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CA Foundation Breach of Contract and its Remedies — practice questions

Explore 69 free Breach of Contract and its Remedies questions in CA Foundation Businesslaw. Open each question or exercise to read its content, reference answers and available explanation.

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Breach of Contract and its Remedies questions and exercises with answers

Showing questions 1–30 of 69.

'Breach of contract' means:Read the answer and worked solution →A breach that occurs before the time fixed for performance has arrived is called:Read the answer and worked solution →Anticipatory breach may take place:Read the answer and worked solution →On an anticipatory breach, the aggrieved party may:Read the answer and worked solution →Under Section 73, 'ordinary damages' are those that:Read the answer and worked solution →Remote or indirect loss arising from a breach of contract is:Read the answer and worked solution →Nominal damages are awarded where:Read the answer and worked solution →A stipulated sum that is a genuine pre-estimate of the likely loss on breach is best described as:Read the answer and worked solution →The remedy of 'quantum meruit' means a claim for:Read the answer and worked solution →A claim on quantum meruit is available only if:Read the answer and worked solution →Where damages are not an adequate remedy, the court may order the defaulting party to actually carry out the contract. This remedy is:Read the answer and worked solution →A court order restraining a party from doing what he promised not to do (e.g. a singer performing elsewhere) is:Read the answer and worked solution →Which loss is recoverable under Section 73?Read the answer and worked solution →Section 73 refuses compensation for which kind of loss?Read the answer and worked solution →Besides natural loss, Section 73 allows loss that the parties knew was what?Read the answer and worked solution →A pays a debt late and B is financially ruined. A owes B what?Read the answer and worked solution →A breaches a cotton supply; B shuts his mill unknown to A. A's liability for it?Read the answer and worked solution →A agrees to sell B 50 quintals at Rs 2,000 each but defaults. Market price on due date is Rs 2,300. B's compensation?Read the answer and worked solution →A agrees to buy B's ship for Rs 60,000 and backs out. B sells it for Rs 52,000. A pays?Read the answer and worked solution →A is paid in advance to repair B's house but does it badly. B recovers?Read the answer and worked solution →A carrier delays a mill's machine. Which loss is recoverable?Read the answer and worked solution →B paid C damages for goods A warranted. B claims from A?Read the answer and worked solution →A buys 1,000 tons of iron from C at Rs 80 to resell to B at Rs 100, telling C so. C defaults; no other iron exists. C owes A?Read the answer and worked solution →In estimating loss from breach, which factor must be taken into account?Read the answer and worked solution →Failing an obligation resembling a contract gives the injured what?Read the answer and worked solution →Section 74 lets the injured party recover up to what limit?Read the answer and worked solution →Under Section 74, must actual loss be proved to claim the named sum?Read the answer and worked solution →A named Rs 1,000 for missing a Rs 500 payment, and missed. B gets?Read the answer and worked solution →Higher interest charged from the date of default may be seen as what?Read the answer and worked solution →A bond at 12% interest raises it to 75% on default. B recovers?Read the answer and worked solution →

Worked practice questions

'Breach of contract' means:

  1. Mutual cancellation of the contract
  2. Failure of a party to perform his obligation under the contract
  3. A change in the contract terms
  4. A lawful discharge by agreement
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Correct answer: B. Failure of a party to perform his obligation under the contract

Breach is the failure of a party to perform, or the refusal to perform, his obligation under the contract.

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A breach that occurs before the time fixed for performance has arrived is called:

  1. Anticipatory breach
  2. Nominal breach
  3. Actual breach
  4. Constructive discharge
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Correct answer: A. Anticipatory breach

Anticipatory breach (Section 39) is repudiation by the promisor before the due date of performance.

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Anticipatory breach may take place:

  1. Either expressly by words or impliedly by conduct
  2. Only expressly in writing
  3. Only by conduct
  4. Only after the due date
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Correct answer: A. Either expressly by words or impliedly by conduct

Anticipatory breach can be express (declared by words) or implied (shown by conduct, e.g. selling the promised goods to another).

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More Businesslaw topics

Negotiable Instruments Act 1881Nature of ContractsAgencyThe Limited Liability Partnership Act 2008PartnershipContract of Indemnity and GuaranteePerformance of ContractCompanies Act 2013