Discharge of a Contract - Business Law MCQs

Ordinary damages will be awarded in cases where _________.

• The loss naturally flows from the breach of contract

• The loss is remotely connected with the breach of contract

• The loss is unusual and arises out of special circumstances peculiar to the contract

• None of these

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 _________.

• The exact amount mentioned in the contract is paid to the injured party

• An amount not exceeding the stipulated amount is awarded

• Reasonable compensation not exceeding the amount stipulated is awarded

• A sum exceeding the amount stipulated is awarded

The word 'impossible' in section 56 connotes _________.

• Physical impossibility

• Literal impossibility

• Commercial impossibility

• Impracticability of performance

In the case of wrongful dishonour of a cheque by a banker the damages awarded will be _________.

• Nominal

• Special

• Exemplary

• Ordinary

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 _________.

• Special damages

• Nominal damages

• Ordinary damages

• Exemplary damages

Anticipatory breach of contract takes place when there is _________.

• Breach of contract when performance is actually due

• Breach of contract in the course of perfor-mance of the contract

• Breach of contract prior to the date of performance

• None of the above

Impossibility of performance occurs due to:

• Strike

• Lock-out

• Partial failure of object

• Destruction of subject-matter.

Object of granting damages is:

• to penalize the party,

• to monetarily compensate the party,

• to set an example before the society,

• none of the above.

Specific performance is ordered where:

• the contract is of personal nature,

• monetary compensation is an adequate remedy,

• monetary compensation is not an adequate remedy,

• performance is illegal.

An injunction order is granted by the Court in case:

• specific performance of the contract is possible.

• specific performance of the contract is impossible.

• the Court wants to restrain a party from committing a breach of contract.

• the contract is against public interest.