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

The correct answer is option 3.

Key Points

• Section 42 of Indian Contract Act- Devolution of Joint Liabilities
  • Joint Promise:

           This section applies when two or more persons have made a joint promise as part of a contract.

• Joint Lives:

            Unless the contract indicates a contrary intention, all parties to the joint promise are collectively responsible for fulfilling the promise during their joint lives.

• After Death of Any Party:

           After the death of any one of the parties to the joint promise, the legal representative of the deceased person becomes jointly responsible with the                         surviving parties to fulfill the promise.

• Survivorship:

          After the death of any party, the surviving parties, along with the legal representative of the deceased party, continue to be jointly responsible for fulfilling               the promise.

• Death of Last Survivor:

          After the death of the last surviving party, the representatives of all the parties must jointly fulfill the promise.

Additional Information

•  In essence, Section 42 of the Act establishes the principle that joint promises create joint liabilities that extend beyond the lifetime of any individual party involved.

The correct answer is Option 3.

Key Points

• Section 58 of the Indian Contract Act says, in the case of an alternative promise, one branch of which is legal and the other illegal, the legal branch alone can be enforced.
• In an alternative promise with one legal and one illegal branch, the legal principle dictates that the legal branch alone can be enforced. The illegal aspect of the promise is considered void and unenforceable. Therefore, the legal branch of the promise is upheld and can be enforced by the concerned parties or the court, while the illegal branch is disregarded in terms of enforcement. 

The correct answer is Option 3.

Key Points

• Section 42 of the Indian Contract Act deals with the devolution of joint liabilities.
• It says, when two or more persons have made a joint promise, then, unless a contrary intention appears by the contract, all such persons, during their joint lives, and, after the death of any of them, his representative jointly with the survivor or survivors, and, after the death of the last survivor, the representatives of all jointly, must fulfil the promise.
• In simpler words, in the case of a joint promise, all the involved persons are obligated to fulfill the promise jointly during their lives. After the death of any of them, the representatives of the deceased individual must fulfill the promise jointly with the survivor(s). Subsequently, after the death of the last survivor, the representatives of all involved parties jointly become responsible for fulfilling the promise. 

The correct answer is Option 2.

Key Points

• Section 37 of the Indian Contract Act deals with the obligation of parties to contract.
• It says, The parties to a contract must either perform, or offer to perform, their respective promises, unless such performance is dispensed with or excused under the provisions of this Act, or of any other law.
• Promises bind the representatives of the promisors in case of the death of such promisors before performance, unless a contrary intention appears from the contract.
• Promises in a contract bind the representatives of the promisors in case of the death of such promisors before performance, unless a contrary intention appears from the contract. This means that, by default, the representatives (such as heirs or legal successors) are obligated to fulfill the promises unless the contract specifies otherwise

The correct answer is Section 59.

Key Points

• Section 59 of the Indian Contract Act 1872 provides for the Application of payment where debt to be discharged is indicated.
• It states that —Where a debtor, owing several distinct debts to one person, makes a payment to him, either with express intimation, or under circumstances implying, that the payment is to be applied to the discharge of some particular debt, the payment, if accepted, must be applied accordingly.
• In England, it has been considered a basic rule since the case of Devaynes vs Noble, also known as Clayton’s case. In this, it was held that the debtor can request the creditor to appropriate the amount to any of the debt in case he owes to the creditor several and distinct debts, if the creditor agrees to it, then he is bound by it. 

The correct answer is A is entitled to receive 1500 rupees from B.

Key Points

• The above is an illustration from Section 43 of the Indian Contract Act, 1872.
• It states that any one of joint promisors may be compelled to perform—When two or more persons make a joint promise, the promisee may, in the absence of express agreement to the contrary, compel any one or more of such joint promisors to perform the whole of the promise.
• Each promisor may compel contribution—Each of two or more joint promisors may compel every other joint promisor to contribute equally with himself to the performance of the promise, unless a contrary intention appears from the contract.
• Sharing of loss by default in contribution—If any one of two or more joint promisors makes default in such contribution, the remaining joint promisors must bear the loss arising from such default in equal shares. 
• Explanation—Nothing in this section shall prevent a surety from recovering from his principal, payments made by the surety on behalf of the principal, or entitle the principal to recover anything from the surety on account of payments made by the principal.

The correct answer is Novation

Key Points The word 'novation' literally means to replace with a new contract and the same obligations are performed by different parties. Under novation, the liabilities under the existing contract are extinguished. The doctrine of novation is recognized under Section 62 of the Indian Contract Act, 1872.

The correct answer is Novation

Key PointsEx planation - When a contract is novated, the original contract ceases to exist and the parties have to follow the new contract. Section 62 of the Indian Contract Act states that “if the parties to the contract agree to substitute a new contract for it or to rescind it or alter it, the original contract need not to be performed.”

Essentials of Section 62 of the Indian Contract Act

• Consensus ad idem between the parties to a contract.
• There should be a previous contract entered into between the parties.
• Substitution, recession or alteration of a contract giving rise to a valid new contract.
• Termination of the original contract. 

Explanation - Under Sec. 59 of the Indian Contract Act, 1872, it is stated that if the debtor owes several debts to the creditor, and makes a payment to any of them and later requests the creditor to apply the payment to the discharge of a particular debt. If the creditor agrees to this request, he is bound by such appropriation. This section applies to several distinct debts and not to a single debt, or to various heads of one debt.

In England, it has been considered a basic rule since the case of Devaynes vs Noble, also known as Clayton’s case. In this, it was held that the debtor can request the creditor to appropriate the amount to any of the debt in case he owes to the creditor several and distinct debts, if the creditor agrees to it, then he is bound by it.

The correct answer is Sec. 56

Key Points

• Section 56 of the Indian Contract Act states:
  • An agreement to do an act impossible in itself is void.
  • A contract to do an act which becomes impossible, or by reason of some event which the promisor could not prevent, becomes unlawful after the contract is made, becomes void when the act becomes impossible or unlawful.
• Doctrine of Frustration:
  • The doctrine of frustration comes into play when performance of the contract becomes impossible due to events beyond the control of the parties.
  • This makes the contract void because the object of the contract can no longer be fulfilled.
  • It discharges the parties from further obligations.
• Examples:
  • A contracts to perform in a musical concert. Before the date, A meets with an accident and becomes permanently disabled. The contract becomes frustrated.
  • A contracts to export goods to a country, but war breaks out and the trade route is blocked. The contract is frustrated.