buiness law
TRANSCRIPT
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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 $ailed hishorse to ,ilal to feed for t'o months. 0li doesnot take his
horse after t'o months. ,ilal hasto spend more to feed horse. 3t isthe
dut# of0li to compensate ,ilal.
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Q#1, watareterigtanutiesof4ailee
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heraF$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#18/FATISPLE"E!
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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 $ackoods'hen the -ledee
returnsthem afterthe accomplishment ofpurpose
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Q#1;EBPLAI9TFE
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de$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.
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0common carrierhasriht to limit hislia$ilit# $# enterin into a special
areement 'ith the consinor.
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Q#)+
/atistei5erencebetween
commoncarrieranpri%atecarrier
4asis Commoncarrier Pri%atecarrier
1& Act 6he common carriersact/1%!5
overnsa common carrier
0private carrierisoverned $#
contract act/ 1%"2.
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Q#),w#atareutiesanliabilitiesofarailwayasacarrier
/#ataret#eutiesanliabilitiesofarailwayasabaileeofgoos
Liabilitiesofrailway
1& Liabilityuetoelay
ail'a# islia$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$le to pa# s. 1((/((( to the heirsofdeceasedperson and s1(/((( to the in=ured person.
:& Accientofpersonot#ert#anpassenger
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3fthe person otherthan passenerdiesorisin=ured/ 6he rail'a# isresponsi$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.
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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 $e stamped
3t isal'a#sstamped
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Q#):wataretetypesofcrossingofCeque
Typesofcrossing
5ollo'in are the t#pesofcrossin ofche*ue
1. )eneral
crossin 2.
1pecial crossin
3. 0ccountspa#ee orrestrictive
crossin 4. Cot neotia$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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*& 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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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
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%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 $# the trade
union/ he issuesa certificate ofreistration 'ithin 15 da#s. Co'the
trade union isreistered.
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Q#)>@b6/ataretecircumstances
unerwicteregistrationoftrae
unioniscancelle
1& Actagainstorinance
3fthe trade union doesan# act aainst the ordinance/ the la$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.
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Q#*?
/at are te powers an functions of national
inustrial relationcommission
/ataretepowersanfunctionsofregistrar
1&
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