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

Kiran Pvt Ltd promises to deliver goods to three joint promisees, P, Q and R, at an agreed place and time. It makes a proper, unconditional offer of delivery to P alone, and P refuses it. Which statement is correct under Section 38?

The offer to P has the same legal consequences as an offer to all three joint promisees. Section 38 expressly says an offer to one of several joint promisees counts as an offer to all, so Kiran need not repeat it to Q and R.

  1. AThe offer has no effect until it is separately made to Q and R
  2. BThe offer to P has the same legal consequences as an offer to all three joint promiseesCorrect
  3. CThe offer is valid only if P was the eldest of the promisees
  4. DThe contract is discharged because P refused it

Explanation

Section 38 provides that an offer to one of several joint promisees has the same legal consequences as an offer to all of them. So Kiran's valid offer to P counts as an offer to P, Q and R. The Section does not provide that refusal discharges the contract, and it makes no distinction by age or seniority.

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