Business law 

MCQs:  Remedies For Breach Of Contract 

1. In case of actual breach of a contract if performance beyond stipulated tie is accepted: 

(a) the promisee can not claim compensation even if he gives notice of his intention to do so  

(b) the promisee can claim compensation even if he does not give notice of his intention to do so  

(c) the promisee can claim compensation if he gives notice of his intention to do so 

(d) none of these  

2. Penalty is 

(a) a fair and genuine pre-estimate of the damages I kely to result due to breach 

(b) a sum disproportionate to the damages likely to result due to breach 

(c) nor specified at the time of formation of contract 

(d) not enforceable in india 

3. The damages which can be awarded even if the aggrieved party has not suffered any loss, are called 

(a) ordinary damages  

(b) special damages 

(c) exemplary damages  

(d) nominal damages 

4. In case of breach of contract, the aggrieved party is entitled to claim 

(a) liquidated damages or penalty whichever is higher  

(b) actual compensation or penalty whichever is higher 

(c) actual compensation or liquidated damages whichever is higher  

(d) reasonable compensation not exceeding the specified sum 

5. The special damages, i.e. the damages which arise due to some special or unusual circumstances  

(a) are illegal being punitive in nature 

(b) are not recoverable altogether  

(c) cannot be claimed as a matter of right 

(d) can be claimed as a matter of right 

6. Specific performance may be ordered by the court when 

(a) the contract is voidable  

(b) damages are an adequate remedy 

(c) the contract is uncertain 

(b) damages are not an adequate remedy 

7. Suit for specific performance means 

(a) demanding the court's direction to the defaulting party to carry out the promise according to the term of the contract  

(b) demanding court in order prohibiting a person to do a particulars act 

(c) none of these 

(d) all 

8. The damages which can be claimed only when the special circumstances are communicated to the promisor are called: 

(a) ordinary damages  

(b) special damages 

(c) nominal damages 

(d) exemplary damages 

9. The foundation of modern law of damages was laid down in:  

(a) Tinn v. Hoffman 

(b) Hadley v. Baxendale 

(c) Taylor v. Caidwell 

(d) Addis v. Gramophone Co 

10. The measure of damages in case of breach of a contract is the difference between the  

(a) contract price and the market price at the date of breach 

(b) contract price and the maximum market price during the term of the contract 

(c) contract price and the price at which the plaintiff might have sold the goods 

(d) contract price and the price fixed by court  

11. In case of breach of contract, which of the following remedy is available to the aggrieved party? 

(a) suit for rescission 

(b) suit for specific performance  

(c) suit for damages 

(d) all of these 

12. Suit for injuction means 

(a) demanding the court's direction to the defaulting party to carry out the promise according to the term of the contract  

(b) demanding court in order prohibiting a person to do a particular act 

(c) all 

(d) none of these 

13. In case of a wrongful dishonour of a cheque by a banker having sufficient funds to the credit of the customer, the cort may award. 

(a) ordinary damages 

(b) nominal damages 

(c) exemplary damages  

(d) contemptuous damages 

14. An aggrieved party can claim ordinary damages: 

(a) when he has suffered damages by breach of contract  

(b) when the damages have arisen in the usual course of things by breach of contract 

(c) when there is a possibility of damages in the usual course of things 

(d) in the case of (a) and (b) above 

15. The aggrieved party may claim damages for breach of contract 

(a) ordinary damages 

(b) special damages 

(c) remote and indirect damages  

(d) both (a) and (b) above 

16. Breach of contract occurs: 

(a) when any one party to the contract fails or refuses to perform his obligations under the contract 

(b) when anyone party disables himself from performing his part of his contract  

(c) when anyone party makes the performance of the contract impossible by his own acts  

(d) in any one of the above cases 

17. In case of breach of contract, the aggrieved party may avail the remedies of: 

(a) rescission of contract 

(b) novation of the contract 

(c) caliming damages 

(d) both (a) and (c) above 

18. Special damages can be claimed by the aggrieved party:  

(a) where he has brought to the notice of the other party the special circumstances of the case at the time of contract 

(b) where he has brought to the notice of the other party the special circumstances of the case at any time before the breach of the contract 

(c) where he presumed that the other party has knowledge of special circumstances of the case 

(d) in all the above cases 

19. Anticipatory breach of a contract takes place 

(a) during the performance of the contract  

(b) at the time when the performance is due  

(c) before the performance is due 

(d) at the time when the contract is entered into 

20. An aggrieved party may not use the right of rescission of a contract  

(a) when a third party has acquired rights in good faith before rescission of the contract 

(b) when he has ratified contract  

(c) when a party seeks rescission of a part of a contract 

(d) in all of the above cases 

21. The court may grant rescission where the contract is  

(a) Voidable at the option of the plaintiff  

(b) void 

(c) unenforceable 

(d) illegal 

22. In case of anticipatory breach, the aggrieved party may treat the contract 

(a) as discharged and bring an immediate action for damages 

(b) as operative and wait till the time for performance arrives 

(c) exercise option either (a) or (b) 

(d) only option (a) is available 

23. While measuring the damages for breach of contract, the aggrieved party is required to prove

(a) that he has suffered loss due to the breach of contract  

(b) he has taken all reasonable steps to minimize the loss 

(c) he has informed the other party the possibility of loss 

(d) both (a) and (b) above 

24. The court may enforce specific performance of contract:

(a) when no standard for measuring actual damages exists 

(b) when the monetary compensation can not be considered as adequate 

(c) when the specific performance of the contract runs into minute details  

(d) in the cases (a) and (b) above 

25. The claim on the basis of doctrine of "quantum meruit" may arise: 

(a) when the contract is terminated by breach 

(b) when something has been done non-gratuitously 

(c) when the contract is divisible 

(d) in all of the above cases 

26. It is true with regard to the claim of damages: 

(a) that usually damages actually suffered are allowed  

(b) that sometimes a court may award nominal damages 

(c) that the smaller the amount of cheque dishonoured, the greater the loss of reputation 

(d) all of the above 

27. In case of an anticipatory breach of the contract, the aggrieved party:

(a) must rescind the contract and claim damages for breach of contract without waiting until the due date for performance 

(b) must treat the contract as operative and wait till the due date for performance and claim damages if the promise still remains under-formed 

(c) both (a) and (b) 

(d) none of these 

28. In case of anticipatory breach of contract, if the promisee decides not to rescind the contract, the contract shall remain alive for the benefit of: 

(a) promisor only  

(b) both the promisor and aggrieved party  

(c) aggrieved party only 

(d) none of these 

29. In case of actual breach of a contract, where the time is the essence of contract, the contract becomes:

(a) illegal 

(b) voidable 

(c) void 

(d) none of these 

30. When prior to the due date of performance, the promisor absolutely refuses to perform the contract, it is known as: 

(a) abandonment of contract 

(b) actual breach of contract  

(c) remission of contract 

(d) anticipatory breach of contract