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A obtains an advance of money from Z for the delivery of a certain quantity of indigo plant. At the…

Illustration (g) to section 318 of the BNS draws the line: if A does not intend to deliver when he takes the advance he cheats, but if he intends to deliver at that time and…

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A obtains an advance of money from Z for the delivery of a certain quantity of indigo plant. At the time of obtaining the money, A intends to deliver the indigo plant, but afterwards breaks his contract and does not deliver it. Which statement is correct?

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Answer and explanation

Correct answer B

Illustration (g) to section 318 of the BNS draws the line: if A does not intend to deliver when he takes the advance he cheats, but if he intends to deliver at that time and later breaks the contract, "A does not cheat, but is liable only to a civil action for breach of contract". Loss to Z or a later broken promise does not prove deception at the start, and an advance paid under a contract is not property entrusted to A.

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