II. Very Short Answer Questions

Question 1.
What are the kinds of consent?
Answer:
The consent may be of the following types:

  1. Express
  2. Implied

Question 2.

What are the types of Impossibility of Performance?
Answer:
There are two types of impossibility of performance, such as –

  1. Impossibility existing at the time of agreement.
  2. Impossibility arising subsequent to the formation of contract.

Question 3.
What are the types of Damages?

There are mainly four types of damages, such as- 

 i) Ordinary damages 

 ii) Special damages 

 iii) Vindictive or exemplary damages and 

 iv) Nominal damages

III. Short Answer Questions

Question 1.
 1. What are the various types of remedies for the injured parties? (any 3)

There are various types of remedies for the injured parties listed as follows i) Recission of Contract. ii) Claim for Specific Performance. iii) Claim for Injunction. iv) Claim for Quantum Merit and v) Claim for Damages.

 (i) Recission of Contract In case of breach of contract by one party, then the other parties may rescind the contract and thereby the party is absolved from his all obligations under the contract.

 (ii) Claim for Specific Performance In some specific cases if the damages are not the adequate remedy, then the court can direct the party in breach for the specific performance of the contract. In such case, the promise is carried out as per terms and conditions of the contract.

 (iii) Claim for Injunction Injunction is an order passed by a competent court restraining a person from doing some act. Injunction can be defined as a mode of securing the specific performance of the negative terms of a contract. Negative terms of contract imply doing something, which a party has promised not to do.

(iv) Claim for Quantum Merit The claim for quantum merit may arise if a contract performed by one party has become discharged by breach of the other party. The meaning of the phrase quantum merit is ‘as much as earned’. The claim is not for the original contract that has been discharged or void, but on an implied promise by the other party to pay for what he has done.

(v) Claim for damages Damages are a monetary compensation awarded by the court to the injured party for the loss or injury suffered by him. As per contract, one party can claim damages if other party breach the contract. The main purpose of awarding the damages is to make good the loss suffered by him. 

Question 2.
 What are the types of cases the court may order injunction?

Injunction is an order passed by a competent court restraining a person from doing some act. Injunction can be defined as a mode of securing the specific performance of the negative terms of a contract. Negative terms of contract imply doing something, which a party has promised not to do. Injunction is an order which is granted by the court restraining the person to do what he had promised not to do.

The court may order injunction in the following cases – 

 (a) if the contract is voidable. 

 (b) if the contract becomes void or 

 (c) on discovering the contract as void.

IV. Long Answer Questions

Question 1.

Explain the ways of discharge of Contract?
Answer:
Different modes of discharge of contract have been provided under different sections of the Act:
1. Discharge by Performance : Performance implies carrying out the obligation of the contract. Performance must be completed according to the real intentions of the agreement. Performance must be done according to time and manner prescribed. Performance of contract may be of two types namely:

  • Actual performance
  • Attempted performance

2. By Agreement on Consent : Agreement between the parties comes to an end by mutually agreeing for it. Any contract is created by an agreement, hence in the same way, it can be discharged by an agreement. The consent may be of the following types:

  • Express consent
  • Implied consent

3. By Impossibility of Performance : A contract may be discharged if its performance becomes impossible. There are two types of impossibility of performance, such as –

  • Impossibility existing at the time of agreement.
  • Impossibility arising subsequent to the formation of contract.

4. By Lapse of Time : According to the Limitation Act, 1963 a contract must be performed within a specified time. If it is not performed within this specified time limit and against which if no action is taken by the promisee in the Court of Law within specified time, then the promisee is deprived of his remedy at law. In such cases, the contract is discharged.

5. By Operation of Law : A contract can be discharged by the operation of law. The operation of law by which contract can be discharged are as follows:

  • By Death
  • By Merger
  • By Insolvency
  • Unauthorized Alteration of the Terms of a Contract
  • Rights and liabilities vesting in the same person

Question 2.
What is meant by damages and What are its types?
Answer:
Damages are a monetary compensation awarded by the court to the injured party for the loss or injury suffered by him. As per contract, one party can claim damages if other party breach the contract. The main purpose of awarding the damages is to make good the loss suffered by him. It is known as doctrine of restitution. The Section 73 of the Indian Contract Act, 1872 deals with the compensation for loss or damages caused by a party for breach of contract. There are mainly four types of damages, such as

  1. Ordinary damages
  2. Special damages
  3. Vindictive or exemplary damages; and
  4. Nominal damages