CMA: Law- Ch 2 Unit 10 Breach of Contract Quiz 0 Created on December 26, 2023 By admin CMA Foundation Chapter 2 Unit 10 Breach of Contract and Remedies for Breach of Contract Quiz 1 1 / 14 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: Y is entitled to recover compensation for any loss suffered by him Y can opt to rescind the contract Both (a) & (b) Y has no remedy as the house is not built. 2 / 14 ‘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? B has no remedy against A B can file for compensation for loss of salary B can file for reimbursement of medical expenses incurred by him in the accident None of the above. 3 / 14 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. B is not entitled to claim from A for loss suffered B is entitled to claim loss of profit from the contract he would have earned B is entitled to claim damages & cost of suit Both (b) and (c). 4 / 14 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. B may rescind the contract B may recover for loss suffered Both (a ) & (b) None of the above. 5 / 14 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. A is entitled to claim Rs.10,000 from B B is entitled to claim Rs.20,000 from A, the extra profit earned by A. A is entitled to claim nothing from B as he ultimately did not suffer any loss None of the above. 6 / 14 Rescission of Contract means Relinquishment or abandonment of a right in a contract Cancellation of all or some of the terms contracts Change in certain terms of contract All the above 7 / 14 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? The contract is discharged and Manager can claim damages from Robert He cannot claim damages He must pay Robert for the entire contracted period None of the above 8 / 14 The remedies open to a person, aggrieved from breach of contract are: Suit for Damages Suit for Injunction Suit upon Quantum Meruit All of these 9 / 14 A person enjoying the benefits of a lawful non – gratuitous act of another: Is liable to compensate that another Has to perform the same non – gratuitous act in return Is not liable to compensate that another That another cannot claim any compensation 10 / 14 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 B is not entitled to claim any damages from A B is entitled to claim loss suffered in his business B is entitled to claim cost of the cow and the loss due to diseases inflicted on other cows, from A None of the above. 11 / 14 A, a retailer of milk supplied virus infected milk to C. On consuming the milk, C’s minor daughter got infected and died. C cannot recover anything from A C can recover only the price of the milk from A and nothing for damages C can recover from A, all direct damages suffered on account of consumption of milk None of the above. 12 / 14 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? L is not liable because the theft occurred without any negligence on his part L is liable because the theft occurred for his negligence L is liable because he did not make reasonable efforts to recover them None of the above 13 / 14 Damages which were in the contemplation of both the parties at the time of contracts are called. Demurrage Liquidated damages Special damages Vindictive damages. 14 / 14 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: Penalty Liquidated Damages Exemplary Damages Special Damages Your score isThe average score is 0% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 0 Created on December 26, 2023 By admin CMA Foundation Chapter 2 Unit 10 Breach of Contract and Remedies for Breach of Contract Quiz 2 1 / 14 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 Y has no remedy Suit for injunction to prevent X to work for Z Suit upon Quantum meruit X may work for Z 2 / 14 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. B is not entitled to any damages, occurred due to shortage of materials b. B is entitled to Rs.10,000 from A, for actual loss suffered by h B is entitled to Rs.10,000 from A, for actual loss suffered by him due to delay by A B is entitled to Rs.3,000 from A, for delay, as per contract terms None of the above. 3 / 14 Specific Performance may be ordered by the court when: Damages are an adequate remedy Damages are not an adequate remedy Defaulting party is not ready to pay damages The contract is of a revocable naturez 4 / 14 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. B can recover principal amount only B can recover simple interest @ 12% p.a. only A can apply to court for relief from penalty None of the above. 5 / 14 In case of anticipatory breach of contract, the aggrieved party (i.e., party not a fault). May treat the contact as Discharged and bring an immediate action for damages. Operative and wait till the time for performance arrives Exercise either option (a) or (b). Only option (a) is available. 6 / 14 The doctrine of anticipatory breach has been incorporated in Section 37 Section 39 Section 41 Section 43 7 / 14 A contracted to supply 100 bags of rice to B on 30.12.06. Before the due date of performance (i.e., 30th December,2006), A informed B that he will not supply any rice to B as contracted. In this case, There is anticipatory breach of contract. B may immediately treat the contract cancelled Both of these. None of these. 8 / 14 Anticipatory breach is the repudiation of the contract On due date of performance. During the performance. Before the due date of performance. Both (a) and (b). 9 / 14 A breach of contract Discharges the other party form performing his obligations Does not discharge the other party form performance. Gives one more chance to defaulting party to perform the contract. Is not recongnised under the India Law. 10 / 14 When prior to the due date of performance, the promisor absolutely refuses to perform the contract, it is known as Actual breach of contract Cancellation of contract. Anticipatory breach of contract Abandonment of contract. 11 / 14 When on the due date of performance or during the performance, a party fails to perform his obligation, it is known as Actual breach of contract Anticipatory breach of contract Abandonment of contract Cancellation of contract. 12 / 14 The breach of contract may be Actual breach only Anticipatory breach only Either (a) or (b) None of these 13 / 14 The breach of contact occurs when a party Fails to perform his obligations on due date. Dedares not to perform his obligation on due date. Both (a) and (b). None of these. 14 / 14 The breach of contract means the Performance of contract by both the parses. Failure of party to perform his obligations. Payment of compensation due to non – performance. Postponement of the performance of contract. Your score isThe average score is 0% LinkedIn Facebook Twitter VKontakte 0% Restart quiz
