Top 150+ Solved Business Laws and Special Contracts MCQ Questions Answer
Q. A contract is discharged by the breach when a party to a contract
a. refuses to perform his promise
b. fails to perform his promise
c. disables himself from performing his part of the promise
d. all of the above
Q. Which of the following is incorrect?
a. the impossibility to perform a promise discharges the contract
b. a merger discharges the contract
c. an initial impossibility discharges the contract
d. all of the above
Q. The doctrine of impossibility of performance, rendering a contract void, is based on
a. a commercial impossibility
b. a supervening impossibility
c. just and reasonable ground
d. an unjust enrichment
Q. Because of supervening event, the promisor is excused from the performance of the contract.This is known as
a. a doctrine of frustration
b. an initial impossibility
c. a doctrine of ultra-vires
d. an operation of law
Q. Which of the following is correct?
a. a novation means making a new contract in the place of an old contract
b. an alteration means making a new contract in the place of an existing one
c. the performance of a contract is not a method of discharge of contract
d. all of the above
Q. _________ indicates that the parties are not further bound under the contract
a. waiver of a contract
b. breach of a contract
c. rescission of a contract
d. discharge of a contract
Q. X contracts to sell his scooter to Y for Rs. 50,000 and Y agrees to pay on delivery. Both theparties perform their promises. This is called
a. a waiver
b. breach of a contract
c. an attempted performance of contract
d. an actual performance of a contract
Q. Assignment by the operation of law takes place
a. by the mutual consent of the parties
b. by the will of either party
c. when the subject matter of a contract ceases to exist
d. by the death of a party to a contract
Q. The original contract needs not to be performed, if there is
a. rescission of contract
b. novation of contract
c. alteration of contract
d. all of the above
Q. Rescission of a contract means
a. the termination of the contract
b. the renewal of the contract
c. the alteration of the contract
d. the substitution of the new contract in the place of the earlier one
Q. When the parties mutually agree to change certain terms of the contract. This is called
a. a rescission of the contract
b. the novation of a contract
c. an alteration of a contract
d. a remission of a contract
Q. If a person accepts a lesser sum of money than what was contracted for, in the discharge ofthe whole debt, it is known as
a. a waiver
b. a remission
c. an alteration
d. a rescission
Q. Intentional relinquishment of a right under the contract is called
a. a waiver
b. a breach
c. a rescission
d. an alteration
Q. Where a party to contract transfers his rights under the contract to another person, it is legallyknown as
a. novation of a contract
b. rescission of a contract
c. waiver of a contract
d. assignment of a contract
Q. Performance of a contract means
a. fulfilling all the obligations by the promisee
b. fulfilling all the obligations by the promisor
c. performing all the promises, and fulfilling all the obligations by all the parties
d. both (a) & (b)