CA Foundation : Law - Breach of Contract Quiz

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Breach of Contract Quiz

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The remedies open to a person, aggrieved from breach of contract are:

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Robert, a popular singer, enters into a contract with the manager of a theatre, to sing at the theatre one evening a week for the next four months at the rate of Rs.1,000 for each performance. From the fourth evening onwards, Robert absents himself from the theatre. In this context, which of the following remedies is/are available to the manager of the theatre against Robert?

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Rescission of Contract means

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X and Y contract that Y shall build a house for X for Rs.20 Lacs. Y is ready and willing to construct the house but X prevents him from doing so. In such case:

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‘M’ employs ‘N’ on a monthly salary of Rs.7,000 for one year. After six months, he removes N from the job without his fault. N goes in search of job and meets with an accident. He spends Rs.25,000 on medicines. Now, he claims damages from M for breach of contract and also for medical expenses of Rs.25,000. Will he succeed on both the counts?

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A agreed to lend B Rs.10 lakhs which B required to execute a Government contract. A failed to give the loan to B, even knowing the purpose of the loan and the consequences of non performance. Consequently B was unable to perform the Government contract. The Government sued B to Judgment.

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A and B contract that B shall execute certain work for A for Rs.1,000. B is ready and willing to execute the work but A prevents him from doing so.

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A sold 100 shares to B @ Rs.1,000 to be delivered on 1st March. On that date the price of shares fell to 900 and B refused to take the shares and pay for it. In April, A sold the shares at 1,200.

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Damages which were in the contemplation of both the parties at the time of contracts are called.

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Some cattle belonging to ‘K’ were with ‘L’. Without any negligence on the part of L, the cattle were stolen. L did not inform the owner or the police or make any efforts to recover them, because he thought it would be useless to do so. In the above context, which of the following statements is/are true?

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A, a retailer of milk supplied virus infected milk to C. On consuming the milk, C’s minor daughter got infected and died.

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A sold a cow to B with a warranty that it was free from disease, but in fact was suffering from some mouth disease at the time of sale. As a result, the cow purchased died and also infected other cows of B

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A person enjoying the benefits of a lawful non – gratuitous act of another:

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A agreed to erect a plant for B by 31st January. The contract stipulated Rs.500 per month damages from A for delay in his work. A was late by six months for shortage of materials. B sued A for Rs.10,000, towards loss caused to him as a result of the delay.

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X, a T.V artist promised to work exclusively for Y for one year. Later on, X refused to work for Y and started working for Z. In this case Y can bring

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Specific Performance may be ordered by the court when:

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A took loan from B on interest @ 12% p.a. with a stipulation for payment of compound interest @ 20% p.a. on failure to repay on due date. A failed to pay within due date.

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P contracts with Q to deliver possession of a house under construction within a period of six months; failing which he would pay the monthly rental of Q. The monthly rental payable by P for Q is in the nature of:

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