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All questions of Indian Contract Act, 1872 : Discharge of Contract for B Com Exam
What does remission refer to in relation to a contract?- a)Acceptance of a lesser performance than what was due
- b)Substitution of a new contract for the old one
- c)Cancellation of the contract by mutual consent
- d)Change in one or more of the conditions of the contract
Correct answer is option 'A'. Can you explain this answer?
a)
Acceptance of a lesser performance than what was due
b)
Substitution of a new contract for the old one
c)
Cancellation of the contract by mutual consent
d)
Change in one or more of the conditions of the contract
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Dev Patel answered |
Remission refers to the acceptance of a lesser performance than what was actually due under the contract. It allows a party to dispense with or remit, wholly or in part, the performance of the promise made to them. This can include extending the time of performance or accepting alternative satisfaction. It is important to note that a promise to remit or accept a lesser performance will be binding even without consideration.
What is the term used to describe breach of contract committed before the date of performance?- a)Actual breach
- b)Anticipatory breach
- c)Material alteration
- d)Supervening impossibility
Correct answer is option 'B'. Can you explain this answer?
a)
Actual breach
b)
Anticipatory breach
c)
Material alteration
d)
Supervening impossibility
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Dev Patel answered |
Anticipatory breach refers to a breach of contract that is committed before the date of performance. It occurs when one party repudiates or refuses to perform their obligations under the contract before the agreed-upon time arrives. This allows the aggrieved party to treat the contract as terminated and seek remedies for the breach. However, the aggrieved party must elect to treat the anticipatory breach as equivalent to an actual breach in order to have a right of action.
When can a party claim compensation under quantum meruit?- a)When the contract is terminated by mutual consent
- b)When the contract is breached by the other party
- c)When the party has fully performed their obligations under the contract
- d)When the party has partially performed their obligations under the contract
Correct answer is option 'D'. Can you explain this answer?
a)
When the contract is terminated by mutual consent
b)
When the contract is breached by the other party
c)
When the party has fully performed their obligations under the contract
d)
When the party has partially performed their obligations under the contract
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Dev Patel answered |
A party can claim compensation under quantum meruit when they have partially performed their obligations under the contract. This means that they have rendered goods or services to the other party, but the contract could not be fully performed for some reason. The party can then seek payment for the work they have done based on the principle of as much as merited.
When can special damages be claimed for breach of contract?- a)When the special circumstances responsible for the special losses were made known to the other party
- b)When the breach of contract results in direct loss
- c)When the breach of contract is committed before the date of performance
- d)When the breach of contract occurs due to a change in law
Correct answer is option 'A'. Can you explain this answer?
a)
When the special circumstances responsible for the special losses were made known to the other party
b)
When the breach of contract results in direct loss
c)
When the breach of contract is committed before the date of performance
d)
When the breach of contract occurs due to a change in law
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Dev Patel answered |
Special damages can be claimed for breach of contract when the special circumstances responsible for the special losses were made known to the other party at the time of making the contract. These damages constitute the indirect loss suffered by the aggrieved party on account of the breach. They can only be recovered if the other party was aware of these special circumstances when entering into the contract.
When can a contract be discharged by material alteration?- a)When there is a substitution of a new contract in place of the old one
- b)When there is a change in one or more of the conditions of the contract
- c)When both parties agree to terminate the contract
- d)When there is subsequent impossibility of performance
Correct answer is option 'B'. Can you explain this answer?
a)
When there is a substitution of a new contract in place of the old one
b)
When there is a change in one or more of the conditions of the contract
c)
When both parties agree to terminate the contract
d)
When there is subsequent impossibility of performance
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Dev Patel answered |
Material alteration refers to a change in one or more of the conditions of the contract. It can only be done with the mutual consent of the parties. However, any material alteration made by one party without the consent of the other party will discharge the latter from its obligations under the contract. It is important to note that in case of material alteration, only some of the terms of the contract are changed, while the parties continue to be the same.
What is the measure of damages in contracts of sale and purchase of goods?- a)The sum by which the contract price falls short of the market price
- b)The difference between the contract price and the market price at the date of refusal to perform
- c)The difference between the contract price and the price at which the purchaser might have obtained goods of like quality
- d)The amount of loss suffered by the aggrieved party due to the breach of contract
Correct answer is option 'C'. Can you explain this answer?
a)
The sum by which the contract price falls short of the market price
b)
The difference between the contract price and the market price at the date of refusal to perform
c)
The difference between the contract price and the price at which the purchaser might have obtained goods of like quality
d)
The amount of loss suffered by the aggrieved party due to the breach of contract
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Dev Patel answered |
In contracts of sale and purchase of goods, the measure of damages is the difference between the contract price and the price at which the purchaser might have obtained goods of like quality at the time and place they should have been delivered. If no date has been fixed for the performance of the contract and the promisor commits a breach, the measure of damages will be the difference between the contract price and the market price at the date of the refusal to perform. This allows the aggrieved party to recover the loss they have suffered as a result of the breach.
In what cases can a contract be discharged by operation of law?- a)Merger and death
- b)Material alteration and breach
- c)Lapses of time and rescission
- d)Change of law and supervening impossibility
Correct answer is option 'A'. Can you explain this answer?
a)
Merger and death
b)
Material alteration and breach
c)
Lapses of time and rescission
d)
Change of law and supervening impossibility
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Dev Patel answered |
A contract can be discharged or terminated by operation of law in various cases. Two examples mentioned in the text are merger and death. Merger refers to the coinciding and meeting of an inferior and superior right on one person, resulting in the termination of the inferior right. Death, on the other hand, can discharge a contract if it is of a personal nature. In other cases, the rights and liabilities of the deceased person will pass to their legal representatives.
What is the purpose of awarding damages for breach of contract?- a)To punish the defaulting party
- b)To compensate the aggrieved party for their loss
- c)To set aside the contract
- d)To waive the rights arising from the contract
Correct answer is option 'B'. Can you explain this answer?
a)
To punish the defaulting party
b)
To compensate the aggrieved party for their loss
c)
To set aside the contract
d)
To waive the rights arising from the contract
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Dev Patel answered |
Damages are awarded for breach of contract with the purpose of compensating the aggrieved party for the loss they have suffered. The objective is to put the aggrieved party in the same position, as far as money can do, as they would have been if the contract had been performed. Damages are meant to restore the party to the position they would have been in if the breach had not occurred.
What are ordinary damages in relation to breach of contract?- a)Damages that arise naturally in the usual course of events from the breach of contract
- b)Damages that result from the breach of contract under special circumstances
- c)Heavy damages awarded in cases of breach of contract to marry
- d)Small damages awarded when breach of contract is committed without real loss
Correct answer is option 'A'. Can you explain this answer?
a)
Damages that arise naturally in the usual course of events from the breach of contract
b)
Damages that result from the breach of contract under special circumstances
c)
Heavy damages awarded in cases of breach of contract to marry
d)
Small damages awarded when breach of contract is committed without real loss
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Dev Patel answered |
Ordinary damages refer to damages that arise naturally in the usual course of events from the breach of contract itself. They are the direct loss suffered by the aggrieved party and are estimated based on the circumstances prevailing at the time of the breach. These damages are awarded to compensate for the actual loss that the party has sustained due to the breach.
What is the term used to describe the cancellation of a contract?- a)Rescission
- b)Alteration
- c)Remission
- d)Novation
Correct answer is option 'A'. Can you explain this answer?
a)
Rescission
b)
Alteration
c)
Remission
d)
Novation
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|
Dev Patel answered |
Rescission refers to the cancellation of a contract. It can be done by mutual consent of the parties, where they agree to terminate the contract before its breach. It can also be done by the aggrieved party if the other party has committed a breach of the contract. In case of a voidable contract, the party whose consent is not free can also rescind the contract.
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