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

Arvind Interiors agrees to repair Mr. Sharma's house. Mr. Sharma refuses to point out the places that need repair, so the repair of the roof section is not done. Which statement is correct?

Arvind Interiors is excused. Mr. Sharma's refusal to point out the places needing repair is a refusal to afford reasonable facilities, and under Section 67 the promisor is excused for the non-performance caused by that refusal.

  1. AArvind Interiors is excused for the non-performance caused by Mr. Sharma's refusalCorrect
  2. BArvind Interiors must find the defects itself and is liable for the unrepaired roof
  3. CMr. Sharma can rescind the contract because the work is incomplete
  4. DArvind Interiors is excused only if it first gives written notice of the contract's cancellation

Explanation

This matches the illustration to Section 67. Refusal to point out the places needing repair is a failure to afford reasonable facilities, and the promisor is excused for non-performance caused by it. No notice of cancellation is required by the section.

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