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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.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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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.
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.
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.
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.
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.