Master Contract Termination: Discharge of Contracts Made Easy

Question 1

In contract law, what is the doctrine of frustration?

Accepted Answer

When an unforeseen event makes fulfilling the contract impossible or significantly different due to circumstances beyond the parties' control.

Answer

When one party declines to fulfill the contract.

Answer

The doctrine of frustration is only applicable if the parties have explicitly included it in the contract.

Answer

Frustration always leads to the complete termination of the contract, with no further responsibilities for either party.

Question 2

Distinguish between termination and discharge of a contract. Provide a specific example to illustrate each concept.

Accepted Answer

Termination ends the contract, while discharge releases the parties from their obligations.

Answer

Discharge ends the contract, while termination releases the parties from their obligations.

Answer

Termination and discharge are interchangeable terms.

Question 3

When a contract is breached, which remedies can the non-breaching party pursue?

Accepted Answer

Specific performance, injunction, or cancellation

Answer

Damages only

Answer

Restitution only

Question 4

In contract law, when is performance considered 'excused'? Choose the best example.

Accepted Answer

When unforeseen events make fulfilling the contract impossible.

Answer

When one party breaks the terms of the contract.

Answer

When both parties agree to end the contract.

Answer

When a reasonable amount of time has passed since the contract was made.

Question 5

Which of the following is NOT a recognized method of discharging a contract under English Law?

Accepted Answer

Assignment

Answer

Performance

Answer

Frustration

Answer

Breach

Question 6

When a contract is discharged by agreement, it means that:

Accepted Answer

All parties mutually consent to terminate the contract

Answer

One party unilaterally terminates the contract

Answer

The contract is discharged by performance

Answer

The contract is automatically terminated by operation of law

Question 7

Which of the following can lead to the frustration of a contract?

Accepted Answer

A substantial change in circumstances that renders the contract impossible or radically different from what was originally intended

Answer

A breach of contract by one of the parties

Answer

A minor inconvenience or disruption

Question 8

When a contract is discharged by performance, what has occurred?

Accepted Answer

Both parties have completely fulfilled all of their respective contractual obligations

Answer

The contract has been terminated by agreement of the parties

Answer

One party has substantially performed their obligations, but minor details remain

Answer

One party has breached the contract, but the other party has waived their right to terminate

Question 9

When a contract is discharged by breach, it means that:

Accepted Answer

One party has failed to fulfill a material obligation under the contract

Answer

The contract has been performed by both parties

Answer

Both parties have agreed to terminate the contract

Answer

The contract has been frustrated by an unforeseen event

Question 10

Which of the following is a type of anticipatory breach of contract?

Accepted Answer

Repudiation

Answer

Minor breach

Answer

Actual breach

Answer

Fundamental breach

Question 11

What occurs when a contract is discharged by novation?

Accepted Answer

The original contract is extinguished and replaced by a new contract that contains different terms

Answer

One party assigns their rights and obligations under the contract to a third party

Answer

The contract is terminated by agreement of the parties

Question 12

In the context of a breach of contract, what is the consequence of a fundamental breach?

Accepted Answer

The innocent party has the right to terminate the contract and claim damages

Answer

The innocent party is obligated to continue performing their obligations under the contract

Answer

The contract is automatically terminated without any further action

Answer

The innocent party loses their right to claim damages

Question 13

When a contract is discharged by merger, it means that:

Accepted Answer

A new, higher-ranking contract has been created that absorbs and extinguishes the original contract

Answer

The contract has been performed by both parties

Answer

The contract has been terminated by agreement of the parties

Answer

The contract has been breached by one of the parties

Question 14

Which of the following is NOT a recognized method of discharging a contract under English law?

Accepted Answer

Withdrawal of Acceptance

Answer

Frustration

Answer

Performance

Answer

Breach of Contract

Question 15

Which of the following is a ground for frustration of a contract in English law?

Accepted Answer

Subsequent impossibility

Answer

Change in the parties' financial circumstances

Answer

Change in the parties' personal preferences

Answer

Change in the law

Question 16

A contract can be discharged by performance if:

Accepted Answer

Both parties have completely fulfilled their respective obligations under the contract.

Answer

The contract is no longer mutually beneficial.

Answer

One party has substantially performed their obligations.

Question 17

Which of the following is NOT a remedy that may be available for breach of contract?

Accepted Answer

Imprisonment

Answer

Specific performance

Answer

Damages

Answer

Injunction

Question 18

A release is a contract that:

Accepted Answer

Discharges one or more parties from their obligations under a previous contract.

Answer

Creates a new contract between the parties.

Answer

Modifies the terms of an existing contract.

Question 19

Which of the following is a method of discharging a contract by the parties' agreement?

Accepted Answer

Rescission

Answer

Breach of contract by one party

Answer

Performance of the contract

Answer

Frustration of purpose

Question 20

What is the legal effect of discharging a contract by performance?

Accepted Answer

The obligations under the contract are extinguished.

Answer

The contract remains in force, but the parties are no longer bound to perform their obligations.

Answer

The contract is void from the beginning.

Question 21

Which of the following is a valid ground for discharging a contract by frustration?

Accepted Answer

A change in circumstances that makes the performance of the contract impossible or radically different from what was originally intended.

Answer

A change in circumstances that makes the performance of the contract more difficult or expensive.

Question 22

What is the effect of a breach of contract by one party?

Accepted Answer

The innocent party may terminate the contract and claim damages.

Answer

The contract is automatically terminated.

Answer

The guilty party is not liable for any damages.

Question 23

What is the difference between rescission and termination?

Accepted Answer

Rescission cancels the contract from the beginning, while termination ends the contract from the date of termination.

Answer

Rescission is only possible if the contract is void, while termination is possible for any reason.

Question 24

What is the legal effect of a waiver?

Accepted Answer

It releases the other party from their obligations under the contract.

Answer

It cancels the contract from the beginning.

Answer

It terminates the contract from the date of waiver.

Question 25

What is the purpose of an injunction?

Accepted Answer

To prevent the other party from doing something.

Answer

To compensate the innocent party for their losses.

Answer

To cancel the contract.

Answer

To force the other party to do something.