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

Mehta Traders agreed to deliver 200 bags of rice to Kapoor Stores at Kapoor's godown on 5 May. Mehta's driver reached the godown on 5 May and said he would unload only if Kapoor first waived an old pending claim. Kapoor refused. Is this a valid offer of performance under Section 38?

It is not a valid offer of performance because it was conditional. Section 38 requires an offer to be unconditional. Mehta's driver made unloading depend on Kapoor waiving a separate claim, so the offer fails despite being at the right place and time.

  1. AYes, because the goods were brought to the right place on the right day
  2. BYes, because Kapoor refused to accept the goods
  3. CNo, because the offer was not unconditionalCorrect
  4. DNo, because the goods were not unloaded in the godown

Explanation

Section 38 requires every offer of performance to be unconditional. Mehta tied delivery to a waiver of a separate claim, so the offer was conditional. Correct place and day do not cure this defect.

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