Objective Questions with Answers on Law Of Contract - 58

1) Which one of the following is correct sequence in the claim for damage for breach of contract ?

A) Contract, breach, damages

B) Offer, no acceptance, damages

C) Acceptance, no consideration, damages

D) Contract, offer, damages

Answer : A

2) A borrows rs. 10,000 from B with interest 12 per cent per annum, with a stipulation that in case of default a shall be liable to pay interest at 475 per cent from the date of default. A commits the default. B is entitled to recover from A :

A) 12% interest

B) 75℅ interest

C) 87℅ interest

D) Such compensation as the court considers reasonable

Answer : D

3) Damages awarded with a view to punish the party who commits the breach of contract are known as :

A) Liquidated damages

B) Punitive damages

C) Special damages

D) General damages

Answer : B

4) A contract by which one party promises to save the other from loss caused to him by the contract of the promise himself, or by the conduct of any other person is called :

A) A contract of indemnity

B) Contingent contract

C) A contract of guarantee

D) Quasi contract

Answer : A

5) Section 125 of Indian contract Act provides : 

A) 'Contract of indemnity' defined

B) Right of indemnity holder when sued

C) Contract of guarantee

D) Surety's  liability

Answer : B