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 X and Y contract that Y shall build a house for X Rs. 20 Lacs. Y is ready and willing to construct the house but X prevents him from doing so. In such case: 
  • a)
    Y is entitled to recovers compensation for any loss suffered by him 
  • b)
    Y can opt to rescind the contract 
  • c)
    (a) or (b) 
  • d)
    (a) and (b)
Correct answer is option 'D'. Can you explain this answer?
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X and Y contract that Y shall build a house for X Rs. 20 Lacs. Y is re...
Contractual Obligations and Breach

When two parties enter into a contract, they have certain obligations to fulfill. The party who fails to fulfill their obligations is said to have breached the contract. In such cases, the other party may have certain rights to recover their losses or terminate the contract.

X and Y Contract

In the given scenario, X and Y have entered into a contract where Y is supposed to build a house for X for a sum of Rs. 20 Lacs. Y is ready and willing to construct the house, but X prevents him from doing so.

Breach of Contract

X's prevention of Y from building the house is a breach of contract. Y has fulfilled his obligation by being ready and willing to construct the house, but X has prevented him from doing so. Therefore, Y has the right to recover compensation for any loss suffered by him.

Rescind the Contract

Y also has the option to rescind the contract in such a case. Rescinding the contract means that the contract is terminated, and both parties are released from their obligations. In this case, Y can choose to rescind the contract and claim compensation for any losses suffered.

Conclusion

In conclusion, Y has the right to recover compensation for any losses suffered due to X's breach of contract. Y also has the option to rescind the contract and claim compensation. Therefore, the correct answer is (d) (a) and (b).
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X and Y contract that Y shall build a house for X Rs. 20 Lacs. Y is ready and willing to construct the house but X prevents him from doing so. In such case:a)Y is entitled to recovers compensation for any loss suffered by himb)Y can opt to rescind the contractc)(a) or (b)d)(a) and (b)Correct answer is option 'D'. Can you explain this answer?
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X and Y contract that Y shall build a house for X Rs. 20 Lacs. Y is ready and willing to construct the house but X prevents him from doing so. In such case:a)Y is entitled to recovers compensation for any loss suffered by himb)Y can opt to rescind the contractc)(a) or (b)d)(a) and (b)Correct answer is option 'D'. 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 and Y contract that Y shall build a house for X Rs. 20 Lacs. Y is ready and willing to construct the house but X prevents him from doing so. In such case:a)Y is entitled to recovers compensation for any loss suffered by himb)Y can opt to rescind the contractc)(a) or (b)d)(a) and (b)Correct answer is option 'D'. 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 and Y contract that Y shall build a house for X Rs. 20 Lacs. Y is ready and willing to construct the house but X prevents him from doing so. In such case:a)Y is entitled to recovers compensation for any loss suffered by himb)Y can opt to rescind the contractc)(a) or (b)d)(a) and (b)Correct answer is option 'D'. Can you explain this answer?.
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