McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 401. |
A borrowed ` 1,000 from B. A dies before paying back the loan. Can B recover the amount from A's legal representative? |
| A. | No, B cannot recover |
| B. | Yes, subject to any estate left by him |
| C. | B can recover even if no estate is left |
| D. | None of the above |
| Answer» B. Yes, subject to any estate left by him | |
| 402. |
An anticipatory repudiation has the effect of |
| A. | Automatically putting an end to the contract |
| B. | Putting an end to the contract only on acceptance of the repudiation by the other party |
| C. | Putting an end to the contract only on failure to perform when performance is due |
| D. | Not putting an end to the contract |
| Answer» B. Putting an end to the contract only on acceptance of the repudiation by the other party | |
| 403. |
The law regarding Novation, i.e., where a new contract is substituted in place of the old one by means of an agreement between the parties to a contract or between them and a third party, is contained in |
| A. | Sec. 62 |
| B. | Sec. 52 |
| C. | Sec. 64 |
| D. | Sec. 65 |
| Answer» A. Sec. 62 | |
| 404. |
Ordinary damages will be awarded in cases where |
| A. | The loss naturally flows from the breach of contract |
| B. | The loss is remotely connected with the breach of contract |
| C. | The loss is unusual and arises out of special circumstances peculiar to the contract |
| D. | None of these |
| Answer» A. The loss naturally flows from the breach of contract | |
| 405. |
The law relating to damages is spelt out in -------- of the contract Act. |
| A. | Sec. 75 |
| B. | Sec. 73 |
| C. | Sec. 71 |
| D. | Sec. 65 |
| Answer» B. Sec. 73 | |
| 406. |
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 |
| A. | The exact amount mentioned in the contract is paid to the injured party |
| B. | An amount not exceeding the stipulated amount is awarded |
| C. | Reasonable compensation not exceeding the amount stipulated is awarded |
| D. | A sum exceeding the amount stipulated is awarded |
| Answer» C. Reasonable compensation not exceeding the amount stipulated is awarded | |
| 407. |
A, dealing in baby foods, sends samples by train for being exhibited at a Consumer Product's Show which fact was made known to the rail way company. The goods reached the destination after the show was over. A sued the railway company for damages. A will be entitled to |
| A. | Ordinary damages |
| B. | No damages |
| C. | Exemplary damages |
| D. | Special damages |
| Answer» D. Special damages | |
| 408. |
A stipulation in a contract in the nature of penalty is |
| A. | enforceable only under Indian law |
| B. | enforceable only under English law |
| C. | enforceable only under English and Indian laws |
| D. | none of these |
| Answer» D. none of these | |
| 409. |
Stipulations in a contract providing for enhanced rate of interest from date of default of payment of principal or compound interest are considered to be in the nature of |
| A. | Liquidated damages |
| B. | Penalty |
| C. | Unliquidated damages |
| D. | None of these |
| Answer» B. Penalty | |
| 410. |
The word 'impossible' in section 56 connotes |
| A. | Physical impossibility |
| B. | Literal impossibility |
| C. | Commercial impossibility |
| D. | Impracticability of performance |
| Answer» D. Impracticability of performance | |
| 411. |
A and B contract to marry each other. Before the time fixed for the marriage A goes mad. The contract is |
| A. | Valid |
| B. | Void |
| C. | Voidable |
| D. | Valid till avoided by B |
| Answer» B. Void | |
| 412. |
A agrees to pay `5,000 for each article written by B, a famous author and the contract was for writing 10 articles in a year. B wrote 4 articles and A did not want him to write the other 6 articles for which B has prepared notes. In this case : |
| A. | B cannot recovery anything |
| B. | B can recover `50,000 |
| C. | B should first write 10 articles and then claim damages |
| D. | B can claim `20,000 for 4 articles published (4 X 5000) and compensation for preparation of notes on |
| Answer» D. B can claim `20,000 for 4 articles published (4 X 5000) and compensation for preparation of notes on | |
| 413. |
Unliquidated damages connote |
| A. | Ordinary and special damages |
| B. | Exemplary damages |
| C. | Nominal damages |
| D. | All of these |
| Answer» D. All of these | |
| 414. |
In the case of wrongful dishonour of a cheque by a banker the damages awarded will be |
| A. | Nominal |
| B. | Special |
| C. | Exemplary |
| D. | Ordinary |
| Answer» C. Exemplary | |
| 415. |
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 |
| A. | Special damages |
| B. | Nominal damages |
| C. | Ordinary damages |
| D. | Exemplary damages |
| Answer» C. Ordinary damages | |
| 416. |
Where there is an infringement of a contractual right, but no actual loss has been suffered, the Court will award |
| A. | Nominal damages |
| B. | Special damages |
| C. | Exemplary damages |
| D. | Ordinary damages |
| Answer» A. Nominal damages | |
| 417. |
Anticipatory breach of contract takes place when there is |
| A. | Breach of contract when performance is actually due |
| B. | Breach of contract in the course of performance of the contract |
| C. | Breach of contract prior to the date of performance |
| D. | None of the above |
| Answer» C. Breach of contract prior to the date of performance | |
| 418. |
In case of remote and indirect loss or damage sustained by reason of breach of contract, the aggrieved party is entitled to |
| A. | Ordinary damages |
| B. | Special damages |
| C. | No damages |
| D. | Exemplary damages |
| Answer» C. No damages | |
| 419. |
Impossibility of performance occurs due to: |
| A. | Strike |
| B. | Lock-out |
| C. | Partial failure of object |
| D. | Destruction of subject-matter |
| Answer» D. Destruction of subject-matter | |
| 420. |
By pre-contractual impossibility an agreement becomes: |
| A. | Voidable |
| B. | Void |
| C. | Valid |
| D. | Illegal |
| Answer» B. Void | |
| 421. |
Object of granting damages is: |
| A. | to penalize the party, |
| B. | to monetarily compensate the party, |
| C. | to set an example before the society, |
| D. | none of the above. |
| Answer» B. to monetarily compensate the party, | |
| 422. |
Specific performance is ordered where: |
| A. | the contract is of personal nature, |
| B. | monetary compensation is an adequate remedy, |
| C. | monetary compensation is not an adequate remedy. |
| D. | performance is illegal. |
| Answer» C. monetary compensation is not an adequate remedy. | |
| 423. |
An injunction order is granted by the Court in case: |
| A. | specific performance of the contract is possible |
| B. | specific performance of the contract is impossible. |
| C. | the Court wants to restrain a party from committing a breach of contract. |
| D. | the contract is against public interest. |
| Answer» C. the Court wants to restrain a party from committing a breach of contract. | |
| 424. |
The doctrine of frustration is covered by which section of the Indian Contract Act? |
| A. | Section 46 |
| B. | Section 48 |
| C. | Section 56 |
| D. | None of these |
| Answer» C. Section 56 | |
| 425. |
In the Indian Contract Act, Novation means |
| A. | Substitution of an existing contract with a new one |
| B. | No frustration of executed contracts |
| C. | Frustration due to change of circumstances |
| D. | Impossibility does not mean mere commercial difficulty |
| Answer» A. Substitution of an existing contract with a new one | |
| 426. |
When there is breach of contract, special dam ages are awarded |
| A. | Only when there are special circumstances |
| B. | Only when there is special loss |
| C. | Only when there is a notice of the likely special loss |
| D. | In all cases |
| Answer» C. Only when there is a notice of the likely special loss | |
| 427. |
Hadley v. Baxendale case is a leading case on |
| A. | Breach of implied term |
| B. | Anticipatory breach |
| C. | Law of damages |
| D. | None of these |
| Answer» C. Law of damages | |
| 428. |
Damages which arise naturally in usual course of things from breach itself are called |
| A. | Special damages |
| B. | Liquidated damages |
| C. | Unliquidated damages |
| D. | General damages |
| Answer» D. General damages | |
| 429. |
In case of breach of contract, the Indian law awards damages |
| A. | To make good for the profit which may have been earned but for the breach |
| B. | Which arose naturally or which parties knew to be likely when they entered into the contract |
| C. | To penalise the defaulter |
| D. | To compensate for mental anxiety and physical loss caused by the breach |
| Answer» B. Which arose naturally or which parties knew to be likely when they entered into the contract | |
| 430. |
In case of anticipatory breach, the damages will be assessed |
| A. | From the date on which the breach occurred |
| B. | From the promised date of performance |
| C. | From the date the court instructed |
| D. | None of these |
| Answer» A. From the date on which the breach occurred | |
| 431. |
If the compensation to be paid on breach of contract is the genuine pre-estimate of the prospective damages, it is known as |
| A. | Penalty |
| B. | Liquidated damages |
| C. | Unliquidated damages |
| D. | Special damages |
| Answer» B. Liquidated damages | |
| 432. |
A stipulation for increased interest from the date of default is known as |
| A. | Compensation |
| B. | Penalty |
| C. | Liquidated damages |
| D. | Damage |
| Answer» B. Penalty | |
| 433. |
In a contract of debt when a sum is expressed to be payable on a certain date and a further sum is stipulated to be payable in the event of default, then latter sum is by way of |
| A. | Liquidated damages |
| B. | Penalty |
| C. | Special damages |
| D. | None of the above |
| Answer» B. Penalty | |
| 434. |
The damages awarded by way of punishment are called |
| A. | Special damages |
| B. | Ordinary damages |
| C. | Exemplary or indicative damages |
| D. | None of these |
| Answer» C. Exemplary or indicative damages | |
| 435. |
The remedies open to a person, suffering from breach of contract are |
| A. | Damages |
| B. | Injunction |
| C. | Quantum Meruit |
| D. | All of the above |
| Answer» D. All of the above | |
| 436. |
The provisions regarding the measure of damages for breach of contract are laid down in |
| A. | Section 71 of the Contract Act |
| B. | Section 72 of the Contract Act |
| C. | Sections 73 to 75 of the Contract Act |
| D. | Section 78 of the Contract Act |
| Answer» C. Sections 73 to 75 of the Contract Act | |
| 437. |
Where the parties to a contract agree to substitute a new contract for it, it is known as |
| A. | Injunction |
| B. | Novation |
| C. | Rescission |
| D. | Alteration |
| Answer» B. Novation | |
| 438. |
The rule of impossibility is contained in |
| A. | Section 56 of Indian Contract Act |
| B. | Section 59 of Indian Contract Act |
| C. | Section 60 of Indian Contract Act |
| D. | Section 62 of Indian Contract Act |
| Answer» A. Section 56 of Indian Contract Act | |
| 439. |
In the matter of liquidated damages |
| A. | The plaintiff is entitled to recover the agreed amount to compensation for the loss suffered |
| B. | The plaintiff is not entitled to recover the agreed amount of compensation for the loss suffered |
| C. | The plaintiff is entitled to recover the agreed amount of compensation without having to prove the exact loss suffered |
| D. | The plaintiff is entitled to recover the agreed amount of compensation and has to prove the exact loss suffered |
| Answer» C. The plaintiff is entitled to recover the agreed amount of compensation without having to prove the exact loss suffered | |
| 440. |
A person, who sues for damages, under the law of contract |
| A. | Has a duty to mitigate the loss consequent upon the breach of contract |
| B. | Has no duty to mitigate the loss consequent upon the breach of contract |
| C. | Can claim damages for the sum inclusive of the amount of loss due to his negligence |
| D. | Has entire discretion in the matter |
| Answer» A. Has a duty to mitigate the loss consequent upon the breach of contract | |
| 441. |
The first case on the 'doctrine of frustration' as decided by the Supreme Court of India is |
| A. | Basanti Bastralaya v. River Steam Navigation Co. Ltd. |
| B. | Raja Dhuruv Dev Chand v. Raja Harmohinder Singh |
| C. | Sushila Devi v. Hari Singh |
| D. | Satyabrata Ghosh v. Mugneeram |
| Answer» D. Satyabrata Ghosh v. Mugneeram | |
| 442. |
A party who suffers loss as a result of breach of contract, can, in the usual course, claim |
| A. | Ordinary damages |
| B. | Special damages |
| C. | Exemplary damages |
| D. | Penal damages |
| Answer» A. Ordinary damages | |
| 443. |
A party to a contract committing breach, is liable to pay compensation in respect of |
| A. | The direct consequences flowing from the breach |
| B. | Loss or damage caused indirectly |
| C. | Losses caused whether directly or indirectly |
| D. | Losses caused remotely |
| Answer» A. The direct consequences flowing from the breach | |
| 444. |
A party who does not suffer any loss in case of breach of contract, is entitled to |
| A. | Statutory damages |
| B. | Liquidated damages |
| C. | Exemplary damages |
| D. | Nominal damages |
| Answer» D. Nominal damages | |
| 445. |
Which one of the following is relevant in normal circumstances in determining the amount of damages for breach of contract? |
| A. | Normally expected loss |
| B. | Difference between market price and contract price |
| C. | Sudden closure of production |
| D. | Additional expenses for procuring the goods |
| Answer» A. Normally expected loss | |
| 446. |
Which one of the following statements explains correctlv the law of frustration? |
| A. | Frustration is the result of appellant's own choice |
| B. | The legal effect of frustration depends on the intention of the promisor |
| C. | Frustration does not exterminate the contract for all purposes |
| D. | Waiver of frustration by one party does not bind the other party (promisor) for the remaining part of the contract |
| Answer» D. Waiver of frustration by one party does not bind the other party (promisor) for the remaining part of the contract | |
| 447. |
In India, the doctrine of impossibility of performance rendering contracts void is based on |
| A. | The theory of implied term |
| B. | The theory of just and reasonable solution |
| C. | Supervening impossibility as laid down in I Section 56 of the Indian Contract Act |
| D. | Principle of unjust enrichment |
| Answer» C. Supervening impossibility as laid down in I Section 56 of the Indian Contract Act | |
| 448. |
If the performance of contract becomes impossible, because of a supervening event, the promisor is excused from the performance. This is known as |
| A. | Doctrine of estoppels |
| B. | Doctrine of frustration |
| C. | Doctrine of eclipse |
| D. | Doctrine of Caveat emptor |
| Answer» B. Doctrine of frustration | |
| 449. |
Damages awarded with a view to punish the party who commits the breach of contract are known as |
| A. | Liquidated damages |
| B. | Punitive damages |
| C. | Special damages |
| D. | General damages |
| Answer» B. Punitive damages | |
| 450. |
The code governing sale of goods was earlier contained in |
| A. | the Indian Contract Act |
| B. | the Transfer of Property Act |
| C. | the Hire Purchase Act |
| D. | None of the above |
| Answer» A. the Indian Contract Act | |
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