Question

Solve.
X of Delhi agreed to sell 100 bales of cotton @ Rs 1,000 per bale and to deliver within a fortnight at buyers godown at Lahore. X failed to supply these goods. State the legal position in each of the following alternative cases:
Case (a) If, unknown to both the parties, the goods were, destroyed by fire at the time of agreement
Case (b) If X knew that goods were destroyed by fire at the time of agreement.
Case (c) If. the goods were destroyed. by fire after the formation of agreement.
Case (d) If war is declared between India and Pakistan.
Case (e) If these goods were to be manufactured by Z who is ready to supply Rs.1,100 per bale because of unexpected Increase in the cost of material and labour.
Case (f) If these goods were to be manufactured by Z who did not manufacture those goods.
Case (g) If these goods could not be delivered because of strike of transport operators.

Answer 1

Section to which the given problem relates: Section 56.
Decision and Reason:
Case (a) The contract is void on the ground of mutual mistake
Case (b) The contract is void but X, the promisor, must compensate the buyer for the promisee for any loss which such promisee sustains through the non-performance of the promise.
Case (c, d) The contract has become void on the ground of supervening possibility.
Case (e) The contract is not discharged because of commercial impossibility.
Case (f) The contract is not discharged because of default of third party.
Case (g) The contract is not discharged because of non-performance due to strikes,lock-out or civil disturbances.