Business Law

(LAW201)

Assignment 1

Submitted to
Ma'am Anam Toqeer

Submitted By
M. Abdul Haq Alvi
FA20-BAF-081

November 12, 2021

Question No: 1

There was an agreement between Ali & Amjad to sell 4,000 boxes of canned fruit packed in
cases of 50 boxes. When delivered, it was discovered that half the cases contained only 40
boxes, although the total number of boxes was still 4,000. The market value was not affected.
Solve the case; tell consequences and solutions by keeping in mind the discharge of the
contract.

Answer:
This case is terminated by operation of law in the case of Material Alteration.

Material Alteration:
According to this law, if the contract is contained in a written document and one party alters
its material particulars without the other party's consent, the contract is discharged.

Consequences:
In the above case, the agreement is the sale of 4,000 boxes of canned fruit packed in cases of
50 boxes. At the time of delivery, it was discovered that half the cases contained only 40
boxes, although the total number of boxes was still 4,000. Hence, they clearly show that in
some Alteration in the Material, one party makes material alterations in the contract without
the other party's consent. So, the contract is discharged.

Damages:
As the total number of boxes was still 4,000. Furthermore, The market value was not
affected. Ali ( the purchaser ) is entitled to nominal damages.

Nominal damages:
Nominal damages are neither awarded to compensate the aggrieved party nor to punish the
guilty party. When the aggrieved party suffers no loss, the court may award nominal damages
to recognize his right. The court may refuse to award damages.

Question No: 2
Aslam agrees to sell his mobile to Sarah for an amount of Rs 20,000. He also promises to
deliver it within two days. When Aslam approached Sarah with his phone the next day, Sarah
refused to accept it without any valid reason. Solve the case; tell consequences and solutions
by keeping in mind the discharge of the contract.

Answer:
The obligations of the contract are not being followed, and so it is being discharged.
Consequences:
As Sarah, being a purchaser, has failed to perform her part of the obligation by refusing to
purchase the phone, it is considered to be discharged by breach of contract.
Because Sarah refused to purchase the phone a day before the delivery time of the phone, it is
an anticipatory breach.
It will be an anticipatory breach as Sarah communicated with Aslam when he approached her
and told him she would not purchase the phone.

Solution:
• Aslam will be excused from selling the phone
• Aslam can treat this discharge as rescinded and sue Sarah for the damages before the
ending time of the contract
• Aslam may ignore the conduct of Sarah and wait of performance and then sue Sarah