CLAT UG · Legal Reasoning & Constitutional Law

Contract Law: Specific Performance, Quasi-Contracts and Damages

10 practice questions, each with the answer and an explanation.

Practise Contract Law: Specific Performance, Quasi-Contracts and Damages now

Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.

All 10 questions

  1. Principle: Quasi-contracts under Section 70 of the Indian Contract Act require that a person lawfully do something for another, not intending to do so gratuitously, and the other enjoys the benefit.
    F…
  2. Principle: Under Section 73 of the Contract Act, ordinary damages are those that arise naturally in the usual course of things from the breach.
    Facts: A contracts to deliver machinery to B by 1 June.…
  3. Principle: An agreement in restraint of trade is void under Section 27 of the Indian Contract Act, except when relating to the sale of goodwill.
    Facts: A doctor sells his clinic along with its goodwil…
  4. Principle: Specific performance of a contract is granted when monetary compensation is inadequate relief, notably in contracts concerning immovable property.
    Facts: A agrees to sell a unique ancestral…
  5. Principle: A finder of lost goods has the same responsibility as a bailee under Section 71 of the Indian Contract Act.
    Facts: X finds a diamond ring on the floor of Y shop. X hands it to Y to find the…
  6. Principle: Novation of contract occurs when parties substitute a new contract for an existing one, discharging the original contract.
    Facts: A owes ₹10,000 to B. A, B, and C agree that C will pay ₹10…
  7. Principle: A contingent contract to do or not do anything on an uncertain future event becomes void if the event becomes impossible.
    Facts: A contracts to marry B if B father recovers from illness. B…
  8. Principle: Quantum meruit allows a party to recover the reasonable value of services rendered when the contract is wrongfully terminated by the other party.
    Facts: An author writes 3 chapters of a 6-c…
  9. Principle: Wagering agreements are void under Section 30 of the Indian Contract Act, and no suit can be brought to recover anything alleged to be won upon any wager.
    Facts: A and B bet ₹5,000 on the o…
  10. Principle: Liquidated damages represent a genuine pre-estimate of loss agreed by parties, while a penalty is an extravagant sum intended to compel performance.
    Facts: A contract provides that for each…

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