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B hires A to build a house and pays for part of the work. A then unequivocally refuses to perform the…

A refusal to perform the promise wholly can permit termination under section 39 unless the other party has signified acquiescence in its continuance. Section 75 entitles a…

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B hires A to build a house and pays for part of the work. A then unequivocally refuses to perform the remaining work. B does not acquiesce in continuing the contract and rightfully rescinds it. Under section 75 of the Indian Contract Act, 1872, what can B recover from A?

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Answer and explanation

Correct answer A

A refusal to perform the promise wholly can permit termination under section 39 unless the other party has signified acquiescence in its continuance.

Section 75 entitles a party who rightfully rescinds to compensation for damage sustained through non-fulfilment. The question supplies rightful rescission and leaves proof and quantum of actual damage separate.

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Option A

Section 75 entitles the party rightfully rescinding to compensation for damage sustained through non-fulfilment.

Option B

Rightful rescission is the premise for compensation under section 75, so it does not extinguish that remedy.

Option C

The facts expressly establish rightful rescission following A’s refusal.

Option D

The remedy asked for is statutory compensation. Section 75 does not limit B to enforcing performance.

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