All India Bar Examination (AIBE) 17-XVII Previous Year Question Papers with Answers

Practice Mode:
73.

A is a tradesman in Ahmedabad, B carries on business in Delhi. B, by his agent Ahmedabad, buys goods of A and requests A to deliver them to the Western Roadway Transport Company. A delivers the goods accordingly in Ahmedabad. A may sue B for the price of the goods

A: In Ahmedabad only
B: In Delhi only
C: In either Ahmedabad or Delhi
D: Anywhere in India

The answer is: C

Explanation

The correct option is C: In either Ahmedabad or Delhi.

This is because, according to section 20 of the Indian Contract Act, 1872, the place of performance of a contract is the place where the offer and acceptance are made, or where the parties intend or agree to perform it.

In this case, the offer and acceptance were made in Ahmedabad, where B's agent bought the goods from A. Therefore, A can sue B in Ahmedabad. However, A can also sue B in Delhi, where B carries on business, as per section 20 of the Code of Civil Procedure, 1908, which allows a plaintiff to sue a defendant at the place where the defendant resides or carries on business. Therefore, A has the option to sue B in either Ahmedabad or Delhi.