A contracts to sell and deliver 500 bales of cotton to B on a fixed day. A knows nothing of B's mode of business. A breaks his promise, and B, having no cotton, is obliged to close his mill. In a suit for damages, is A responsible to B for the loss caused by the closing of the mill?

Yes, A is responsible for all losses

No, A is not responsible for the loss caused by the closing of the mill, as it is a remote/special loss not communicated to A

Yes, to the extent of the market price difference of cotton

The landmark case of Taylor v. Caldwell (1863) is the foundational common law authority for which doctrine under the Indian Contract Act, 1872?

Doctrine of Frustration (Supervening Impossibility)

Doctrine of Privity of Contract

If a contract contains both legal and illegal parts, and the legal part is completely separable from the illegal part under Section 57:

The entire contract is voidable

The legal part alone is valid and enforceable

A promises to paint a picture for B by December 31 and accepts an advance of Rs. 1,000. On December 25, A's hands are chopped off in an accident. B is entitled to a refund of the Rs. 1,000 under which section of the Indian Contract Act, 1872?

Section 65 (Restitution of advantage received under void agreement)

The obligation to restore any benefit or advantage received under a void agreement or a contract that becomes void is provided by:

Section 65 of the Indian Contract Act, 1872

Section 64 of the Indian Contract Act, 1872

Section 73 of the Indian Contract Act, 1872

Section 56 of the Indian Contract Act, 1872

Section 40 of the Indian Contract Act, 1872 deals with:

About the persons by whom the promise is to be performed

About the compensation for non-performance

About the voidability of agreements

📖 Indian Contract Act, 1872•🎯 138 Practice MCQs

Chapter IV: Of the Performance of Contracts (Sections 37–67)

Chapter-wise objective questions with statutory bare act articles, landmark Supreme Court case laws, and past judicial service citations.

Section 73 Illustration (o)Hadley v. BaxendaleSpecial DamagesMP PCS 1996MPC 2016Taylor v. CaldwellDoctrine of FrustrationSection 56UPCJ 2022Section 57SeverabilityChhat CJ 2022

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Chapter IV: Of the Performance of Contracts (Sections 37–67) • 138 Questions

📚 Chapter Practice Coverage

This practice module for Chapter IV: Of the Performance of Contracts (Sections 37–67) contains 138 Multiple Choice Questions tailored for State Judicial Service Preliminary Examinations (including UP PCS-J, Delhi Judicial Service, Bihar Judiciary, MP Judiciary, Rajasthan Judicial Service), CLAT LL.M, All India Bar Examination (AIBE), and UGC-NET Law.

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