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Discharge of contract - class-XI

Description: discharge of contract
Number of Questions: 23
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Tags: commerce business studies discharge and breach of a contract business law and contract act
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Which of these are not opposed to Public Policy?

  1. Champerty & Maintenance

  2. Agreements in restraint of parental rights

  3. Agreements in restraint of marriage

  4. Agreements to refer disputes to arbitration


Correct Option: D

A contractors to sell his car to B for Rs. 4,00,000 and B agrees to pay on delivery. Once the car is delivered to B and B pays Rs. 4,00,000, contract comes to an end. This is called __________

  1. waiver of a Contract

  2. breach of a Contract

  3. rescission of a Contract

  4. discharge of a Contract


Correct Option: D

When an inferior right accruing to a party in a contract merges into a superior right accruing to the same party, then________.

  1. the contract conferring the inferior right is discharged

  2. the contract conferring the superior right is discharged

  3. both contracts are discharged

  4. both contracts are not discharged


Correct Option: A

A holds a house on lease. After that he buys the house and became owner. the contract is discharged by __________ .

  1. rescission

  2. merger

  3. waiver

  4. remission


Correct Option: B

A contract can be discharged by __________.

  1. frustration of the contract

  2. performance of the contract

  3. both (a) & (b)

  4. neither (a) nor (b)


Correct Option: C

_________ signifies that the parties are not further bound under the contract.

  1. Waiver of a Contract

  2. Breach of a Contract

  3. Rescission of a Contract

  4. Discharge of a Contract


Correct Option: D

When both the parties have decided to cancel the contract, it is known as _______ .

  1. remission

  2. novation

  3. rescission

  4. none of the above


Correct Option: C

X & Y entered into an agreement to buy an imported car for Rs. 30,000. Later on they cancelled the agreement. This is known as ______ .

  1. recission

  2. merger

  3. waiver

  4. remission


Correct Option: A

Rescission of a Voidable Contract may also be revoked and the parties can get back on the original contract.

  1. True

  2. Partly true

  3. False

  4. None of the above


Correct Option: A

Damages which an aggrieved party claims, besides general damages for any loss he has suffered owing to special circumstances known to both the parties at the time of signing the contract are called ________.

  1. vindictive damages

  2. nominal damages

  3. general damages

  4. special damages


Correct Option: D

To claim reimbursement of money paid on behalf of another person, which of the following is not required? 

  1. There should be some legal or other coercive process compelling the payment.

  2. Original liability should be of another person.

  3. Payment must be made to a third party to whom the another party was liable.

  4. The payment must be voluntary


Correct Option: D

In case of necessaries supplied to a person incompetent to contract, which of the following is true?

  1. Only the property (movable and immovable) of the incapable person shall be liable.

  2. The incapable person cannot be held liable personally.

  3. Where the incapable person does not own any property, nothing shall be payable.

  4. All of the above


Correct Option: D

Surety may be discharged from liability:

X. By notice of revocation of guarantee
Y. On the failure of payment by the main creditor
Z. If the creditor does any act which is against the rights of the surety
Correct option is ____.

  1. X and Y

  2. Y and Z

  3. X and Z

  4. X, Y and Z.


Correct Option: C

A person incurred expenses of RS. 5,000 for the necessaries supplied to a Minor. Which of the following is true?

  1. Cannot claim the expenses.

  2. Minor can be held liable for the necessaries supplied to him.

  3. It is not a valid claim.

  4. None of the above


Correct Option: B

X is a minor who had broken his left arm then doctor had treated him, how can the doctor regain his cost of treatment?

  1. Minor can be held liable for the necessities supplied to him.

  2. The Doctor cannot recover his fees because the agreement with minor is void-ab-initio.

  3. Contract has to be entered into by the minor's parent to make it valid and to recover fee.

  4. none of the above


Correct Option: A

A minor got injured in his left leg in Football match. He engaged a doctor for treatment of leg. The doctor's claim for his services under the Indian Contract Act 1872 is _______.

  1. Valid

  2. Invalid

  3. Void

  4. Illegal


Correct Option: A

F, a money lender, advances RS. 10,000 to J, an agriculturist and by undue influence, induces J to sign a bond for Rs. 20,000 with interest at 6% p.m. The court may set the Bond aside, ordering J to repay only Rs. 10,000 at such nominal interest as it may deem fit.

  1. True

  2. False


Correct Option: A

Claim for necessaries of life supplied to a minor can be enforced against _________.

  1. the Minor's property or estate

  2. any relative

  3. the minor personally on attaining majority

  4. the guardian, if any, of the minor


Correct Option: A

An illiterate old woman made a gift deed of practically her entire property to her nephew who managed her affairs. The gift can be set aside on the grounds of -

  1. Mistake

  2. Coercion

  3. Fraud

  4. Undue Influence


Correct Option: D
Explanation:

As the nephew may have influenced her to make a contract under such circumstances the contract is invalid.

X bought shares in a Company on the faith of a prospectus that contained an untrue statement as to the Directorship of J. X had never heard of J and hence such statement was immaterial from his view point. X claimed damages for fraud. His claim will be dismissed on the ground that ______.

  1. there was no fraud at all

  2. fraud in Company Prospectus is not covered by Indian Contract Act

  3. the untrue statement had not induced him to buy the shares

  4. all of the above


Correct Option: C

A, a singer enters into a contract with B, the manager of a theatre to sing at his theatre two nights in every week during the next two months and B engages to pay her Rs. 1,00,000 for each night's performance. On the sixth night, A willfully absents himself from the theatre. If A turns up after a week and B without saying anything allowed A to perform that night __________.

  1. B is at liberty to put an end to the contract

  2. B cannot put an end to the contract but can claim damages from A

  3. The contract is left at the liberty of A

  4. The contract is unlawful


Correct Option: B

A contract may be discharged by

  1. Lapse of time

  2. Operation of the law

  3. Mutual agreement

  4. Any of above


Correct Option: D

A contract is discharged by operation of law:

  1. by death of the promisor;

  2. by insolvency of promisor;

  3. by death or insolvency of promisor.

  4. any of the above.


Correct Option: D
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