A agreed to supply B certain goods to be produced from Indonesia. The goods could not be produced due to riots and civil disturbances in Indonesia. Decide, whether the non-performance of the contract may be excused ?

CS Executive · Economic and Commercial Laws · PYQS · December 2017
A agreed to supply B certain goods to be produced from Indonesia. The goods could not be produced due to riots and civil disturbances in Indonesia. Decide, whether the non-performance of the contract may be excused ?

Answer & Explanation:

The problem is related to the discharge of contract due to supervening impossibility. Ordinarily when a person undertakes to do something, he must do it unless its performance becomes absolutely impossible due to any of the circumstances given under section 56 of the Indian Contract Act, 1872. A Contract is not discharged by the mere fact that it has become more difficult of performance due to some uncontemplated events or delays, strikes, lock outs and civil disturbances like riots do not terminate contracts, unless there is a clause especially in the contract providing non-performance in such cases. The instance problem is related to events of strikes, lock out and civil disturbances which do not discharge a contract because the parties to the contract have not specifically agreed in this regard at the time of formation of the contract. As per the agreement the goods could not be produced due to riots and civil disturbances in Indonesia. Hence there is no excuse for non-performance of the contract.

Topics: Indian Contract Act, 1872

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