Question
Please read the fictional situation below and answer the questions that follow: The export of wheat from India had continued smoothly for a long time.
Please read the fictional situation below and answer the questions that follow:
The export of wheat from India had continued smoothly for a long time. Indian exporters had entered into agreements with local traders who would supply them the wheat under standard terms as provided under the Sale of Goods Act, 1930. The traders would then export the wheat to other countries. In March 2020, the Government imposed a temporary restriction on export of wheat through an official order, due to the pandemic. The exporters then refused to purchase further wheat from the local traders. This has led to a dispute between traders and the exporters.
(a) Explain the concept of Force Majeure Clause under the Indian Contract Act, 1872. How would the existence of a Force Majeure Clause in the agreement between traders and exporters be relevant under this situation?
(b) Let us consider that the agreement between the Local Traders and Exporters did not have a Force Majeure clause. How would the situation be dealt in that scenario?
(c) Elucidate the concept of ascertainment of goods and ascertainment of price under the Sale of Goods Act, 1930. Would there be a difference in treatment of ascertained and unascertained goods when dealing with the dispute between the traders and exporters? If yes, explain.
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