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Under Section 56, where the promisor alone knew, or with reasonable diligence should have known, of the impossibility, he must:
ACompensate the promisee for any loss sustained from non-performance
BPerform at all costs
CBe excused entirely
DForfeit the consideration only
Answer & Solution
Correct answer: A. Compensate the promisee for any loss sustained from non-performance
Where the promisor alone knew of the impossibility (or should have), the promisee can claim compensation for loss suffered through non-performance.
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