CONTRACT LAW MCQS SET 67

CONTRACT LAW MCQS SET 67

Discharge of contract

1. A entered into a contract with B for supply of 100 bicycles manufactured by C. C did not manufacture it. In this case
a. A is not discharged
b. A is discharged
c. Contract becomes void
d. Contract becomes voidable

2. A contracts with Indian Cricket Board to play for IPL-2 at south Africa. A falls ill and is advised by doctor to rest. The contract
a. is valid
b. is void ab initio
c. becomes void
d. is voidable at A’s option

3. When a contract becomes void, any benefit received under such contract is bound …………. To the person from whom he received it.
a. to restore such benefit
b. to make compensation for such benefit
c. either (a) or (b)
d. neither (a) nor (b)

4. Which of the following is correct?
a. Novation means making a new contract in place of an old contract
b. Alteration means making a new contract in place of an existing one
c. Performance of contract is not a method of discharge of contract
d. All of the above

5. If the subject matter of a contract is destroyed after formation of the contract, without fault of either party, the contract
a. is rendered voidable
b. becomes void
c. continues to be valid
d. becomes unlawful

6. If the subject matter of a contract is destroyed after formation of the contract, without fault of either party, the contract is
a. voidable
b. discharged
c. not discharged
d. unlawful

7. A musical hall was agreed to be let out on certain dates, but before those dates the hall was destroyed by fire. The contract becomes void on the ground of
a. impossibility of performance
b. illegality of object
c. unlawful consideration
d. All of the above

8. When the contract is made for several purposes, failure of one of them
a. terminates the entire contract
b. does not terminate the entire contract
c. makes the contract unlawful
d. renders the object illegal

9. A agreed to supply certain goods to B. As a result of an increase in raw material costs, it is a no longer profitable for A to supply them at the agreed rate. In this case
a. Contract becomes void
b. Contract is discharged
c. A cannot be excused for
d. non-performance
e. A can be excused for non-performance

10. Which of the following is incorrect?
a. Contracts are discharged by lapse of time
b. Discharge of a party and discharge of contracts are same and one thing
c. Cancelation of contract discharges the contract
d. All of the above
ANSWER:1. a
2. c
3. c
4. a
5. b
6. b
7. a
8. b
9. c
10. b