MCQ - Performance of Contract | Business Laws for CA Foundation PDF Download

 Page 1


A, B and C jointly promised to pay ` 60,000 to D. Before performance of the 
contract, C dies. Here, the contract  
(a)becomes void on C’s death.  
( b) should be performed by A and B along with C’s legal representatives.  
( c) should be performed by A and B alone.  
( d) should be renewed between A, B and D. 
The right answer is “B” 
Page 2


A, B and C jointly promised to pay ` 60,000 to D. Before performance of the 
contract, C dies. Here, the contract  
(a)becomes void on C’s death.  
( b) should be performed by A and B along with C’s legal representatives.  
( c) should be performed by A and B alone.  
( d) should be renewed between A, B and D. 
The right answer is “B” 
Novation discharges a contract: 
(a) No, it means, no new contract comes to existence 
( b) No, it means, new contract comes to existence, but old contract is 
not discharged 
( c) Yes, On novation, the old contract is discharged and consequently it 
need not be performed. 
( d) Yes, but only if parties agree to discharge 
The right answer is “C” 
Page 3


A, B and C jointly promised to pay ` 60,000 to D. Before performance of the 
contract, C dies. Here, the contract  
(a)becomes void on C’s death.  
( b) should be performed by A and B along with C’s legal representatives.  
( c) should be performed by A and B alone.  
( d) should be renewed between A, B and D. 
The right answer is “B” 
Novation discharges a contract: 
(a) No, it means, no new contract comes to existence 
( b) No, it means, new contract comes to existence, but old contract is 
not discharged 
( c) Yes, On novation, the old contract is discharged and consequently it 
need not be performed. 
( d) Yes, but only if parties agree to discharge 
The right answer is “C” 
A contract is discharged by rescisson which means the  
(a) change in one or more terms of the contract.  
(b) acceptance of lesser performance.  
(c) abandonment of rights by a party.  
(d) cancellation of the existing contract.  
The right answer is “D” 
Page 4


A, B and C jointly promised to pay ` 60,000 to D. Before performance of the 
contract, C dies. Here, the contract  
(a)becomes void on C’s death.  
( b) should be performed by A and B along with C’s legal representatives.  
( c) should be performed by A and B alone.  
( d) should be renewed between A, B and D. 
The right answer is “B” 
Novation discharges a contract: 
(a) No, it means, no new contract comes to existence 
( b) No, it means, new contract comes to existence, but old contract is 
not discharged 
( c) Yes, On novation, the old contract is discharged and consequently it 
need not be performed. 
( d) Yes, but only if parties agree to discharge 
The right answer is “C” 
A contract is discharged by rescisson which means the  
(a) change in one or more terms of the contract.  
(b) acceptance of lesser performance.  
(c) abandonment of rights by a party.  
(d) cancellation of the existing contract.  
The right answer is “D” 
Novation and Alteration are same 
( a) True, both result in discharging old contract. 
( b) False, novation discharges old contract, in alteration, the obligation 
remains 
( c ) False, however, both may have the effect of substituting a new contract for 
the old one.  
( d )None of the above. 
The right answer is “C” 
Page 5


A, B and C jointly promised to pay ` 60,000 to D. Before performance of the 
contract, C dies. Here, the contract  
(a)becomes void on C’s death.  
( b) should be performed by A and B along with C’s legal representatives.  
( c) should be performed by A and B alone.  
( d) should be renewed between A, B and D. 
The right answer is “B” 
Novation discharges a contract: 
(a) No, it means, no new contract comes to existence 
( b) No, it means, new contract comes to existence, but old contract is 
not discharged 
( c) Yes, On novation, the old contract is discharged and consequently it 
need not be performed. 
( d) Yes, but only if parties agree to discharge 
The right answer is “C” 
A contract is discharged by rescisson which means the  
(a) change in one or more terms of the contract.  
(b) acceptance of lesser performance.  
(c) abandonment of rights by a party.  
(d) cancellation of the existing contract.  
The right answer is “D” 
Novation and Alteration are same 
( a) True, both result in discharging old contract. 
( b) False, novation discharges old contract, in alteration, the obligation 
remains 
( c ) False, however, both may have the effect of substituting a new contract for 
the old one.  
( d )None of the above. 
The right answer is “C” 
? A promises to deliver corns from his farm to B on  
16
th
 August 2013 for INR 1,000.  
? A dies before that day. Discuss the liability of A’s 
representative to B. 
 
? Answer: It will be an obligation for A’s 
representative to deliver the corns to B and 
payment by B to A’s representative is also 
compulsory.