Test: Performance Of Contract- 1


30 Questions MCQ Test Mercantile Law for CA CPT | Test: Performance Of Contract- 1


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Attempt Test: Performance Of Contract- 1 | 30 questions in 30 minutes | Mock test for CA Foundation preparation | Free important questions MCQ to study Mercantile Law for CA CPT for CA Foundation Exam | Download free PDF with solutions
QUESTION: 1

The original contract need not be performed if there is: 

Solution:
QUESTION: 2

Novation requires : 

Solution:

With a novation, all parties must consent. If you are novating your rights under contract to a third party, you need the consent of the other party to the contract and the third party who will be obtaining your rights. With an assignment, only some parties must consent.

QUESTION: 3

A contract can be discharged by: 

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QUESTION: 4

A servant is employed for one year on a monthly salary of Rs. 1800, the whole salary to be paid at the end of the year. The servant wrongfully leaves the service after six months. Is he entitled to any salary?

Solution:

Correct Answer :- d

Explanation : According to the contract, he was unable to complete his contract period. As the salary is decided according to the year. so he is not entitled to any salary.

QUESTION: 5

A lets out a theatre to B for a series of drama for certain days. The theatre was completely destroyed by fire before the scheduled dates. In the case :

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QUESTION: 6

 A mother owes Rs. 10,000 to her daughter. But this debt has become barred by the Limitation Act. The mother signs a written promise to pay Rs. 3,000 on account of the debt. In such a case which one is correct : 

Solution:
QUESTION: 7

What is 'renunciation?' 

Solution:

Renunciation occurs where one party demonstrates an intention not to perform his contractual obligations. Where one party renunciates, the other party may terminate the contract.

QUESTION: 8

 In contracts of sale of movable properties, time is:

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QUESTION: 9

X sold rice to Y by sample and Y thinking that they were old rice, purchased them. In fact, the rice were new. In this case:

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QUESTION: 10

Incase of death of a joint promisor (s), the promisee can : 

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QUESTION: 11

 Where the performance of a promise by one party depends on the prior performance of promise by the other party, such reciprocal promises fall under the category of : 

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QUESTION: 12

A contract of personal volition is not performed by: 

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QUESTION: 13

 Which of the following contract is not discharged by frustration ?

Solution:

 

 

The doctrine of frustration is only a special case to discharge a contract by an impossibility of performance after the contract was entered into. A contract is frustrated when subsequent to its formation, a change of circumstances renders the contract legally or physically impossible to be performed.”

QUESTION: 14

 Suppose the time fixed for performance of the contract has expired but the time is not essential. What is the remedy of the promisee in this case:

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QUESTION: 15

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

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QUESTION: 16

A, B and C jointly promised to pay Rs. 60,000 to D. Before performance of the contract C dies. The contract

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QUESTION: 17

Ram Lal and Shyam jointly promise to pay Mohan Rs. 30,000. Shyam paid the whole amount to Mohan, In case Ram and Lal are solvent, Shyam can recover:

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QUESTION: 18

Impossibility existing subsequent to the formation of contract is called_____________.

Solution:

A contract to do an act, which after the contract is made, becomes impossible, or by reason of some event which the promisor could not prevent, becomes void when the act becomes impossible or unlawful. This is called “Supervening Impossibility”, i.e. impossibility arising subsequent to the formation of the contract.  In such a case the contract will be void as soon as such events make the performance of the contract impossible. 

QUESTION: 19

A agrees to pay Rs. 10,000 to B after 2 years. During this period B dies. After 2 years, B’s son C claims the amount from A. C’s claim is __________

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QUESTION: 20

 If no time is specified for performance of contract, it must be performed within a reasonable time. “Reasonable time” means time______

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QUESTION: 21

Reciprocal promises are _______________.

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QUESTION: 22

Which of the following is not applicable in relation to performance of reciprocal promises?

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QUESTION: 23

A holds a house under a lease agreement. Subsequently he buys the house and becomes the owner of the house. The contract is discharged by 

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QUESTION: 24

Contractual impossibilities are known as?

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QUESTION: 25

 The process by which one person succeeds rights interest and benefits and obligations of another person is termed as:-

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QUESTION: 26

 Acceptance of consideration lesser than that agreed is known as _______.

Solution:

Remission means an act of reducing or cancelling the amount of money that somebody has to pay

QUESTION: 27

 A promises to paint a picture for B by a certain date for a certain amount. A dies before painting the picture. Which one of the following is correct in such a situation?

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QUESTION: 28

 The original contract need not be performed if there is :

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QUESTION: 29

 “Novation” means ________

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QUESTION: 30

 _________ of a contract takes place when all or some of the terms of the contract are cancelled.

Solution:
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