Multiple choice

A`s car was completely destroyed in an accident. The fact was known to him. Still he made an agreement with B to sell him the car in good condition and received advance money from him. In this case

  1. the contract is void

  2. B has no legal remedy

  3. B can sue A for the loss caused to him

  4. B should request A to give back the advance money only
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

If the contract becomes void due to impossibility known to one party, that party is bound to make good the loss caused to other party. Had it been not known to A at the time of making the contract, the agreement would have been void.

Keep practicing — related questions