Students should practice Performance of a Contract – CA Foundation Business Law MCQ Questions with Answers based on the latest syllabus.
Performance of a Contract – Business Law MCQ Questions with Answers
1. Where a party to a contract fails to perform at or before a specified time and it was the intention of the parties that time should be of the essence,
(a) The contract becomes voidable
(b) The contract does not become voidable but the aggrieved party is entitled to compensation
(c) The contract becomes void
(d) None of these
Answer:
(a) The contract becomes voidable
2. A owes B ₹ 1,000 but the debt is barred by the Limitation Act. A signs a written promise to B for ₹ 500 on account of the debt. This is a :
(a) Valid contract
(b) Voidable contract
(c) Void contract
(d) Unenforceable agreement
Answer:
(a) Valid contract
3. A contracts with B to construct a building for a fixed price, B supplying the necessary timber. This reciprocal promise is :
(a) Mutual and Independent
(b) Mutual and Dependent
(c) Mutual and Concurrent
(d) None of the above
Answer:
(b) Mutual and Dependent
4. A contract of personal nature can be performed by:
(a) The promisor
(b) The agent
(c) The legal representative
(d) None of the above.
Answer:
(a) The promisor
5. Liability of the joint promisor is :
(a) Joint
(b) Several
(c) Joint and several
(d) None of the above
Answer:
(c) Joint and several
6. If neither the debtor nor the creditor appropriates the payment, the payment will be appropriated:
(a) As per the desire of the promisor
(b) As per the desire of the promisee
(c) In order of time
(d) None of the above.
Answer:
(c) In order of time
7. Agreement by way of wager are ________.
(a) Valid and enforceable by law
(b) Void
(c) Voidable at the option of party
(d) Illegal
Answer:
(b) Void
8. A, a singer enters into a contract with B, the manager of a theatre to sing at his theatre two nights in every week during the next two months and B engages to pay her ₹ 100 for each night’s performance. On the sixth night, A wilfully absents herself from the theatre.
(a) B is at liberty to put an end to the contract
(b) B cannot put an end to the contract
(c) The contract is left at the liberty of A
(d) None of these
Answer:
(a) B is at liberty to put an end to the contract
9. A and B contract to marry each other before the time fixed for the marriage. A goes mad. The contract becomes:
(a) Void
(b) Voidable
(c) Unenforceable
(d) None of these
Answer:
(a) Void
10. If a contract is based on personal skill or confidence of parties, the death of a party in such a case:
(a) Puts an end to the contract
(b) Does not put an end to the contract
(c) The representatives of the deceased can be made liable to perform such a contract
(d) None of these
Answer:
(a) Puts an end to the contract
11. A modification or revocation of the contract requires a ________ of each contracting party.
(a) Denial
(b) Consensus
(c) Modification
(d) Revocation
Answer:
(b) Consensus
12. If the performance of contract becomes impossible because the subject matter of contract has ceased to exist then :
(a) Both the parties are liable
(b) Neither party is liable
(c) Only offerer is liable
(d) Only acceptor is liable
Answer:
(b) Neither party is liable
13. A doctor teaching in a medical college pre-vented from doing private practice, such a restriction is :
(a) Valid
(b) Partial lawful
(c) Unlawful
(d) Partial Unlawful
Answer:
(a) Valid
14. A contracts to sing for B for a consideration of ₹ 5,000 which amount is paid in advance. A becomes unwell and is not able to perform. B suffers a loss of ₹ 10,000. A is liable to pay B ________.
(a) ₹ 15,000
(b) ₹ 10,000
(c) ₹ 5,000
(d) Nothing
Answer:
(c) ₹ 5,000
15. A promises to deliver goods at B’s warehouse on the 1st January. On that day, A brings the goods to B’s warehouse but after the usual hour for closing it and they are not received. Which one of the following is correct?
(a) A has not kept his promise
(b) A kept his promise as time was not specified
(c) A performs his duty as the time is not the essence of the contract
(d) All of these
Answer:
(a) A has not kept his promise
State Whether The Following are True or False:
- When a promisee neglects to give the promisor reasonable facilities for the performance of a promise, the promisor is still liable for performance.
- Under the Contract Act the liability of joint promisors is joint as well as several.
- A contract involving the exercise of personal skill, volition or credit can also be performed by an agent or a legal representative.
- A debtor sends a payment but the creditor refuses to accept it. Even then the debtor is not discharged from the debt.
- The promisee may compel any one of the joint promisors to perform the promise.
- A debtor while making the payment expressly informs the creditor that the payment should be applied to particular debt, the creditor is not bound to do so.
- A release of one promisor does not discharge the other joint promisors.
- In a contract where time is the essence of the contract, if the promisor fails to perform in time, the contract becomes void.
- A legal representative of a deceased promisee can demand performance of a contract under all circumstances.
- In the absence of the debtor’s intimation to the creditor regarding appropriation of a payment, the creditor can utilise the payment even towards payment of a time-barred debt.
- In case of joint promise by two or more persons, the promisee may compel any of such joint promisors to perform the whole of the promise.
- If a party to a contract has promised to do certain things, at a particular time, and fails to do by that time, the contract shall become voidable at the option of the promisee.
- Performance of the contract may be made only by the parties to the contract.
- If one of the joint promisors is made to perform the whole contract, he can ask for equal contribution from others.
- The burden of the contract cannot be assigned without the consent of the other party or parties of the contract.
- A promise under a contract can be performed by the promisor himself.
- When the promisee does not accept the offer of performance, the promisor is not responsible for the non-performance.
- Payments made by a debtor are always appropriated in a chronological order.
- If the promisees are joint, the right to claim performance is joint and not joint and several.
- It is mixed question of law and fact whether time was the essence of the contract.
Answer:
- False
- True
- False
- True
- True
- False
- True
- False
- False
- True
- True
- True
- False
- True
- True
- False
- True
- False
- False
- True