Question

Mr.Ahmed made a written contract with Mr.Hamood, on March 2^nd 2020, promising to sell 10 computers, for a total price of 2000 (Omani Rials), by 1^st April, 2020. It is also agreed that if computers are not supplied till 1^st April, 2020, Mr.Ahmed should pay damages of 500(Omani Rials) to Mr.Hamood.

On 20^th March lockdown declared by government, all businesses are closed till 1^st May 2020, including selling and buying of computers. Due to which Mr.Ahmed could not able to supply computers on promised date of 1^st April, 2020.

1. Can Hamood claim for damages for not supplying computers by 1^st April, 2020, on the ground of breach of contract? (Write yes or no)                                                         

2. Can Ahmed take a plea of discharge of contract. Explain.                      

3. Explain which type of damages are they?                                                  

4. Explain about specific performance of contract. Can Hamood claim for the relief of specific performance?                                                                                                       (2+2=4 Marks)

Answer 1

Answer) a) Yes,Hamood can claim for damages on the ground of breach of contract.

Answer)a) Yes, Ahmed can take a plea of discharge of contract. This can be done due to Force Majeure clause. If this contract has a force majeure clause which means that if there is a higher force affects the duties mentioned in the contract such as government instructions or due to any national emergency etc, by which the duties couldn't be performed, then the contract may be terminated.If there is no clause mentioned, then Ahmed can take doctrine of frustration which is when a contract cannot be performed and their is no fault of either of the parties , then the parties can terminate the contract.

Answer-a) These type of damages are called liquidated damages because a specific amount of compensation is mentioned. If an amount is written in the contract and is agreeable by both the parties to be paid in the breach of contract, it is called liquidated compensation.

Answer-a) Specific performance can be defined as a remedy or counteraction under law where the court decides that only material compensation is not enough for the aggreved party, the breaching party should also complete the contract or is willing to complete the contract for the aggreved party's benefits.No, Hamood can't claim for the relief of specific performance because this breach has been done due to Force Majeure or frustration doctrine, in which the contract may gets terminated.

It took some research to answer the questions If you can help me with a upvote I would really appreciate it.