Question

'A' agrees to supply 200 liters of oil to 'B' on 1st February 2023. The contract was entered between the two on 15th January 2023. On 31st January 2023, 'A' informed 'B' that the consignment has been dispatched and would reach 'B' on scheduled date. On 1st Feb 2023, 'B' refused to accept the oil as he did not have sufficient space to store the oil.
What is the remedy available with 'A'?

• A. No remedy as the contract is discharged by impossibility of performance
• B. No remedy is available as 'A' will get back his goods, so has not suffered any loss
• C. 'A' is entitiled to receive compensation from 'B' for breach of contract
• D. 'A' can wait till 'B' arrange for warehouse

Answer 1

Answer: (C)

'A' is entitiled to receive compensation from 'B' for breach of contract

Answer 2

The correct option is (C) : 'A' is entitiled to receive compensation from 'B' for breach of contract