Assignment

1.What takes place when a party breaks the contract by refusing to perform his promise?
a.Suit for rescission
b.Suit for damage
c.Breach of contract
d.Void contract

2.Bailee, in absence of any special contract, is not responsible for the loss, destruction, deterioration of the thing bailed if he has taken care of it. This right is provided by:
a.Section 151
b.Section 152
c.Section 155
d.Section 156

3.A guarantees to C for B's credit purchases with a balance of account not exceeding Rs.10000. this is a _________ guarantee.
a.Limited
b.Unlimited
c.Specific
d.Continuing

4.Which of the following is not a part of a valid contract of indemnity?
a. The contract of indemnity must contain all the essentials of a valid contract
b. It is a contract between more than two parties
c. The loss may be caused by the conduct of promisor
d. The contract of indemnity may be implied

5.Ahmed contracts to supply cement to Basit on 10 March. Basit agrees to pay the price on receipt of goods. Ahmed does not supply on due date. What maximum possible Basit can do according to Contract Act?
a.Basit can refuse to pay
b.Basit can rescind and claim damages
c.Basit shall grant new date for delivery
d.Basit shall do nothing as contract is automatically void

6.A delivers his horse to B for safe custody. The horse becomes sick and B spends Rs.500 on medical expenses. Which of the following fits best in this situation?
a.B is responsible for the sickness of horse
b.B is not responsible for the sickness of horse
c.B can recover medical expense from A
d.B can not recover medical expense from A

7. An order of court restraining a person from doing something which he promised not to do is called _________.
a.Quantum meruit
b.Specific performance
c.Special damages
d.Injunction

8. X takes a loan of Rs.5000 from Y on guarantee of Z. Which of the following parties are engaged in the contract of a guarantee?
a.X and Y
b.X and Z
c.Y and Z
d.X, Y and Z

9. A monetary compensation allowed to injured party for the loss suffered by him as a result of breach of contract is known as _________.
a. Fine
b. Relief
c. Benefits and compensations
d. Damages

10. A buys a TV from TV shop and asks the shopkeeper to keep it with him for 2 hours so that A may buy other things from market. Shopkeeper is now holding TV as __________.
a.Bailee
b.Bailor
c.Bailment
d.Owner

11. Which section of contract act illustrates that anything done for the benefit of principal debtor may be sufficient consideration to surety for giving guarantee.
a.Section 124
b.Section 125
c.Section 126
d.Section 127

12. On the request of B, A promises to employer of B that if B commits a fraud, he shall be liable for that. This is an example of ________.
a.Indemnity
b.Guarantee
c.Secondary contract
d.Surety

13. Suit for specific performance is filed in which of the following cases?
a.Where compensation in money is not an adequate remedy
b.When an arrangement becomes subsequently void
c.When contract is divisible
d.When an indivisible work is badly performed

14. The person who promises to compensate the loss caused by him is called __________.
a.Promisee
b.Indemnifier
c.Indemnity holder
d.Indemnified

15. When parties to a contract fix the amount of damages for the breach of contract at the time of formation of contract, these are called _________ damages.
a.Nominal
b.Special
c.Liquidated
d.Exemplary

16. G guarantees K for payment of 5 bags of wheat purchased by C. C makes payment. Later C again purchases 5 bags of wheat and did not pay.
a.K can sue G to pay liability
b.C can transfer his liability to G
c.G is liable because of the guarantee
d.G is not liable because of specific guarantee

17. Sajid delivers a piece of cloth to tailor to make a suit. Which contract exists between Sajid and tailor?
a.Bilment
b.Guarantee
c.Indemnity
d.No contract is existing or needed

18. A agrees to sell B his painting, but commits breach. What is possible in this case?
a.B can sue for damages
b. A shall be ordered to carry out the contract
c.Monetary compensation should be provided to B
d.Both painting and monetary compensation should be provided to B

19. A delivers his car to B for repair. Which of the following is not true in this case?
a.The possession of car transfers from A to B
b.Ownership of car transfers from A to B
c.Ownership of car does not transfer from A to B
d.None of the statements is true

20. Which section of Contract Act dispenses with fine distinctions between the claim for damages based on the principle of liquidated damages and those imposed by way of penalty?
a.Section 72
b.Section 73
c.Section 74
d.Section 75.