Discharge by Breach — MCQs

All questions with answers and explanations

Read the full set here, or use the practice card above to test yourself one question at a time.

1. Actual breach occurs:

   • Only before the due date of performance
   • On or after the due date of performance (correct answer)
   • Only in written contracts
   • Only when damages exceed ₹1 lakh

   Explanation. Actual breach happens at the time performance is due, or during performance itself, when a party fails to perform or performs defectively.

2. Anticipatory breach occurs when:

   • A party fails to perform on the due date
   • A party, before the due date, clearly refuses to perform or disables themselves from performing (correct answer)
   • A court declares the contract void
   • The subject matter is destroyed

   Explanation. Anticipatory breach happens when a party, before the time fixed for performance, clearly renounces the contract or makes performance impossible through their own conduct.

3. In Hochster v. De La Tour (1853), the injured party sued for breach:

   • After the trip's scheduled start date
   • Before the trip's scheduled start date, immediately after the renunciation (correct answer)
   • Only after five years
   • The court refused to hear the case before the due date

   Explanation. Hochster sued on 22 May 1852, well before the 1 June start date, immediately after De La Tour's clear renunciation on 11 May.

4. According to Hochster v. De La Tour, once a party clearly renounces a contract before performance is due, the injured party:

   • Must wait until the due date before taking any action
   • May treat the contract as discharged and sue for damages immediately (correct answer)
   • Loses all right to sue
   • Must first seek government arbitration

   Explanation. The injured party need not wait for the due date — they may treat the contract as discharged at once and sue for damages immediately.

5. What real choice does the injured party have on an anticipatory breach under Section 39 and the rule in Hochster v. De La Tour?

   • No choice — they must always sue immediately
   • They may either sue immediately, or wait for the due date and keep the contract alive (correct answer)
   • They must always wait for the due date
   • They may only claim a refund, never damages

   Explanation. The injured party may either accept the repudiation immediately and sue, or refuse to accept it, keep the contract alive, and wait for the due date.

6. What risk does Avery v. Bowden show about choosing to wait instead of suing immediately?

   • There is no risk at all
   • An independent, later lawful excuse (like frustration) could arise before the due date and defeat the claim (correct answer)
   • The injured party automatically loses the right to any damages
   • The contract becomes permanently void

   Explanation. In Avery v. Bowden the shipowner did not accept the refusal and waited. War made performance illegal before the loading time ended, so he lost his claim.

7. Unlike frustration under Section 56, breach of contract:

   • Automatically and immediately voids the contract by operation of law
   • Only gives the injured party an option to treat the contract as discharged (correct answer)
   • Cannot ever be waived
   • Applies only to government contracts

   Explanation. Breach gives the injured party a choice — the contract is not automatically void as it is under frustration; the injured party may also choose to affirm the contract instead.

8. In Frost v. Knight (1872), Knight promised to marry Miss Frost on his father's death. While the father was alive, Knight told her he would not marry her. This was treated as:

   • Irrelevant to the contract
   • A clear, unequivocal renunciation of his promise to marry Frost (correct answer)
   • A valid performance of the promise
   • Grounds for frustration under Section 56

   Explanation. Knight told Miss Frost, before the contingency (his father's death) occurred, that he would not marry her. She could sue at once, without waiting for the father's death.

9. Under Section 39, when a party refuses to perform his promise in its entirety, the promisee may:

   • Only sue for damages
   • Put an end to the contract, unless he has acquiesced in its continuance (correct answer)
   • Never end the contract
   • Wait indefinitely

   Explanation. Section 39 lets the promisee put an end to the contract, unless he has signified by words or conduct his acquiescence in its continuance.

10. Under Section 39, Illustration (b), B allows A to sing on the seventh night after A stayed away on the sixth. B:

    • Can still end the contract
    • Has acquiesced in the continuance, but may claim compensation for the sixth night (correct answer)
    • Loses all claims
    • Must pay double

    Explanation. B cannot now put an end to the contract but is entitled to compensation for the damage from A's failure on the sixth night.