(a) Under the provisions of the Contract Act, 1872 'Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is of sound mind, and is not disqualified from contracting by any law to which he is subject'.

Describe the circumstances in which a person may not be able to enter into a contract, despite meeting the above conditions (1.5)

(b) Sarya Traders (ST) agreed to supply building materials to Khawaja Contractors (KC) on 10 September 2020 for the construction of a charitable hospital in District Malir. However, on due date, ST failed to fulfill their obligation.

Under the provisions of the Contract Act, 1872 explain the rights available to KC under the above situation. Assume time was the essence of the contract.(1.5)

(c) What would be your answer in (b) above if KC had to procure building material from another supplier at a price higher than the price agreed with ST and also had to pay a penalty of Rs 50,000 to the owner of the hospital for construction delay?