Multiple choice

‘A’ contract to sing for ‘B’ at a concert for Rs. 50,000/-, which are paid in advance. ‘A’ is too ill to sing on the day of the concert. The consequence is:

  1. ‘A’ is bound to make compensation to ‘B’ for the loss of the profits which ‘B’ would have made if ‘A’ had been able to sing

  2. ‘A’ is bound to refund to ‘B’ Rs. 50,000/- paid in advance

  3. ‘A’ can be forced to sing at the concert

  4. ‘A’ is bound to refund only that money out of Rs. 50,000/- that he has not spent
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Option B is correct. When a contract for personal service becomes impossible to perform due to illness (a contingency beyond the parties' control), Section 56 of the Contract Act (doctrine of frustration) applies. A who is too ill to sing cannot be compelled to perform personal service. However, Section 65 provides that when a contract becomes void or is discovered to be void, any advantage (the Rs. 50,000 advance) must be restored. A is bound to refund the entire advance, not just unspent portion. Option A is incorrect - liability for loss of profits does not arise in impossibility cases.

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