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Consider the following statements: Where the tender of performance is rejected by the other party, 1.…

A valid offer of performance that the promisee refuses protects the promisor under section 38 of the Contract Act. The promisor is not responsible for the resulting…

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Consider the following statements: Where the tender of performance is rejected by the other party, 1. The promisor has to still perform the contract but can claim damages. 2. The promisor is excused from further performance and is entitled to sue the promisee for breach of contract. Which of the statements given above is/are correct?

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Correct answer B

A valid offer of performance that the promisee refuses protects the promisor under section 38 of the Contract Act. The promisor is not responsible for the resulting nonperformance and retains the right to pursue contractual remedies against the promisee. The offer must satisfy the statutory conditions, including being unconditional and made at a proper time and place; rejection does not automatically establish an amount of damages.

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