CONTRACT LAW MCQS SET 78

CONTRACT LAW MCQS SET 78

Remedies for Breach of Contract

1. if an agreement has become void, any advantage received by party under such agreement shall restore it, or to make compensation for it. This is based on the principle of
a. Specific Performance
b. Rescission
c. Injunction
d. Quantum Meruit

2. A, a businessman leaves his goods at B’s place by mistake. B treats the same as his own and uses it. B is bound to compensate A for it, under the principle of
a. Specific Performance
b. Reemission
c. Special damages
d. Quasi contract

3. Compensation is to be paid by the party receiving the benefit, where an act is done by another party, without an intention of gratuitousness. For this purpose
a. There need not be any contract between the parties
b. The contract between the parties may also be void
c. Either (a) or (b)
d. Neither (a) nor (b)

4. When an indivisible contract for lump sum amount is completely performed but badly, the person who has performed, can
a. claim the lump sum amount
b. claim the lump sum amount less deduction for bad work
c. not claim any amount at all
d. perform the work again

5. The aggrieved party is entitled to claim monetary compensation for the loss caused due to non-performance of promise. This is called
a. Damages
b. Restitution
c. Quantum Meruit
d. Injunction

6. In case of breach of contract, the compensation can be claimed for
a. remote consequence of the breach
b. the natural consequence of breach
c. indirect consequence of the breach
d. All of the above

7. In case of breach of contract, the Indian Law awards damages
a. For loss of profit which may have been earned
b. Which arose naturally
c. As matter of penalty
d. To compensate party from physical loss

8. While determining damages, which of the following are taken into account?
a. inconvenience caused by nonperformance
b. motive of breach
c. manner of breach
d. All of the above

9. The measure of damages in case of breach of
a contract is the difference between the
a. contract price and the market price at the date of breach
b. contract price and the maximum market price during last 6 months
c. contract price and the price at which the plaintiff might have sold the goods
d. contract price and the price fixed by Court

10. A contracts to deliver 1,000 bags of rice at Rs 100 per bag on a future date. On the due date he refuses to deliver. Market Price on that day is Rs 120 per bag. Which Damages can be granted by court?
a. Ordinary damage
b. Special damages
c. Remote damages
d. Vindicative damages
ANSWER:1. d
2. d
3. c
4. b
5. a
6. b
7. b
8. d
9. a
10. a