The question (10 marks)
A development authority auctions a plot and Tanvi is the successful bidder at Rs 2 crore. The agreement requires her to pay the balance within ninety days and provides that on default the entire deposit of Rs 50 lakh shall stand forfeited. The authority fails for over a year to obtain the clearances it had promised, and Tanvi does not pay. The authority then cancels the allotment, forfeits the Rs 50 lakh and resells the plot at Rs 2.4 crore. Advise Tanvi. (10 marks)
Original problem written for this course, on the pattern of Module III problem questions on s. 74
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 3 · Performance, breach and remedies of Law of Contract and Specific Relief.
Authorities you will need
- Indian Contract Act 1872, ss. 73, 74
- Fateh Chand v Balkishan Das
- Maula Bux v Union of India
- Kailash Nath Associates v Delhi Development Authority (2015) 4 SCC 136
- Shree Hanuman Cotton Mills v Tata Aircraft Ltd
- Chiranjit Singh v Har Swarup
- Hind Construction Contractors v State of Maharashtra
- State of Karnataka v Shree Rameshwara Rice Mills
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.