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

Sharma Traders agreed to deliver 200 sacks of rice to Gupta Stores at Gupta's godown on 10 March. Sharma's truck reached the godown on 10 March, but the driver refused to unload or let Gupta open the sacks for checking until Gupta signed a receipt admitting the quality was satisfactory. Gupta refused to accept. Which statement is correct?

Sharma's offer is not a valid tender. Section 38 requires that the promisee have a reasonable opportunity of seeing that the thing offered is what the promisor promised to deliver. Sharma's driver prevented inspection and demanded a signed admission, so the offer was conditional and defective.

  1. ASharma made a valid tender because the goods reached on the due date
  2. BSharma made a valid tender because Gupta refused to accept the goods
  3. CSharma's offer is not a valid tender because Gupta had no reasonable opportunity of seeing that the goods were those contracted forCorrect
  4. DSharma's offer is not a valid tender only because it was made at Gupta's godown

Explanation

Under Section 38, an offer to deliver a thing must give the promisee a reasonable opportunity of seeing that it is the thing promised. Here the driver blocked inspection and demanded an admission of quality, so the offer was also conditional. Mere arrival on the due date is not enough.

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