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New Profit Sharing Ratio

Solve :X cont...

Question

Solve :
X contracts to sell and deliver 500 bales of cotton to V on a fixed day. X knows nothing of Y's mode of conducting business. X breaks his promise and V, having no cotton is obliged to close his mill. Is X responsible to Y ?

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Solution

Solution: Section to which the given problem relates: Section 73.
Decision and Reason: X is not responsible to Y for the loss caused to Y by the closure of the mill because it is an indirect consequence of the breach of the contract.

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A mill where seeds are removed from cotton bolls and the cotton is pressed into bales is called

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Q. Legal Principle: Every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind, to that extent is void.

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