The Indian Contract Act, 1872 – Remedies of Breach of Contract 0 The Indian Contract Act, 1872 - Remedies of Breach of Contract 1 / 30 Q.30 Incase there is a breach of contract by one party, the other party may rescind the contract and need not perform his part of obligations under the contract, this is called ------------- of the contract. rescission progression rejection termination 2 / 30 Q.29 Mr. A enter life insurance contract with X and co. On death A, X and co. refuses to pay A's wife .What legal remedy does A's wife have ? A's wife can recover whole amount A's wife cannot recover money as she was not a party to contract A's wife can recover only part amount None of the above 3 / 30 Q.28 Exemplary damages are awarded In case of the breach of a promise to marry In case of a wrongful dishonor of a cheque by a banker In case of a wrongful dishonor of a cheque by a drawer Are given by way of punishement for the breach of a contract 4 / 30 Q.27 When a contract has been broken ,the party who suffers by such breach is entitled for receive ,from the other party compensation from any loss that arises naturally in the usual course of business compensation from any loss that the party knew at the time of contract such compensation is payable for any remote & indirect loss All of these 5 / 30 Q.26 Quantum maruit means a non-gratuitous promise an implied promise as much as is earned are given by way of punishment for the breach of a contract 6 / 30 Q.25 A agrees to deliver 100 bags of sugar to to B at a certain price on 1st September. If A refuses or fails to deliver the goods on 1st September, there is an Actual breach on the due date of performance anticipatory breach on the due date of performance actual breach during the course of performance are given by way of punishment for the breach of a contract 7 / 30 Q.24 P filed a suit against Q for the breach of contract and P incurred Rs. 5,000 as cost of suit. Then, P can can claim cost of suit not claim cost of suit follow court's decision are given by way of punishment for the breach of a contract 8 / 30 Q.23 Restitution Agreement the meaning of which is uncertain Returing the benefit received under void contract Contract dependent on something else Agreement to pay money or moneys worth on the happening or non-happening of an uncertain event 9 / 30 Q.22 R ,T & K jointly borrowed Rs.2,00,000 from F by executing a promissory note.T & K are not traceable. F wants to recover the entire amount from R .R objected this move by saying he is liable to pay 1/3 of the debt only .Which of the following statements is correct ? F can recover the entire amount from R F can only recover 1/3 of Rs.2,00,000 from R F cannot recover any amount from R The promissory note is not executable against R as T & K are not traceable. 10 / 30 Q.21 M a popular singer ,enters into a contract with the manager of a theatre , to sing at the theatre two evenings a week for the next 2 months & the manager of the theatre agrees to pay him at the rate of Rs.1,000 for each performance. From the sixth evening onwards ,M absents himself from the theatre.In this context ,which of the following remedies is /are available to the manager of the theatre against M ? He is at liberty to put an end to the contract He cannot put an end to the contract Both (a) & (c) He is entitled to compensation for damages sustained by him through M on his failure to sing from the sixth evenings onwards 11 / 30 Q.20 Ordinary damages are damages Which arise in the usual course of action form the beach Which are the contemplation of parties at the time when the contract is made are agreed in advance are given by way of punishment for the breach of a contract 12 / 30 Q.19 If the damage which were ought to be prevented were not prevented by the aggrieved party, the aggrieved party can claim damages not claim damages follow court's decision are given by way of punishment for the breach of a contract 13 / 30 Q.18 A , B & C jointly promised to pay Rs.60,000 to D .A was completed by D to pay the entire amount of Rs.60,000.Here A can file a suit against D for recovery of amount exceeding his shares A is entitle to recover Rs.20,000 each from B & C On the payment by A ,the contract is discharged & B & C are also not liable to A D is not justified here ,& is liable to refund the entire amount to A 14 / 30 Q.17 Generally ,Which of the following damages are not recoverable ? Ordinary damages Special damages Remote damages are given by way of punishment for the breach of a contract 15 / 30 Q.16 Sometimes ,a party is entitled to claim compensation in the proportion to the work done by him. it is possible by a suit for Damages Injuction Quantum meruit are given by way of punishment for the breach of a contract 16 / 30 Q.15 In the case of breach of the contract , which of the following remedies is not available to the aggrieved party ? Suit for Recession Suit for damages Suit for specific performance damage by way of punishment for the breach of a contract 17 / 30 Q.14 In the case of anticipatory breach ,the aggrieved party may treat the contract As discharged & bring an immediate action for damages As operative & wait till the time for performance arrives Exercise option either (a) or (b) only option (a) is available 18 / 30 Q.13 When prior to the due date of performance, the promisor absolutely refuses to perform the contract ,it is known as Abandonment of the contract Remission of contract Actual breach of contract Anticipatory breach of contract 19 / 30 Q.12 Only those persons who are parties to a contract can sue & be sued upon the contract .the rule is known as doctrine of promissory estoppels right of privilege suit privity of contract rights in rem 20 / 30 Q.11 When there is breach of contract ,special damages are awarded only when there are special circumstances only when there is special loss only when there is a notice of the likely special loss in all cases 21 / 30 Q.10 In case of anticipatory breach ,the damages will be assessed from the date on which the breach occurred promised date of performance date the court instructs date as desired by the parties 22 / 30 Q.9 Quantum maruit is not applicable i.e. ,there is no right to sue when contract is indivisible into pats & a lump sum is to be paid on completion of total work person claiming compensations himself guilty of breach work is performed gratutiously,i.e there is no evidence of promise to pay for work done All of these 23 / 30 Q.8 Damages awarded to compensate the injured party for the actual amount of loss suffered by him for breach of contract are called General damages special damages vindictive damages Nominal damages 24 / 30 Q.7 M promised to pay N for his service at his M sole discretion found to be fair & reasonable .however ,N dissatisfied with payment made by M wanted to sue him N's suit will be valid invalid restricted only to payment of remuneration & not damages restricted only to damages & not remuneration 25 / 30 Q.6 An anticipatory breach does not give any right to claim compensation TRUE Partly True FALSE None of these 26 / 30 Q.5 A party entitled to rescind the contract is also entitled to receive the compensation from the defaulting party TRUE Partly True FALSE None of these 27 / 30 Q.4 When price is to be fixed by the third party & the third party does not make such valuation ,the other party may sue for damages sue for specific performance sue for cost sue for goodwill 28 / 30 Q.3 A timber merchant agreed to supply best teak at a certain agreed price to a builder .Later the merchant supplied timber which was identified as ordinary class of timber & demanded the payment from the builder .Which of the following statement (s) is / are correct ? Builder can reject the goods & can claim damages Builder has to pay the price by taking delivery of Teak Wood Builder has to accept the goods Timber merchant cannot plead the doctrine of caveat emptor 29 / 30 Q.2 A purchased a refrigerator on hire purchase from B & pledge with C .D purchased a refrigerator from C in good faith ,on knowing the facts B wants to recover the refrigerator from D .Which of the following statement (s) is / are correct ? B can recover the refrigerator from D B can recover the refrigerator from A only B cannot recover the refrigerator from D D will get the goods title for the refrigerators as he bought it in good faith 30 / 30 Q.1 A sold a tin of disinfectant powder to K without warning knowing fully that if the tin was not opened with care , it will likely to cause injury . K was injured while opening the tin .Which of the following statement (s) is / are correct ? A is not liable to K under the doctrine of caveat emptor A is liable for the damages A has no duty to disclose the facts to K The buyer has the responsibility to enquire about all the things before purchasing the goods Your score is LinkedIn Facebook Twitter VKontakte