Section 53 of ICA : Section 53: Liability Of Party Preventing Event On Which The Contract Is To Take Effect

Explanation using Example

Imagine that Raj and Simran enter into a contract where Raj agrees to sell 100 custom-made chairs to Simran for her new cafe, and she agrees to pay him ₹500 per chair. The chairs are to be delivered in two months. One month into the contract, Simran informs Raj that she no longer wants the chairs and tells him to stop production. Raj has already made 50 chairs and incurred costs. Since Simran prevented Raj from fulfilling his part of the contract, Raj can choose to make the contract voidable and may also seek compensation from Simran for the losses he suffered due to her stopping him from completing the work.