CAF-4 · Chapter 8

Performance of contract MCQs with Answers

12 multiple-choice questions on Performance of contract for CAF-4 Business Law Dynamics. Try each one before revealing the answer and explanation.

1. Question 1

   When a party to a contract has refused to perform, or disabled himself from performing, his promise in its entirety, the promisee may:

   • A) Terminate the contract immediately.
   • B) Be forced to perform his own part.
   • C) Only claim damages after the contract period expires.
   • D) Put an end to the contract, unless he has signified his acquiescence.
   Show answer & explanation

   Answer: D) Put an end to the contract, unless he has signified his acquiescence.

   Section 39 gives the promisee the right to terminate the contract in case of an anticipatory breach, unless the promisee has shown they want to continue.

2. Question 2

   If it appears from the nature of the case that it was the intention of the parties that the promise should be performed by the promisor 'personally', such promise must be performed by:

   • A) His representative.
   • B) An agent.
   • C) The promisor himself.
   • D) Anyone chosen by the promisee.
   Show answer & explanation

   Answer: C) The promisor himself.

   Section 40 states that if personal performance was intended (like painting a portrait), the promisor must perform it personally.

3. Question 3

   When two or more persons have made a 'joint promise', then, unless a contrary intention appears, the liability to perform the promise stays with:

   • A) Only the first named promisor.
   • B) All of them during their joint lives, and after death, their representatives jointly with the survivors.
   • C) Only the survivors.
   • D) Each promisor for their own portion only.
   Show answer & explanation

   Answer: B) All of them during their joint lives, and after death, their representatives jointly with the survivors.

   Section 42 establishes the rule for the devolution of joint liabilities.

4. Question 4

   The promisee may compel __________ of the joint promisors to perform the whole of the promise.

   • A) Every one
   • B) Any one
   • C) Only the eldest
   • D) All of them combined only
   Show answer & explanation

   Answer: B) Any one

   Section 43 states that in the absence of an express agreement to the contrary, the promisee may compel 'any one or more' of such joint promisors to perform the whole of the promise.

5. Question 5

   If one of the joint promisors is compelled to perform the whole promise, he may require a 'contribution' from:

   • A) The promisee.
   • B) Every other joint promisor.
   • C) The government.
   • D) No one.
   Show answer & explanation

   Answer: B) Every other joint promisor.

   According to Section 43, each of two or more joint promisors may compel every other joint promisor to contribute equally with himself to the performance of the promise.

6. Question 6

   A release of one of the joint promisors by the promisee:

   • A) Discharges all other joint promisors.
   • B) Does not discharge the other joint promisors.
   • C) Makes the contract void.
   • D) Only happens in bankruptcy.
   Show answer & explanation

   Answer: B) Does not discharge the other joint promisors.

   Section 44 states that where two or more persons have made a joint promise, a release of one of them by the promisee does not discharge the others.

7. Question 7

   When a promise is to be performed on a certain day, and the promisor has undertaken to perform it without application by the promisee, the promisor may perform it:

   • A) At any time of that day.
   • B) At any time during the usual hours of business on such day and at the place at which the promise ought to be performed.
   • C) Only in the morning.
   • D) Within 24 hours of that day.
   Show answer & explanation

   Answer: B) At any time during the usual hours of business on such day and at the place at which the promise ought to be performed.

   According to Section 47, performance must be during 'usual hours of business' and at the proper place.

8. Question 8

   If no place is fixed for the performance of the promise, it is the duty of the promisor:

   • A) To wait for the promisee to call.
   • B) To perform it at his own house.
   • C) To apply to the promisee to appoint a reasonable place for the performance.
   • D) To cancel the contract.
   Show answer & explanation

   Answer: C) To apply to the promisee to appoint a reasonable place for the performance.

   Section 49 requires the promisor to ask the promisee for a reasonable place if none is specified.

9. Question 9

   When a contract consists of 'reciprocal promises' to be simultaneously performed, no promisor need perform his promise unless:

   • A) He is paid 50% in advance.
   • B) The promisee is ready and willing to perform his reciprocal promise.
   • C) The court orders performance.
   • D) The other party performs first.
   Show answer & explanation

   Answer: B) The promisee is ready and willing to perform his reciprocal promise.

   Section 51 states that in simultaneous reciprocal promises, the promisor is not bound to perform unless the promisee is ready and willing.

10. Question 10

    What is the consequence if a party to a contract prevents the other party from performing his promise?

    • A) The contract remains valid.
    • B) The contract becomes voidable at the option of the party so prevented.
    • C) The party preventing is fined.
    • D) The contract is suspended.
    Show answer & explanation

    Answer: B) The contract becomes voidable at the option of the party so prevented.

    Section 53 states that when one party prevents the other from performing, the contract becomes voidable at the option of the party prevented.

11. Question 11

    If a debtor owes several distinct debts to one person and makes a payment with an instruction to apply it to a specific debt, the payment must be applied:

    • A) To the oldest debt.
    • B) To the debt the creditor chooses.
    • C) To the specific debt indicated by the debtor.
    • D) To the smallest debt.
    Show answer & explanation

    Answer: C) To the specific debt indicated by the debtor.

    Section 59 (Appropriation of Payments) requires the creditor to follow the debtor's express instruction.

12. Question 12

    In a contract where 'time is of the essence', a failure to perform at the fixed time makes the contract:

    • A) Void.
    • B) Voidable at the option of the promisee.
    • C) Valid with a fine.
    • D) Enforceable later.
    Show answer & explanation

    Answer: B) Voidable at the option of the promisee.

    Section 55 states that when time is of the essence, a failure to perform at the agreed time makes the contract voidable by the promisee.