Performance Of Contracts
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No. Of Questions to be Answered : Random 20 out of 75
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- 1.
Performance of contract means the performance by the parties of their respective obligations (promises).
- A.
True
- B.
False
Correct Answer
A. True -
- 2.
The obligation of the parties to their respective promise is provided in
- A.
Section 34
- B.
Section 35
- C.
Section 36
- D.
Section 37
Correct Answer
D. Section 37 -
- 3.
Unless the performance is dispensed with or excused under the provisions of the Indian Contract Act or any other law, the parties to a contract must
- A.
Actually perform their respective promises
- B.
Offer only to perform their respective promises.
- C.
Either perform or offer to perform their respective obligations
- D.
(d) None of these.
Correct Answer
C. Either perform or offer to perform their respective obligations -
- 4.
Performance of contract means the performance of respective obligations under the contract by
- A.
Promisor only
- B.
Promisee only
- C.
Both the promisor and promisee
- D.
Court of law
Correct Answer
C. Both the promisor and promisee -
- 5.
The parties to the contract may discharge their duties to perform their respective obligations by
- A.
Actual performance
- B.
Making an offer to perform
- C.
Either actual performance or offer to perform
- D.
Approaching the court of law.
Correct Answer
C. Either actual performance or offer to perform -
- 6.
On the valid performance of contractual obligations by the parties, the contract
- A.
Is discharged
- B.
Becomes enforceable
- C.
Becomes void
- D.
None of these.
Correct Answer
A. Is discharged -
- 7.
The performance of contract can take place by
- A.
Performance of promise
- B.
Tender of performance of promise
- C.
None of these
- D.
Either of these.
Correct Answer
D. Either of these. -
- 8.
Performance of contract may be
- A.
Actual
- B.
Attempted
- C.
Either (a) or (b)
- D.
None of these.
Correct Answer
C. Either (a) or (b) -
- 9.
The fulfillment of their respective promises by the parties to the contract is known as
- A.
Actual performance of contract
- B.
Tender of performance
- C.
Compulsory performance
- D.
None of these.
Correct Answer
A. Actual performance of contract -
- 10.
A party is said to have performed his promise when he has fulfilled his respective obligation under the contract.
- A.
True
- B.
False
Correct Answer
A. True -
- 11.
A party who has performed his respective promise under the contract.
- A.
Becomes liable to the other party
- B.
Is discharged form liability under the contract.
- C.
Is guilty of performance without cooperation
- D.
None of these.
Correct Answer
B. Is discharged form liability under the contract. -
- 12.
Under the Indian Contract Act, the contract must be performed by actual performance of promise.
- A.
True, as Section 37 makes specific provision in this regard.
- B.
False, as Section 37 provides that the contract can also be performed by tender of performance.
Correct Answer
B. False, as Section 37 provides that the contract can also be performed by tender of performance. -
- 13.
A party bound to perform the promise may make an offer of performance of promise to the other party, and such 'an offer to perform' is known as
- A.
Tender of performance
- B.
Defaulted performance
- C.
Conditional performance
- D.
None of these.
Correct Answer
A. Tender of performance -
- 14.
A valid tender of promise
- A.
Is considered equivalent to performance of promise.
- B.
Cast duty on the promisee (i.e., other party ) to accept the performance.
- C.
Is allowed under Section 37 of the Indian Contract Act.
- D.
All of these.
Correct Answer
D. All of these. -
- 15.
On rejection of valid tender of performance by the promisee, the
- A.
Promisor is discharged from his liability under the contract.
- B.
Promisor can sue the promisee for breach of contract.
- C.
Both (a) and (b)
- D.
None of these.
Correct Answer
C. Both (a) and (b) -
- 16.
The refusal by the promisee to accept a valid tender of performance is known as
- A.
Frustration of contract
- B.
Attempted performance
- C.
Disobedience of tender
- D.
Attempted breach of contract
Correct Answer
B. Attempted performance -
- 17.
On rejection of valid tender of money by the creditor, the debtor is
- A.
Discharged form making repayment or debt
- B.
Not discharged form making repayment of debt.
- C.
Guilty of making tender as tender of money is not allowed.
- D.
Entitled to concession in debt for making tender in time.
Correct Answer
B. Not discharged form making repayment of debt. -
- 18.
Which of the following is the essential requirement of valid tender?
- A.
It must be made at proper time and place.
- B.
It must be unconditional and of the whole obligation.
- C.
It must provide a reasonable opportunity of inspection to the other party.
- D.
All of the above
Correct Answer
D. All of the above -
- 19.
A entered into contract with B to deliver certain goods at a certain goods at a certain price to B. A offered the goods to B at proper to B at proper time and place, but B refused to accept the goods . In the case
- A.
A is discharged from further liability under the contract, but get no other right.
- B.
A can sue B for breach of contract, but not discharged form his liability.
- C.
A is discharged form his liability and can also sue B for breach of contract.
- D.
B is not guilty of breach as a party is not bound to accept a valid tender of performance.
Correct Answer
C. A is discharged form his liability and can also sue B for breach of contract. -
- 20.
Which of the following statement is a correct regarding the validity of a tender of performance?
- A.
A person making the tender must be able and willing to perform the whole of the promise
- B.
A tender a must be made to a proper person i.e., to the promisee or his duly authorized agent.
- C.
Both of the above statements are correct
- D.
None of the above statement is correct
Correct Answer
C. Both of the above statements are correct -
- 21.
Which of the following persons can perform the contract?
- A.
Promisor alone
- B.
Legal representatives of promisor
- C.
Agent of promisor
- D.
All of the these.
Correct Answer
D. All of the these. -
- 22.
A contract involving personal skill of the promisor, can be performed by
- A.
Promisor alone
- B.
Agent of promisor
- C.
Promisor's legal representatives
- D.
All of these
Correct Answer
A. Promisor alone -
- 23.
A promises to paint a picture for B for Rs. 10,000 a dies before painting the picture. In this case,
- A.
A's legal representative should arrange a painter and perform the contract
- B.
Contract comes to an end on the death of 'A'.
- C.
B remains liable to pay the agreed amount to A's legal representative.
- D.
None of these.
Correct Answer
B. Contract comes to an end on the death of 'A'. -
- 24.
In case the promisor dies before the performance of the contract, then which of the following statement is correct?
- A.
His legal representatives become liable to perform the contract if the contract does not involve any personal skill of the promisor
- B.
The contract comes to an end if it involves the personal skill of the promisor.
- C.
Both (a) and (b)
- D.
None of these
Correct Answer
C. Both (a) and (b) -
- 25.
Where promisor dies before performance of a contract involving persona skill , the promisee can demand performance form legal representatives of promisor if he so wishes.
- A.
True, as the promisee is at liberty to demand performance.
- B.
False, as contracts involving personal skill come to in end on the death of promisor.
Correct Answer
B. False, as contracts involving personal skill come to in end on the death of promisor. -
- 26.
Which of the following statement is incorrect?
- A.
A contract which do not involve any personal skill or consideration may also be performed by duly authorized agent of the promisor.
- B.
A performance of contract by a third party is valid and effective if the promisee accepts performance from a third person.
- C.
A promise can never be performed by a third person.
- D.
Both (a) and (b)
Correct Answer
C. A promise can never be performed by a third person. -
- 27.
A owed a large sum a of money to B . C, a friend of A. offered a to pay a lesser amount to B in full and final settlement of B's claim on A . And B accepted it in full and final settlement. In this case.
- A.
The contract is validly performed and B cannot recover the balance from A
- B.
The contact is not validly performed as third party is not allowed to a perform monetary transactions.
- C.
Though B has accepted performance, he remains entitled to recover the balance.
- D.
C is personally liable to compensate B's for the short fall.
Correct Answer
A. The contract is validly performed and B cannot recover the balance from A -
- 28.
A owes Rs. 50,000 to B. Before clearing his liability. A dies leaving behind an estate worth Rs.40,000. In this case, A's legal representatives are liable for
- A.
Rs. 10,000
- B.
Rs. 40,000
- C.
Rs. 50,000
- D.
None of these
Correct Answer
B. Rs. 40,000 -
- 29.
Which of the following statements is correct?
- A.
As a general rule the performance of promise cab be demanded by the promisee
- B.
On the death of promisee, the performance can be demanded by his legal representatives if the contract do not involve any personal skill or consideration.
- C.
Only (a) is correct
- D.
Both (a) and (b) are correct
Correct Answer
D. Both (a) and (b) are correct -
- 30.
Where two or more persons jointly enter into an agreement with one or more persons, the promise is known as
- A.
Joint promise
- B.
Combined promise
- C.
Reciprocal promise
- D.
None of these
Correct Answer
A. Joint promise -
- 31.
The rules relating to performance of joint promises are contained in
- A.
Section 37 to 41
- B.
Sections 42 to 45
- C.
Section 39
- D.
Section 37
Correct Answer
B. Sections 42 to 45 -
- 32.
When two or more persons have made joint promise, them unless the contrary (i.e., different) intention appears from the contract, all such promisors must fulfil the promise.
- A.
Jointly or severally
- B.
According to their wish
- C.
Jointly
- D.
Severally.
Correct Answer
C. Jointly -
- 33.
A, B and C jointly promise to pay Rs. 60,000 to D. Before performance of the contract, C dies. In this case, the contract should be.
- A.
Treated as void on C's death.
- B.
Renewed between A,B and O.
- C.
Performed by A and B alone.
- D.
Performed by A and B jointly along with C's legal representatives.
Correct Answer
D. Performed by A and B jointly along with C's legal representatives. -
- 34.
A, B and C jointly promise to pay Rs. 60,000 to D. Now suppose if all the three promisors A, B, and C die before performance of the contract. In that case, the contract
- A.
Becomes void due to impossibility of performance.
- B.
Should be performed jointly by the legal representatives of all the three promisors.
- C.
Becomes conditional depend upon the discretion of the legal representatives.
- D.
None of these.
Correct Answer
B. Should be performed jointly by the legal representatives of all the three promisors. -
- 35.
On the death of the joint promisors before the performance of the contract, the legal representatives of all them jointly become liable to perform the contract. This rule is known as
- A.
Devolution of joint liabilities
- B.
Devolution of joint rights
- C.
Devolution Of performance
- D.
None of these
Correct Answer
A. Devolution of joint liabilities -
- 36.
A, B, and C jointly promise to pay Rs. 30,000 to D. For recovery of this amount, can D file a suit against A only?
- A.
Yes, as the liability of joint promisors is joint and several.
- B.
No, as the liability of joint promisors is joint only.
Correct Answer
A. Yes, as the liability of joint promisors is joint and several. -
- 37.
A, B, and C jointly owe Rs. 60,000 to D.A was compelled by D to pay the entire amount or Rs.60,000. In this case,
- A.
D is not justified and he is liable to refund the entire amount to A
- B.
A can file a suit against D for recovery of the amount exceeding his share
- C.
A is entitled to recover Rs. 20,000 each from B and C.
- D.
On payment by A, the contract is discharged, and B and C are also not liable to A.
Correct Answer
C. A is entitled to recover Rs. 20,000 each from B and C. -
- 38.
Where a promisee releases one of the several joint promisors, then the
- A.
Remaining joint promisors are also discharged
- B.
Remaining joint promisors remain liable to pay the entire amount.
- C.
Contract is discharged due to interference in justice
- D.
Contract becomes voidable at the option of remaining promiso'rs
Correct Answer
B. Remaining joint promisors remain liable to pay the entire amount. -
- 39.
A, B, and C jointly promise to pay Rs. 9,000 to D. D releases A form his liability. In his case,
- A.
B and C are also discharged from their liability
- B.
B and C are liable to pay the entire amount of Rs. 9,000 to D.
- C.
Though A is discharge from liability to D. but he is liable to make contribution of h is share to B and C
- D.
(b) and (c).
Correct Answer
D. (b) and (c). -
- 40.
Under the English Law, the release of one of the joint promisors, is the release of all other promisors.
- A.
True
- B.
False
Correct Answer
A. True -
- 41.
Where one person makes a joint promise to more than one person, then which of the following statement is correct?
- A.
All the promisees must jointly claim the performance.
- B.
On the death of any one of them, his legal representatives must jointly, with the surviving promisees claim performance.
- C.
On the death of all the joint promisees, the legal representatives of all of them must jointly claim performance.
- D.
All of these.
Correct Answer
D. All of these. -
- 42.
Where the time for performance is not specified in the contract and the promisor himself has to perform without being asked by the promisee then the promise.
- A.
Must be performed within a reasonable time
- B.
May be performed at any time suitable to promisor.
- C.
May not be performed at all
- D.
Must be performed within one year.
Correct Answer
A. Must be performed within a reasonable time -
- 43.
Where the day for performance is specified, then the promise must be performed
- A.
On the specified day
- B.
At any time during usual hours of business.
- C.
On any day during usual business hours.
- D.
Both (a) and (b).
Correct Answer
D. Both (a) and (b). -
- 44.
Where no place is specified in the contract, the promise should be performed at
- A.
Any place suitable to promisor only.
- B.
Any place suitable to promisee only.
- C.
The place mutually agreed to by both the parties.
- D.
The place where the court has jurisdiction.
Correct Answer
C. The place mutually agreed to by both the parties. -
- 45.
Where the manner and time for performance is prescribed by the promisee, the promise should be performed in the manner and time so prescribed.
- A.
True
- B.
False
Correct Answer
A. True -
- 46.
The expression 'time as the essence of contract' means that the time is an essential element and the parties must
- A.
Perform their respective promises within the specified time.
- B.
Enforce the contract in court within the specified time.
- C.
Obey the court order within the specified time.
- D.
Both (b) and (c).
Correct Answer
A. Perform their respective promises within the specified time. -
- 47.
In commercial transactions, time is considered to be the essence of the contract, and if the party fails to perform the contract within specified time, the contract becomes
- A.
Void and cannot be enforced.
- B.
Enforceable in higher courts.
- C.
Voidable at the option of the other party
- D.
Illegal for non-compliance of contractual terms.
Correct Answer
C. Voidable at the option of the other party -
- 48.
Where time is not the essence of the contract, failure to perform the contract within the fixed time makes the contract.
- A.
Void
- B.
Voidable
- C.
Illegal
- D.
None of these
Correct Answer
D. None of these -
- 49.
Failure to perform the contract within the fixed time where time is not the essence of the contract, does not affect the validity of the a contract, but the innocent party can
- A.
Claim compensation from the defaulting party for delayed performance.
- B.
Withdraw from the contract.
- C.
Perform his part of contract in installments
- D.
None of these.
Correct Answer
A. Claim compensation from the defaulting party for delayed performance. -
- 50.
The term 'reciprocal promise' is defined in
- A.
Section 2 (e)
- B.
Section 2 (f)
- C.
Section 2 (g)
- D.
Section 2 (h)
Correct Answer
B. Section 2 (f) -
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