By performance — 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. Under Section 38, which of the following is NOT a requirement for a valid tender?

   • It must be unconditional
   • It must be made at a proper time and place
   • It must be accepted by the promisee (correct answer)
   • It must offer the whole obligation

   Explanation. A tender is valid even if refused — Section 38 discharges the promisor from liability once a valid tender is proved, regardless of whether the promisee accepts it.

2. What is the legal effect of a valid tender that the promisee wrongfully refuses to accept?

   • The promisor is now in breach
   • The promisor is discharged from liability for non-performance and retains all rights under the contract (correct answer)
   • The contract becomes void
   • The promisee can demand double performance

   Explanation. Section 38 provides that a promisor who has made a valid tender is not responsible for non-performance and does not lose any rights under the contract.

3. Under Section 40, who must perform a contract requiring personal skill, such as painting a portrait?

   • Any competent representative
   • The promisor personally (correct answer)
   • A government-appointed agent
   • The promisee's choice of person

   Explanation. Section 40 requires personal performance where the contract shows the parties intended it, or where the nature of the contract requires personal skill or credit.

4. Under Section 41, what happens if a promisee accepts performance from a third person?

   • The promisee can still sue the original promisor later
   • The promisee cannot afterwards enforce the promise against the original promisor (correct answer)
   • The third person becomes permanently liable
   • The contract is automatically void

   Explanation. Once a promisee accepts performance from a third party, Section 41 bars a later claim against the original promisor for the same promise.

5. Where a contract does not fix a time for performance and no application by the promisee is needed, Section 46 requires performance:

   • Immediately
   • Within a reasonable time (correct answer)
   • Within 30 days
   • Never, unless demanded

   Explanation. Section 46 requires performance within a reasonable time — a question of fact in each case — when no time is fixed by the contract.

6. Under Section 55, if time is of the essence and a party fails to perform by the fixed time, the contract becomes:

   • Automatically void
   • Voidable at the option of the promisee (correct answer)
   • Permanently unenforceable
   • Void only after a court order

   Explanation. Section 55 makes the contract voidable at the promisee's option (not automatically void) when time is of the essence and the deadline is missed.

7. Under Section 54, if A hires B's ship but provides no cargo, A:

   • Can claim B's performance
   • Cannot claim B's performance and must compensate B (correct answer)
   • May cancel without liability
   • Must supply the cargo later

   Explanation. Section 54, Illustration (a): the party who fails to perform the promise due first cannot claim the reciprocal performance and must compensate the other.

8. Under the third paragraph of Section 55, a promisee who accepts late performance can claim compensation for the delay only if:

   • The court permits
   • He gives notice of his intention to do so at the time of acceptance (correct answer)
   • The promisor agrees
   • The contract was registered

   Explanation. Section 55: unless at the time of acceptance he gives notice of his intention to claim compensation. (Uttar Pradesh substitutes: where he has waived his right.)

9. Under Section 67, if the promisee refuses to give the promisor reasonable facilities for performance, the promisor is:

   • Liable in damages
   • Excused for any non-performance caused thereby (correct answer)
   • Bound to perform anyway
   • Entitled to rescind only

   Explanation. Section 67 excuses the promisor for non-performance caused by the promisee's neglect or refusal.