC. (a) or (b)D. none of the above

Q. 57 When monetary compensation by way of damages may not constitute adequate remedyfor breach of contract, the Courts may order specific performance. This statement isA. TrueB. Partly TrueC. FalseD. Partly False

Q. 58 Remedies of breach of warranty includesA. Diminution or extinction of priceB. Refusal to pay the price of goodsC. Suit for loss exceeding price of goodsD. All of the above

Q. 59 When a contract is divisible, and one party has enjoyed the benefit of part performance,then, the other party may sue on quantum meruit, it isA. TrueB. Partly TrueC. FalseD. Partly False


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Q. 60 Sometimes, party is entitled to claim compensation in proportion to the work done byhim. It is possible by a suit forA. damagesB. injunctionC. quantum meritD. none of these

Q. 61 In case of breach of contract, which of the following remedy is available to the aggrievedpart?A. Suit for rescissionB. Suit for damages

C. Suit for specific performanceD. All of these

Q. 62 Remedies available for breach of contract are:A. Dissolution of the firmB. Charging extra fees from the party committing the breachC. Suit for Specific PerformanceD. None of the above

Q. 63 D P Tyre Co. Ltd. Sold tyres to a dealer S, who sold those to D, a sub-dealer on thecondition that those tyres would not be sold at a price lower than the list price fixed by DP Tyre Co. Ltd. and if the tyres were sold at a price lower than the list price, a penalty of $2 for every tyre sold below the list price would be recovered as damages. D sold fivetyres below the list price. D P Tyre Co. Ltd. filed a suit against S. Is D P Tyre Co. Ltd.entitled to maintain the suit?A. No; since D P Tyre Co. Ltd. was not a party to the contractB. No; since only 5 tyres are involved and the amount is insignificantC. Yes as D P Tyre Co. Ltd. is the producer of the tyresD. Yes as D P Tyre Co. Ltd. sold the tyres to S who in turn sold to D

Q. 64 Suit for specific performance and suit for injunctionA. Are remedies which provide the same resultB. Are different remedies and they provide different resultsC. Are not the correct way to act against the party committing the breachD. Are the only correct way to act against the party committing the breach


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Q. 65 A contracts to sing for 'B' at a concert for Rs. 5,000 which is paid in advance. 'A' is too illto sing. Decide bestA. A must refund the advance of Rs. 5000 to BB. A is not liable to refund the moneyC. B' should force 'A' to singD. A' is liable to refund only 50% of advance money to 'B'

Q. 66 If a creditor does not file a suit against the buyer for recovery of the price within threeyears the debit becomesA. time barred and hence irrecoverableB. time barred but recoverable

C. no time barredD. none of these

Q. 67 A third party to a contract _________ the parties to the contractA. Can sue conditionallyB. Cannot useC. Can sue unconditionallyD. None of the above

Q. 68 Which of the remedies not available to a defrauded partyA. Consideration of the contractB. Rescind the contractC. Insistence on specific performanceD. Suit for damages


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Performance of Contract:

1 C2 D3 A4 C5 D6 D

7 D8 B9 D

10 A11 D12 D13 D14 D15 B16 A

17 D18 D19 C20 A21 C22 D23 D24 B25 C26 C27 C28 A29 A

30 D31 A32 B33 A34 B35 B

36 D37 B38 A39 C40 D41 C42 C43 A44 D45 A

46 C47 A48 D49 A50 C51 A52 A53 C54 B55 A56 B57 A58 C

59 D60 D61 C62 D63 A64 C

65 A66 C67 B68 C69 D70 B71 B72 A73 D74 C

75 D76 B77 D78 D79 A80 C81 A82 D83 D84 A85 D86 B


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Breach of Contract:

1 B

2 C

3 A

4 B

5 A

6 A

7 D

8 D

9 A

10 B

11 B

12 D

13 C

14 B

15 A

16 C

17 D

18 A

19 A

20 A

21 D22 A

23 D

24 C

25 B

26 A

27 A

28 C

29 A

30 D

31 C

32 C

33 A

34 B

35 C

36 D

37 C

38 D

39 B

40 C

41 A

42 C

43 A

44 D

45 D46 A

47 A

48 C

49 D

50 B

51 A

52 D

53 A

54 B

55 A

56 C

57 A

58 D

59 A

60 C

61 D

62 C

63 A

64 B

65 A

66 A

67 A

68 B

Documents

Indian Contract Act-Chapter 1B - Practice Problems