Students get through the TN Board 11th Commerce Important Questions Chapter 31 Discharge and Breach of a Contract which is useful for their exam preparation.
TN State Board 11th Commerce Important Questions Chapter 31 Discharge and Breach of a Contract
Very short answer questions
What are the types of remedies for injured parties?
There are various types of remedies for the injured parties listed as follows:
- Recission of Contract,
- Claim for Specific Performance,
- Claim for Injunction,
- Claim for Quantum Merit and
- Claim for Damages.
What is a claim for specific performance?
In some specific cases if the damages are not the adequate remedy, then the court can direct the party in breach for the specific performance of the contract. In such a case, the promise is carried out as per the terms and conditions of the contract.
What are the types of damages?
There are mainly four types of damages, such as-
- Ordinary damages,
- Special damages,
- Vindictive or exemplary damages and
- Nominal damages.
What is the types of injunction case?
- If the contract is voidable,
- If the contract becomes void, or
- On discovering the contract as void.
Write a short note on recission of the contract?
In case of breach of contract by one party, then the other parties may rescind the contract and thereby the party is absolved from all obligations under this contract.
Short answer questions
Explain the agreement on consent?
Agreement between the parties comes to an end by mutually agreeing for it. Any contract is created by an agreement, hence in the same way, it can be discharged by an agreement. In this connection, the rule of law is as follows.
“Eodem modo qus and quide constituitor, eodem modo destruitur,” the meaning of which is that a thing may be destroyed in the same manner, in which, it is constituted. The consent may be of the following types
Express: Express consent may be given at the time of formation of the contract or subsequent to its formation.
Implied: The contracts are also discharged by implied consent, different modes of discharge by implied consent are:
- Accord and Satisfaction,
- Waiver and
What is the lapse of time?
According to the Limitation Act, 1963 a contract must be performed within a specified time. If it is not performed within this specified time limit and against which if no action is taken by the promisee in the. Court of Law within a specified time, then the promisee is deprived of his remedy at law. In such cases, the contract is discharged.
Name the contracts that can be contract discharged by law.
- By death,
- By merger.
- By Insolvency.
- Unauthorized alternation of the terms of a contract.
- Rights and Liabilities vesting in the same person.
Long answer questions
Explain the contract discharged by the operation law.
- By Death: If the contracts depend on the personal skill or ability, then such contract may be discharged on the death of the promisor
- By Merger: Merger will take place when an inferior right accruing to the same party either under the same or another contract.
- By Insolvency: An insolvent is discharged from all liabilities incurred prior to his adjudication.
- Unauthorized Alteration of the Terms of a Contract: If one party makes any material alteration in the contract without the consent of the other party, then the other party can avoid the contract.
- Rights and liabilities vesting in the same person: Where the right and liability become vested in the same person, the other parties are discharged.
For Own Thinking
1. To draw inference about the nature of the contract and legal ways of discharging it.
- Performance implies carrying out the obligation of the contract.
- Performance must be completed according to die real intentions of the agreement, performance must be done according to the time and manner prescribed.
2. To understand the modes of discharge of contract.
To explain two modes of discharge of contract.
Merger: Two or more contracts combined together to form a contract and discharge of contract.
For Future Learning
1. To interpret the consequence of the breach of performance of a contract.
All parties to a contract are expected to perform their promises when one party refuses to perform his promise. Then the breach of contract takes place.
2. Illustrate with example the modes of discharge of contract and if not discharged the consequences.
Recission of contract: In case of breach of contract by one party then the other parties may rescind the contract and thereby the party is absolved from all obligations under the contract.
3. To foresee the suitability of remedies for breach of contract violation of which leading to legal consequences.
Remedies of breach of contract for that to claim damages.
Ordinary damages: Damages that arise in the ordinary course of events from, the breach of contract are called ordinary damages.
eg: Annie contracted to sell and deliver Bala 100 bags of Dhall at Rs. 3000 per bag and price to be paid at the time of delivery.
The price of Dhall is raised to Rs. 4000 per bag and Annie refused to sell the dhall. Bala can claim damages at the rate of Rs. 1000 per bag.
1. Performance of contract may be of ………. types.
2. Impossibility existing at the time of:
(b) formation of contract
3. A contract can be discharged by the law.
(a) commercial law
(b) operation law
(c) civil law
(d) criminal law
(b) operation law
4. Where the right and liability become vested, in the same person the:
(a) one party
(b) two parties
(c) other parties
(d) third parties
(c) other parties
5. Right and ………. vesting in the same person.
(d) current asset
6. They are various types of remedies for the injured parties listed as:
7. The contract and thereby the party is absolved from all obligations under the contract:
(a) rescission of contract
(b) claim for injunction
(c) claim for damages
(d) claim for quantum merit
(a) rescission of contract
8. When it is probable that compensation in ……… cannot be received for the nonperformance of the act agreed to be done.
9. The contract made by a company ultra-virus of its ………. of association.
(b) articles of association
(d) all of the above
10. A party for breach of contract there are mainly ………. types.
11. The court may order injunction in the ………. types.
12. Section 73 of the Indian contract act: