CONTRACT LAW MCQS SET 80

CONTRACT LAW MCQS SET 80

Remedies for Breach of Contract

1. Nominal Damages can be
a. Claimed by the aggrieved party as a matter of right
b. awarded only at the discretion of the Court
c. claim by the aggrieved party for loss
d. all of the above

2. Liquidated damages means an amount of ………. that may result from breach of contract
a. actual loss
b. loss suffered
c. pre-estimated probable loss
d. pre-estimated actual loss

3. General damages arises
a. Naturally in the usual course from the breach of contract itself
b. In the unsual circumstance from the breach of contract
c. In the special circumstance from breach of contract
d. When special loss from breach of contract

4. Duty to mitigate damages on the part of injured party arises in case of
a. anticipatory breach
b. actual breach
c. neither (a) nor (b)
d. either (a) or (b)

5. Pre estimated amount of compensation payable in case of breach of contract is called
a. Penalty
b. Liquidated damages
c. Either (a) or (b)
d. Neither (a) nor (b)

6. Which of the following is correct?
a. Liquidated damages are pre-estimated probable damages
b. Penalty is imposed by way of punishment for breach of contract
c. Courts generally do not award vindictive damages
d. All of the above

7. The intention for fixing Liquidated Damages is
a. Recovery of damages that might arise due to breach
b. Recover more amount of damages than suffered due to breach
c. neither (a) or (b)
d. both (a) and (b)

8. If parties make no attempt to estimate the loss but in advance, fix an amount payable on nonperformance of the contract, such amount is called
a. Exemplary Damages
b. Special damages
c. Liquidated Damages
d. Penalty

9. The essence of Liquidated damages is that is should be
a. genuine pre-estimate of damages
b. more than probable damages
c. less than probable damages
d. any of the above

10. Where the amount payable in case of breach is fixed in advance by way of liguidated damages, the aggrieved party may claim
a. a reasonable compensation for the breach
b. the amount so fixed in the contract
c. (a) or (b) whichever is lower
d. (a) or (b) whichever is higher
ANSWER: 
1. b
2. c
3. a
4. d
5. c
6. d
7. a
8. d
9. a
10. c