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A agrees to supply one ton of sugar to B by 20th August. On 10th August, A informs B that he cannot supply sugar B did not accept the refusal and preferred to wait till 20th August. On 15th August, the Minister declares nationalisation of sugar industry. Decide

Option: 1

Contract is discharged and B has no remedy against A.


Option: 2

Contract is not discharged.


Option: 3

Contract is not discharged as sugar industry is just nationalized and not declared illegal.


Option: 4

 None of the above.


Answers (1)

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If the contract is not rescinded and subsequently an event happens which discharges the contract legally the aggrieved party loses his right to sue for damages. So the contract is discharged and B has no remedy against A. Hence correct option is A.

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Sayak

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