Principle When a party to a contract has refused to perform or disabled himself from performing his ...........

Indian Contract Act (ICA)1872 Performance of a Contract

Principle: When a party to a contract has refused to perform, or disabled himself from performing, his promise in its entirety, the other party may put an end to the contract.

Facts: A engaged B on April 12 to enter his service on June 1, but on May 11, A wrote to B that his services would not be needed. On May 22, B joined C for employment.

B must wait till June 1

B must have joined C on May 11

B is not bound to wait till June 1

A must pay damages to B

Explanation:

When A wrote to B on 11th May that his services will not be needed,
he had refused to perform his part of the contract giving B the liberty to end the contract and go ahead with other options.
Hence, option 3 is the correct answer.