Question

Karan and Arjun had entered into a contract where Karan was to supply 50,000 phones to Arjun within 2 months from the date of signing of contract. Karan was to procure the phones from China and deliver the same to Arjun. The rate of the phone was Rs. 5000/- a piece (inclusive of all taxes and duties). At the time of the execution of the contract, the duty was at 5% (five percent). Immediately after the execution of the Agreement, India had increased the duties to 1000% (one thousand percent). Therefore, Karan was finding it difficult to sell the phones at the price agreed earlier. In the circumstances, kindly advice:
How can Karan discharge such a contract? (5 Marks)
How can Arjun enforce such a contract? (5 Marks)

Answer 1

Answer:

Explanation:

in this situation if Karan supplies the phones to Arjun according to the rate that is done in the contract between them, karan will face a loss and he will try his level best to end the contract for this he can use different methods i.e. he an say to the Arjun that delivery is late or that there are not enough phones at the time for sale the company did not sent the full order.On the other hand Arjun will try to receive the phones according to contract for this he will say to Karan that he has signed a contract with him and he will take legal action against Karan if Karan did not made full delivery to him.