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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 these goods could not be delivered because of strike of transport operators 
  • a)
    Void on the ground of supervening impossibility
  • b)
    Void on the ground of non-performance
  • c)
    Void on the ground of third-party default
  • d)
    Void on the ground of commercial impossibility
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
X of Mumbai agreed to sell 1000 bales of cotton @ Rs. 999/bale and to ...
Legal Position:
The legal position in this case is that the agreement to sell the 1000 bales of cotton at a certain price and deliver them within a fortnight at the buyer's godown in Karachi becomes void on the ground of non-performance.
Explanation:
The failure to deliver the goods due to a strike of transport operators can be considered as an instance of non-performance. Here are the reasons why this would be considered as non-performance and the agreement would become void:
1. Impossibility of performance: The strike of transport operators makes it impossible for X to deliver the goods within the agreed timeframe. This constitutes a case of supervening impossibility, where the performance of the contract becomes impossible due to unforeseen circumstances.
2. Non-performance of a fundamental obligation: The delivery of goods within the agreed timeframe is a fundamental obligation of the contract. X's failure to perform this obligation renders the contract void as it goes against the terms agreed upon by both parties.
3. Lack of control: X cannot be held responsible for the strike of transport operators, as it is a third-party default. This means that X has no control over the occurrence of the strike and cannot be expected to fulfill the contract in such circumstances.
4. Commercial impossibility: The strike of transport operators disrupts the normal course of business and makes it commercially impossible for X to deliver the goods within the specified timeframe. This constitutes a valid reason for non-performance and renders the contract void.
In conclusion, in the given scenario, the failure to deliver the goods due to a strike of transport operators would result in the agreement becoming void on the ground of non-performance.
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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 these goods could not be delivered because of strike of transport operatorsa)Void on the ground of supervening impossibilityb)Void on the ground of non-performancec)Void on the ground of third-party defaultd)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 these goods could not be delivered because of strike of transport operatorsa)Void on the ground of supervening impossibilityb)Void on the ground of non-performancec)Void on the ground of third-party defaultd)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 these goods could not be delivered because of strike of transport operatorsa)Void on the ground of supervening impossibilityb)Void on the ground of non-performancec)Void on the ground of third-party defaultd)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 these goods could not be delivered because of strike of transport operatorsa)Void on the ground of supervening impossibilityb)Void on the ground of non-performancec)Void on the ground of third-party defaultd)Void on the ground of commercial impossibilityCorrect answer is option 'B'. Can you explain this answer?.
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