SD121 (MGT 611) What takes place when a party breaks the contract by refusing to perform

(MGT 611)Assignment No. 3 (Quiz)Marks: 20Due date: 16/5/2016Instructions:•To attempt the quiz, students are supposed to submit their solution files (MSWord Documents) in the following “table format” (sample).Q No.123Selected Optionabd•Prepare your solution in “doc” or “rtf” format (compatible with “Word 2003”).Do not prepare your assignments in Excel, Power Point, PDF or any otherformat.Questions:1.What takes place when a party breaks the contract by refusing to perform hispromise?a.Suit for rescissionb.Suit for damagec.Breach of contractd.Void contract2.Bailee, in absence of any special contract, is not responsible for the loss, destruction,deterioration of the thing bailed if he has taken care of it. This right is provided by:a.Section 151b.Section 152c.Section 155d.Section 1563.A guarantees to C for B’s credit purchases with a balance of account not exceedingRs.10000. this is a _________ guarantee.a.Limitedb.Unlimitedc.Specificd.Continuing4.Which of the following is not a part of a valid contract of indemnity?a.The contract of indemnity must contain all the essentials of a valid contractb.It is a contract between more than two partiesc.The loss may be caused by the conduct of promisord.The contract of indemnity may be implied5.Ahmed contracts to supply cement to Basit on 10 March. Basit agrees to pay the priceon receipt of goods. Ahmed does not supply on due date. What maximum possibleBasit can do according to Contract Act?a.Basit can refuse to payb.Basit can rescind and claim damagesc.Basit shall grant new date for deliveryd.Basit shall do nothing as contract is automatically void6.A delivers his horse to B for safe custody. The horse becomes sick and B spendsRs.500 on medical expenses. Which of the following fits best in this situation?a.B is responsible for the sickness of horseb.B is not responsible for the sickness of horsec.B can recover medical expense from Ad.B can not recover medical expense from A7.An order of court restraining a person from doing something which he promised notto do is called _________.a.Quantum meruitb.Specific performancec.Special damagesd.Injunction8.X takes a loan of Rs.5000 from Y on guarantee of Z. which of the following partiesare engaged in the contract of a guarantee?a.X and Yb.X and Zc.Y and Zd.X, Y and Z9.A monetary compensation allowed to injured party for the loss suffered by him as aresult of breach of contract is known as _________.a.Fineb.Reliefc.Benefits and compensationsd.Damages10. A buys a TV from TV shop and asks the shopkeeper to keep it with him for 2 hours sothat A may buy other things from market. Shopkeeper is now holding TV as__________.a.Baileeb.Bailorc.Bailmentd.Owner11. Which section of contract act illustrates that anything done for the benefit of principaldebtor may be sufficient consideration to surety for giving guarantee.a.Section 124b.Section 125c.Section 126d.Section 12712. On the request of B, A promises to employer of B that if B commits a fraud, he shallbe liable for that. This is an example of ________.a.Indemnityb.Guaranteec.Secondary contractd.Surety13. Suit for specific performance is filed in which of the following cases?a.Where compensation in money is not an adequate remedyb.When an arrangement becomes subsequently voidc.When contract is divisibled.When an indivisible work is badly performed14. The person who promises to compensate the loss caused by him is called__________.a.Promiseeb.Indemnifierc.Indemnity holderd.Indemnified15. When parties to a contract fix the amount of damages for the breach of contract at thetime of formation of contract, these are called _________ damages.a.Nominalb.Specialc.Liquidatedd.Exemplary16. G guarantees K for payment of 5 bags of wheat purchased by C. C makes payment.Later C again purchases 5 bags of wheat and did not pay.a.K can sue G to pay liabilityb.C can transfer his liability to Gc.G is liable because of the guaranteed.G is not liable because of specific guarantee17. Sajid delivers a piece of cloth to tailor to make a suit. Which contract exists betweenSajid and tailor?a.Bilmentb.Guaranteec.Indemnityd.No contract is existing or needed18. A agrees to sell B his painting, but commits breach. What is possible in this case?a.B can sue for damagesb.A shall be ordered to carry out the contractc.Monetary compensation should be provided to Bd.Both painting and monetary compensation should be provided to B19. A delivers his car to B for repair. Which of the following is not true in this case?a.The possession of car transfers from A to Bb.Ownership of car transfers from A to Bc.Ownership of car does not transfer from A to Bd.None of the statements is true20. Which section of Contract Act dispenses with fine distinctions between the claim fordamages based on the principle of liquidated damages and those imposed by way ofpenalty?a.Section 72b.Section 73c.Section 74d.Section 75