Correct option is C
If 'A' is too ill to perform the contract (to sing at the concert), then under the doctrine of
supervening impossibility, 'A' is not required to perform but must return the amount of advance, i.e., Rs. 1,000, to 'B'. This is because illness renders the performance impossible, excusing the party from performing the contract but not from the obligation to refund any amounts received.
Information Booster:
When a party is unable to fulfill a contract due to illness or another similar condition, the performance is excused under the doctrine of frustration. However, any advance or payment received must be returned, as the contract can no longer be performed. This ensures fairness to the other party, who otherwise would have paid for a service that is not delivered.
Additional Knowledge:
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A is bound to sing (a): Incorrect, as illness excuses performance.
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A is bound to compensate B for loss (b): A refund is sufficient; no further compensation is needed in cases of supervening impossibility.
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None of the above (d): Not applicable, as 'A' must return the advance.
