Section 87 of ICA : Section 87: Repealed

Explanation using Example

Imagine Raj orders a custom-built computer from a local shop. The shop owner, Suresh, agrees to assemble the computer with specific components that Raj wants. However, these components are not yet in Suresh's inventory and he needs to order them. Raj pays an advance for the order.

Unfortunately, before the components arrive, a new government regulation bans the import of one of the key parts. Now, Suresh cannot complete the computer as agreed. In this scenario, Section 87 of the Indian Contract Act, 1872, would come into play. Since the goods (specific computer components) agreed to be sold did not exist at the time of the agreement and now cannot be procured due to the new regulation, both Raj and Suresh may have the right to be discharged from their obligations under the contract.