Business Law MCQ on Discharge of a Contract: Check the below Business Law MCQ on Discharge of a Contract with Answers Pdf free download. Business Law MCQ on Discharge of a Contract Questions for Business Law with Answers were prepared based on the latest exam pattern. We have provided Business Law MCQ on Discharge of a Contract with Answers to help students understand the concept very well.

Business Law MCQ on Discharge of a Contract

1. Specific performance is ordered where:
(a) the contract is of personal nature
(b) monetary compensation is an adequate remedy
(c) monetary compensation is not an adequate remedy
(d) performance is illegal

2. An injunction order is granted by the Court in case:
(a) specific performance of the contract is possible
(b) specific performance of the contract is impossible
(c) the Court wants to restrain a party from committing a breach of contract
(d) the contract is against public interest

3. Ordinary damages will be awarded in cases where ______.
(a) The loss naturally flows from the breach of contract
(b) The loss is remotely connected with the breach of contract
(c) The loss is unusual and arises out of special circumstances peculiar to the contract
(d) None of these

4. In the Indian Contract Act, Novation means ______.
(a) Substitution of an existing contract with a new one
(b) No frustration of executed contracts
(c) Frustration due to change of circumstances
(d) Impossibility does not mean mere commercial difficulty

5. Where the parties to a contract have agreed that a certain sum of money would be paid in case of breach of contract, the Court will ensure that _______.
(a) The exact amount mentioned in the contract is paid to the injured party
(b) An amount not exceeding the stipulated amount is awarded
(c) Reasonable compensation not exceeding the amount stipulated is awarded
(d) A sum exceeding the amount stipulated is awarded

6. Hadley v. Baxendale case is a leading case on _________.
(a) Breach of implied term
(b) Anticipatory breach
(c) Law of damages
(d) None of these

7. The word ‘impossible’ in section 56 connotes _________.
(a) Physical impossibility
(b) Literal impossibility
(c) Commercial impossibility
(d) Impracticability of performance

8. The remedies open to a person, suffering from breach of contract are _________.
(a) Damages
(b) Injunction
(c) Quantum Meruit
(d) All of the above

9. In the case of wrongful dishonour of a cheque by a banker the damages awarded will be _________.
(a) Nominal
(b) Special
(c) Exemplary
(d) Ordinary

10. Where the parties to a contract agree to substitute a new contract for it, it is known as _________.
(a) Injunction
(b) Novation
(c) Rescission
(d) Alteration

11. If loss or damage arose naturally and directly in the usual course of things from a breach of contract, the aggrieved party would be eligible for _________.
(a) Special damages
(b) Nominal damages
(c) Ordinary damages
(d) Exemplary damages

12. Anticipatory breach of contract takes place when there is _________.
(a) Breach of contract when performance is actually due
(b) Breach of contract in the course of performance of the contract
(c) Breach of contract prior to the date of performance
(d) None of the above

13. A party to a contract committing breach, is liable to pay compensation in respect of _________.
(a) The direct consequences flowing from the breach
(b) Loss or damage caused indirectly
(c) Losses caused whether directly or indirectly
(d) Losses caused remotely

14. Impossibility of performance occurs due to:
(a) Strike
(b) Lock-out
(c) Partial failure of object
(d) Destruction of subject-matter

15. Object of granting damages is:
(a) to penalize the party
(b) to monetarily compensate the party
(c) to set an example before the society
(d) none of the above

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By Team Learning Mantras