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 shall not 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 cannot put the contract to an end.

B can put the contract to an end.

C can put his contract with B to an end.

A must pay damages to B.

Explanation:

B cannot put the contract to an end.
Because in the principle we knew that one party disabled then other party shall not put an end to contract.
Hence, option 1 is the correct answer.