Practice Test


1) A creditor agrees with his debtor & a third party to accept that third party as his debtor the contract is discharged by


2) Partial recession of a contract occurs where the original contract is varied by


3) A contract stands discharged


4) In which of the ways can a contract be discharged by impossibility of performance ?


5) Novation can be made by


6) Section ______of the Indian contract act deals with 'agreement in restraint of legal proceedings '


7) Novation of a contract under Indian contract act means


8) For discharge of a contract by Novation ,consent of ___is required


9) In discharge is contract by novation ,the consideration for the new contract is


10) A contract is discharged by rescession which means the


11) Which of the following is /are void ? 1. Agreement in restraint of legal proceedings. , 2. Agreement to stifle prosecution, 3. Agreement by an outgoing partner with his partner not to carry on any business within a specified period or within specified local limits, 4. Contingent Contract


12) Cancellation of the contract by any party or all the parties to a conract is called


13) Substitution of a new contract in place of an existing contract is called


14) The mutual consideration for discharge by rescission is


15) Alteration


16) Acceptance by the promisee of a lesser fulfillment of the promise made is called


17) In case death of the promisor, the contract involving personal skills


18) On the performance of obligation by the parties to the contract


19) A contracts with B to supply certain goods at B's warehouse by 15th may and B agrees to pay on delivery. Both of them may agree to modify the terms, say, delivery on 18th may and payment one week since delivery. The original contract is discharged by


20) A,a singer ,enters into contract with B , the manager of a theatre,to sign at his theatre two nights in every week during next two months for Rs.100 for each night's .on the sixth night A willfully absent herself from the theatre


21) Prior to the date of performance ,if the promisor refuses to perform ,it is called


22) an agreement to do an impossible act


23) 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 to be applied to the discharge of some particular


24) where there is no stipulation as to payment of any particular debt


25) Where neither party makes any appropriation, the payment shall be applied


26) A contract is discharged by the operation of law


27) If the parties to a contract agree to substitute a new contract for it ,or to rescind or alter it


28) A owes B Rs.10,000 .A enters into an agreement with B ,& gives B a mortgage of his estate for Rs.5,000 in place of the debt of Rs.10,000


29) In case of Novation


30) A owes B Rs.5,000 , C pays to B Rs.1,000 & b accepts them ,in satisfaction of his claim on A


31) rescission is a contract


32) Contracting parties may not remain same in -----------


33) If the parties to a contract agree to rescind it, the original contract_________l


34) ----------- means a change one or the more terms of the contract with the mutual consent of the parties


35) Impossibility which does not exist at the time of making the contract but which arise subsequently after the formation of the contract is called


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


37) If war is declared between India and Pakistan, then the contract entered between parties of these two countries becomes


38) In case of commercial impossibility


39) X of Delhi agreed to sell 100 bales of cotton @ Rs.1,000 per bale and deliver within a fortnight at the buyer's godown at Lahore, if these goods where to be manufacture by Z. But if Z didn't manufacture those goods, then the contract is


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


41) A contract is not discharged by the supervening impossibility in case of


42) If the performance of the contract becomes impossibility due to the act of omission of a party, it is called as


43) When a person is declared insolvent by the Court of Law, is discharged from all the liabilities on all contract entered into


44) The period of limitation for recovering a debt is


45) When a contract cases to bind the parties to it, it is said to be


46) A was the tenant of B's house. A purchased B's house. The old agreement between A A and B is discharged. Such discharge is called a/an


47) X contracted to sell his plot of 500 sq. yards to Y for Rs. 1,00,000. The sale deed which was in possession of Y. Before registration, X altered the deed and made 300 sq. yards. The contract was discharged on the ground of.


48) Once the promise is performed under the contract, the contract to an end. This is called


49) ----------- signifies that the parties are not further bound under the contract.


50) The contract is discharged on the ground of


51) A contract is discharged, if the is not performed within


52) ------------ means the failure of a party to perform his obligations.


53) Breach of a contract may be


54) -------------- occurs on the due date of performance or during the performance


55) -------------- occurs prior to the date of performance


56) In case of anticipatory breach, the aggrieved party can


57) Where the impossibility is unknown to ------------ the parties, agreement is void ---------- ab initio, when impossibility is -----------


58) All the contract that are entered into with alien enemy during the war is


59) Which of the following events do not discharge the contract unless specifically provided by parties


60) The remission is the valid discharge of whole of the liability under the contract. which section provides for their provision of Indian contract act.


61) Breaking of an obligation which one is bound to do a contract is called


62) No consideration is necessary for a waiver


63) A bill of exchange which was accepted by K, reaches K's hands after being negotiated and endorsed through 4 other parties. The contract is discharged due to


64) In case of alteration, there is change in the parties and new parties may be included.


65) A contract can be discharged by -


66) A contracts to sell his car to B for ? 4,00,000 and B agrees to pay on delivery. Once the car is delivered to B and B pays ? 4,00,000, contract comes to an end, This is called -


67) When an inferior right accruing to a party in a contract merges into a superior right accruing to the same party, then -


68) A holds a house on lease, After that he buys the house and became owner, The Contract is discharged by ______.


69) A Contract entered between Promisor and Promisee becomes impossible to perform due to destruction of subject matter. In this case -


70) The original contract need not be performed if there is-


71) If a new contract is substituted in place of an existing contract it is called -


72) Novation of a contract under Indian Contract Act, means -


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


74) When both the parties have decided to cancel the contract, it is known as ______.


75) A voidable contract becomes void in case of


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


77) Change in some or all terms of the Contract is -


78) Ashok owes Lakhsmi ? 25,000/-. Lakshmi said that she will accept Rs15,000/- towards final settlement It is contract.