buiness law

8/10/2019 buiness law

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Importantquestions

1. Discussessential ofvalid contract

2. What are the kindsofcontract

explain them 3. Explain theessentialsofvalid oer

4. What are the essentialsofa valid

acceptance? 5. Discussvoid

areement in detail

!. What are the rulesand exceptionsofconsideration

". What do #ou understand $# capacit# to contract? What are the

effectsofareementsmade $# the person not competent to

contract?

%. What do #ou mean $# free consent discussin detail

&. What are the 'a#sin 'hich a contract ma# $e dischared

1(. )ive the remediesavaila$le to the arieved part# in case of$reach ofcontract

11. Discussin detail the position ofa *uasi+contract 'hen the

o$liationsofcontract are imposed $# the la'

12. Differentiate $et'een indemnit# and

uarantee 13. What are the featuresof

$ailment?

14. What are the rihtsand dutiesof

$ailer? 15. What are the rihtsanddutiesof,ailee? 1!. What are the

essential featuresofplede? 1".

What are the rihtsand dutiesof

-leder? 1%. What are the riht and

dutiesofpledee

1&. Differentiate $et'een the sale and

areement to sell 2(. ihtsand dutiesof

unpaid seller

21. Discussthe rihtsof$u#erin a contract ofsale22. Discusthe rulesrelatin to the deliver# in a

contract ofsale 23. ihtsdutiesand lia$ilitiesof

common carrier

24. ihtsdutiesand lia$ilitiesofrail'a# asa

common carrier25. Differentiate $et'een the

common carrierand private career2!.

Differentiate $et'een the $ill ofladin and

chartered part# 2". What are the t#pesofcrossin

ofche*ue

2%. Difference $et'een $ill ofexchane/ che*ue and

promissor# note 2&. What are the re*uirementsforthe

reistration oftrade union?

3(. What are the po'ersand functionsofnational industrial relationship


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commission

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Contract

0nareementenforcea$leatla'iscalledcontract.

Agreement

Ever#promiseorsetofpromisesformin

considerationforeachotheriscalledareement.

Typesofagreement

i. ocial

areementii.

eal

areement

Socialagreement

0reements'hichdonotcreatelealo$liation$et'eenthe

partiesarecalledsocialareements.nsocialareements/parties

toacontractarenotleall#$oundtoperformthecontract

LegalAgreements0reements'hichcreatelealo$liation$et'eentheparties

arecalledlealareements.

nlealareements/partiesareleall#$oundtoperformthecontract.

Promise

Whenonepersonmakesaproposalandotherpersonacceptit/it$ecomespromise

r

0nacceptedoeriscalledpromise

Enforceable

0nareementcreatinlealrelationship$et'eenthepartiesis

enforcea$le.facontractdoesnotcreatelealo$liation$et'een

thepartiesitisnotenforcea$le$#la'.

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Q#1An agre ement en forcea ble at law is contractiscu s s

!r

"escribe te essentials $req uir ements of % alico n tract

Contract

0n areement enforcea$le at la'iscalled contract.

Essentialsofa%alicontract

1&!ffer'Acceptance

5ora valid contract there must $e la'ful offerand la'ful acceptance.

a'ful meansthat the oerand acceptance must fulfill the re*uirement

ofla'

E(ample

0offersto sell herhouse to , for1( lac/ thisisan offer. 6ania arees

to $u#sherhouse/ there isan acceptance.

)&Legal!bligation

6here must $e leal o$liation 7 relation $et'een the partiesto make acontract valid

3fpartiesdonot intend 8 9to create leal relationship/ contract isnot

enforcea$le at la'.

E(ample

0areesto sell hishouse to , for2(. ac. 3t isa valid contract asit

iscreatin leal relationship $et'een the parties

*&Lawfulconsieration

:onsideration isthe price paid $# the one part# forthe promise of

otherpart#. 6husfora valid contract consideration must $e la'ful

E(ample

0areesto sell hishouse to ;fors2( lac

< 5or02( lac isconsideration

< 5or, house isthe consideration

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+&Competenttocontract

5ora valid contract partiesmust $e ofsound mind/ must attain the ae of

ma=orit# and are not dis*ualified from contractin $# la'

E(ample

0/ a person ofunsound mind areestosell hisc#cle to , fors1(. 6he is

void asthe partiesnot competent to contract

,&-reeconsent

5ora valid contract the consent ofpartiesmust $e free. :onsent isfree'hen it isnot o$tained $# coercion/8 9undue influence 8

9misrepresentation and fraud

E(ample

0compels8 9>to enterinto an areement on unpoint/ it isa

valid contract $ecause the consent ofa part# isnot free

Lawful!b.ect

6he o$=ect ofareement must not $e illeal/ immoral 8 9opposed topu$lic polic# orto impl# in=ur# to an# person

E(ample

0areesto sell hisc#cle to , forrs2((( ifhe $eats:. the areement is

void asitso$=ect isilleal

/riting'registration

0contract ma# $e oral 8 9orin 'ritin $ut it isprefera$le that the

contract must $e in 'ritin $ecause it iseas# to prove in court. 3fre*uired $# la'certain areementsmust $e in 'ritin sined and

attested $# 'itnessand reistered

E(ample

>ver$all# promise to sell his$ooksto ?. it isa valid contract asit

doesnot re*uired in 'ritin

0ver$all# promise to sell hishouse to ,. it isa void areement

$ecause la're*uiresit in 'ritin.

Certaintyofterms

5ora valid contract it si essential that the termsand conditionsof


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contract must $e definite and clear. 0reementsthe meanin of'hich

isnot clearare void

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E(ample

0promisedto sell one ofhis$ooksto ,. 3t isvoid areement $ecause it

isnot mentioned 'hich $ook 0'antsto sale

Possibilityofperformance

0n areement to do an impossi$le act isvoid. 3fthe act isleall# or

ph#sicall# impossi$le toperform the areement isnot enforcea$le $# la'

E(ample

>promised?/ that she 'ill discoverold $# maic. 3t isa void areement

asit isimpossi$le to perform


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E(ample

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0 arees 'ith , to smule suar. :ontract $et'een the parties is

void as smulin isilleal.

iii& 2oiagreement

0n areement 'hich does not create leal o$liation $et'een the

parties is void. 0n areement 'ith minorand areement 'ithout

consideration isvoid.

!bligationofparties

3n a void contract $oth the parties are not leall# $ound to perform

the o$liations ofcontract. 3f an# part# has received $enefit from void

contract isleall# $ound to return it to otherpart#.

E(ample

0li arees 'ith 1hahid a minor to $u# hishouse. :ontract $et'een the

parties is void asareement 'ith minorisvoid.

i%& 2oiablecontract

0contract 'hich isenforcea$le at the option ofone part# $ut not at the optionofotherpart#

0 contract is voida$le 'hen consent of one part# is not free. @oida$le

contract can $e avoided $# the part# 'hose consent isnot free.

E(ample

Baria compelsCadia to sell her,a. 6he consent ismade 'ith coercion.

3t can $e avoided 'hen Cadia refusesto perform it.

%& 3nenforceablecontract

0 contract is unenforcea$le 'hich cannot $e enforced in court of la'.

,ecause of some technical defects/ 1uch asa$sence of'ritin and

reistration

E(ample

0li orall# areed to sale hishouse to ,ilal. :ontract isunenforcea$le

$ecause 'ritin and reistration forthiscontract isre*uired $# la'

)&Accoringtoformation

0ccordin to formation a contract hasfollo'in three t#pes.

a. Express

contract $.

3mplied contractc. uasi

contract


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a& E(presscontract

When a contract isformed $# the 'ordsspoken or'ritten it iscalled expresscontract

E(ample

0li tellssaad on telephone that he 'antsto sell hiscar. 3t isan expresscontract.

b& Impliecontract

0n implied contract arises from the acts/ course of dealin or

circumstances. 3t arises 'hen one person 'ithout askin to do so/

render servicesundercircumstancesindicatin that he expect to $e paid

forthe servicesand otherperson accept the $enefit ofthose services.

E(ample

0li 'ent to a hotel and had a cup oftea/ it isan implied contract and 0li

'ill pa# forthe cup oftea.

c& Quasicontract

uasi contractsare $ased on the principle ofe*uit# and =ustice. 6hat a

person shall not $e allo'ed forthe $enefit at the cost ofother

E(ample

1hahid findsthe lost oodsofBa==id. 1hahid is$ound to return the oodsto Ba==id.

*&Accoringtoperformance

5ollo'in are the t#pesaccordin to performance

i. Executed

contract ii.

Executor#

contract

i& E(ecutecontract

When all the partiesto a contract have performed theiro$liationsthe

contract issaid to $e executed.

E(ample

Ealeem $u#sa ,ook from 1hahFe$. 1hahFe$ delivered $ook and kaleem

made the pa#ment. ,oth the partieshave performed theiro$liations.

ii& E(ecutorycontract

When one ofthe partieshas#et to perform hiso$liations/ such contract

iscalled executor# contract.


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E(ample

Ealeem $u#sa ,ook from 1hahFe$. 1hahFe$ delivered $ook $ut kaleem

hasnot #et made the pa#ment.

+&Accoringtoparties

0ccordin to partiesthe contract hasfollo'in t'o t#pes

a. Anilateral

contract $.

,ilateral contract

a& 3nilateralcontract

3t isa contract 'here onl# one part# is$ound to perform the contract

and the otherpart# choosesto perform contract

E(ample

0li promised to ive 1((( sto the person 'ho findshislost $a. 3t isa

unilateral contract it 'ill come into existence 'hen the $a isfound.

b& 4ilateralcontract

3t isa contract 'here $oth the partieshave #et to perform theiro$liations.

E(ample

Ehalid promised to manufacture a chairforCadeem and Cadeem

promised to pa# 14((( to Ehalid

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Q#*

"efineteo5er$proposal&E(plainteessentialsofa%alio5er

!5er$proposal

Whenonepersonsho'shis'illinnesstodoornottodo

somethintoo$taintheconsentofother/itiskno'nasoer

!5eror$Promisor

6hepersonmakintheofferiscallederoror-romisor.

!5eree

6hepersonto'homofferismadeiscalledfferee.rtheperson

acceptintheofferiscalledfferee.

Essentialsofa%alio5er

6hefollo'inaretheessentialsofavalidoffer

1. Expressor

implied2. eal

relation

3. DefiniteGclear

4. pecificGeneral

5. :ommunication'ith

fferee!. Ceative

condition

". :onditionsin

oer%. :ross

offers

16 E(pressorimplie

0noerma#$emade$#'ordsorconduct8 9.0noffer'hich

ismade$#'ordsspokenor'ritteniscalledexpressoer.

0nimpliedofferappearsfromtheactionsofparties/

courseofdealinorcircumstancesofcase.


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Example

0lioertoma=idtosellhismotorc#clefor4(((s.6hisisanexpressoer

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Ce'khanrun$usestocarr#passenersatscheduledrates/thisisanimpliedoer

)6 Legalrelation

oravalidcontracttheoffermust$emadetocreatelealrelation.f

anofferdoesnotcreatelealrelationitisnotavalidoffer.

Example

0liinvitesarrukhtodinner.tisnotavalidoffer$ecauseitdoes

notcreatelealrelation$et'eentheparties

Bariaoertosellher'atchto0namfors.2((.tisavalid

contractasitcreatelealrelation$et'eenparties

*6 "e7nite'clear

6ermsandconditionsofoffermust$eclearanddefinite.fthe

termsandconditionsarenotclear/itcannot$ecalledvalidoer.

Example

Ba=idhast'omotorc#cles/heofferhalidtosoldonemotorc#clefor

s.4((((.tisavoidcontractasitisnotclearthat'hichmotorc#cleheofferedtosale

+6 Speci7corgeneral

Whenanofferismadetoaspecificpersonitiscalledspecificoffer.

uchanoffercan$eacceptedonl#$#thepersonto'homitis

made.

Whenanofferismadetoeneralpu$licitiscalledeneraloffer.

uchanoffercan$eaccepted$#an#person'hofulfilstheconditionsofoer

Example

0lioeredtosellhisc#cletoBa=id.tisaspecificofferandonl#ma=idcanacceptit

,asherannouncedinane'spaperare'ardofs5((.oran#one

'hofindshislostC.card.

,6 Communicationwit!5eree

0noerisvalidonl#'henitiscommunicatedtotheeree.fisnot

communicatedtoereeitisnotavalidoer


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Example

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idra'antstosaleher$atoBeh'ish$utforettocommunicate

hera$outoffer.6husthere'illnoacceptanceasitisnot

communicatedtofferee.

86 9egati%econitions

0noermustnotincludeneativeconditions.uchasaneror

cannotsa#thatiftheacceptanceisnotcommunicated'ithina

specificperiodoftimetheoffer'ould$etreatedasaccepted.

Example

Ba=id'rotetosa=idtosellhis'atchaddinthatifhedidnotrepl#

'ithin2da#s/theoffer'ill$econsideredaccepted.

:6 Conitionsino5er

0noerma#includesomecomedians.oravalidcontractalltheconditionsmust$eaccepted.ftheerorprescri$easpecific

mode/itmust$eacceptedinthesamemanner.

Example

hahidasks;ammadtosendhimrepl#ofhisoffer$#teleram/

$uthammadrepl#him$#letter.hahidma#re=ectthe

acceptance.

;6 Crosso5er

When$othpartiesmakessimilaroffer'ithouthavinkno'ledeof

otherHsoffer.tiscalledvalidoer.0cceptanceofsuchoerdoesnot

resultincomplete0reement.

Example

Wasim'rotetoarimtosellhimhismotorc#cle.nthesameda#

arim'rotetoWasimthathe'antsto$u#hismotorc#cle.6here

isnocontract.


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Q#+

"efineteacceptance&E(plainteessentialsofa

%aliacceptance

Acceptance

0cceptanceistheactofivinconsenttotheoffer.

Example

Ba=idoertosellhishousetosa=idfor2(lacs.fsa=idareesto$u#/

thisisan

acceptance.

Essentialsofa%alio5er

6hefollo'inaretheessentialsofavalidoffer

&. 0cceptance$#oeree

1(.DefiniteGunconditional

11. easona$lemanner

12. :ommunication'ithfferor

13. Expressorimplies

14. 0cceptanceafteroffer

15. easona$letime

16 Acceptancebyo5eree

oravalidacceptanceitisnecessar#thatitmust$eaccepted$#thepersonto'hom

itismade.ftheofferismadetoaroupitcan$eaccepted$#an#mem$erofroup.

fofferismadetoeneralpu$licitcan$eaccepted$#an#person'hohasthe

kno'ledeofit.

Example


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0oerto,tosellhismotorc#clefor4(((s.:'asa'areofthisoffer/hesaidthat

heisread#to$u#hismotorc#cle/thereisnocontract'ith:.

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)6 "e7niteanunconitional

oravalidcontracttheacceptancemust$edefiniteandunconditional.facceptor

attachan#condition'ithhisacceptance/itisnotacceptance$utacounteroer

Example

Bariaoertosellher'atchto0namfors.2((.0namrepliesthatshecan$u#itfor

1((s.thereisnoacceptance$utacounteroffer

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Example

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hahid'rotealettertoma=idthatheisareeto$u#hismo$ilefor45((s.6hisisan

expressacceptance.

Iunaid'enttoateastallandtookacupoftea.6hisisanimpliedacceptance

appearinfromtheaction

86 Acceptanceafteroffer

0cceptancemust$eivenafterreceivintheoffer.facceptanceisiven'ithout

havinkno'ledeofofferJthereisnocontract$ecauseacceptancecannot$eiven

'ithoutoer

Example

0sadoeredare'ardforan#one'hofindshislostmo$ile.hurramininoranceof

offerfindshis$aandreturnitto0sad.hurramcannotclaimforthere'ard

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Q#,

/atagreementsa%ebeeneclare%oibylaw

2oiagreement

0n areement not enforcea$le $# la' is calledvoid areement follo'in are the areements

that are declared void

1. 0reement in restraint of

marriae 2. 0reement in

restraint of trade

3. 0reement in restraint of leal

proceedins 4. Ancertain

areements

5. 0reement $# 'a# of 'aer

!. 0reement aainst the

pu$lic polic# ". 0reement to

do an impossi$le act %.

0reement under mistake

&. 0reement 'ithout consideration

Agreementinrestraintofmarriage

Ever# areement 'hich prevents a person other than minor

from marr#in is void. 0 contract 'hich interfere 'ith the

freedom of choice in marriae is also called void

E(ample

0slam arees 'ith ,ilal that he 'ill not marr# 'ith

atima. t is a void areementAgreementinrestraintoftrae

Ever# person has a riht to carr# on a la'ful $usiness/

profession/ or trade. 6hus/ ever# areement 'hich prevent a

person from doin a la'ful $usiness/ profession or trade is

void

E(ample

0m=ad arees 'ith 6a##a$ to ive him 1(((( s. f he stops

doin $usiness in aisala$ad/ such areement is void


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Agreementinrestraintoflegalproceeings

0n areement 'hich restrict a person from enforcin his riht

in court of la' is void.

0n areement 'hich limits the time 'ithin 'hich he can

enforce his riht is void

E(ample

ahad sells 'heat to Ba=id. ,oth parties aree that if an# part#

fails to perform the contract/ none of them 'ould file a case/

the areement is void.

3ncertainagreements

f the meanin of an areement is not certain or it cannot $e

made certain/ the areement is void

E(ample

hehroFareestosellhis$ooksto0liandthereisnoindication

'hich$ooksareto$esold/theareementisvoid

Agreementby/ayof/ager

Waermean$et/a'aerisanareementtopa#onthehappenin

ornon+happeninoffutureevent/eachpart#hase*ualchanceto

'inorlosethe$etandthepartiesareonl#interestedin$ettin

amount.

E(ample

WahidandBa=idareethatif-akistan'onthecricketmatchtoda#/Wahid'illpa#Ba=id1((s.f-akistanlosesBa=id'illpa#1((s.

tisa'aerareement/sodeclaredvoid

Agreementagainsttepublicpolicy

Ever#areements'hichisaainstthepu$licpolic#orinvolve

in=ur#topersoniscalledvoid

E(ample

Amairarees'ithasifthatifheaddsdrusinfoodhe'illpa#hims1(((.

6heareementisvoid


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Agreementtooanimpossibleact

0nareementtodoanimpossi$leactiscalledvoid.

E(ample

haFiaarees'ith6aniatodiscover)old$#maic/isvoid

Agreementuner=ista0e

Ever#areement'here$oththepartiesareunderthemistake

andthe#donHthaveclearinformationa$outthefact/the

areementisvoid

AgreementwitoutConsieration

Ever#areement'hichismade'ithoutconsideration/isvoid

E(ample

0hmed0reestoivehiscarto;assan'ithoutconsiderationisvoid

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Q#8w#ataret#eessentialsofconsieration!rw#ataret#erulesofconsieration

Consieration

:onsideration isthe price paid $# one part# forthe promise ofother.

E(ample

0li sold hishouse to ;assan fors. 5((/(((. 5or;assan house isthe

consideration and for0li s5((/ ((( isconsideration.

Essentialsofaconsieration

1& "esireofpromisor

5ora valid consideration the act must $e done at the desire ofpromisor.

0n# act done 'ithout the desire ofpromisorcannot form a valid

consideration.

E(ample

aFi$ saved BehmoodHshouse from fire. Behmood did not ask forthe

help. aFi$ cannot demand price forhisservice.

)& Act

0consideration ma# $e an act ordoin ofsome thin

E(ample

1adia promised to stitch CadiaHs dress. 0nd Cadia promised to pa# s

4(( to sadia asconsideration forstitchin herdress.

*& Abstinence

0$stinence means promisin not to do somethin. :onsideration ma#

$e decided forpromisin not to do somethin.

E(ample

0li promised not to sue 'a*as/ ifhe pa#s 'a*ass. 2((((. 6he

a$stinence of 0li isthe consideration for,Hspa#ment

+& Promise

5ora valid contract there must $e promise from $oth the parties.

E(ample

Ba=id areesto cell hismo$ile to ,ilal fors4%((. 5orBa=id s4%(( is

the consideration and for0li mo$ile isthe consideration-ae 2(


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When the act have $een done $efore a contract ismade it iscalled pastconsideration

E(ample

0ivessome servicesto , at ,Hsdesire.

ateron , compensate 0forhisservices.

1?&Presentconsieration

3f the consideration is decided at the

time 'hen contract ismade it iscalled

present consideration.

E(ample

0li sold hiscarto , and 0li make thepa#ment at the

same time it iscalled presentconsideration.

11&-utureconsieration

When $oth the parties promise to do

somethin in future it iscalled

consideration.

E(ample

0li promised to sell hishouse , after1( da#s. , also promised to pa# the priceafterten da#s.

Q#8@b6wataretee(ceptionsofconsieration

0ccordin to la'areement 'ithout consideration isvoid. 5ollo'in are

the areementsthat are valid even 'ithout consideration.

1& 9aturallo%eanaffection

6he areement 'hich is expressed in 'ritin and is made on account of natural

love is valid even f there is no consideration.

E(ample

0li promises to pa# s 2((( to his son =unaid for no consideration. 0li ot it in

'ritin and reistered 'ith la'. Iunaid can enforce it

)& 2oluntarycompensation

0 promise to compensate a person 'holl# or partl# a person 'ho hasalread# voluntaril# do somethin for the promisor is enforcea$le even if there is

no consideration.

E(ample


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0li ave medical treatment to ,ilal voluntaril#. ,ilal after discharin from

hospital promised to -a# s. 4((( to 0li. 0li can enforce it.

*& ift

)ift does not need an# consideration. 0n# ift iven or received is valid

even if 'ithout consideration. Donor cannot take $ack the oods 'hich are

delivered as a ift.

E(ample

rum ave her 'atch to Bis$ah as ift. rum cannot et $ack the 'atch as there

'as no consideration for her.

+& Contractofagency

:onsideration is not paid to the aent on his appointment. Cormall# an aent

is paid commission aainst his services.

E(ample

0li appointed aFi$ as his aent. 6he areement $et'een 0li and aFi$ is

valid even 'ithout consideration.

,& "iscount$remission

f a creditor arees to receive less than 'hat is due/ it is kno'n as remission or

discount. 6here is no need of consideration for the remitted amount.

EBA=PLE

0li $orro'ed s. !((( from 0hmed. ater 0li paid s. 55(( as full settlement ofclaim/ the 'hole de$t is dischared

8& Toe(tentetimeforperformance

0reement to extend the time for the performance of contract needs no consideration.

E(ample

Lu$air areed to construct aFi$Hs house 'ithin three month. ater Fu$air

re*uested to extend the time for the completion of contract/ there is no need to

of consideration for the extended time.

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Q#:

/#ato youunerstanby t#e capacity ofpartiesState t#e

positions of aminorunercontractact

!r

/#atoyouunerstanbyt#ecapacityofparties/#at ist#e

effectofagreementmaebyt#epersonnotcompetentto

contract

!r

E(plaint#eeffectofcontractmaebyt#epersonnotqualifietocontract

!r

/#atoyouunerstanbycontractualcapacity

5orenterin in to a valid contract the partiesmust $e competent to contract

Ever# person iscompetent to contract 'ho isofae ofma=orit#/ isof

sound mind and isnot dis*ualified from contractin $# la'

9atureofminorsagreement

1. @oidareement 2.

Binorasa

partner

3. Binorasa

$eneficiar# 4. Binor

asa aent

5. Binor and

insolvenc# !. Binor

and ratification". :ontract $# minorand

adult %. Binorasmem$er

ofcompan# &. 1uret# for

a minor

1(. BinorHsparent

16 2oiAgreement

Binor is a person 'ho has not attained the ae of ma=orit# 81% #ears9.

0reement 'ith minorisvoid from $einnin $ecause minorhasno leal

capacit# to enterin to an areement. ;e isnot lia$le to perform an# act

orpromise underthe areement.


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E(ample

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ashid enter in to an areement 'ith a minor 1hahid/ on the date of

performance 1hahid refuses to perform the contract. ashid cannot sue

1hahid $ecause areement 'ith minor isvoid.

)6 =inorasapartner

0minorcannot $ecome a partner in profit and lossesofa firm.

;o'evera minorcan $e admitted to the $enefitsofthe firm onl#.

E(ample

0li/ and 1hahid are partnersin a firm the# admitted a ne'partnersa=id a

minorin profitsand lossoffirm. 6hisisa void areement asminorcannot

$e admitted to profitsand loss.

,ashirand CaFirare partners in a firmJ the# admitted a minor,ilal in

profitsof the firm onl#. 6hisisvalid areement

*6 =inorasabeneficiary

3f an areement is made for the $enefit of minor then the minor can

take the $enefit of that areement. 0 minor can enter in to an#

areement 'hich do not re*uired to $ear an# o$liation. 0minorcan

enforce a promissor# note 'hich is prepared in his favor $ut he is not

lia$le.

E(ample

1a=id/ a minor delivered oods to ;a$i$ under an areement. ;a$i$refused to make -a#ment. 3t 'asheld that minorcan recoverthe price of

oods

+6 =inorasAgent

0 minor can act as an aent. ,ut a minor is not responsi$le for an#

nelience. 3f a minor $reaches an# dut#/ he cannot $e held

responsi$le. 6herefore the 'hole the risk oesto the principal.

E(ample

0li appointsBunira minorashisaent to sell hishouse to a third part#.

Bunirmakesan areement to sale hishouse to sa=id. 6he areement is

valid.

,6 =inoraninsol%ency

0minorcannot $e considered insolvent $ecause he isnot lia$le to

perform an# o$liations. 4nl# hispropert# islia$le. 3fhe hasno propert#than the pa#ment cannot $e recovered

E(ample


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1hahid a minor$u#smedicine from iaF underan areement. 1hahid has

no propert#. 1hahid cannot $e held responsi$le. ;e cannot $e declared

insolvent.

86 =inoran6 Suretyfor=inor

When an adult ives suret# in a contract of uarantee/ onl# the adultis lia$le under the contract. Binorisnot responsi$le foran# o$liation.

E(ample

0li a minormakesa contract 'ith 'a*as. 0hmed ivessuret# for0li. 6hecontract isvalid.

1?6=inorsparents

3f an areement is made $# a minor than parents of minor are not

responsi$le for the pa#ment. 6he parentsare responsi$le onl# 'henminoractsasan aent ofhisparent.

E(ample


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0li sendshisson to $u# oodsfrom Iamaal/ hisson $ouht oodsfrom

Iamaal. 0li islia$le to make pa#ment.

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Q#;/at is consent an free consent /atis te e5ect ofconsentoncontract

!r

/atisconsent/atistee5ectofconsentwenitisnotfree

Consent

When t'o or more parties aree upon the same thin in the same

manner in the same sense/ 'hen the $oth the parties aree upon the

same thin in the different mannerit isnot a real consent.

-reeconsent

:onsent isfree 'hen it isnot o$tained$#J

i9 :oercion

ii9 Andue

influence iii9

Bisrepresentation

iv9 5raud

v9 Bistake

E5ectsofconsentonte%aliityofcontract

1& Coercion

:oercion meanscommittin or threadin to commit an# act 'hich is

for$idden $# la'. 3n other'ordscoercion meanso$tainin the consent of

otherpart# $# threatenin him.

Effectsonconsent

i& Committingort#reateningtocommit

When a person commitsor threatens to do a person a 'ork 'hich is

for$idden $# la'. 3scalled coercion

Example

0li threats to kill Ba=id/ ifhe doesnot ave his car to Bohsin. 6he

areement isvoid asconsent isnot free

ii& 3nlawfullyetainingort#reateningtoetainproperty

When a person unla'full# detain the propert# ofotherperson forthe

purpose ofcompellin him to enterinto an areement/ it iscoercion

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E(ample

0driverrefusesto deliverthe documentsofcarto hisemplo#erunlesshe

ispaid s1((( it iscoercion

Effectofcoercionont#e%aliityofcontract

0 contract formed under the coercion/ the contract is voida$le at theoption of that part# 'hose consent isnot free.

)& 3nueinfluence

Andue influence is'hen one part# useshisposition orpo'erto dominate

the 'ill orconsent ofotherpart# and useshispo'erto o$tain unfair

advantae overthe other.

3t isfurtherexplained asfollo'sK

i& "ominatingposition

3n orderto prove undue influence. 6he relation $et'een the parties

should $e such that the one ofthem should $e in a dominatinposition.

ii& 3nfaira%antage

3n orderto prove undue influence/ it isnecessar# to prove that the person

'ho hasdominatin position hasused hispo'ersto et unfairadvantae.

Effectofunueinfluenceont#e%aliityofcontract

:ontract made under the undue influence can $e avoided $# the part#

'hose consent iso$tained $# undue influence.

*& -rau

0ll actscommitted $# a part# 'ith the intention to deceive the otherpart#.

6here isfraud in the follo'in casesK

i& -alsestatement

When a part# to contract makesfalse statement intentionall#/ he islia$le forfraud

E(ample

Ehuram khurrram kno'sthat hismo$ile has$een made in -akistan $ut

tells0hmed that the mo$ile made in Iapan/ khurrram islia$le forfraud.

ii& !b.ectoffrau

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6he o$=ect of fraud must $e to deceive otherpart# and the otherpart#

have $een actuall# deceived $# the otherpart#.

iii& Loss

3t isalso necessar# that the part# actin upon the misrepresentation hassuffered loss

Effectsoffrauonconsent

6he follo'in remediesare availa$le to the arieved part#K

a9 ;e can avoid the

contract $9 ;e can sue

forthe damaes

c9 ;e can ask forthe specific performance and restoration

+& =isrepresentation

Bisrepresentation means the ivin the false statement of fact a$out

contract to o$tain the consent of consent of other part#.

Bisrepresentation must $e made 'ith the intention to deceive other

part#.

3n orderto prove misrepresentation the follo'insthinsare necessar#K

i. 3t must relate to the

contract ii. 3t must $e

untrue

iii. 6he otherpart# must sufferloss

iv. 6he otherpart# cannot discoverthe truth $# ordinar# dilience

Effectsoffrauoncontract

6he contract is voida$le at the option of that part# 'hose consent is

affected $# the misrepresentation.

6he contract ma# $e accepted $# the in=ured part#.


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"iscargebyAgreement

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0contractma#$edischared$#theareement$et'eenthepartiesinan#ofthefollo'in'a#s

i.

Covationii.0lteration

iii.

escission iv.

emissionv. Waiver

9o%ation

Covationmeansthereplacementofoldcontract$#ne'contract.nne'contractthepartiesma#chaneorremainsthesame/thusanoldcontactisdischared'iththene'contract

E(ample

0 o'ed 8 9 to , and , to :/ 0Hs de$t to $ is cancelled and: accepts 0 as his De$tor. t is novation

Alteration

0lterationmeansthechanininthetermsandconditionsofcontract.falterationismade'iththeconsentofallthepartiesthecontractisdischaredandane'contracttakesplace

E(ample

0liareestosaleoodstoiaFfors1(((.ater/iaFdecided

topurchasehih*ualit#)oodsfors2(((. 6heoldcontractisaltered.


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"iscargebySubsequentimpossibility

ftheperformanceofcontractispossi$leattimeofformationofcontract$utafter'ardsit$ecomesimpossi$leorunla'ful.

6hecontract'ill$edischared.

E(ample

a9 ,ilalpromisetosell'heat;a$i$/$eforedeliver#overnment$annedprivatetradinof'heat

$9 arukhandidrapromisetomarr#eachother/$eforethetimefixedformarriaearukhdies.6hecontract$ecomesvoidanddischared

"iscargebyLapsoftime

0ccordintothelimitationact/thecontractshould$eperformed'ithinaspecifiedorreasona$letime.ncaseof$reachofcontract/

lealactionshould$etaken'ithinaspecifiedperiodoftime.fnolealactionistaken'ithinspecifiedperiodoftimethecontractisdischared.

E(ample

,ashirtookloanformCaFir.astdateforrepa#mentofloanhasexpired$utnolealactionhas$eentaken$#CaFirfor3#ears.,ashirisdischaredfromhislia$ilit#.

"iscargebyoperationofLaw

0contractma#$eterminated$#theoperationofla'inthefollo'in'a#s

i. nsolvenc#ii. Deathofan#

part#iii. 0lteration

Insol%ency

0contractisdischared'hencourtdeclaresaperson

insolventJsuchpersonisdischaredfromhislia$ilitiesincurred$eforeinsolvenc#.

"eatofanyparty

fan#ofthepart#$eforeperformancedies/thecontractisdischared.

Alteration

0lterationmeanschaneinrihtsanddutiesoftheparties.fthetermsandconditionsarechaned$#an#part#'ithoutconsentof

otherpart#thecontractisdischared

"iscargeby4reacofcontract


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,reachofcontractmeans'henoneormoreofthepartiesfailtoperformtheiro$liations.,reachofcontractdischarethearievedpart#fromperforminhiso$liation.

,reachofcontractma#oft'ot#pesJ

i. 0ctual$reach

ii. 0nticipator#$reach

i6 Actual4reac

Whenapart#failstoperformhiso$liations'hentheperformanceisdue

E(ample

Leeshan arees to sale oods to aFi$ on !th

Covem$er/ $ut hedoes not deliveroodsatareedtime.6hisisactual$reach.

ii6 Anticipatory4reac0nanticipator#$reachoccurs$eforethetimefixedforperformance.thast'ot#pes

Express$reachandimplied$reach.

a& E(pressbreac

When one part# communicates the other part# his attention notto perform thecontract.6hisisexpress$reach.

E(ample

Behmood arees to sale his house to aFi$. ,efore the dateof performance Behmood informs aFi$ that he 'ill not salehis house.

b& Implie4reac

When a part# does an act 'hich makes the contract impossi$leto perform. 6his is called implied $reach.

E(ample

Bis$ah arees to sale her $a to 0nam on "th

Covem$er $ut

$efore the due dateBis$ahsoldher,ato*ra.

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Q#1?

/at are te remeies a%ailable to an aggrie%e

party for breac ofcontract

!r

"iscusesteconsequencesofbreacofcontract

!r

Stateteprinciplesonwiccourtawarforbreacofcontract

4reacofcontract

,reach8 9 of contract means 'hen one part# fails or refuses to

perform hiso$liation


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)6 Suitforamages

Damaes are the monetar# compensation allo'ed to arieved

part# for the losesuffered$#himasaresultof $reachofcontract.

6hearievedpart#canclaimthefollo'indamaes

i9 )eneral

damaesii9

pecificdamaes

iii9 Exemplar#

damaes iv9

i*uidated

damaes

i6 eneralamages

rdinar#damaesarethose'hichnaturall#ariseasaresultof$reachofcontract

orexample inacontractofsaleofoodsthedierence$et'een

thecontractpriceandmarketpricearethedamaesthatcan$e

claimed

ii6 Speci7camages

6heseare thedirect loses'hicharise due to the$reachof

contract.6hese damaesariseundersomespecialcases

iii6 E(emplaryamages

6hese damaes are a'arded not to punish the uilt# part# and

not compensate thein=ured8arieved9part#forthelosssuffered.

i%6 Liquiateamages

Whenthepartiestoacontractfixtheamountofdamaesatthe

timeofformationofcontractsuchdamaesarecalledli*uidatedor

nominaldamaes.

*6 suitforquantummeruit

uantum meriut means pa#ment in proportion of 'ork done.

ometimes one of theparties has done a part of his o$liation $ut

the other part# commits the $reach of contract. n such case thepart#'hohasperformedsome'orkhasrihttoclaimforthevalue

of'orkdoneanddamaesfortheremainin'ork.


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E(ample

0areestoconstructathreestor#housefor,.'henonl#onestor#

'asconstructed/, prevented 0 from doin more 'ork. o here 0

is entitled to et the reasona$le compensation for the 'ork done

andthedamaesforremainin'ork.

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Q#11"iscussinetailtepositionofaquasiDcontractwenteobligationsofcontractare

imposebytelaw

!r

/ataretetypesofquasicontract

Quasi$constructi%e$implieContract

uasicontractsare$asedontheprincipleofe*uit#8 9and

Iustice89.

tmeansthatno$od#isentitledto$enefitatthecostofother.ome

time la' re*uires that a particular person must perform some

o$liations such o$liations are called*uasiMcontractthe#arealso

calledconstructiveorimpliedcontract.

insofcontract

!r

Conitionsunerwicquasicontractarise

1. uppl#ofnecessaries

2. -a#ment$#interestedperson

3. :ompensationfornon

ratuitousacts4. inderof

oods

5. Bistakeorundercoercion

16 Supplyofnecessaries

Where necessaries are supplied to a person 'ho is incompetent

to contract or to someone 'hom he is leall# $ound to support/

the supplier is entitled to recover the price from the propert# of

incompetentperson.

E(ample

0lisupplies ;ammad a minor/necessariessuita$le to their

conditions in life.0li isEntitledtoreim$urse8 9form;ammadHs


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-ropert#.

)6 Paymentbyinteresteperson

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Q#1)watisteifferencebetweeninemnityanguarantee

4asis=eanin

g

Parties

Liability

9umber

ofcontract

Performanceofcontract

9ature


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Q#1*/FATIS4AILE=E9TALS!EBPLAI9TFEESSE9TIAL-EAT3


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Q#1+ watareterigtsanutiesof4ailor

ihtsand dutiesof,ailorare iven $elo'


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,ailorcan sue ,ailee ifhe failsto return oodsor$reachescontract.

E(ample

0li iveshismo$ile to Lain forrepairin. Lain sold it to 6ania. 0li can sue Fain.

8& Compensation

3f the ,ailee 'ithout the permission of ,ailor mixes the oods of ,ailor

'ith hiso'n oodsin such a 'a# that it $ecomesimpossi$le to separate

them/ the ,ailorhasa riht to claim forthe compensation forthe lossof

oods.

E(ample

Boshsin $ailed 2 $asof,asmati ice to ;assan. ;assan mixed them

'ith hiso'n rice that 'asofcheap *ualit#. Boshsin can claim forthe

compensation

"utiesof4ailor

5ollo'in are the dutiesof,ailor

i9 Dut# to disclose faults

ii9 Dut# to repa# necessar# expenses

iii9 Dut# to repa# extra ordinar#

expensesiv9 Dut# to indemnif# for

defective title v9 Dut# to receive

$ack oods

1& "utytoisclosefaults

)& 3t is the dut# of ,ailor to disclose all the faults in $ailed oods

'hich are kno'n to him. 3f he does not disclose them he 'ill $e

lia$le forthe damaesarisin due to such faults.

E(ample

0li hiresa carriae ofBehmood. 6he carriae 'asunsafe and Behmood

had not disclosed that fact to 0li. 0li isin=ured. Behmood islia$le forthedamaes.

*& "utytorepaye(pense

When the oodsare to $e kept orcarried $# the ,ailee. 3t isthe dut# of

,ailorto $earall the expense incurred on the $ailed oods.

E(ample

0li delivered a carto shahid forthe safe custod#. 4ne tire ofthe car'as

$urst on the 'a#. 1hahid spent s.4((( to replace tire. 0li islia$le to pa#s. 4(((

+& "utytorepaye(traorinarye(penses


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3f the extra ordinar# expensesare incurred $# the ,ailee on the $ailed

oodsthen it isthe dut# of,ailorto repa# those expenses.

E(ample

;a$i$ $ailed hishorse to 0siffor=ourne#. 6he expense forfeedin horse is

ordinar# expense and falls on ,ailee $ut if horse $ecomes sick then it

is the dut# of ,ailor to repa# the expensesincurred on the treatment ofhorse.

,& "utytoinemnifyfort#eefecti%etitle

Where the title ofoodsto ,ailorisdefective and ,ailee sufferslossdue

to such title/ 3t isthe dut# of,ailorto indemnif# the ,ailee forsuch loss.

E(ample

0li iveshisneih$orHsscooterto ,ilal foruse 'ithout neih$orHs

permission. 6he Ceih$orfilesa suit on ,ilal and received compensation.0li islia$le to compensate ,ilal.

8& "utytorecei%ebac0goos

3t is the dut# of ,ailor to receive $ack oods 'hen the ,ailee

returns them after the accomplishment ofpurpose

E(ample

0li $ailed hishorse to ,ilal to feed for t'o months. 0li doesnot take his

horse after t'o months. ,ilal hasto spend more to feed horse. 3t isthe

dut# of0li to compensate ,ilal.

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Q#1, watareterigtanutiesof4ailee


75/115

heraF$ailedoodstoaraF.;ammadclaimedthatheistheo'ner

ofoodsanddemandoodsformaraF.araFcanstopthedeliver#

ofoodstoheraFandre*uestthecourttodecidetheo'nershipof

oods.

,&


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6he$aileemustusetheoodsaccordintothetermsand

conditions.fhemakesanunauthoriFeduseofoods/heislia$le

forthedamaestotheoods.

E(ample

0liiveshiscaronhiretoIunaidforpersonaluse.Iunaidallo'saraF

todrive$utheotaccidentandotin=ured.Iunaidislia$leto

compensate0li.

*& "utynottomi(tegoos

f the ,ailee 'ithout the permission of ,ailor mixes the oods of

,ailor'ithhiso'noods in such a 'a# that it $ecomes impossi$le

to separate them/ it is the dut# of$aileetocompensate,ailorfor

thelossofoods.

+& "utytoreturngoos

t is the dut# of $ailee to return the oods to $ailer as soon as the

purposeof$ailmentis accomplished. f he fails to return oods at

specified time he is responsi$le tocompensate$ailerfortheloss.

E(ample

0li$ailedhishorseto,ilaltofeedfort'omonths$ut,ilaldoesnot

returnthehorseafter t'o months.6he horse dies after the periodof $ailment 'ithout an# fault of ,ilalHs part. ,ilal is lia$le for the

loss.

,& "utytoreturnincrease

tisthedut#of$aileetoreturnan#increaseorproNtaccruedfromtheoods$ailed.

E(ample

0sad$ailedaco'tokhurram.:o'ave$irthtoacalf.tisthe

dut#ofhurramtoreturnco'alon'ithcalf.


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Q#1:EBPLAI9TFE


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3fthe extra ordinar# expensesare incurred $# the -ledee on the -leded

oodsthen it isthe dut# of-lederto repa# those expenses.

1?&"utytoinemnifyfort#eefecti%etitle

Where the title ofoodsto -lederisdefective and -ledee suffersloss

due to such title/ it isthe dut# of-lederto indemnif# the -ledee forsuch

loss.

11&"utytorecei%ebac0goos

3t isthe dut# of-lederto receive $ackoods'hen the -ledee

returnsthem afterthe accomplishment ofpurpose

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de$t/ he can recoverthe $alance amount from -leder.

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E(ample

0li pledeshiscarto shahid to o$tain a loan ofs5((/(((. ,ut on the due

date 0li failsto pa# the amount ofloan. 1hahid can sale carafterivin a

notice ofsale.

"utiesofPlegee

5ollo'in are the dutiesof-ledee

8& "utytota0ereasonablecare

3t isthe dut# of-ledee to take reasona$le care ofoodspleded. 3fhe does

not take care ofoodsand the oodsare damaed due to hisnelience he

isresponsi$le forthe damaes.

E(ample

1hakeel pleded hiscarto naFir. CaFirdid not lock up the car. 6he carisstolen. CaFirislia$le forthe damaes

:& "utynottoma0eunaut#oriGeuse

6he -ledee must use the oodsaccordin to the termsand conditions.

3fhe makesan unauthoriFed use ofoods/ he islia$le forthe damaes

to the oods.

E(ample

0li pleded his car to Iunaid. Iunaid start usin it as carrier. 0li can

sue Iunaid forunauthoriFed use

;& "utynottomi(t#egoos

3f the -ledee 'ithout the permission of -leder mixes the oods of

-leder 'ith his o'n oods in such a 'a# that it $ecomes impossi$le to

separate them/ it is the dut# of -ledee to compensate -lederforthe loss

ofoods.

>& "utytoreturngoos

3t is the dut# of -ledee to return the oods to -leder as soon as the

purpose of plede isaccomplished. 3f he fails to return oods at specified

time he isresponsi$le to compensate -lederforthe loss.

E(ample

0li pleded his horse to ,ilal for t'o months $ut ,ilal does not return the

horse after t'o months. 6he horse diesafterthe period of$ailment 'ithout

an# fault of,ilalHspart. ,ilal islia$le forthe loss.


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Q#1>watisteifference

betweensaleanagreementto

sell

4asis Sale Agreementtosell1& Transfer

of

property

6he propert# ofoods

passesfrom the sellerto the

$u#erimmediatel#.

6he transferofpropert#

ofthe oodsisto take

place at a future time.

)& Transfer

of

owners#

4'nership ofthe oodsis

transferred immediatel#

afterthe sale

4'nership ofoods

doesno chane until

the propert# is

*& Typeofgoos

0sale can onl# $e in case

ofexistin and specific

oodsonl#.

0n areement to sell is

mostl# in case offuture

and continent oods.

+& &

Insol%enc

yofbuyer

3fthe $u#er$ecomes

insolvent and the price of

oodsispaid than hisleal

representative can demand

the oodsfrom the seller. 3f

price ofoodsisnot paid/

3fthe seller$ecomes

insolvent $efore the

pa#ment ofoodsthan the

sellercan refuse to sale

oodsuntil the price is

paid $# the leal

1?&9atureofgoos

0sale isan executedcontract

0n areement to sale

isan executor#


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Q#)?

/atareterigtsofanunpaiseller

3npaiseller

0n unpaid sellerisa person/ 'ho hassold the oodsfora price/ $ut theprice hasnot $een paid to him orthe instrument 'hich 'asiven to

him hasdishonored.


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Q#)1

/#ataret#erig#tsofbuyerinacontractofsale

4uyersrigt6he $u#erhasthe follo'in rihtsaainst the seller/ ifthe seller$reachesthecontract.

1& "amagesfornoneli%ery

6he $u#erhasriht to sue the sellerfordamaesin case the seller

refusesto deliverthe oods.

E(ample

0salesice to , $ut doesnot deliverthem to the $u#erat areed time/

the $u#erhasriht to sue forthe damaes.

)& "amagesfort#ebreac#ofwarranty

When the seller$reachesthe contract of'arrant#/ the $u#ercan sue for

the damaesifhe haspaid the price. ,ut ifhe hasnot #et paid the price/

then he can claim forthe reduction in price.

E(ample

0promisesto sell and deliverthe ta$lesto , on 15 Covem$er/ $ut he

delivered the oodson 25 Covem$er/ the $u#ercan recoverdamaes

from seller.

*& 4reac#ofconition

When the seller$reachesthe condition ofcontract/ the $u#ercan

terminate contract and claim damaes.

E(ample

0promisesto sell Cokia phone to ,/ $ut he delivered Bo$ile. 6he

$u#ercan avoid contract.

+&


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Q#))w#ataret#erulesregaringt#e

eli%eryofgoos1!rw#ataret#e0insof

eli%ery

"eli%ery

Deliver# meansvoluntar# transferofprocession ofoods$# one person toanotherperson.

=oes$0insofeli%ery

5ollo'insare the kindsofdeliver#

1& Actualeli%ery

When the procession ofoodsistransferred from $u#erto seller/ it iscalled

actual deliver#.

Example

0sold hiscarto ,. 0handed overthe carto ,/ it isactual deliver#.

)& Symboliceli%ery

When the oodsare sold in $ulk and the actual deliver# isnot possi$le/

in such a case the control overoodsistransferred to the $u#er/ it is

called s#m$olic deliver#.

Example

0sold oodsin $ulk to , 'hich are locked in odo'n. 0handed overthe

ke# of)odo'n to ,/ it called s#m$olic deliver#.

*& Constructi%eeli%ery

When procession ofoodschaned 'ithout an# chane in the actual

custod# ofthe oods/ it iscalled constructive deliver#

Example

01old rice to , l#in in :Hsodo'n. 0orders: to transferrice to ,. :

transfersthe rice in his$ooksto ,.


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)& Placeofeli%ery

6he oodsmust $e delivered at a place 'hich isstated in contract.

*& Timeofeli%ery

3t isthe dut# ofsellerto deliverthe oods'ithin the fixed time. 3ftimeisnot fixed/ than deliver# should $e made 'ithin reasona$le time.

+& E(pensesofeli%ery

Expensesofdeliver# ofoodsmust $e $ear$# the selleroraccordin to theareement.

,& Installmenteli%ery

6he $u#erisnot $ound to take the deliver# ofoodsin installment unlessit'asareed

8& /rongeli%ery

When the oodsdelivered to the $u#erare not in accordance 'ith oodsspecified in contract/ the $u#ercan re=ect the oods.

:& "eli%erytocarrier

3fthe oodsare delivered to carrierfortransferto $u#er/ it isdeemedthe deliver# to the $u#er.

;& Processionofgoosbyt#irperson

3fat the time ofsale the oodsare in procession ofthird person. 6here is

no contract until that third person ackno'ledesthe $u#erthat he holdsthe oodson his$ehalf.

>& "emanofeli%ery

,u#ershould demand forthe deliver# ofoods/ other'ise he cannot$lame sellerforthe deliver# ofoods.

1?&Effectsofparteli%ery

When a part ofoodsistransferred to $u#er'ith the intention todeliverthe rest ofoodsalso/ the o'nership in the 'hole ofthe oods

isdeemed to passto the $u#er.

11& =oeofeli%ery

6he deliver#ofoodscan $e made $# an# ofthe 'a#son 'hich the partiesaree.

1)&Liabilityincaseofrefusingtota0eeli%eryofgoos

3fsellerdeliversthe oodsto $u#erand $u#errefusesto take thedeliver# ofoods'ithout an# reason. 6he $u#erislia$le forthedamaes.

1*&E(aminingt#egoos

When the oodsare delivered to the $u#er/ the $u#ershould $e iven areasona$le time forthe examination ofoods.


95/115

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96/115


97/115

0common carrierhasriht to limit hislia$ilit# $# enterin into a special

areement 'ith the consinor.

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98/115

>&


99/115

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100/115

Q#)+

/atistei5erencebetween

commoncarrieranpri%atecarrier

4asis Commoncarrier Pri%atecarrier

1& Act 6he common carriersact/1%!5

overnsa common carrier

0private carrierisoverned $#

contract act/ 1%"2.

)&


101/115

Q#),w#atareutiesanliabilitiesofarailwayasacarrier

/#ataret#eutiesanliabilitiesofarailwayasabaileeofgoos

Liabilitiesofrailway

1& Liabilityuetoelay

ail'a# islia$le forthe lossofoodsarisin due to the dela# in deliver#.5orexample ifthe oods'ere ofperisha$le nature and $ecome uselessdue to the dela# in deliver#/ rail'a# islia$le forsuch loss

)& Liabilityuringtransit

When the oodsare consined at rail'a#Hsrisk then it isthe lia$ilit# ofrail'a# to $earlossoccurrin durin transit

When the oodsare delivered at o'nerHsrisk than the rail'a# isnotresponsi$le forsuch loss

*& Liabilityforwrongeli%ery

3fthe oodsare delivered to the 'ron person the rail'a# isresponsi$le to et $ack the oodsand deliverthem to the rihtperson

+& Liabilityascarriageofanimals

3n case ofanimalsthe lia$ilit# ofrail'a# shall not exceedsK

s. 5(((( perelephant

s. 1(((( perhorse

s. 15((( permule orhorned cattle

s. 1((( perdo/ donke#/ oat/ pin orotheranimal.

,& Carriageofpassengersluggage

ail'a# isnot responsi$le foran# lossto the luae ofpassenerunlessluae is$ooked.

8& Accientofpassenger

When a passenerdiesorisin=ured due to the train accident. 6herail'a# isresponsi$le to pa# s. 1((/((( to the heirsofdeceasedperson and s1(/((( to the in=ured person.

:& Accientofpersonot#ert#anpassenger

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102/115

3fthe person otherthan passenerdiesorisin=ured/ 6he rail'a# isresponsi$le to pa# s. 1((/((( to the heirsofdeceased person and s1(/((( to the in=ured person.

;& Liabilityfort#e%aluablegoos

6he rail'a#sisnot responsi$le forthe lossofan# parcel the value of'hich exceedss. 1(((( unlessthe person sendin the oodshas

declared the value ofoods

>& oosfalselyescribe

0rail'a# isnot responsi$le forthe lossifthe oodshave $een falsel# descri$ed.

"utiesofrailway

;& Carrygoos

3t isthe dut# ofrail'a# carrierto carr# the oodson hire from one place toanotherplace

>& "eli%eryofgoos

3t isthe dut# ofrail'a# carrierto deliveroodsin time. 3ftime ofdeliver#isnot mentioned in the contract the carrieris$ound to deliverthe oods'ithin the reasona$le time.

1?&"eli%erytot#erig#tperson

3t isthe dut# ofcarrierto deliverthe oodsto the riht person/ ifhe'ronfull# deliversoodsto the otherperson then it isthe dut# of

common carrierto et $ack the oodsand deliverthem to the rihtperson.

11&Safetyofgoos

3t isthe dut# ofrail'a# carrierto deliverthe oodssafel#/ rail'a# carrierisresponsi$le forthe lossto the oodsarisin due to rail'a#Hsnelience.

1)&!beyinstruction

3t isthe dut# ofcommon carrierto o$e# the instructionsofconsinor

reardin the deliver#/ 'hen the oodsare in transit.

1& "eli%eryatrig#tplace

3t isthe dut# ofcommon carrierto deliverthe oodsto the person specified $#the consinor.

)& "eli%eryatrig#tplace

3t isthe dut# ofcommon carrierto deliverthe oodsto the person specified $#the consinor.


103/115

Q#)8

/atistei5erencebetweenbill

oflaingancartereparty

4asis 4illoflaing Cartereparty

1& 9ature a $ill ofladin isanevidence

ofreceipt ofoodson

0chartered part# isa

contract relatin to the

hirin ofthe ship

)& Title 0$ill ofladin isa

document oftitle of

0chartered part isnot a

document oftitle of

*& Transferability 0$ill ofladin is

transfera$le $#

0chartered part# isnot

transfera$le

+& Purpose 0$ill ofladin isal'a#sfor

0chartered part# ma#$e for

,& Sets 0$ill ofladin isdra'n

in

0chartered part# isnot

dra'n in sets

8& Payment 5riht isenerall#paid in advance

5reiht ispaid afterthe safe deliver# of

:& Stamping 3t ma#orma#

not $e stamped

3t isal'a#sstamped


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105/115

Q#):wataretetypesofcrossingofCeque

Typesofcrossing

5ollo'in are the t#pesofcrossin ofche*ue

1. )eneral

crossin 2.

1pecial crossin

3. 0ccountspa#ee orrestrictive

crossin 4. Cot neotia$le

crossin

1& eneralcrossing

)enerall# a che*ue can $e crossed 'henJ

i. 6here are t'o transverse parallel lines/ marked

acrossitsface orii. 6he che*ue $earsan

a$$reviation OGcoP $et'een t'o lines or

iii. 6he che*ue $earsthe 'ordsOnot neotia$leP $et'een t'o lines

iv. 6he che*ue $earsthe 'ordsO07c/ pa#eeP $et'een t'o parallel linesor

0crossed che*ue can $e made $earerche*ue $# cancellin the crossin

and 'ritin that the crossin iscancelled and affixin the full sinature of

dra'er.

)& Specialcrossing

When a particular$ankQsname is'ritten in $et'een the t'o parallel

linesthe che*ue issaid to $e speciall# crossed.

3n addition to the 'ord $ank/ the 'ordsRA$c&Payee!nlyR/ R9ot

9egotiableRma# also $e 'ritten. 6he pa#ment ofsuch che*ue isnot

made unlessthe $ank named in crossin ispresentin the che*ue. 6he

eect ofspecial crossin isthat the $ank makespa#ment onl# to the

$anker'hose name is'ritten in the crossin. 1peciall# crossed che*uesare saferthan enerall# crossed che*ues.


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107/115

*& Accountpayeeorrestricti%ecrossing

6hiscrossin can $e made in $oth eneral and special crossin $# addin

the 'ordsO0ccount pa#eeP. 3n thist#pe ofcrossin it $ecomesthe dut#

ofcollectin $ank to credit the amount ofche*ue to the account ofthe

pa#ee named in the che*ue.

+& 9otnegotiablecrossing

6he 'ord Onot neotia$le can $e added to the eneral as'ell asspecial

crossin. 3t can $e transferred $# pa#ee. 6he transferee 'ill et the

same rihts/ asreardspa#ment/ asthe transferorhad.

6he o$=ect ofnot neotia$le che*ue isto provide protection to the holder

ordra'erofa che*ue $ecause even ifsuch che*ue oesto the 'ron

hands/ the true o'ner'ill not lose hisclaim.

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108/115

Q#);

/#at ist#ei5erencebetweenc#eque

billsofe(c#angeanpromissorynote

4asis 4illsofe(c#an

Promissorynote

C#eque

1"efinition ,illsofexchane is

an instrument in

'ritin 'hich

containsorderof

pa#ment $#

-romissor# note is

an instrument in

'hich de$tor

promisesto pa# a

certain amount to

:he*ue isan

instrument 'hich is

used to 'ithdra'

mone# from $ank

)parties 3n case of$ill of

exchane there are

three parties/

dra'erdra'ee and

3n case of

promissor# note

there are t'o

partiesmakerand

3n case ofche*ue

there are three

parties depositor/

$ank and pa#ee

*Acceptance

0cceptance $#

dra'ee is

necessar#.

6here isno

need of

acceptance

3n case ofche*ue

there isno need of

acceptance/ asit is

order$# the

+"iscounting

,illsofexchane

can $e discounted

-romissor# note

cannot $e

:he*ue

cannot $e

,race

ays

6hree race da#s

are allo'ed to makepa#ment

6hree race da#s

are allo'ed to makepa#ment

3n case ofche*ue

no race da#sareallo'ed for

8Area -romissor# note

can $e inland or

-romissor#

note is

:he*ue isdra'n on

onl# depositorHs

:stamp -astin of1tamp on

$illsofexchane is

leall# re*uired

-astin of

1tamp on

promissor# note

Co stamp is

re*uired to paste

on che*ue

;9ature 3t isan

unconditional

orderformakin

3t isan

unconditional

promise for

:he*ue isan

unconditional

orderformakin>liability 3n case of,illsof

exchane it isthe

lia$ilit# ofdra'ee to

make the pa#ment

3n case of

promissor# note it

isthe lia$ilit# of

dra'erto make

3n case ofche*ue it

isthe lia$ilit# of

$ank to make

pa#ment

1?

9oting

c#arge

Cotin charesare

paid in case of

dishonorof$illsof

Cotin charesare

not paid in case of

dishonorof

Cotin charesare

not paid in case of

dishonorofche*ue

-ae !!


109/115


110/115


111/115

-ae !%


112/115

%i& -inestomembers

0ll those conditionsunder'hich a mem$er'ill $e fined and his

mem$ership 'ill $e cancelled must $e 'ritten in constitution.

%ii& Listofmembers

ist ofmem$ersoftrade union must $e provided 'ith the application.

%iii& Safetyoffuns

0constitution should provide the urantee forthe safe custod# offunds.

i(& Auit

6he constitution should provide the mannersofaudit ofaccounts

(& "issolution

:ircumstance under'hich the trade union 'ill $e dissolved must $e 'ritten inconstitution.

(i& Alteration

6he procedure $# 'hich the alteration in constitution ismade must $e iven.

(ii& =eetings

6he proceduresofmeetinsofthe executive $od# and eneral

$od# must $e iven in constitution.

(iii& Proceureofnoconfience

6he procedure ofexpressin no confidence in an# officermust $e iven inconstitution.

*& Issuanceofcertificate

3fthe reistrarissatisfied 'ith the information provided $# the trade

union/ he issuesa certificate ofreistration 'ithin 15 da#s. Co'the

trade union isreistered.

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113/115

Q#)>@b6/ataretecircumstances

unerwicteregistrationoftrae

unioniscancelle

1& Actagainstorinance

3fthe trade union doesan# act aainst the ordinance/ the la$orcourt ma# cancel the reistration oftrade union.

)& Actagainstconstitution

3fthe trade union doesan# act 'hich aainst itso'n constitution/

the la$ourcourt can cancel the reistration oftrade union.

*& "isqualificationofano5icer

6he reistration ma# also $e cancelled ifthe trade union has

appointed an officer'ho isdis*ualified to $e an officer$# the court.

+& Cancellationbyregistrar

6he eistrarcancelsthe reistration oftrade union ifit has$een dissolveditself.

-ae "(


114/115

Q#*?

/at are te powers an functions of national

inustrial relationcommission

/ataretepowersanfunctionsofregistrar

1&


115/115

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buiness law

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