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CMA Foundation · Fundamentals of Business Laws and Business Communication · Performance of Contracts

Anita and Bhavna are joint promisees under a contract to receive 50 sacks of wheat from Chopra. Chopra makes a proper offer of performance to Anita alone, and she refuses it. What is the legal consequence?

The offer to Anita has the same legal consequences as an offer to both joint promisees. Section 38 provides that tender to one of several joint promisees counts as tender to all, so Chopra is protected from liability for non-performance.

  1. AThe offer has no effect because it was not made to both promisees
  2. BThe offer has the same legal consequences as an offer to both Anita and BhavnaCorrect
  3. CThe offer is effective only if Bhavna later ratifies Anita's refusal
  4. DThe offer is effective only for half of the wheat

Explanation

Section 38 states that an offer to one of several joint promisees has the same legal consequences as an offer to all of them. Hence Chopra is protected as if both had been offered. No ratification or splitting of quantity is required.

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