Business law 

MCQs: Discharge of contract

1. Acceptance by the promisee of a lesser fulfillment of the promise made is called: 

(a) alteration 

(b) rescission  

(c) waiver  

(d) remission  

2. Where the performance of a contract becomes subsequently impossible or unlawful, the contract becomes 

(a) Illegal 

(b) voidable 

(c) void 

(d) none of these 

3. In case the goods are sold on credit, a debt is discharged by lapse of time if debt is not recovered within 

(a) 3 years from the date of grant of credit 

(b) 3 years from the date of expirty of credit period 

(c) 12 years from the date of expirty of credit period 

(d) none of these 

4. A contract has become more difficult to performance due to some uncontemplated events or delays. The contract: 

(a) is discharged  

(b) becomes void 

(c) is not discharged 

(d) becomes voidable 

5. Mr. X lends Rs. 10000 to Mr. Y. He later tells Y that he need not repay the amount, the contract is discharged by: 

(a) breach 

(b) novation  

(c) waive  

(d) performance 

6. X undertakes to paint a picture for Y. He dies before he paints the picture. The contract 

(a) is discharged by death 

(b) becomes voidable at the option of Y 

(c) becomes voidable at the option of the legal representatives of X 

(d) will have to be performed by the legal representatives of X 

7. A creditor agrees with his debtor and a third party to accept that third party as his debtor contract is discharged by

(a) performance 

(b) waiver 

(c) rescission 

(d) alteration  

8. If an agreement contains an undertaking to perform an impossibility, the agreement is:  

(a) void ab initio 

(b) void 

(c) voidable at the option of the plaintiff  

(d) illegal 

9. An agreement to do an act impossible in itself: 

(a) is void 

(b) is voidable 

(c) is void ab initio 

(d) becomes void when impossibility is discovered  

10. Discharge of contract by anticipatory breach of contract takes place: 

(a) when the performance is due 

(b) before the performance is due 

(c) when any party has performed a part of the contract and then refuses or fails to perform the remaining part of the contract 

(d) none of these 

11. A contract is discharged: 

(a) when all the parties perform their promises 

(b) when performance of contract becomes impossible 

(c) when one party makes a breach of contract 

(d) in all of the above cases 

12. A contract is said to be discharged by rescission 

(a) when parties to a contract are changed  

(b) when terms of a contract are altered 

(c) when an aggrieved party exercises his option to avoid the contract 

(d) when a party to a contract waives his rights under the contract 

13. Discharge of contract means: 

(a) performing the promise by a party  

(b) Discharge of obligations under a contract by a party 

(c) Discharge or performance of obligations under a contract by a party to it 

(d) performing or extinguishing obligations under a contract by all the parties. 

14. A party stands discharged from his liability under a contract. 

(a) when the party performs the promise 

(b) when other party waives his rights  

(c) when the party dies and the contract involves personal skill 

(d) in all of the above cases 

15. When a party to a contract refuses to perform the contract before the date of performance, it is called 

(a) actual breach of contract 

(b) express breach of contract 

(c) anticipatory breach of contract  

(d) frustration of contract  

16. A contract is discharged by alteration: 

(a) when a new contract is substituted for the existing one  

(b) when one or more of the terms of contract are changed 

(c) when a party waives his rights under the contract 

(d) when a party rescinds the contract 

17. A contract is discharged by remission: 

(a) when a party waives all his rights under a contract 

(b) when a party cancels an existing contract 

(c) when a party accepts lesser performance in discharge of a whole obligation  

(d) when a party makes novation of a contract 

18. A contract is discharged by impossibility of performance 

(a) when impossibility existed at the time of mation of contract  

(b) when impossibility arises after making a contract 

(c) when impossibility of performance was known to both the parties at the time of making the contract 

(d) both (a) and (c)  

19. A contract is said to have been frustrated 

(a) when subject matter of the contract is destroyed after making the contract 

(b) when some commercial hardship arises 

(c) when workers go on strike  

(d) when the performance of contract becomes very difficult  

20. Where a contract could not be performed because of the default by a third person on whose work the promisor relied, it  

(a) is not discharged 

(b) becomes void  

(c) is discharged  

(d) becomes voidable 

21. Agreement does not become void where initial impossibility is  

(a) known to both the parties  

(b) to promisor only 

(c) unknown to both the parties 

(d) none of these  

22. Impossibility which does not exist at the time of making the contract but which arises subsequently after the formation of the contract is called   

(a) initial impossibility 

(b) supervening impossibility 

(c) all 

(d) none of these 

23. A contract is discharged by breach when a party to a contract 

(a) refuses to perform his promise  

(b) fails to perform his promise  

(c) disables himself from performing his part of the promise  

(d) does any of the above  

24. In case of anticipatory breach of contract, the aggrieved party has the option: 

(a) to treat the contract as discharged  

(b) to treat the contract as breached and file a suit against the party for beach of contract 

(c) to treat the contract alive and wait for performance till the agreed date of performance 

(d) either (b) or (c) above 

25. A contract is discharged by novation: 

(a) when a new contract is substituted in place of an existing one 

(b) when an existing contract is rescinded 

(c) when some of the conditions of the contract are changed  

(d) when all the parties to the contract are changed