Skip to content

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

Ravi agrees to supply 200 sacks of rice to Meena Traders. He tenders the sacks and says, 'I will deliver only if you also agree to buy my extra stock of 50 sacks.' Meena refuses. Is this a valid offer of performance under Section 38?

The offer is not a valid offer of performance because it is conditional. Section 38 requires an offer of performance to be unconditional, and Ravi tied delivery to Meena buying extra stock that the contract did not require, so her refusal does not protect him.

  1. AYes, because Meena refused the goods without inspection
  2. BYes, because the quantity tendered was correct
  3. CNo, because the offer was not unconditionalCorrect
  4. DNo, because an offer of performance must always be in writing

Explanation

Section 38 requires every offer of performance to be unconditional. Ravi made delivery depend on an extra purchase not in the contract, so the condition fails. Correct quantity does not cure this, and the section does not require writing.

Did you get it right without looking?

One question tells you little. A timed set on Performance of Contracts shows your real accuracy, how long you take and where you lose marks.

Practise Performance of ContractsFree diagnostic mock

More Performance of Contracts questions