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

Anita contracts to deliver 100 bales of cotton of a stated quality to Bharat Mills at its warehouse on 1 March. She arrives on that day with the cotton, but the bales are sealed and she does not allow Bharat Mills to inspect them. Why is her offer not a valid offer of performance under Section 38?

Her offer is invalid because Bharat Mills had no reasonable opportunity to check that the bales were of the contracted quality and number. Section 38 requires such an opportunity when the offer is to deliver something. The right place, day and quantity do not cure that defect.

  1. ABecause the offer was made at the promisee's warehouse
  2. BBecause the offer was made on the appointed day
  3. CBecause the promisee had no reasonable opportunity of seeing that the thing offered is what the promisor is bound to deliverCorrect
  4. DBecause the promisor offered the full quantity of 100 bales

Explanation

Where the offer is to deliver something, Section 38 requires that the promisee have a reasonable opportunity of seeing that the thing offered is the thing the promisor is bound to deliver. Refusing inspection defeats this. Place, day and quantity were all in line with the contract, so the other options do not identify a defect.

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