Chapter 31: Discharge and Breach of a Contract — Online MCQ Test
COMMERCE · CLASS 11th · Tamil Nadu State Board
Practice Chapter 31: Discharge and Breach of a Contract with a free chapter-wise online MCQ test.
This chapter covers: Focusing on legal termination this chapter details modes of discharging contracts. Students examine remedies for contract breach including damage claims suits for specific performa....
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Chapter 31: Discharge and Breach of a Contract — Important Questions & Answers
What is meant by 'Discharge of a contract'?
- A. The formation of a contract
- B. The termination of the contractual relationship between parties
- C. The process of drafting a contract
- D. The breach of contract by one party
Answer: B. The termination of the contractual relationship between parties
Discharge of a contract means that the parties are no longer bound by the obligations created by the contract.
Discharge of a contract means that the parties are no longer bound by the obligations created by the contract.
Which of the following is NOT a mode of discharge of a contract?
- A. Discharge by performance
- B. Discharge by agreement
- C. Discharge by breach
- D. Discharge by mental intention
Answer: D. Discharge by mental intention
Mental intention is not a recognized legal mode of discharging a contract under the Indian Contract Act.
Mental intention is not a recognized legal mode of discharging a contract under the Indian Contract Act.
A contract is discharged by 'Novation' when:
- A. The old contract is cancelled without a new one
- B. A new contract is substituted for the existing one
- C. The terms are altered without changing parties
- D. One party dies
Answer: B. A new contract is substituted for the existing one
Novation involves the replacement of an existing contract with a new one, either between the same parties or with new parties.
Novation involves the replacement of an existing contract with a new one, either between the same parties or with new parties.
Ramesh contracts to sell his car to Suresh. Later, they decide to replace this contract with a new one involving Mahesh as the buyer. This is an example of:
- A. Rescission
- B. Alteration
- C. Novation
- D. Remission
Answer: C. Novation
Substituting a new party in an existing contract is a classic form of Novation.
Substituting a new party in an existing contract is a classic form of Novation.
Identify the scenario where a suit for 'Specific Performance' would likely be denied by the court:
- A. Sale of a unique painting
- B. Sale of a piece of land
- C. A contract for personal services like singing or painting
- D. Sale of a rare manuscript
Answer: C. A contract for personal services like singing or painting
Courts generally refuse specific performance for personal services as it is difficult to supervise and forces involuntary servitude.
Courts generally refuse specific performance for personal services as it is difficult to supervise and forces involuntary servitude.