Source: RTP,Sept2024, RTP,June2021, ICAI Module5 Marks
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Question Scenario

What will be rights with the promisor in following cases under the Indian Contract Act, 1872? Explain with reasons: (a) Sunil promised to bring back Jatin to life again. (b) Aman agreed to sell 50 kgs of apples to Raman. The loaded truck left for delivery on 15th March but due to riots in between reached Raman on 19th March due to which the apples were rotten. (c) An artist promised to paint on the fixed date for a fixed amount of remuneration but met with an accident and lost his both hands. (d) Abhishek entered into contract of import of toys from China. But due to disturbance in the relation of both the countries, the imports from China were banned.

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Suggested Answer

(a) The contract is void because of its initial impossibility of performance. (b) Time is essence of this contract. By the time apples reached Raman, they were already rotten. The contract is discharged due to destruction of the subject matter of contract. (c) Such contract is of personal nature and hence cannot be performed due to occurrence of an event resulting in impossibility of performance of contract. (d) Such contract is discharged without performance because of subsequent illegality nature of the contract.

Exam Strategy Tip

When answering law questions in the CA Foundation exam, follow the "Provision -> Facts -> Conclusion" structure for maximum marks. Ensure to state the relevant sections where applicable to earn bonus marks from the evaluator.

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