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Judiciary Exams Exam  >  Judiciary Exams Tests  >  Test: Discharge of a Contract under Indian Contract Act - Judiciary Exams MCQ

Test: Discharge of a Contract under Indian Contract Act - Judiciary Exams MCQ


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20 Questions MCQ Test - Test: Discharge of a Contract under Indian Contract Act

Test: Discharge of a Contract under Indian Contract Act for Judiciary Exams 2024 is part of Judiciary Exams preparation. The Test: Discharge of a Contract under Indian Contract Act questions and answers have been prepared according to the Judiciary Exams exam syllabus.The Test: Discharge of a Contract under Indian Contract Act MCQs are made for Judiciary Exams 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Discharge of a Contract under Indian Contract Act below.
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Test: Discharge of a Contract under Indian Contract Act - Question 1
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In contract law, what does the discharge of a contract refer to?

Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 1
The discharge of a contract in legal terms signifies the termination of the contractual bond between the involved parties. It indicates the conclusion of the rights and responsibilities established by the agreement, highlighting the end of the obligations outlined in the contract. This termination can occur through various means such as performance, agreement or consent, impossibility of performance, lapse of time, operation of law, or breach of contract.
Test: Discharge of a Contract under Indian Contract Act - Question 2
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When can a contract be discharged due to the operation of law?

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A contract can be discharged due to the operation of law when certain legal events or regulations come into play, leading to the automatic termination of the contract. For example, the bankruptcy of one of the parties can result in the automatic discharge of specific contracts without the explicit agreement of the involved parties. This demonstrates how external legal factors can influence the status and validity of a contract, ultimately leading to its discharge.
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Test: Discharge of a Contract under Indian Contract Act - Question 3
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What occurs when both parties fulfill their respective obligations as specified in the contract?

Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 3
Performance in a contract occurs when both parties fulfill their respective obligations as specified in the agreement. This entails meeting the terms and conditions outlined in the contract to the satisfaction of all involved parties. An example of this could be a construction company completing a building project according to the agreed-upon specifications, and the client making the stipulated payment for the completed work.
Test: Discharge of a Contract under Indian Contract Act - Question 4
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In contract law, which type of performance occurs when all parties involved carry out the promises they agreed upon in the contract?
Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 4
Actual performance in contract law signifies the fulfillment of promises by all parties involved as agreed upon in the contract. This type of performance is considered the ideal scenario where all obligations are met satisfactorily, leading to the discharge of the contract.
Test: Discharge of a Contract under Indian Contract Act - Question 5
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In what situation may a contract be discharged due to circumstances that make it impossible to fulfill the terms of the agreement?
Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 5
A contract may be discharged due to impossibility of performance when circumstances arise that make it impossible to fulfill the terms of the agreement. This could include events like natural disasters destroying the subject matter of the contract, rendering performance unattainable. In such cases, the parties may be released from their contractual duties due to the impossibility of fulfilling the agreed-upon terms.
Test: Discharge of a Contract under Indian Contract Act - Question 6
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When a promisor attempts to fulfill their promise, but the promisee rejects the performance, what type of performance is being exhibited in contract law?
Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 6
Attempted performance, also known as tender or offer of performance, occurs when the promisor makes a genuine effort to fulfill their promise. However, if the promisee rejects this performance for any reason, the contract is not discharged. This situation highlights the importance of acceptance by the promisee for the performance to be considered valid in contract law.
Test: Discharge of a Contract under Indian Contract Act - Question 7
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What characterizes alteration as a means of discharging a contract?
Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 7
Alteration occurs when one or more terms of the contract are changed, leading to the discharge of the original contract if a material alteration is made with the consent of all parties. An example of alteration would be if parties agree to alter the quantity or terms of a contract, thus bringing an end to the original agreement.
Test: Discharge of a Contract under Indian Contract Act - Question 8
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What does rescission in a contract entail?
Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 8
Rescission in a contract involves the cancellation of the contract by mutual consent before it is discharged by performance, releasing parties from their obligations. This means that both parties agree to cancel the contract before fulfilling their obligations as originally agreed upon. It essentially nullifies the contract before any performance is completed.
Test: Discharge of a Contract under Indian Contract Act - Question 9
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What is the primary purpose of Accord and Satisfaction in a contractual dispute resolution scenario?
Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 9
Accord and Satisfaction serves as a compromise beneficial to both parties when the original contract terms cannot be met. It allows the creditor to receive partial payment while releasing the debtor from the full obligation, promoting a fair resolution. In situations where disputes arise over quality or other aspects of a contract, Accord and Satisfaction can provide a practical and fair way to resolve disagreements and move forward amicably.
Test: Discharge of a Contract under Indian Contract Act - Question 10
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What does Section 56 of contract law primarily dictate regarding agreements involving impossible acts?
Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 10
Section 56 of contract law stipulates that agreements encompassing impossible acts are considered void from the beginning. This means that any agreement that involves acts that are inherently impossible to perform is not legally enforceable. This provision ensures that parties are not held to impossible or impractical obligations, thereby upholding the fundamental principle of contract law.
Test: Discharge of a Contract under Indian Contract Act - Question 11
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In contract law, what scenario leads to the concept of discharge by impossibility of performance?
Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 11
Discharge by impossibility of performance in contract law occurs when a contract that was initially capable of being fulfilled becomes impossible or unlawful after its formation. This concept provides a legal basis for releasing parties from their contractual obligations when external circumstances or events make performance impractical or illegal. It serves as a safeguard to prevent parties from being held accountable for fulfilling obligations that have become unattainable due to unforeseen changes in circumstances.
Test: Discharge of a Contract under Indian Contract Act - Question 12
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What legal concept under Indian contract law refers to a situation where a contract becomes impossible to perform, leading to its frustration?
Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 12
The legal concept under Indian contract law that deals with situations where a contract becomes impossible to perform, resulting in its frustration, is known as the Doctrine of Frustration. This doctrine, as per Section 56 of the Indian Contract Act, 1872, comes into play when a contract becomes impossible to fulfill, whether at the time of agreement or due to supervening impossibility or illegality. It provides a way for contracts to be discharged in cases where performance becomes unfeasible.
Test: Discharge of a Contract under Indian Contract Act - Question 13
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When does a contract stand discharged due to the destruction of the subject matter without fault of either party?
Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 13
A contract is discharged due to the destruction of the subject matter without the fault of either party. This means that if the subject matter of a contract is destroyed without any fault from the promisor or promisee, the contract becomes void. For instance, if a banquet hall rented for a party is destroyed by fire before the event takes place, the contract would be considered discharged under this principle. This rule aims to ensure fairness and equity in contractual agreements when unforeseen events render performance impossible through no fault of the involved parties.
Test: Discharge of a Contract under Indian Contract Act - Question 14
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In contract law, which of the following events would most likely lead to a contract being discharged?
Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 14
In contract law, the death or incapacity of a key individual necessary for the contract's fulfillment can lead to the discharge of the contract. This is because contracts depending on personal skill or qualification are typically discharged under such circumstances. It is essential to consider the impact of such events on the validity and enforceability of the contract.
Test: Discharge of a Contract under Indian Contract Act - Question 15
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What legal principle governs the termination of a contract when the specified time for performance lapses without action within the period of limitation?
Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 15
The termination of a contract due to the expiration of the specified performance time and inaction within the period of limitation is known as discharge by lapse of time. This principle signifies the importance of timely fulfillment in contractual agreements, highlighting the legal consequences when deadlines are not met.
Test: Discharge of a Contract under Indian Contract Act - Question 16
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What legal concept leads to the termination of contracts under specific circumstances as outlined in the Insolvency Act?
Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 16
Insolvency, as outlined in the Insolvency Act, results in the termination of contracts under specific circumstances. When a person is declared insolvent by the court, their rights and duties are transferred to the Official Receiver, leading to the discharge of liabilities incurred before their insolvency.
Test: Discharge of a Contract under Indian Contract Act - Question 17
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In what scenario does the concept of merger occur in contract law?
Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 17
Merger in contract law occurs when a lesser right held by a party is integrated into a superior right held by the same party under a different contract. This integration automatically nullifies the previous contract, leading to the discharge of the lesser right in favor of the superior right.
Test: Discharge of a Contract under Indian Contract Act - Question 18
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What is unauthorized material alteration in a contract?
Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 18
Unauthorized material alteration in a contract refers to a situation where one party makes significant changes to the contract without the consent of the other party. Such alterations fundamentally change the legal essence or character of the contract or the rights and obligations of the involved parties. These changes can render the contract invalid, giving the affected party the right to void the contract. An example could be altering the amount on a promissory note without the issuer's consent, leading to the possibility of the altered contract being refused.
Test: Discharge of a Contract under Indian Contract Act - Question 19
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What does merger in contract law refer to?
Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 19
In contract law, a merger occurs when a lesser right held by a party is integrated into a superior right held by the same party under a different contract. This integration automatically nullifies the previous contract. An example of this could be a part-time lecturer being appointed as a full-time lecturer, leading to the discharge of the part-time lecturing contract due to the merger of roles.
Test: Discharge of a Contract under Indian Contract Act - Question 20
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In the case of Fazal Ilahi v. East Indian Railway Co., what was the primary issue that led to the dispute between the plaintiff and the defendant railway company?
Detailed Solution for Test: Discharge of a Contract under Indian Contract Act - Question 20
The primary issue that led to the dispute between Fazal Ilahi and the East Indian Railway Co. was the delayed delivery of the boxes of crackers sent by the plaintiff to the defendant railway company. This delay resulted in the crackers reaching their destination after the festival for which they were required, leading to a disagreement over claimed profits.
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