Question

Anil entered into a contract with subhash for sale and purchased of a horse which, at the time of entering into a contract, was dead without the knowledge of both the parties. As a result of this, Anil could not sell the horse as per the contract. Advise Subhash.

• A. The contract is void as the subject matter of the contract does not exsist.
• B. The contract is valid and Anil is liable for breach
• C. The contract is void for fraud and Subhash can recover damages from Aniil
• D. The contract is voidable at the option of Subhash and he can ratify it to recover damages from Anil

Answer 1

Answer: (A)

The contract is void as the subject matter of the contract does not exsist.

As per section 2(g) of The Indian Contract Act 1872, an agreement not enforceable by law is said to be void. The two parties mentioned here entered into the contract for sale and purchase of a horse. But as the horse is already dead, the contract is void as the subject matter i.e. horse is not there.

Hence the correct answer is A.