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Performance, discharge, breach and remedies of contract - class-XII

Description: performance, discharge, breach and remedies of contract
Number of Questions: 76
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Tags: performance of contract business studies commerce business law and contract act
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Which among the following is/are the type(s) of lien?

  1. Particular lien

  2. General Lien

  3. Both (a) and (b)

  4. Neither(a) nor (b)


Correct Option: C

Inadequacy of consideration may be taken into account by the Court to determine whether the consent or promisor was freely given.

  1. True

  2. Partly True

  3. False

  4. None of the above


Correct Option: B

L says to J "I shall sell my house; will you buy?" A says, " Yes, I shall buy". The agreement is void due to ________.

  1. uncertainty of meaning

  2. uncertainty of price

  3. uncertainty of existence of subject matter

  4. uncertainty of quality of subject matter


Correct Option: B

When there is a Counter Offer, the original offer terminates _______.

  1. True

  2. False


Correct Option: A

On the face of a ticket for a journey, the words, "For conditions see back" are printed in small print. The passenger ______.

  1. is bound by the conditions whether he takes care to read them or not

  2. is not bound by the conditions

  3. may not take note of the conditions

  4. may claim that he has not seen the conditions


Correct Option: A

A agrees to pay B Rs. 10 Lakhs and B promises to bring for A, stars from heaven. The agreement is _______.

  1. void

  2. valid

  3. voidable

  4. illegal


Correct Option: A

In case of Illegal Agreements, Collateral transactions are ______.

  1. also void

  2. not affected

  3. valid

  4. enforceable


Correct Option: A

A teacher enters in to contract with a student to teach for the exams, but he dies before teaching. Now __________.

  1. legal representatives are bound to perform

  2. becomes enforceable

  3. voidable

  4. contract comes to an end


Correct Option: D

Shyam and Sunil are joint promisors. Promisee discharged one of the joint promisor. Then ___________.

  1. both of them discharged from liability

  2. promise comes to an end

  3. Sunil is not discharged from liability towards Shyam

  4. Sunil is discharged from liability


Correct Option: C

In case of death of a Joint Promisor(s), the Promisee can ________.

  1. enforce the contract against the survivor(s) of the said Joint Promisor(s)

  2. not enforce the contract against the survivor(s) of the said Joint Promisor(s)

  3. not enforce the contract at all

  4. both (a) & (b)


Correct Option: A

The right of Joint Promisees to demand performance is ________.

  1. joint

  2. several

  3. joint or several

  4. joint and several


Correct Option: A

Where performance involves the exercise of personal skills by the Promisor, the promise should be performed by_________.

  1. promisor himself

  2. representative of the Promisor competent to perform

  3. a third person

  4. any of the above


Correct Option: A

Where performance of contract is remaining in part of both parties of contract, then such contract is known as __________.

  1. executed

  2. executory

  3. void

  4. voidable


Correct Option: B

In case of death of the Promisor before performance, the Representatives of the Promisor are not bound when _________.

  1. it involves the personal skill of the Promisor

  2. there is no such provision in the correct

  3. either (a) or (b)

  4. neither (a) nor (b)


Correct Option: A

A agrees to pay B a sum of money if a certain ship does not return. The ship is sunk. The contract can be enforced _________.

  1. when the ship sinks

  2. before the ship sinks

  3. when the ship returns

  4. only in International Court of ustice


Correct Option: A

In case of default by Joint Promisors, the Promisee can sue any one of them for the entire promise.

  1. True

  2. Partly true

  3. False

  4. None of the above


Correct Option: A

A is a dancer. She contracts with B to dance in a programme. But before due date of programme,  A dies. This contract is performed  _________.

  1. by A's legal heir

  2. by A's close joined

  3. by B himself

  4. none of the above


Correct Option: D

In case of reciprocal promises, which is not applicable?

  1. They can perform simultaneously

  2. They cannot perform simultaneously

  3. They can be fixed by the parties to the Contract

  4. As depending upon the nature of the Contract


Correct Option: B

If no time is specified for performance of a Contract, it must be performed with in a reasonable time. " Reasonable time" means __________.

  1. which seems reasonable to the promisor

  2. which seems reasonable to the promise

  3. which is determined as reasonable by a third party

  4. which is reasonable under the facts and circumstances of the case


Correct Option: D

Whether time is  the essence of the contract depends on _________.

  1. the intention of the parties

  2. the facts and circumstances of each separate case

  3. the provisions of law

  4. all of the above


Correct Option: D

If time is the essence of the contract and the Promisor fails to perform the contract by the specified time, the contract _________.

  1. becomes void

  2. remains valid

  3. becomes voidable at the instance of the Promisee

  4. becomes unenforceable


Correct Option: C

A Contract entered between Promisor and Promisee becomes impossible to perform due to destruction of subject matter. In this case __________.

  1. promisee is entitled for compensation

  2. contract continues to be valid

  3. contract is void

  4. none of the above


Correct Option: C

Change in some or all terms of the Contract is ______.

  1. novation

  2. alteration

  3. merger

  4. rescission


Correct Option: B

Novation of a contract under Indian Contract Act, means _______.

  1. cancellation of contract

  2. alteration of the contract

  3. the renewal of original contract

  4. substitution of a new contract in place of original contract


Correct Option: D

The original contract need not  be performed if there is _________.

  1. rescission of contract

  2. novation of contract

  3. alteration of contract

  4. all of the above


Correct Option: D

If a new contract is substituted in place of an existing contract it is called _______.

  1. alteration

  2. rescission

  3. novation

  4. waiver


Correct Option: C

N, a film star, agreed to act exclusively for K, a film producer, for one year. During the year, she contracted to act for some other producer. In this case, K ________.

  1. cannot sue N at all

  2. cannot restrain N by an injunction

  3. can restrain N by an injunction

  4. has to produce the film with other actors only


Correct Option: C

Specific performance may be ordered by the Court when________.

  1. the contract is voidable

  2. damages are an adequate remedy

  3. damages are not an adequate remedy

  4. defaulting party is not ready to pay damages


Correct Option: C

Suit for specific performance of contract can be instituted by the promisee, where ___________. 

  1. the promisor has breached the contract

  2. the promisor has suffered abnormal loss

  3. damages are not an adequate remedy to promisee

  4. parties agree to go to court for remedy


Correct Option: C

A agrees to sell B "a hundred tons of oil".

  1. The agreement is valid.

  2. The agreement is void.

  3. The agreement is voidable.

  4. The agreement is illegal.


Correct Option: B

An agreement for rendering services entered into by a father on behalf of his minor daughter is _______.

  1. Void

  2. Voidable

  3. Valid

  4. Quasi


Correct Option: A

Demand Documentary Bill Limits _________.

  1. should be taken as a part of the permissible bank finance

  2. should be taken into account also for the purposes of receivable norms

  3. Both (a) and (b)

  4. None of the above


Correct Option: C

Contract contingent upon the non- happening of an uncertain future event can be enforced __________.

  1. when the happening of event becomes impossible

  2. when the event has happened

  3. at the time of making the contact

  4. none of the above


Correct Option: A

Status quo obligations arise:

  1. In case of legal obligations

  2. When the contract is made

  3. Outside scope of the Indian Contract Act, 1872

  4. Within the scope of the Indian Contract Act, 1872


Correct Option: C

An agent who in receipt of extra commission gives guarantees to his principle that the purchaser of the goods on credit will pay for the goods, is called _____.

  1. Sub-agent

  2. Mercantile agent

  3. Brokers

  4. Del credere agent


Correct Option: D

When certain circumstances compel a person to act as an agent for another without his express authority, this type of agency is known as ________.

  1. agency by estoppel

  2. agency by implied authority

  3. agency by necessity

  4. agency by holding-out


Correct Option: C

Which of the following is an example of immaterial alteration in a negotiable instrument?

  1. Changing the date

  2. Changing the sum payable

  3. Correcting the spelling

  4. Changing the place of payment


Correct Option: C

_______ does not effect the free consent of the parties.

  1. Fraud

  2. Coercion

  3. Incompetency of parties

  4. Undue influence


Correct Option: C

M offers to sell his house to B for Rs. 36 Lakhs and states in his letter that the offer would be considered as accepted if acceptance is not communicated within a certain time. Here, the letter of M would _________.

  1. amount to a proposal

  2. not amount to a proposal

  3. amount to a promise

  4. amount to acceptance


Correct Option: B

G books a ticket with Indian Airlines from Delhi to Chennai on 16th June, date of travel being 16th July. Indian Airlines has to perform its part of contract on 16th July. This is an example of ________.

  1. Void Contract

  2. Illegal Contract

  3. Unilateral Contract

  4. Bilateral Contract


Correct Option: C

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


Correct Option: A

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


Correct Option: C

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


Correct Option: D

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


Correct Option: B

A promise to pay, wholly, or in part, a debt which is barred by law of limitation can be enforced if ______.

  1. it is in wrting

  2. is signed by the Debtor or his authorized agent

  3. either (a) or (b)

  4. both (a) and (b)


Correct Option: A

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


Correct Option: B

A Mortgage was executed in favor of a Minor. Can the Minor get a decree for the enforcement of the Mortgage?

  1. True

  2. False


Correct Option: A

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


Correct Option: A

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


Correct Option: B

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.


Correct Option: B

Which of the following relationships do not raise a presumption of dominance of will?

  1. Trustee and Beneficiary

  2. Doctor and Patient

  3. Husband and Wife

  4. Father and Son


Correct Option: C

Erroneous opinion as to value of subject matter is not a Mistake of Fact.

  1. True

  2. False


Correct Option: A

Mistake as to Foreign Law is treated in the same manner as _____.

  1. Mistake of Indian Law

  2. Mistake of Fact

  3. Misrepresentation

  4. Fraud


Correct Option: B

Peter buys a mosquito killer machine assuming that it is worth Rupees 50000. But actually costs Rupees 5000. The remedy available to Perer ______

  1. He can avoid contract on the ground of mistake

  2. He cannot avoid contract on the ground of mistake

  3. He can claim Rupees 5000

  4. He can claim Rupees 50000


Correct Option: B

G paid Rs. 1,00,000 to H to influence the head of the Government Organisation in order to provide him some employment. On his failure to provide the job, G sued H for recovery of the amount. Which of the following is correct?

  1. G can recover the amount of Rs. 10,000

  2. G can recover the amount of Rs. 10,000 with interest.

  3. G can file a suit

  4. G cannot recover the amount


Correct Option: D

When the performance of a contract becomes impossible, the purpose which the parties had in mind is frustrated. If the purpose becomes impossible because of supervening event, the Promisor is excused from the performance of the contract. This is known as ________.

  1. doctrine of frustration

  2. initial impossibility

  3. lapse of time

  4. operation of law


Correct Option: A

A and B contract that B shall build a house for A for Rs. 9 Lakhs. B is ready and willing to construct the house, but A prevents him from doing so. In this case _________.

  1. B can opt to rescind the contract

  2. B is entitled to recover compensation for any loss suffered by him.

  3. either (a) or (b)

  4. both (a) and (b)


Correct Option: D

If the time is the essence of Contract and it is not performed with in specified time, then __________.

  1. the Contract cannot be performed later on

  2. the promisor can compel the promisee to accept the performance later on

  3. the Contract becomes voidable at the option of promise

  4. the Contract becomes voidable at the option of promisor


Correct Option: C

If any one of the joint promisors makes a default in making contribution. How will it be settle down by other promisors?

  1. Representative of promisor will be liable to contribution

  2. Contribution will be dismissed automatically

  3. Representative of a promisor will be liable along with other joint promisors

  4. The remaining joint promisors will be liable to contribute


Correct Option: D

X, Y and Z are partners of software business jointly promise to pay Rs. 30,000 to A. Over a period of time Y became insolvent, but his assets are sufficient to pay 1/4th of his debts. Z is compelled to pay the whole.

  1. Z has to bear the entire amount of liability

  2. X has to bear the entire loss arising out of Y's insolvency

  3. X and Z have to bear equally, the loss arising out of Y's insolvency

  4. Z can recover back the entire amount from A.


Correct Option: C

Ram, Lal and Shyam jointly promise to pay Mohan Rs. 30,000. Shyam paid the whole amount to Mohan. If Ram and Lal are solvent, Sham can recover _________.

  1. Rs. 50,000 from Lal

  2. Rs. 30,000 from Ram

  3. Rs. 20,000 from Lal

  4. Rs. 10,000 each from Ram and Lal


Correct Option: D

Ashok owes Lakshmi Rs. 25,000/-. Lakshmi said that she will accept Rs. 15,000/- towards final statement. It is ___________ contract.

  1. voidable

  2. valid

  3. ollegal

  4. unenforceable


Correct Option: B

A business can be transacted at a board meeting even if it is not mentioned in the agenda

  1. True

  2. False

  3. Partly True

  4. Partly False


Correct Option: B

A contract to do an act which, after the contract is made, becomes impossible

  1. becomes void when the act becomes impossible;

  2. becomes voidable when the act becomes impossible;

  3. becomes illegal when the act becomes impossible;

  4. any of the above.


Correct Option: A

The directors appointed in a company on an application made under Sec. 241 are appointed by.

  1. Auditor

  2. Tribunal

  3. General Government

  4. None of the above


Correct Option: B

The disqualification for being appointed as a director are contained in which section of Companies Act, 2013?

  1. Sec. 164

  2. Sec. 166

  3. Sec. 170

  4. None of the above


Correct Option: A

Consideration must move at the desire of the

  1. Promisor

  2. Promisee

  3. Any person

  4. Third party


Correct Option: A

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

  1. may make a contract when he is of sound mind;

  2. cannot make any contract;

  3. can make a contract by his legal representative;

  4. can make a contract by registered document.


Correct Option: A

Every promise and every set of promises, forming the consideration for each other, is called

  1. An offer

  2. An agreement

  3. A promise

  4. A contract


Correct Option: B

Companies having paid up capital of not less than 5 crore must have secretary.

  1. Whole time

  2. Part time

  3. Not required

  4. None of these


Correct Option: A

The essential features of a bailment are

  1. There is a contract

  2. There is change in possession of goods

  3. The ownership is not transferred

  4. All of the above


Correct Option: D

A person who finds goods belonging to another and takes them into his custody, is subject to the same responsibility as a:

  1. Thief

  2. Trespasser

  3. Bailee

  4. True Owner


Correct Option: C

A person employed by and acting under the control of the original agent is

  1. Sub agent

  2. Substituted agent

  3. Special agent

  4. Co-agent


Correct Option: A

M, by a gift deed transferred certain property to her daughter, with a direction that daughter should pay an annuity to M's brother, as had been done by M. On the same day, the daughter executed a deed in writing in favour of M's brother, agreeing to pay annuity. Afterwards, she declined to fulfil her promise saying that no consideration had moved from her uncle. Which of the following statements is correct?

  1. The daughter is bound to pay annuity

  2. There is no valid consideration in this contract

  3. M's brother is a third party to the contract and cannot sue

  4. The daughter is not bound to pay annuity


Correct Option: A

The liability of a surety:

  1. May be less than that of the debtor

  2. May be more than that of the debtor

  3. Always remains the same as that of a debtor

  4. Depends upon the judgment of court


Correct Option: C

Contract of ubberimac fidei is.

  1. Buyer beware

  2. Utmost good faith

  3. Subrogation

  4. Insurance guarantee


Correct Option: B
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