Question
Under the Contract Act where one party promises to
perform an act that they knew, or could have known with reasonable diligence, to be impossible or unlawful, while the promisee was unaware of this fact, what is the promisor's obligation if the act is not performed?Solution
Section 56.  Agreement to do impossible act: Compensation for loss through non-performance of act known to be impossible or unlawful.—Where one person has promised to do something which he knew, or, with reasonable diligence, might have known, and which the promisee did not know, to be impossible or unlawful, such promisor must make compensation to such promisee for any loss which such promisee sustains through the non-performance of the promise.
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