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

Mehta Traders agreed to supply 200 bags of rice to Gupta Stores. When tendering delivery, Mehta said, 'I will deliver only if you also waive the earlier dues of Rs 5,000 owed to you by me.' Gupta refused. Is this a valid offer of performance under the Act?

The tender is not valid because an offer of performance must be unconditional. Mehta tried to make delivery depend on waiver of unrelated dues, which the contract did not require, so Gupta's refusal does not relieve Mehta under Section 38.

  1. AYes, because Gupta refused to accept the goods
  2. BYes, because the goods tendered matched the contract description
  3. CNo, because an offer of performance must be unconditionalCorrect
  4. DNo, because an offer of performance must always be made in writing

Explanation

Section 38 requires that every offer of performance be unconditional. Mehta attached a condition not part of the contract, so the tender is invalid. Writing is not a requirement listed in the section.

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