The Indian Contract Act, 1872 – Discharge of Contract 0 The Indian Contract Act, 1872 - Discharge of Contract 1 / 30 Q.30 A owes B Rs.5,000 , C pays to B Rs.1,000 & b accepts them ,in satisfaction of his claim on A this payment is a discharged of the whole claim B can latter claim the balance Either (a) or (b) None of these 2 / 30 Q.29 In case of Novation Old contract need not be performed New contract must be performed Both (a) and (b) Neither (a) nor (b) 3 / 30 Q.28 A owes B Rs.10,000 .A enters into an agreement with B ,& gives B a mortgage of his estate for Rs.5,000 in place of the debt of Rs.10,000 this is a new contract & extinguishes the old the old contract still exists the new contract is invalid any of the above 4 / 30 Q.27 If the parties to a contract agree to substitute a new contract for it ,or to rescind or alter it the original contract need not be performed the original contract becomes void the original contract becomes voidable the original contract becomes illegal 5 / 30 Q.26 A contract is discharged by the operation of law by the death of the promiser by the insolvency of promisor Either (a) or (b) any of the above 6 / 30 Q.25 Where neither party makes any appropriation, the payment shall be applied is discharge of the debts in order of time is discharge of the debts as desired by the promisor is discharge of the debts as desired by the promisee any of the above 7 / 30 Q.24 where there is no stipulation as to payment of any particular debt the creditor may apply it at his discretion to any lawful debt due by the debtor the creditor shall apply it at his discretion of the debtor the creditor shall apply it at his discretion of the debtor to any debt not time-barred any of the above 8 / 30 Q.23 where a debtor ,owing several distinct debts to one person ,makes a payment to him either with express intimation ,or under circumstances implying ,that the payment to be applied to the discharge of some particular the payment if accepted ,must be applied to that particular debt the payment if accepted ,may be applied to any debt the payment if accepted ,may be applied to the first debt None of these 9 / 30 Q.22 an agreement to do an impossible act is void is voidable is void ab-initio becomes void when impossibility is discovered 10 / 30 Q.21 Prior to the date of performance ,if the promisor refuses to perform ,it is called abandonment of contract remission of contract actual breach of the contract Anticipatory breach of contract 11 / 30 Q.20 A,a singer ,enters into contract with B , the manager of a theatre,to sign at his theatre two nights in every week during next two months for Rs.100 for each night's .on the sixth night A willfully absent herself from the theatre B is at liberty to put an end to the contract B cannot put an end to the contract B must put an end to the contract None of these 12 / 30 Q.19 A contracts with B to supply certain goods at B's warehouse by 15th may and B agrees to pay on delivery. Both of them may agree to modify the terms, say, delivery on 18th may and payment one week since delivery. The original contract is discharged by alteration of contract novation of contract remission of contract Rescission of contract 13 / 30 Q.18 On the performance of obligation by the parties to the contract the contract is discharged the contract becomes void the contract becomes unenforceable None of these 14 / 30 Q.17 In case death of the promisor, the contract involving personal skills Will be performed by promisor's legal representative Will be performed by promisors agent Will come to end Will be performed by window of the promisor 15 / 30 Q.16 Acceptance by the promisee of a lesser fulfillment of the promise made is called alteration novation rescission remission 16 / 30 Q.15 Alteration When all or some of the terms of the contract are cancelled When all or some of the terms of the contract are modified by mutual consent of parties Acceptance of lesser fulfillment of the promise made New contract substituted for an existing one between same parties 17 / 30 Q.14 The mutual consideration for discharge by rescission is A promise by the promisee not to claim damages A promise by the promisor not to cailm damages A promise not to demand performance from each other The discharge of the original contract 18 / 30 Q.13 Substitution of a new contract in place of an existing contract is called alteration novation rescission remission 19 / 30 Q.12 Cancellation of the contract by any party or all the parties to a conract is called alteration novation rescission remission 20 / 30 Q.11 Which of the following is /are void ? 1. Agreement in restraint of legal proceedings. , 2. Agreement to stifle prosecution, 3. Agreement by an outgoing partner with his partner not to carry on any business within a specified period or within specified local limits, 4. Contingent Contract 1 & 2 2 & 3 3 & 4 1 & 4 21 / 30 Q.10 A contract is discharged by rescession which means the Cancellation of the existing contract Change in one or more terms of the contract Abandonment of the rights by a party Acceptance of lesser performance 22 / 30 Q.9 In discharge is contract by novation ,the consideration for the new contract is the discharge of the original contract to be separately identified to be decided by the parties All of the above 23 / 30 Q.8 For discharge of a contract by Novation ,consent of ___is required majority parties to the original contract all the parties to the original contract at least two of the parties to the original contract any one of the above 24 / 30 Q.7 Novation of a contract under Indian contract act means cancellation of contract alteration of contract the renewal of original contract substitution of a new contract in place of original contract 25 / 30 Q.6 Section ______of the Indian contract act deals with 'agreement in restraint of legal proceedings ' 26 27 28 29 26 / 30 Q.5 Novation can be made by change in the terms of the contract change in the contracting parties Either (a) or (b) neither (a) nor (b) 27 / 30 Q.4 In which of the ways can a contract be discharged by impossibility of performance ? initial impossibility supervening or subsequent impossibility Either (a) or (b) neither (a) nor (b) 28 / 30 Q.3 A contract stands discharged by performance by breach of the contract by agreement & novation All of these 29 / 30 Q.2 Partial recession of a contract occurs where the original contract is varied by rescinding some terms of the contract substituting new terms for those rescinded adding new terms without any rescinding the original terms All of these 30 / 30 Q.1 A creditor agrees with his debtor & a third party to accept that third party as his debtor the contract is discharged by performance alteration waiver remission Your score is LinkedIn Facebook Twitter VKontakte