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

Ravi contracts to deliver 100 bales of cotton of a stated quality at Sunil's warehouse on 1 March. Which course of action by Ravi best fulfils the conditions of a valid offer of performance?

Ravi must bring the cotton to Sunil's warehouse on 1 March in circumstances that let Sunil reasonably check both quality and the count of 100 bales. This satisfies the requirements of proper time, place and opportunity to inspect under Section 38.

  1. ASend a letter on 1 March saying the cotton is ready at Ravi's own godown
  2. BBring the cotton to Sunil's warehouse on 1 March so that Sunil can reasonably check its quality and the number of balesCorrect
  3. CLeave the cotton outside the warehouse at midnight on 1 March without informing Sunil
  4. DBring only 60 bales on 1 March and the rest later, asking Sunil to accept it as full performance

Explanation

Following the illustration to Section 38, the promisor must bring the goods to the agreed place on the appointed day so the promisee can reasonably satisfy himself of quality and quantity. The other options fail on place, opportunity to inspect, or doing the whole of the promise.

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