Discharge of Contracts — 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. What does Section 37 of the Indian Contract Act require of the parties to a contract?

   • Only the promisor must perform
   • Parties must perform, or offer to perform, their respective promises, unless dispensed with or excused (correct answer)
   • Only written contracts require performance
   • Performance is optional unless expressly stated

   Explanation. Section 37 states that the parties to a contract must perform, or offer to perform, their respective promises, unless such performance is dispensed with or excused under the Act or any other law.

2. Which of the following is NOT one of the six recognised modes of discharge of a contract?

   • Performance
   • Agreement
   • Registration (correct answer)
   • Breach

   Explanation. The six modes are performance, agreement, impossibility, lapse of time, operation of law, and breach. Registration is not a recognised mode of discharge.

3. Novation, rescission, and alteration are all examples of discharge by:

   • Performance
   • Agreement (correct answer)
   • Operation of law
   • Breach

   Explanation. Section 62 covers novation, rescission, and alteration together as discharge by mutual agreement between the parties.

4. The Doctrine of Frustration is dealt with under which section of the Indian Contract Act, 1872?

   • Section 37
   • Section 56 (correct answer)
   • Section 62
   • Section 73

   Explanation. Section 56 deals with agreements to do impossible acts and the discharge of contracts by supervening impossibility, known as the Doctrine of Frustration.

5. Discharge by "lapse of time" is primarily governed by:

   • The Indian Contract Act, 1872 alone
   • The Limitation Act, 1963 (correct answer)
   • The Specific Relief Act
   • The Sale of Goods Act

   Explanation. Where a fixed period for performance or for bringing a suit passes, the Limitation Act, 1963 governs whether a remedy is barred . The Limitation Act removes the remedy, not the debt.

6. Which of these is an example of discharge by operation of law?

   • A shopkeeper delivering goods as promised
   • Two parties agreeing to cancel a contract
   • The death of a party in a contract requiring personal skill (correct answer)
   • One party refusing to perform

   Explanation. Operation of law covers automatic discharge situations such as death in a personal-skill contract, merger, or insolvency — none of which require either party's choice.