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

Rohan, an actor, contracted to perform at a theatre for six months and received the fee in advance from the owner. On several occasions he was too ill to perform. What is the effect on the contract as per the illustration to Section 56?

The contract becomes void only on those occasions when Rohan is too ill to act. Under the illustration to Section 56, impossibility discharges performance only for the affected occasions, and the rest of the contract is not made void by it.

  1. AThe whole six-month contract becomes void immediately
  2. BThe contract becomes void only on those occasions when he was too ill to actCorrect
  3. CThe contract stays fully valid and illness is no excuse
  4. DThe contract becomes voidable at the owner's option for the entire period

Explanation

Illustration (e) to Section 56 says the contract to act becomes void on those occasions when the actor is too ill. Impossibility affects only the occasions concerned. Calling the whole contract void is wrong because performance is possible on other days.

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