CONTRACT LAW MCQS SET 79

CONTRACT LAW MCQS SET 79

Remedies for Breach of Contract

1.A contract to deliver 1,000 bags of rice at Rs 100 per bag on a future date. On due date he refuses to deliver. Market price on that day is Rs 120 per bag. The ordinary Damages will be
a. Rs 20,000
b. Rs 1,20,000
c. Rs 1,00,000
d. Rs 20

2. Damages which an aggrieved party claims. beside general damages for any loss he has suffered owing to special circumstances known to both the parties at the time of signing the contract are called
a. Vindictive Damages
b. Nominal Damages
c. General Damages
d. Special Damages

3. When there is breach of contract, special damages are awarded
a. Only when there are special circumstances
b. Only when there is special loss
c. When there is a notice of the likely special loss
d. All of the above

4. When there are certain extraordinary circumstances present and it is communicated to the promisor, non-performance of promise entitles the Promisee to claim
a. Ordinary Damages
b. Special Damages
c. Either (a) or (b)
d. Both (a) and (b)

5. Hadley vs. Baxendale case is a leading case on
a. Breach of Implied Term
b. Anticipatory Breach
c. Remoteness of Damages
d. Bilateral Mistake of Fact

6. H’s mill stopped due to breakdown of a shaf, which in was delivered to B, a common carrier to be taken to the manufacturer for repairs. H did not communicate to B, that delay in delivery would cause loss of profits. For some reason, the delivery was delayed by B beyond reasonable time. Here
a. H can rescind the contract
b. H cannot claim loss of profits from B
c. H can claim loss of profits from B
d. H can claim loss of profits from the manufacturer

7. The damages awarded by way of punishment are called
a. Special Damages
b. Ordinary Damages
c. Exemplary Damages
d. Nominal Damages

8. Nominal damages are awarded to indicate that the party has …………….
a. won the case
b. actually suffered the loss
c. suffered huge loss
d. suffered unusual loss

9. Exemplary damage is also known as
a. vindictive damages
b. punitive damages
c. Direct damages
d. Either (a) or (b)

10. Vindictive Damages have been awarded
a. for a breach of promise to marry
b. for wrongful dishonour of a cheque
c. Either (a) or (b)
d. Neither (a) nor (b)
ANSWER: 
1. a
2. d
3. c
4. d
5. c
6. b
7. c
8. a
9. d
10. c