A is a teacher in a degree college, and B is his wife. A goes to Germany on study leave for one year. In A’s absence, B maintains herself with the money sent by A. Of which of these goods A is bound to pay the price?

Question: A is a teacher in a degree college, and B is his wife. A goes to Germany on study leave for one year. In A’s absence, B maintains herself with the money sent by A. On times when there is a delay in the arrival of money she takes goods on credit and pays after she gets the money. Thus once she purchased on credit one maund of rice, four sarees, and one gold necklace. Fifteen days after this A came back. Of which of these goods A is bound to pay the price? [HJS 1988]

Find the answer to the mains question of the Law of Contract only on Legal Bites. [A is a teacher in a degree college, and B is his wife. A goes to Germany on study leave for one year. In A’s absence, B maintains herself with the money sent by A. On times when there is a delay in the arrival of money she takes goods on credit and pays after she gets the money. Thus once she purchased on credit one maund of rice, four sarees, and one gold necklace. Fifteen days after this A came back. Of which of these goods A is bound to pay the price?]

Answer

Indian Contract Act, 1872 defines the rights, duties, and obligations of parties involved in a contract. In the present scenario, we have two parties: A, the teacher, and B, his wife, who purchased goods on credit while A was on study leave in Germany.

The first important concept to take into consideration is that of agency. An agency is a legal relationship where one party (the principal) appoints another party (the agent) to act on their behalf. Here, B can be considered as A's agent, as she was managing their affairs in A's absence.

Section 182 of the Contract Act defines an agent's authority to bind the principal. According to this section, an agent has the authority to do any lawful acts necessary for the regular conduct of the business entrusted to them unless the principal has expressly restricted such power. In this case, B, as A's wife, was maintaining herself and managing their affairs, including purchasing goods on credit.

The next important consideration is the concept of necessaries. Necessaries are goods that are suitable to the condition of life of a person and are necessary for their support and maintenance. Section 68 of the Contract Act deals with the liability of a person who is interested in the supply of necessaries to another person. It states that a person who supplies necessaries to another person, who is incapable of contracting, is entitled to be reimbursed from the property of that incapable person.

In this scenario, B purchased one maund of rice, four sarees, and one gold necklace on credit to meet her immediate needs while awaiting the money sent by A. The question arises as to whether these goods can be classified as necessaries.

Rice can be considered a necessary item as it is a staple food and essential for sustenance. However, sarees and a gold necklace may not fall under the category of necessaries as they are not essential for basic support and maintenance. Whether they can be considered necessaries depends on the specific circumstances, such as the social status and customary expectations of the parties involved.

Given that A is a teacher in a degree college and B is his wife, it is unlikely that sarees and a gold necklace would be considered necessaries in this context. These items may be seen as discretionary or luxury goods beyond the basic needs of support and maintenance.

Therefore, under the provisions of the Contract Act, A would be bound to pay for the one maund of rice, which can be considered a necessary item, as B purchased it on credit for her sustenance. However, A would not be bound to pay for the four sarees and one gold necklace, as they may not be classified as necessaries based on the specific circumstances and social status of the parties involved.