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X of Mumbai agreed to sell 1000 bales of cotton @ Rs. 999/bale and to deliver within a fortnight at buyers godown at Karachi. X failed to supply these goods. State the legal position in each case with explanation.
Q.If unknown to both the parties, the goods were destroyed by party at the time of agreement.
  • a)
    Void on the ground of X’s mistake
  • b)
    Void on the ground of mutual mistake
  • c)
    Void on the ground of supervening impossibility
  • d)
    Void on the ground of commercial impossibility
Correct answer is option 'B'. Can you explain this answer?
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X of Mumbai agreed to sell 1000 bales of cotton @ Rs. 999/bale and to ...
Legal Position if Goods were Destroyed

Void on the Ground of Mutual Mistake

Explanation:

When both parties are unaware of the fact that the goods have been destroyed, the contract becomes void on the ground of mutual mistake. In this case, both parties were under the impression that the goods were available to be sold and delivered, but due to unknown circumstances, the goods were destroyed. Since both parties were unaware of this fact, the contract becomes void due to mutual mistake.

Mutual mistake occurs when both parties are mistaken about an important fact that is essential to the contract. In this case, the fact that the goods were destroyed was unknown to both parties and therefore, they did not knowingly enter into the contract. As a result, the contract becomes void.

It is important to note that if one party was aware of the fact that the goods were destroyed and did not disclose this information to the other party, the contract would be considered voidable on the ground of fraud or misrepresentation.
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X of Mumbai agreed to sell 1000 bales of cotton @ Rs. 999/bale and to deliver within a fortnight at buyers godown at Karachi. X failed to supply these goods. State the legal position in each case with explanation.Q.If unknown to both the parties, the goods were destroyed by party at the time of agreement.a)Void on the ground of Xs mistakeb)Void on the ground of mutual mistakec)Void on the ground of supervening impossibilityd)Void on the ground of commercial impossibilityCorrect answer is option 'B'. Can you explain this answer?
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X of Mumbai agreed to sell 1000 bales of cotton @ Rs. 999/bale and to deliver within a fortnight at buyers godown at Karachi. X failed to supply these goods. State the legal position in each case with explanation.Q.If unknown to both the parties, the goods were destroyed by party at the time of agreement.a)Void on the ground of Xs mistakeb)Void on the ground of mutual mistakec)Void on the ground of supervening impossibilityd)Void on the ground of commercial impossibilityCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about X of Mumbai agreed to sell 1000 bales of cotton @ Rs. 999/bale and to deliver within a fortnight at buyers godown at Karachi. X failed to supply these goods. State the legal position in each case with explanation.Q.If unknown to both the parties, the goods were destroyed by party at the time of agreement.a)Void on the ground of Xs mistakeb)Void on the ground of mutual mistakec)Void on the ground of supervening impossibilityd)Void on the ground of commercial impossibilityCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X of Mumbai agreed to sell 1000 bales of cotton @ Rs. 999/bale and to deliver within a fortnight at buyers godown at Karachi. X failed to supply these goods. State the legal position in each case with explanation.Q.If unknown to both the parties, the goods were destroyed by party at the time of agreement.a)Void on the ground of Xs mistakeb)Void on the ground of mutual mistakec)Void on the ground of supervening impossibilityd)Void on the ground of commercial impossibilityCorrect answer is option 'B'. Can you explain this answer?.
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