'A' agrees to supply 200 liters of oil to B' on 1st February 2023. The contract was entered between the two on 15th January 2023. On 31st January 2023, 'A' informed 'B' that the consignment has been dispatched and would reach 'B' on scheduled date. On 1st Feb 2023. 'B' refused to accept the oil as he did not have sufficient space to store the oil.
What is the remedy available with "A"?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → "A" is entitled to receive compensation from 'B' for breach of contract
'B' has breached the contract by refusing to accept the oil despite 'A' fulfilling their obligation. 'A' is entitled to damages to compensate for the loss incurred due to 'B's' breach.