final business law asignment
TRANSCRIPT
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AssignmentBusiness and corporative law.
Prepared To:
Prof. Umar Zaka
Prepared By:
The Rocks
Group Members:
9212 Naeem Sajjad
9234 Pirzada Arslan Sabri
9215 M.kashif
9243 Naveed ul- Hassan
9265 Samman Sharif
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Acknowledgement
First of all thanks to Almighty ALLAH
Beside that we would like to show our greatest
appreciation UMER ZAKA. We cant say thank you
enough for your tremendous support and help. We
feel motivated and encouraged every time we attend
their class. Without their encouragement and
guidance this project would not have materialized.
Beside that all those peoples who support us during
this project we would like to give them bundle of
thanks and especially our friends who encourage us
to complete this project.
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Executive summary
In this project we define the social
agreements and explain five personal familyexamples. We define and explain the contract
and its essentials and explain five personal
family example and also we check the
essentials in examples that was made our
families in past. And in last we wrote the
conclusion and recommendations.
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Social agreement:
An agreement among the members of an organized society or between the governed
and the government defining and limiting the rights and duties of each.
This agreement holds the social life and help to fulfill all the society agreements.
Theses agreement are not enforceable by law and an individual can't go for sue in the
condition of not performing the agreement these agreement are not base on the legal
binding
Examples of social agreement:
my brother Kashif Rasool Gondal proposed a class fellow Nida for marriageand promised that he will marry her but after some time he not fulfill than the
Nida can't sue against my brother Kashif Rasool Gondal in court
My brother Juniad bet with me if India gave target above275 in cricket matchthan he will pay me Rs.1000 after match India was not gave target above on
275 than I demands rupees from Juniad but he deny to give me rupees than i
have no right to access the court.(not create legal relationship )
My father promised me to give a 125 Honda bike if I get 3.5gpa. And whenmy result come I get 3.62 GPA in but father didnt give me 125 Honda bike
than I have no right sue in any court.
My father wallet lost he said to me that if you found my wallet i will givehim Rs.500 but when I found his wallet than he said that it was a joke he will
not pay the money than me can't sue against him.
My brother said to Ubaid that he will sell his car to him at Rs.300000 butvery first morning Ubaid neighbor offer him Rs.350000 Ubaid sold car to his
neighbor than My brother has no right to sue against Ubaid..
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What is contract?
A contract is an agreement between two or more persons (individuals, businesses,
organizations, or government agencies) to do, or to do not some thing.
A particular thing in exchange for something of value. Contracts can generally be
written using formal or informal terms, or they can be entirely verbal. If one side fails
to live up to his/her/it's part of the contract, there's a "breach" of contract and certain
remedies for solving the differences are available. The terms of the contract, meaning,
the who, what, where, when, and how of the agreement, define the binding promises
of each party to the contract. Written contracts must contain the names of both parties,
the agreed upon terms, and the parties signatures to be valid.
A contract intends to formalize an agreement between two or more parties, in relation
to a particular subject. Contracts can cover an extremely broad range of matters,including the sale of goods or real property, the terms of employment or of an
independent contractor relationship, the settlement of a dispute, and ownership of
intellectual property developed as part of a work for hire.Agreements and contracts are two different things. It is important to know first whatconstitutes a contract and what constitutes an agreement. We will then study which
agreements are contracts, their distinction different types of agreements and contracts.
Essentials Elements of a Valid Contract:
Proposal and Acceptance:
When one person signifies to another his willingness to do or abstain from doing
anything with a view to obtaining the assent of that other to such act or abstinence he
is said to make a proposal.
The first step towards creating a contract is that one person shall signify or make a
proposal or offer to the other, with a view to obtaining the acceptance of that another
person to whom the offer is made. A proposal when accepted becomes a promise.
When the person to whom the proposal is made signifies his assent thereof the
proposal is said to be accepted. A proposal when accepted becomes a promise.
Consideration:
When at the desire of the promisor the promise or any other person has done or
abstained from doing, or does or abstains from doing or promises to do or to abstain
from doing something such act or abstinence or promise is called a consideration for
the promise.
Every contract consists of two parts - (1) Promise and (2) Consideration for thepromise. A promise is often made in return for a promise for example a buyer realizes
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the goods for the price. Price for goods is therefore, consideration here. Consideration
is the cause of the promise. It is the most essential element of the contract. As a
general rule, agreement without consideration is void. The promise for a promise in
return is consideration.
Illustrations:
A agrees to sell his house to B for Rest 10,000. Here As promise to sell his house is
for Bs consideration to pay Rs 10,000. Similarly Bs promise to pay Rs 10,000 is for
As consideration to sell his house to B.
An agreement is a contract, only if it is made for a lawful consideration and with a
lawful object.
Capacity of parties to contractCompetent parties:
Every person is competent to contract who is of the age of majority according to the
law to which he is subject, and who is of sound mind, and is not disqualified from
contacting by any law to which he is subject.
Free Consent:
Parties to a contract must give their consent. The parties must be ad idem, for example
both the parties must agree upon the same thing in the same sense. Two or morepersons are said to consent when they agree upon the same thing in the same sense.
Mere consent is not enough. Consent of parties must be free, for example it must not
have been obtained (1) coercion, (2) undue influence, (3) fraud, (4) misrepresentation,
or (5) mistake.
An agreement must not be expressly declared to be void:
A void agreement is not enforceable by law (Sec 2(g)). It has no legal sanctity. It does
not give rise to any rights and obligations. Various agreements are expressly declared
void under the Act.
Writing and registration:
Oral contract is a valid contact. However the contract must be in writing and
registered, if so required by any law, for example, gift, mortgage, sale, lease under the
Transfer of Property Act 1882, Memorandum and Articles of Association of a
Company under the Indian Companies Act, contracts under sub sections (10 and 3) of
section 25 of the Indian Contract Act, etc. Documents specified under section 17 of
the Indian Registration Act, 1908, are required to be registered.
No particular form of writing is required to constitute a contract. Intentions of the
parties to enter into a particular contract and to give effect to it must be manifest in it,
in order to constitute a valid contract.
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Legal relationship:
Agreements which create legal relations or are capable of creating legal relations are
contracts, for example, an invitation to a dinner does not create any legal relation and
therefore is not a contract.
Certainty:
The terms of a contract should be clear. In other words, the contract must not be
vague. Contracts which are vague cannot be enforced.
Possibility of performance:
Contracts based on impossibility of performance are not valid. The contracts must be
capable of being performed.
Enforceable by Law:
A contract in order to be valid must be enforceable by law which element
distinguishes agreement and contract. It is enforceable by law it is contract otherwise
it is an agreement. The aggrieved party should be able to obtain relief through law in
the event of breach of contract. An agreement can also be inferred from
correspondence exchanged between the parties.
Examples of the contract.
My father ask to faizan to sell his house faizan accept the proposal andwrote agreement on the stamp paper.(in this agreement essential of a valid
contract is full filled)
My uncle and his friend start the new trade business. They agreement onstampede write the all rules and regulations profit sharing ratio on stamp
paper and register the firm on sec registrar office. So this agreement is
enforceable by law so the garment was changed in contract. .(in this agreement
essential of a valid contract is full filled)
My father made an auction who provide the rice mill heavy machinery at on17 august 2007 I will give tender on that company who provide the heavy
machinery on till 17 august 2007 august. Ahsan and co. takes this tender and
does agreement on stamp paper. They will provide the machinery on till 17
august 2007. .(in this agreement essential of a valid contract is full filled)
My father sends his some peoples of staff to London for hire studies. Beforegoing those staff members wrote the stamp paper they will must work
minimum 5 years in Rehman rice mill after when they complete the abroad
studies. (in this agreement essential of a valid contract is full filled)
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Contract of guarantee:
A contract, by which one party promises to save the other from loss caused to him by
the conduct of the promise himself, or by the conduct of any other person, is called a
"contract of guarantee..."
ESSENTIAL FEATURES OF CONTRACT OF GUARANTEE
1. TRIPARTITE CONTRACT:
It is an agreement between the principal debtor, creator
and surety. The tree separates contracts exist between them. If the promise principal
debtor is not fulfilled, the liability for the surety arises.
In a contract of guarantee the principal debtor is liable and the surety will
be liable on principal debtors default. The principal contract exists between the
principal debtor and the creditor and the contract between the sureties is a secondary
contract.
2. CONSIDERATION:
A contract guarantee like other contracts must fulfil essentials of a valid
contract. It must be supported by some consideration. It is not necessary that there
must be direct consideration between the surely and the creditor. The consideration by
the principal debtor is sufficient for the surety. (Section 127)
3. MISREPRESENTATION:
A guarantee obtained by means of misrepresentation made by the creator
or with his knowledge ad assent, concerning a material part of the transaction is in
valid. If the consent of surety will be obtained by misrepresentation, the surety is
discharged from his liability (section 142).
4. CONCEALMENT:
A guarantee which the creditor obtains by means of keeping silence to
material circumstances is invalid. The expression keeping silence means
intentional concealment of the facts. The creditor should disclose to surety the
facts which are likely to affect the suretys liability (Section 143)
5. WRITING NOT NECESSARY:
It is not necessary that the contract of guarantee must be in writing. It may
Be either oral or written. It may be express of implied from the conduct of parties
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Examples.
My father friend Ali purchase goods from Nadeem on credit bases he has notmoney to pay in cash form so Ali involves the thirdperson My father he
gave the guarantee that if Ali will not pay the amount I take his guarantee I
will paid.
My uncle ijaz want to take loan from bank but bank need a guarantee of thirdperson. My uncle come to the my 2
nduncle ishtiaq and ask him to give my
gurantee.2nd
uncle provide the guarantee to the bank that if ijaz not paid
amount on time then I will paid .
My father wants to do a business of export. But he has not believed onexternal parties. So he goes in the bank. And bank provides him the guarantee
that if the third part not pay liabilities bank will provide the amount.
My cousan Amir wants to do job in Mayfair Company and this is companyrequiremtts that provide the guarantee of any third person.so my father provide
the guarantee to the Mayfair Company that if Amir will do in your company
any illegal activity. I will responsible.
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ConclusionIn this project we gain knowledge how made up and perform the
social contracts, legal contracts and agreements and what are the
importance of characteristics and essentials of contacts and guarantee
of contracts and we also checked through this assignment our families
when make the contract they fulfill all the essentials and not.
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Recommendation Please avoid on those agreements or contracts that are not create
legal relationships.
Made up agreements in written form its better than oral form. When you made up contract make sure you fulfil the all essentials of
contract.