Liability of party preventing event on which contract is to take effect

Liability of party preventing event on which contract is to take effect —When a contract contains reciprocal promises, and one party to the contract prevents the other from performing his promise, the contract becomes voidable at the option of the party so prevented, and he is entitled to compensation from the other party for any loss which he may sustain in consequence of non-performance of the contract.

Illustration. A and B contract that B shall execute certain work for A for a thousand rupees. B is ready and willing to execute the work accordingly but A prevents him from doing so.