Indian Contract Act MCQ question and answer | Law MCQ question
Indian Contract Act MCQ question and answer with easy explanations in Law MCQ. Indian Contract Act MCQ section is suitable for aspirants preparing for competitive exams like NET, UPSC, JRF, SET,UGC NET other law exams etc. Page-8 section-10
Each section contains 100 MCQs on
Indian Contract Act .
X' and 'Y' jointly take a loan, from 'Z' with promise to repay the loan amount with interest within two years. Soon after taking the loan 'X' is declared as an insolvent and remains insolvent till the date of repayment of loan. 'Y' also fails to repay the loan. 'X' on account of his status as insolvent enjoys immunity from legal proceedings. In these circumstances:
Consider the following statements:
1. Doctrine of frustration is not applicable when the rights and obligations of the parties arise under the Transfer of Property Act.
2. If and when there is frustration, the contract automatically comes to an end.
Which of the statements given above is/are correct?