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A supplier agrees to erect a canopy solely for a wedding at a named venue on a fixed day. Before the supplier performs, an unforeseen curfew prohibits the wedding and installation at that venue for…

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A supplier agrees to erect a canopy solely for a wedding at a named venue on a fixed day. Before the supplier performs, an unforeseen curfew prohibits the wedding and installation at that venue for the whole day. No advance was paid, neither party received a benefit, and the contract contains no clause covering the event. Under the Indian Contract Act, 1872, what is the effect of the curfew on the supplier’s claim to the installation charge?

  1. The supplier can recover the agreed charge because the price was fixed before the curfew.

  2. The supplier can recover a reasonable charge for the customer’s benefit.

  3. The supplier must seek payment from the State instead of the customer.

  4. The supplier cannot recover the charge because the agreement became void.

Answer and explanation

Correct answer: D - The supplier cannot recover the charge because the agreement became void.

Section 56 discharges the contract when performance becomes unlawful or impossible after formation. The curfew blocked the only agreed installation, and there was no advantage to restore under section 65.

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