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

Asha contracts to deliver 100 bales of cotton of a stated quality at Bharat Mills' warehouse on 1 March. Which course of action by Asha makes a valid offer of performance with the effect stated in Section 38?

Asha must bring the cotton to Bharat Mills' warehouse on 1 March in circumstances that give the buyer a reasonable opportunity to check that it is the contracted quality and that there are 100 bales. This satisfies the conditions of Section 38 on time, place and inspection.

  1. ASending a letter on 1 March saying the cotton is ready at her own godown
  2. BBringing the cotton to the warehouse on 1 March so that Bharat Mills can reasonably check its quality and number of balesCorrect
  3. CBringing the cotton to the warehouse a month later, when Bharat Mills has no stock
  4. DBringing the cotton on 1 March but refusing to let it be examined until payment is made

Explanation

The illustration to Section 38 says the promisor must bring the cotton to the warehouse on the appointed day, in circumstances where the promisee can reasonably satisfy himself of quality and number. Only this option does so. The others fail on place, time or opportunity to inspect.

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