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

Verma agreed to repair Iyer's factory roof, but Iyer refused to show Verma which sections of the roof leaked, so the repairs could not be done. Which provision best describes Verma's position?

Verma is excused from the non-performance caused by Iyer's refusal. Section 67 provides that if a promisee neglects or refuses to give the promisor reasonable facilities for performance, the promisor is excused for any non-performance resulting from that neglect or refusal.

  1. AVerma is liable for non-performance because the contract was not performed
  2. BVerma is excused from non-performance caused by Iyer's neglect or refusal to afford reasonable facilitiesCorrect
  3. CVerma must first make a tender of money to Iyer
  4. DThe contract is contingent and cannot be enforced

Explanation

Section 67 says that if a promisee neglects or refuses to afford the promisor reasonable facilities for performance, the promisor is excused as to any non-performance caused thereby. This mirrors the house-repair illustration. Verma therefore is not liable for the resulting non-performance.

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