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    Question

    A promises to sell his car to B for ₹5 lakhs. B agrees

    to buy it but asks for one week to arrange the funds. Before the weekends, A sells the car to C for ₹5.2 lakhs. In this case, B can sue A for:
    A Fraud Correct Answer Incorrect Answer
    B Breach of contract Correct Answer Incorrect Answer
    C Misrepresentation Correct Answer Incorrect Answer
    D Negligence Correct Answer Incorrect Answer
    E No remedy, as the contract was not finalized Correct Answer Incorrect Answer

    Solution

    A promise by A and agreement by B creates a valid contract, even if performance is scheduled for a future date. By selling the car to a third party before giving B the chance to perform (arrange funds), A has committed an anticipatory breach of contract. B can sue for damages.

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