Tag: commerce

Questions Related to commerce

A contract can be discharged by __________.

  1. frustration of the contract

  2. performance of the contract

  3. both (a) & (b)

  4. neither (a) nor (b)


Correct Option: C

_________ signifies that the parties are not further bound under the contract.

  1. Waiver of a Contract

  2. Breach of a Contract

  3. Rescission of a Contract

  4. Discharge of a Contract


Correct Option: D

When both the parties have decided to cancel the contract, it is known as _______ .

  1. remission

  2. novation

  3. rescission

  4. none of the above


Correct Option: C

X & Y entered into an agreement to buy an imported car for Rs. 30,000. Later on they cancelled the agreement. This is known as ______ .

  1. recission

  2. merger

  3. waiver

  4. remission


Correct Option: A

Rescission of a Voidable Contract may also be revoked and the parties can get back on the original contract.

  1. True

  2. Partly true

  3. False

  4. None of the above


Correct Option: A

Damages which an aggrieved party claims, besides general damages for any loss he has suffered owing to special circumstances known to both the parties at the time of signing the contract are called ________.

  1. vindictive damages

  2. nominal damages

  3. general damages

  4. special damages


Correct Option: D

To claim reimbursement of money paid on behalf of another person, which of the following is not required? 

  1. There should be some legal or other coercive process compelling the payment.

  2. Original liability should be of another person.

  3. Payment must be made to a third party to whom the another party was liable.

  4. The payment must be voluntary


Correct Option: D

In case of necessaries supplied to a person incompetent to contract, which of the following is true?

  1. Only the property (movable and immovable) of the incapable person shall be liable.

  2. The incapable person cannot be held liable personally.

  3. Where the incapable person does not own any property, nothing shall be payable.

  4. All of the above


Correct Option: D

Surety may be discharged from liability:

X. By notice of revocation of guarantee
Y. On the failure of payment by the main creditor
Z. If the creditor does any act which is against the rights of the surety
Correct option is ____.

  1. X and Y

  2. Y and Z

  3. X and Z

  4. X, Y and Z.


Correct Option: C

A person incurred expenses of RS. 5,000 for the necessaries supplied to a Minor. Which of the following is true?

  1. Cannot claim the expenses.

  2. Minor can be held liable for the necessaries supplied to him.

  3. It is not a valid claim.

  4. None of the above


Correct Option: B