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

Meera agrees to repair Rohan's house for a fixed fee. Rohan refuses to point out the places in the house that need repair, so Meera cannot complete the work. What is the legal position of Meera?

Meera is excused from the non-performance caused by Rohan's refusal. When a promisee neglects or refuses to give the promisor reasonable facilities for performance, the promisor is excused to the extent that the non-performance results from that neglect or refusal, so Meera is not liable.

  1. AShe is excused for the non-performance caused by Rohan's refusalCorrect
  2. BShe must still complete the repairs or pay damages to Rohan
  3. CThe contract becomes void because of mutual mistake
  4. DShe is excused only if Rohan gives written consent

Explanation

Section 67 says that if a promisee neglects or refuses to afford the promisor reasonable facilities for performance, the promisor is excused as to any non-performance caused by it. Rohan's refusal prevented Meera's work, so she is excused. Liability for damages would be wrong because the default lies with the promisee.

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