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

Under the illustration to Section 38, A must deliver 100 bales of cotton of a particular quality to B at B's warehouse on 1 March. Which course of action by A amounts to a valid offer of performance?

A makes a valid offer by bringing the cotton to B's warehouse on the appointed day, in circumstances where B can reasonably check that it is the contracted quality and that there are 100 bales. Time, place and opportunity to inspect must all be satisfied.

  1. ASending a letter to B on 1 March stating that the cotton is ready at A's godown
  2. BBringing the cotton to B's warehouse on the appointed day so that B can satisfy himself of its quality and the number of balesCorrect
  3. CBringing the cotton to B's warehouse a week later after informing B by phone
  4. DLeaving the bales at the warehouse gate without allowing B to examine them

Explanation

The illustration requires A to bring the cotton to B's warehouse on the appointed day, in circumstances where B can check quality and count. A letter, a late arrival or denying examination does not satisfy the conditions as to proper time, place and opportunity to see.

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