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Hari had contracted Prakash to transport apple from Shimla to Bangalore, for a consideration of Rs 1.50 Lakh. On the way, due to the month long strike of transporter Prakash not able to move further towards Bangalore and sold the apple at Delhi. Later, dispute arose between Hari and Prakash for the price difference. Do Prakash have to make good the loss caused to the Hari? Write appropriate provisions of Indian Contract Act 1872 appliable to this situation?
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Hari had contracted Prakash to transport apple from Shimla to Bangalor...
Provisions of Indian Contract Act 1872 applicable to the situation:
1. Section 73: This section deals with the compensation for loss or damage caused by breach of contract. According to this section, when a party to a contract has suffered a loss due to the breach of contract by the other party, the party who breaches the contract is liable to compensate for such loss or damage.
2. Section 74: This section states that when a contract involves a penalty or liquidated damages, the court has the power to determine whether the amount specified is a genuine pre-estimate of damages or a penalty. If it is found to be a penalty, the court may reduce the amount to a reasonable amount.
3. Section 56: This section deals with the doctrine of frustration. It states that a contract becomes void if it becomes impossible to perform due to an unforeseen event or change in circumstances which is not caused by any party to the contract. In such cases, the parties are discharged from their respective obligations.
Explanation:
In this scenario, Prakash was contracted by Hari to transport apples from Shimla to Bangalore for a consideration of Rs 1.50 Lakh. However, due to a month-long strike of transporters, Prakash was unable to move further towards Bangalore and had to sell the apples at Delhi. As a result, a dispute arose between Hari and Prakash regarding the price difference.
According to the Indian Contract Act 1872, Prakash is liable to make good the loss caused to Hari. Prakash had a contractual obligation to transport the apples to Bangalore, but due to the strike, it became impossible for him to perform his obligation. The doctrine of frustration under Section 56 of the Act applies in this case as the strike was an unforeseen event beyond Prakash's control.
Since Prakash was unable to fulfill his contractual obligation, he should compensate Hari for the loss suffered. The compensation should be calculated based on the price difference between the intended destination (Bangalore) and the actual destination (Delhi) where the apples were sold.
However, the court may consider the provisions of Section 74 of the Act to determine whether the agreed consideration of Rs 1.50 Lakh is a genuine pre-estimate of damages or a penalty. If it is found to be a penalty, the court has the power to reduce the amount to a reasonable amount.
In conclusion, Prakash is liable to compensate Hari for the loss caused due to the breach of contract. The compensation should be determined based on the price difference, and the court may intervene to assess the reasonableness of the agreed consideration.
1. Section 73: This section deals with the compensation for loss or damage caused by breach of contract. According to this section, when a party to a contract has suffered a loss due to the breach of contract by the other party, the party who breaches the contract is liable to compensate for such loss or damage.
2. Section 74: This section states that when a contract involves a penalty or liquidated damages, the court has the power to determine whether the amount specified is a genuine pre-estimate of damages or a penalty. If it is found to be a penalty, the court may reduce the amount to a reasonable amount.
3. Section 56: This section deals with the doctrine of frustration. It states that a contract becomes void if it becomes impossible to perform due to an unforeseen event or change in circumstances which is not caused by any party to the contract. In such cases, the parties are discharged from their respective obligations.
Explanation:
In this scenario, Prakash was contracted by Hari to transport apples from Shimla to Bangalore for a consideration of Rs 1.50 Lakh. However, due to a month-long strike of transporters, Prakash was unable to move further towards Bangalore and had to sell the apples at Delhi. As a result, a dispute arose between Hari and Prakash regarding the price difference.
According to the Indian Contract Act 1872, Prakash is liable to make good the loss caused to Hari. Prakash had a contractual obligation to transport the apples to Bangalore, but due to the strike, it became impossible for him to perform his obligation. The doctrine of frustration under Section 56 of the Act applies in this case as the strike was an unforeseen event beyond Prakash's control.
Since Prakash was unable to fulfill his contractual obligation, he should compensate Hari for the loss suffered. The compensation should be calculated based on the price difference between the intended destination (Bangalore) and the actual destination (Delhi) where the apples were sold.
However, the court may consider the provisions of Section 74 of the Act to determine whether the agreed consideration of Rs 1.50 Lakh is a genuine pre-estimate of damages or a penalty. If it is found to be a penalty, the court has the power to reduce the amount to a reasonable amount.
In conclusion, Prakash is liable to compensate Hari for the loss caused due to the breach of contract. The compensation should be determined based on the price difference, and the court may intervene to assess the reasonableness of the agreed consideration.
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Hari had contracted Prakash to transport apple from Shimla to Bangalore, for a consideration of Rs 1.50 Lakh. On the way, due to the month long strike of transporter Prakash not able to move further towards Bangalore and sold the apple at Delhi. Later, dispute arose between Hari and Prakash for the price difference. Do Prakash have to make good the loss caused to the Hari? Write appropriate provisions of Indian Contract Act 1872 appliable to this situation?
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Hari had contracted Prakash to transport apple from Shimla to Bangalore, for a consideration of Rs 1.50 Lakh. On the way, due to the month long strike of transporter Prakash not able to move further towards Bangalore and sold the apple at Delhi. Later, dispute arose between Hari and Prakash for the price difference. Do Prakash have to make good the loss caused to the Hari? Write appropriate provisions of Indian Contract Act 1872 appliable to this situation? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Hari had contracted Prakash to transport apple from Shimla to Bangalore, for a consideration of Rs 1.50 Lakh. On the way, due to the month long strike of transporter Prakash not able to move further towards Bangalore and sold the apple at Delhi. Later, dispute arose between Hari and Prakash for the price difference. Do Prakash have to make good the loss caused to the Hari? Write appropriate provisions of Indian Contract Act 1872 appliable to this situation? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Hari had contracted Prakash to transport apple from Shimla to Bangalore, for a consideration of Rs 1.50 Lakh. On the way, due to the month long strike of transporter Prakash not able to move further towards Bangalore and sold the apple at Delhi. Later, dispute arose between Hari and Prakash for the price difference. Do Prakash have to make good the loss caused to the Hari? Write appropriate provisions of Indian Contract Act 1872 appliable to this situation?.
Hari had contracted Prakash to transport apple from Shimla to Bangalore, for a consideration of Rs 1.50 Lakh. On the way, due to the month long strike of transporter Prakash not able to move further towards Bangalore and sold the apple at Delhi. Later, dispute arose between Hari and Prakash for the price difference. Do Prakash have to make good the loss caused to the Hari? Write appropriate provisions of Indian Contract Act 1872 appliable to this situation? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Hari had contracted Prakash to transport apple from Shimla to Bangalore, for a consideration of Rs 1.50 Lakh. On the way, due to the month long strike of transporter Prakash not able to move further towards Bangalore and sold the apple at Delhi. Later, dispute arose between Hari and Prakash for the price difference. Do Prakash have to make good the loss caused to the Hari? Write appropriate provisions of Indian Contract Act 1872 appliable to this situation? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Hari had contracted Prakash to transport apple from Shimla to Bangalore, for a consideration of Rs 1.50 Lakh. On the way, due to the month long strike of transporter Prakash not able to move further towards Bangalore and sold the apple at Delhi. Later, dispute arose between Hari and Prakash for the price difference. Do Prakash have to make good the loss caused to the Hari? Write appropriate provisions of Indian Contract Act 1872 appliable to this situation?.
Solutions for Hari had contracted Prakash to transport apple from Shimla to Bangalore, for a consideration of Rs 1.50 Lakh. On the way, due to the month long strike of transporter Prakash not able to move further towards Bangalore and sold the apple at Delhi. Later, dispute arose between Hari and Prakash for the price difference. Do Prakash have to make good the loss caused to the Hari? Write appropriate provisions of Indian Contract Act 1872 appliable to this situation? in English & in Hindi are available as part of our courses for B Com.
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Hari had contracted Prakash to transport apple from Shimla to Bangalore, for a consideration of Rs 1.50 Lakh. On the way, due to the month long strike of transporter Prakash not able to move further towards Bangalore and sold the apple at Delhi. Later, dispute arose between Hari and Prakash for the price difference. Do Prakash have to make good the loss caused to the Hari? Write appropriate provisions of Indian Contract Act 1872 appliable to this situation?, a detailed solution for Hari had contracted Prakash to transport apple from Shimla to Bangalore, for a consideration of Rs 1.50 Lakh. On the way, due to the month long strike of transporter Prakash not able to move further towards Bangalore and sold the apple at Delhi. Later, dispute arose between Hari and Prakash for the price difference. Do Prakash have to make good the loss caused to the Hari? Write appropriate provisions of Indian Contract Act 1872 appliable to this situation? has been provided alongside types of Hari had contracted Prakash to transport apple from Shimla to Bangalore, for a consideration of Rs 1.50 Lakh. On the way, due to the month long strike of transporter Prakash not able to move further towards Bangalore and sold the apple at Delhi. Later, dispute arose between Hari and Prakash for the price difference. Do Prakash have to make good the loss caused to the Hari? Write appropriate provisions of Indian Contract Act 1872 appliable to this situation? theory, EduRev gives you an
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