Commerce MCQs
Topic Notes: Commerce
MCQs and preparation resources for competitive exams, covering important concepts, past papers, and detailed explanations.
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
11
Which of the following scenarios results in the discharge of a contract?
Answer:
All of these
A contract can be discharged through various means: by operation of law (e.g., insolvency or merger), by the lapse of time (statute of limitations), or by a breach where one party fails to perform their obligations. Each of these events effectively terminates the legal relationship and the obligations created by the original contract.
12
Which category of damages is generally considered not recoverable in a breach of contract claim?
Answer:
Remote damages
In contract law, remote or indirect damages are those that do not arise naturally from the breach and were not in the contemplation of the parties at the time the contract was made. Consequently, these are generally not recoverable. Courts typically award only those damages that are direct and foreseeable consequences of the breach, excluding speculative or remote losses.
13
What are the prescribed minimum and maximum court fee limits for filing a suit in a Debt Recovery Tribunal?
Answer:
Rs. 12,000; Rs. 1,50,000
Under the Debt Recovery Tribunal (Procedure) Rules, the court fees for filing an application are determined based on the amount of debt claimed. The fee structure is tiered, with a minimum of Rs. 12,000 and a capped maximum of Rs. 1,50,000 for claims exceeding a certain threshold.
14
What is the legal consequence if a party fails to perform a contract within the stipulated time, where time is considered of the essence?
Answer:
Such contract becomes voidable at the option of the promise, if the intention of the parties was that time should be of essence of the contract
Under the Contract Act, if the parties explicitly intend for time to be the essence of the contract, failure to perform by the deadline makes the contract voidable at the option of the promisee. This means the promisee can either accept the delayed performance or rescind the contract and claim damages for the breach.
15
Under what circumstances is a contract considered discharged due to a change in circumstances rendering performance impossible?
Answer:
both A and B
The doctrine of frustration applies when an unforeseen event makes the performance of a contract impossible or radically different from what was originally undertaken. This includes situations where performance becomes physically impossible or so hazardous that it fundamentally alters the nature of the contractual obligation, thereby discharging the parties.