Breach Of Contract MCQ Quiz in తెలుగు - Objective Question with Answer for Breach Of Contract - ముఫ్త్ [PDF] డౌన్‌లోడ్ కరెన్

The correct answer is all of the above

Key Points There are four types of breaches exist:

a) Minor Breach: A minor breach, also sometimes called an immaterial breach or partial breach, is a situation where the important aspects of a contract were received but some small part of the obligation was missed.

b) Material Breach: A material breach of contract is considered the most severe type of a breach. Typically, his type of breach involves a key element of a contract not being either undertaken or provided as agreed.

c) Anticipatory breach of contract: An anticipatory breach is when one of the parties to the contract acknowledges that they won’t be able to fulfill their side of the contract by the agreed upon time.

d) Actual Breach: The fourth and final breach on our list is also the most common way a contract gets breached. An actual breach of contract is it comes time for one party to deliver on their side of the contract and they either improperly or incompletely perform their duties.

Where the compensation to be paid on breach is the genuine pre- estimate of the prospective damages, it is known as liquidated damages. Refer Section 73-75 of ICA.

Explanation to Section 73 of the Indian Contract Act, 1872. In estimating the loss or damage arising from a breach of contract, the means which existed of remedying the inconvenience caused by the non-performance of the contract must be taken into account.

Answer: C (Damages that resulted from natural and probable consequences of breach of contract are known as general damages. They are the damages that the law presumes from the breach of the contract. The objective of general damages is to compensate the affected party and its intention was not to punish. They are granted for the actual loss suffered by the affected party.)

The correct answer is Hadley v. Baxendale.

Key Points

• This case talks about the remoteness of damage in contracts.
• In Hadley v. Baxendale, (1854) 9 Ex 341, two rules were laid down:

1. General damages- those which arise naturally in the usual course of things from the breach itself. This rule is 'objective' as it makes the liability to depend upon a 'reasonable man's foresight' of the loss that will naturally result from the breach.
2. Special damages- those which arise on account of the unusual circumstances affecting the plaintiff. They are not recoverable unless the special circumstances are brought to the knowledge of the defendant so that the possibility of the special loss was in the 'contemplation of the parties'. This rule is 'subjective' as the extent of liability depends upon the actual knowledge of the parties at the time of the contract about the likely result of the breach.

Additional Information

• Section 73 (Compensation for loss or damage caused by breach of contract)—When a contract has been broken, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract, to be likely to result from the breach of it. Such compensation is not to be given for any remote and indirect loss or damage sustained by reason of the breach.
• (Compensation for failure to discharge obligation resembling those created by contract)—When an obligation resembling those created by contract has been incurred and has not been discharged, any person injured by the failure to discharge it is entitled to receive the same compensation from the party in default, as if such person had contracted to discharge it and had broken his contract.
• Explanation.—In estimating the loss or damage arising from a breach of contract, the means which existed of remedying the inconvenience caused by the non-performance of the contract must be taken into account.

The correct answer is Option 3.

Key Points

• Section 34 of the Act states that when the event of the contract is contingent and is deemed impossible based on human conduct in the future. In the case of Frost v. Knight, (1872), a contract was formed stating that the defendant must marry the plaintiff after the death of the father. However, the defendant during the lifetime of the father married another woman. Hence, the future conduct of the defendant made the contract to be performed impossible thereby leading to breach of contract.

Additional Information

• Section 32 of the Act lays down two basic principles. First, a contract to do an act on the happening of the uncertain future conditions can only be enforced once the event takes place or as contemplated by the contract. Second, if the happening of the event becomes impossible then the contract is void. 
• Section 33 of the Act states that the enforcement of the contract depends upon the non-happening of the event. Under such circumstances when the event can no longer happen then only the performance can be demanded.
• Section 35 of the Act states that when a contract is contingent, it becomes void or impossible on the happening of an event within the specified time or at the expiration of the time fixed or before the time fixed. Moreover, such a contingent contract may be enforceable on the non-happening of an event within the specified time.

The correct answer is Option 4.

Key PointsBreach of contract is defined as the violation of any terms and conditions that can bind a contract. There can be different reasons for breach such as late payments, a serious violation of any law or failure to deliver a particular asset. 

There can be various remedies for breach of contract.

• Suit for Rescission 
  • When one of the involved parties breaches the contract then another party can choose to disobey conditions given in the contract. In case one of the parties participating in the contract does not obey the rules then it stands cancelled. The concerned parties can file a legal case for the damages that occurred. This suit is preferred to obtain damages that occurred and act as a remedy for breach of contract.
• Suit for Injunction 
  • When the court gives the restraining order it is known as an injunction. The court can ask a person not to do a certain specific act. In case a person performs an act even after the injunction the aggrieved party can file a case for the injunction. The suit can be temporary or permanent depending upon the condition of the aggrieved parties. 
• Suit for performance
  • When the court gives a particular remedy for breach of contract to both the parties involved so that they can perform the activities according to the contract. Suit for performance is one of the most common suits. 
• Suit for the Quantum Meruit 
  • Quantum Meruit is defined as those contracts signed for the reasonable values of services. When an employer hires a particular individual for an activity and if it is left incomplete or is not performed properly then the employer can file this suit. Additionally, the law also states that the employer must pay the employee the amount for the services performed. In case the employee is under the express contract for a certain specific amount then they cannot abandon the contract and the suit for the quantum meruit is applied.
• Suit for damages 
  • Ordinary damages: It occurs when the damages occur naturally through the breach. 
  • Liquidated damages and penalties: In certain specific cases some contracts can address the breaching conditions and penalties related to it. If such contracts break then the party causing the breach must pay the amount mentioned in the contract to the other concerned party. 
  • Special damages: The concerned party must prove that it loses according to the contract and claim the damages.
  • Nominal damages: It is a small remedy given in certain specific cases for the breach. 
  • Vindictive damages: This breach addresses the mental and emotional suffering of the concerned party. Generally, legal procedures such as court may take care of these cases.