Question

(a) Mr. X and Mr. Y entered into a contract on 1 August, 2018, by which
Mr. X had to supply 50 tons of sugar to Mr. Y at a certain price stricty
within a period of 10 days of the contract. Mr. Y also paid an amount
of 50,000 towards advance as per the terms of the above contract
The mode of transportation available between their places is roadway
only. Severe flood came on 2nd August, 2018 and the only road
connecting their places was damaged and could not be repaired within
fifteen days. Mr. X offered to supply sugar on 20° Angust, 2018 for
which Mr. Y did not agree. On 1° September, 2018, Mr. X claimed
compensation of 10,000 from Mr. Y for refusing to accept the supply
of sugar, which was not there within the purview of the contract Oo
the other hand, Mr. Y claimed for refund of 8 50,000, which he had
paid as advance in terms of the contract. Analyse the above situation in
terms of the provisions of the Indian Contract Act, 1872 and decide on
Y's contention​

Answer 1

Y's contention​ is justified or in simple term we can say he is right

Explanation:

• In the given case the contract becomes void in between Mr. X and Mr. Y.

• This happened because when the performance of promise become impossible or illegal due to some change of situations or uncertain event like natural calamities which happened in this case which was beyond the consideration of the parties.

• According to section 65 of Indian contract law 1872, when a contract becomes void between both parties" any person who has received any benefit or contract is bound to restore it or the person is bound to make compensation to the other person from he received it.

• In the given case, just after Mr. X and Y have entered the contract, the event of the flood has taken place which made it impossible to deliver the sugar within the prescribed time. Thus, the promise, in this case, becomes null and Void.

• In this case, Mr. X has to pay back the advance received of 50,000 From Mr. Y.

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