CMA Chapter 2 Discharge of a Contract Quiz 0 Created on December 26, 2023 By admin CMA Foundation Chapter 2 Unit 9 Discharge of Contracts Quiz 1 1 / 15 A contract can be discharged by: Mutual agreement and performance Lapse of time and operation of law Breach of contract All of these 2 / 15 If a new contract is substituted in place of an existing contract it is called Alteration Rescission Novation Waiver 3 / 15 The original contract need not be performed if there is Alteration of contract Rescission of contract Novation All of these 4 / 15 A lets out a theatre to B for a series of drama for certain days. The theatre was completely destroyed by fire before the scheduled dates. In the case: The contract is discharged by impossibility of performance The contract is void ab initio The contract is voidable at the option of B The contract remains valid and must be performed 5 / 15 When an inferior right accruing to a party in a contract merges into a superior right accruing to the same party, then: The contract conferring the superior right is discharged The contract conferring the inferior right is discharged None of the contracts are discharged Both contracts are discharged 6 / 15 A borrows ₹ 10,000 from B with interest at 12 per cent per annum, with a stipulation that in case of default A shall be liable to pay interest at 75 per cent from the date of default. A commits the default. B is entitled to recover from A _________. 12% interest 75% interest 8796 interest Such compensation as the Court considers reasonable 7 / 15 N chartered M’s ship and agreed to load it with a cargo in Orissa within 50 days. N was unable to supply the cargo but M continued to demand it. Meanwhile war broke out, rendering the performance impossible. In such a case: M can sue for damages Contract must be performed The Contract is discharged and M cannot sue for damage None of the above 8 / 15 A promised to sell his house to B after 1 year. But within three months, A sold the house to C. The contract is not performed due to : Novation Rescission Actual Breach of Contract Anticipatory Breach of Contract. 9 / 15 E contracts to marry F. Before the agreed date of marriage, E marries K. F is entitled to sue E for: Anticipatory Breach in an express manner Actual Breach in an express manner Anticipatory Breach in an implied manner Actual Breach in an implied manner 10 / 15 A agreed to deliver a certain amount of goods to B within a stipulated time, but failed due to the strike of his company workers and was delayed beyond the date agreed. B can claim damages for non performance A can plead for supervening impossibility The contract stands cancelled due to strike None of the above. 11 / 15 A contracts with B to build a house for Rs.10,00,000, within 12 months. Owing to unexpected shortage of skilled labour and Cement, the contract took 24 months to complete and cost escalated to about Rs.12,50,000. A contended that the contract had been frustrated and that he was entitled for the cost actually incurred. A is entitled to receive Rs.10,00,000 from B as per contract A is entitled to receive Rs.12,50,000 from B as per actual cost A is not entitled to get his dues from B as he could not perform within contracted time None of the above. 12 / 15 A contracted to supply B some goods of a specified mill. The Mills did not supply to A so A did not supply to B. B filed suit for non delivery of goods. A pleaded impossibility on ground of non-supply by mills. A can rescind the contract B is entitled to compensation from A, for non performance B is not entitled to compensation from A None of the above. 13 / 15 X agreed on 1st April, to let a bus to Y for a picnic tour on 30th April. X took an advance of Rs.1,000. But on 15th April, the police requisitioned the bus for Election Duty. On 18th April, X rescinded the contract. Y can claim damages from X Y can claim refund of Rs.1,000 advance paid Both (a) & (b) None of the above 14 / 15 P hired a godown from D for a period of 12 months @Rs.1,000 per month and paid the full amount (Rs.12,000) of rent to D in advance. After four months, the godown was destroyed by fire. P can claim refund of Rs.12,000 from D P cannot claim for any refund from D P can claim refund of Rs.8,000 from D None of the above. 15 / 15 P, a resident of USA agrees to export leather bags to Q, a resident of Afghanistan. Meanwhile before the order can be executed, war broke out between USA and Afghanistan. P must execute the contract The agreement becomes voidable at the instance of Q. The agreement becomes void due to Supervening impossibility All of these. 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 9 Discharge of Contracts Quiz 2 1 / 16 An injunction order is granted by the Court in case: specific performance of the contract is possible. specific performance of the contract is impossible. the Court wants to restrain a party from committing a breach of contract. the contract is against public interest. 2 / 16 Specific performance is ordered where: the contract is of personal nature, monetary compensation is an adequate remedy, monetary compensation is not an adequate remedy, performance is illegal 3 / 16 Object of granting damages is: to penalize the party to monetarily compensate the party, to set an example before the society, none of the above. 4 / 16 Impossibility of performance occurs due to: Strike Lock-out Partial failure of object Destruction of subject-matter. 5 / 16 Anticipatory breach of contract takes place when there is _________. Breach of contract when performance is actually due Breach of contract in the course of perfor-mance of the contract Breach of contract prior to the date of performance None of the above 6 / 16 If loss or damage arose naturally and directly in the usual course of things from a breach of contract, the aggrieved party would be eligible for _________. Special damages Nominal damages Ordinary damages Exemplary damages 7 / 16 In the case of wrongful dishonour of a cheque by a banker the damages awarded will be _________. Nominal Special Exemplary Ordinary 8 / 16 The word ‘impossible’ in section 56 connotes _________. Physical impossibility Literal impossibility Commercial impossibility Impracticability of performance 9 / 16 Where the parties to a contract have agreed that a certain sum of money would be paid in case of breach of contract, the Court will ensure that _________. The exact amount mentioned in the contract is paid to the injured party An amount not exceeding the stipulated amount is awarded Reasonable compensation not exceeding the amount stipulated is awarded A sum exceeding the amount stipulated is awarded 10 / 16 Ordinary damages will be awarded in cases where _________. The loss naturally flows from the breach of contract The loss is remotely connected with the breach of contract The loss is unusual and arises out of special circumstances peculiar to the contract None of these 11 / 16 A borrows ₹ 10,000 from B with interest at 12 per cent per annum, with a stipulation that in case of default A shall be liable to pay interest at 75 per cent from the date of default. A commits the default. B is entitled to recover from A _________. 12% interest 75% interest 8796 interest Such compensation as the Court considers reasonable 12 / 16 A party to a contract committing breach, is liable to pay compensation in respect of _________. The direct consequences flowing from the breach Loss or damage caused indirectly Losses caused whether directly or indirectly Losses caused remotely 13 / 16 Where the parties to a contract agree to substitute a new contract for it, it is known as _________. Injunction Novation Rescission Alteration 14 / 16 The remedies open to a person, suffering from breach of contract are _________. Damages Injunction Quantum Meruit All of the above 15 / 16 Hadley v. Baxendale case is a leading case on _________. Breach of implied term Anticipatory breach Law of damages None of these 16 / 16 In the Indian Contract Act, Novation means _________. Substitution of an existing contract with a new one No frustration of executed contracts Frustration due to change of circumstances Impossibility does not mean mere commercial difficulty 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 9 Discharge of Contracts T/F 1 / 14 Nominal damages are never granted by way of compensation for loss. True False 2 / 14 Penalty can be recovered under the Indian Contract Act. True False 3 / 14 A person who himself is guilty of breach of contract cannot get compensation under the doctrine of quantum meruit. True False 4 / 14 A claim for Quantum Meruit cannot succeed when an indivisible contract for a lump sum is partly performed. True False 5 / 14 Cancellation of a contract by mutual consent of the parties is called waiver. True False 6 / 14 Commercial impossibility does not make the contract void. True False 7 / 14 For the default in the repayment of loan on the agreed date, interest can be increased retrospectively from the date of lending. True False 8 / 14 Commercial impossibility is not a valid excuse for the non performance of a contract. True False 9 / 14 The claim for quantum meruit can be made only when the original contract has been discharged. True False 10 / 14 The measure of ordinary damages is the difference between the contract price and the market price. True False 11 / 14 The aggrieved party is not responsible to mitigate the loss caused by the breach. True False 12 / 14 Special damages are recoverable only when the parties knew about them. True False 13 / 14 The aggrieved party is always entitled to compensation no matter whether he has suffered some loss or not. True False 14 / 14 The order for injunction and specific performances are simultaneously issued by the court. True False Your score isThe average score is 0% LinkedIn Facebook Twitter VKontakte 0% Restart quiz
