Cima C05 Exam Question No 51

Question No 51:

Tee Ltd has contracted to use Vee Ltd’s “Grand Hotel” for a business conference. Which of the following would be regarded as a valid reason for Vee Ltd for the unavailability of the hotel on the agreed date under the law of frustration?

• i. The hotel was closed due to flood damage.
• ii. The hotel was double booked.
• iii. The hotel manager had arranged to have the hotel redecorated. The decorators had failed to complete the work by the agreed date.

A. i only.
B. iii only.
C. ii and iii only.
D. i, ii and iii.

Answer: A

Cima C05 Exam Question No 50

Question No 50:

 In the event of a breach of contract, what is the purpose of damages?

i. To punish the contract breaker.
ii. To compensate the innocent party.
iii. To put the innocent party in the same position as if the contract had been carried out correctly.

A. i only.
B. ii and iii only.
C. iii only.
D. i, ii and iii.

Answer: B

Cima C05 Exam Question No 49

Question No 49:

Which ONE of the following does NOT discharge a contract?

A. Precise performance of all the contractual obligations.
B. A subsequent event causing the contract to be impossible to perform.
C. Breach of contractual term which is classified as a warranty
D. The agreement of the parties, contained in a deed, to the effect that the contract should be discharged.

Answer: C

Cima C05 Exam Question No 48

Question No 48:

Which ONE of the following remedies is NOT available for a breach of a contract to provide personal services?

A. Damages.
B. A decree of specific performance.
C. An injunction.
D. An action for the price.

Answer: B