Breach Of Contract

20 Questions  I  By Sweetsalman123
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  • 1. 
    The breach of contract means the
    • A. 

      Performance of contract by both the parses.

    • B. 

      Failure of party to perform his obligations.

    • C. 

      Payment of compensation due to non - performance.

    • D. 

      Postponement of the performance of contract.


  • 2. 
    The breach of contact occurs when a party
    • A. 

      Fails to perform his obligations on due date.

    • B. 

      Dedares not to perform his obligation on due date.

    • C. 

      Both (a) and (b).

    • D. 

      None of these.


  • 3. 
    The breach of contract may be
    • A. 

      Actual breach only

    • B. 

      Anticipatory breach only

    • C. 

      Either (a) or (b)

    • D. 

      None of these


  • 4. 
    When on the due date of performance or during the performance, a party fails to perform his obligation, it is known as
    • A. 

      Actual breach of contract

    • B. 

      Anticipatory breach of contract

    • C. 

      Abandonment of contract

    • D. 

      Cancellation of contract.


  • 5. 
    When prior to the due date of performance, the promisor absolutely refuses to perform the contract, it is known as
    • A. 

      Actual breach of contract

    • B. 

      Cancellation of contract.

    • C. 

      Anticipatory breach of contract

    • D. 

      Abandonment of contract.


  • 6. 
    A breach of contract
    • A. 

      Discharges the other party form performing his obligations.

    • B. 

      Does not discharge the other party form performance.

    • C. 

      Gives one more chance to defaulting party to perform the contract.

    • D. 

      Is not recongnised under the India Law.


  • 7. 
    Anticipatory breach is the repudiation of the contract
    • A. 

      On due date of performance.

    • B. 

      During the performance.

    • C. 

      Before the due date of performance.

    • D. 

      Both (a) and (b).


  • 8. 
    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,
    • A. 

      There is anticipatory breach of contract.

    • B. 

      B may immediately treat the contract cancelled

    • C. 

      Both of these.

    • D. 

      None of these.


  • 9. 
    The doctrine of anticipatory breach has been incorporated in
    • A. 

      Section 37

    • B. 

      Section 39

    • C. 

      Section 41

    • D. 

      Section 43


  • 10. 
    In case of anticipatory breach of contract, the aggrieved party (i.e., party not a fault). May treat the contact as
    • A. 

      Discharged and bring an immediate action for damages.

    • B. 

      Operative and wait till the time for performance arrives.

    • C. 

      Exercise either option (a) or (b).

    • D. 

      Only option (a) is available.


  • 11. 
    An anticipatory breach of contract does not give any right to claim compensation.
    • A. 

      True

    • B. 

      False


  • 12. 
    In case of- breach of contract, which of the following remedy'is available to the aggrieved party?
    • A. 

      Suit for rescission

    • B. 

      Suit for damages

    • C. 

      Suit for specific performance

    • D. 

      All of these


  • 13. 
    When a party rightfully rescind (i.e., cancel) the contract, he is
    • A. 

      Discharged form all obligations under the contract.

    • B. 

      Entitled to receive compensation, form the defaulting party, for damages due to non¬performance .ss

    • C. 

      Only (a) as there is no provision for compensation.

    • D. 

      Both(a) and (b) as Section 75 makes provision for damages.


  • 14. 
    A party entitled to rescind the contract, loses the remedy. Where
    • A. 

      He has ratified the contract.

    • B. 

      Third party has acquired right in good faith.

    • C. 

      Contract is not separable and rescission is sought of a part only.

    • D. 

      All of these.


  • 15. 
    The court may grant rescission where the contract is
    • A. 

      Void

    • B. 

      Uncertain

    • C. 

      Voidable at he option o plaintiff

    • D. 

      Voidable at the option of defendant.


  • 16. 
    In case of breach of contract, how an aggrieved party can recover compensation form defaulting party?
    • A. 

      By suit for injunction

    • B. 

      By suit for damages

    • C. 

      By suit for specific performance

    • D. 

      None of these.


  • 17. 
    In case of breach of contract, the remedies by way of suit for quantum meruit and suit for injunction are also available to the aggrieved party .
    • A. 

      True

    • B. 

      False


  • 18. 
    Damages for breach of contract are awarded by the courts to
    • A. 

      Prevent the breach of contract.

    • B. 

      Punish the liable party.

    • C. 

      Compensate the aggrieved party.

    • D. 

      Discourage private contract.


  • 19. 
    Quantum meruit means
    • A. 

      As much as is earned

    • B. 

      As much as is paid

    • C. 

      Non-gratuitous promise

    • D. 

      Liquidated damages.


  • 20. 
    Where a party is entitled to claim compensation in proportion to the work done by him, it is possible by way of
    • A. 

      Suit for damages

    • B. 

      Suit for injunction

    • C. 

      Suit for quantum meruit

    • D. 

      None of these.


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