Problem 1
The Fisheries department has decided to buy a second hand boat for patrol at sea and has agreed with Pro Naval Ltd for the latter to supply the department with an existing patrol boat against payment of Rs 500,000. How would the contract be affected in the following circumstances:
(a) The boat was completely unseaworthy.
(b) If the boat has been destroyed by fire ten minutes before the contract was made.
(c) The boat was not a speed boat and was not meant for patrol because of poor engine capacity.
Problem 2
(a) Explain the ways and circumstances in which contractual liability may be discharged.
(b) "Any breach of contract always allows the injured party to sue for damages" Discuss.