TN Board 11th Commerce Important Questions Chapter 30 Performance of Contract

Students get through the TN Board 11th Commerce Important Questions Chapter 30 Performance of Contract which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 30 Performance of Contract

Very short answer questions

Question 1.
What is attempted performance?
Answer:
When the party offers to perform his obligation, it is not accepted by the promisee. So, it is also called the offer to performance or tender. Hence, a valid tender of performance is considered to be the performance of a promise.

Question 2.
Who is a third person?
Answer:
According to Section 41, if a promisee accepts the performance of the promise by a third person he cannot afterward enforce it against the promisor.

Question 3.
What are Representations?
Answer:
A contract that involves the use of personal skill or it is found on personal considerations, comes to an end if the promisor dies. Of course, in the case of other contracts, the legal representatives Of a deceased promisor are bound to perform the contract Section 37.

Question 4.
Explain the time and place of performance of the promise.
Answer:
It is only the promisee for Whom the contract is performed. Only the promisee can demand the performance of the promise under a contract.

Short answer questions

Question 1.
What is the appropriation of payments?
Answer:
Sometimes, a debtor owes several distinct debts to the same creditor and he makes a payment that is insufficient to satisfy all the debts. In such a case, a question arises as to which particular debt the payment is to be appropriated. Section 59 to 61 of the Act lays down the following rules as to the appropriation of payments which provide an answer to this question.

Question 2.
What is mutual and dependent?
Answer:
Where the performance of the promise by one party depends upon the prior performance of promise by the other party, the promises are conditional and dependent. For example, A agrees to construct a building for B. B agrees to supply cement for the construction. Hence A’s promise to perform depends on B’s promise.

Question 3.
Explain the appropriation as per express instructions.
Answer:
Appropriation as per express Instructions:
Every debtor who owes several debts to a creditor has a right to instruct his creditor to which particular debt, the payment is to be appropriated or adjusted. Therefore, where the debtor expressly states that the payment is to be applied to the discharge of a particular debt, the. payment must be applied accordingly.

Question 4.
Write a short note on the Devolution of Joint Rights.
Answer:
“When a person has made a promise to two or more persons jointly, then unless there is a contract to the contrary, the right to claim performance rests as between him and them, with them during their joint lives and after the death of them with representatives of such deceased person jointly with survivors, and after the death of the last survivor, with the representatives of all jointly”.

Question 5.
Explain – Promisee.
Answer:
Only a promisee can demand performance and not a stranger demand performance of the contract.

Question 6.
What do you mean by mutual and concurrent?
Answer:
Where the two promises are said to be performed simultaneously. They are said to be mutual and concurrent.

Long answer questions

Question 1.
What is the essentials of a valid tender of performance?
Answer:
A tender, to be valid, must satisfy the following essential requirements

1. It must be unconditional.
2. It must be for the whole obligation and must not be in installments if the contract requires in full.
3. It must be by a person who is in a position and willing to perform the promise.
4. It must be at the proper time and place.
5. It must be in proper form.
6. It must be made to a proper person i.e. to the promisee or his authorized agent.
7. In the case of the tender of goods, the promisee must be given a reasonable opportunity to inspect the goods.
8. It may be made to one of the several joint promisees.

For Own Thinking

1. To identify the performance and distinguish the performance as actual or attempted.
Answer:

1. When the party has done what he had undertaken to do. It is called actual – performance.
2. When the party offers to perform his obligation. Itisnotacceptedbythepromisee, so it is called an offer to perform.

2. To understand the time and place of performance, so that the contract is established to be discharged or not.
Answer:

1. If the promise is to be performed on a certain day, the promisor may undertake the perform it without application of promise.
2. However, the promise should be performed at the place where it was required to be performed.

For Future Learning

1. Suggest ways by which the nature of the performance of a contract can be categorized.
Answer:

1. Apromisor is to perform his promise within a reasonable time.
2. On the other hand, a reasonable time will depend upon the circumstances of the case.

2. To identify those who are involved in the process of performance of a contract and their legal status.
Answer:

1. The contract should be performed by the promisor by himself. He is like a legal representative.
2. A contract that is not of personal nature may be performed by an agent who is likely a promisor.

Multiple-choice questions

1. Indian contract act lays down that “When ………. or more persons have made a joint promise.
(a) one
(b) two
(c) three
(d) five
Answer:
(b) two

2. Promises which form consideration or part of the consideration for each other are called:
(a) reciprocal promise
(b) promisor alone
(c) agent
(d) all the above
Answer:
(a) reciprocal promise

3. Where the two promises are said to be performed simultaneously they are said to be?
(a) Mutual and dependent
(b) Mutual and independent
(c) Mutual and concurrent
(d) Become’s Void
Answer:
(c) Mutual and concurrent

4. What are Reciprocal promises types?
(a) One
(b) Two
(c) Three
(d) Five
Answer:
(b) Two

5. Whether they are or are not based on the limitation act:
(a) 1963
(b) 1973
(c) 1983
(d) 1993
Answer:
(a) 1963

6. Application of payment where debt to be discharged is not indicated if section:
(a) 85
(b) 80
(c) 70
(d) 60
Answer:
(d) 60

7. If section 60 is attracted the ………… shall have the discretion to apply for such payment.
(a) debtors
(b) creditors
(c) owners
(d) bankers
Answer:
(b) creditors

8. The payment shall be applied in discharge of each of these ………… proportionately.
(a) debt
(b) credit
(c) bank overdraft
(d) bills payable
Answer:
(a) debt

9. A contract that involves the use of personal skill or it is found on personal considerations comes to an end if the dies.
(a) promisor
(b) agent
(c) promise
(d) legal representative
Answer:
(a) promisor

10. It must be made to a proper person to the promises or his authorized:
(a) agent
(b) promisor
(c) promise
(d) legal representation
Answer:
(a) agent

11. Exception to stronger to a contract:
(a) third party
(b) legal representative
(c) promise
(d) promisor
Answer:
(a) third party