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Can you explain the answer of this question below:
If entire specified goods is perished before entering into contract of sale, the contract is
- A:Valid
- B:Void
- C:Voidable
- D:Cancelled
The answer is b.
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Can you explain the answer of this question below:If entire specified ...
Explanation:
When an agreement to sell is made, it is necessary that the goods exist and are in existence. If the goods cease to exist before the contract is made, the contract becomes void.
Void Contract:
A void contract is a contract that is null and has no legal effect. Therefore, if the entire specified goods is perished before entering into the contract of sale, the contract becomes void. This means that the contract cannot be enforced by either party and both parties are released from their obligations under the contract.
Example:
Let's say that a farmer agrees to sell a specific crop of oranges to a buyer. However, before the sale is made, the entire crop is destroyed due to a natural disaster. In this case, the contract becomes void because the goods specified in the contract no longer exist.
Conclusion:
It is important to note that if only a part of the goods is perished before entering into the contract of sale, the contract is not void but it can be voidable at the option of the buyer. The buyer can choose to accept the remaining goods or cancel the contract. However, if the entire specified goods is perished, the contract becomes void.
When an agreement to sell is made, it is necessary that the goods exist and are in existence. If the goods cease to exist before the contract is made, the contract becomes void.
Void Contract:
A void contract is a contract that is null and has no legal effect. Therefore, if the entire specified goods is perished before entering into the contract of sale, the contract becomes void. This means that the contract cannot be enforced by either party and both parties are released from their obligations under the contract.
Example:
Let's say that a farmer agrees to sell a specific crop of oranges to a buyer. However, before the sale is made, the entire crop is destroyed due to a natural disaster. In this case, the contract becomes void because the goods specified in the contract no longer exist.
Conclusion:
It is important to note that if only a part of the goods is perished before entering into the contract of sale, the contract is not void but it can be voidable at the option of the buyer. The buyer can choose to accept the remaining goods or cancel the contract. However, if the entire specified goods is perished, the contract becomes void.
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Community Answer
Can you explain the answer of this question below:If entire specified ...
Here the subject matter of the contract is destroyed before entering into the contract therefore due to the lack of existence of subject matter the contract becomes void therefore option B will be the correct answer
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Can you explain the answer of this question below:If entire specified goods is perished before entering into contract of sale, the contract isA:ValidB:VoidC:VoidableD:CancelledThe answer is b.
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Can you explain the answer of this question below:If entire specified goods is perished before entering into contract of sale, the contract isA:ValidB:VoidC:VoidableD:CancelledThe answer is b. 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 Can you explain the answer of this question below:If entire specified goods is perished before entering into contract of sale, the contract isA:ValidB:VoidC:VoidableD:CancelledThe answer is b. covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:If entire specified goods is perished before entering into contract of sale, the contract isA:ValidB:VoidC:VoidableD:CancelledThe answer is b..
Can you explain the answer of this question below:If entire specified goods is perished before entering into contract of sale, the contract isA:ValidB:VoidC:VoidableD:CancelledThe answer is b. 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 Can you explain the answer of this question below:If entire specified goods is perished before entering into contract of sale, the contract isA:ValidB:VoidC:VoidableD:CancelledThe answer is b. covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:If entire specified goods is perished before entering into contract of sale, the contract isA:ValidB:VoidC:VoidableD:CancelledThe answer is b..
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