<![CDATA[VU Help - Contract Act 1872]]>

<![CDATA[VU Help - Contract Act 1872]]> https://vuhelp.net/ Fri, 30 Oct 2026 09:33:18 +0000 MyBB <![CDATA[essentials of valid contract]]> https://vuhelp.net/Thread-essentials-of-valid-contract Sun, 23 Feb 2014 12:12:25 -0500 zohaibaslam]]> https://vuhelp.net/Thread-essentials-of-valid-contract [FONT=&quot]1. Introductory Note:-[/FONT]
[FONT=&quot] [/FONT][FONT=&quot]An agreement between two or more competent parties in which an offer is made and accepted, and each party benefits. This term, in its more extensive sense, includes every description of agreement, or obligation, whereby one party becomes bound to another to pay a sum of money, or to do or omit to do a certain act; or, a contract is an act which contains a perfect obligation. In its more confined sense, it is an agreement between two or more persons, concerning something to be, done, whereby both parties are bound to each other, or one is bound to the other. [/FONT]
[FONT=&quot]2. Defintion of Contract :-[/FONT]
[FONT=&quot] i)[/FONT][FONT=&quot] Blackstone Defines [/FONT][FONT=&quot]:- [/FONT]
[FONT=&quot] =>[/FONT][FONT=&quot]"It to be an agreement, upon a sufficient consideration, to do or not to do a particular thing". [/FONT]
[FONT=&quot] ii) [/FONT][FONT=&quot]Accordint to Salmond[/FONT][FONT=&quot]:-[/FONT]
[FONT=&quot] =>"A contract is an agreement creating & defining obligations between the parties".[/FONT]
[FONT=&quot] iii) Sir Frederick Pollock:-[/FONT]
[FONT=&quot]=>[/FONT] [FONT=&quot]“A promise or set of promises which the law will enforce”.[/FONT]
[FONT=&quot] iv) [/FONT][FONT=&quot]Statutory Definition[/FONT][FONT=&quot]:-[/FONT]
[FONT=&quot] 2[/FONT][FONT=&quot](h) Of The Contract Act,1872[/FONT]
[FONT=&quot] => "An agreement enforceable by law is a contract".[/FONT]

[FONT=&quot]3.~[/FONT][FONT=&quot]CLASSIFICATION OF CONTRACTS[/FONT][FONT=&quot]~[/FONT]

[FONT=&quot] ---> [/FONT][FONT=&quot]Contracts may be divided into two broad classes:[/FONT]
[FONT=&quot]1.[/FONT][FONT=&quot]Contracts by deed[/FONT][FONT=&quot]:-[/FONT]
[FONT=&quot]A deed is a formal legal document signed, witnessed and delivered to effect a conveyance or transfer of property or to create a legal obligation or contract.[/FONT]
[FONT=&quot]2[/FONT][FONT=&quot]. Simple contracts:-[/FONT]
[FONT=&quot]Contracts which are not deeds are known as simple contracts. They are informal contracts and may be made in any way - in writing, orally or they may be implied from conduct.[/FONT]
[FONT=&quot] --->[/FONT][FONT=&quot] Another way of classifying contracts is according to whether they are[/FONT] [FONT=&quot]:[/FONT]
[FONT=&quot]1.[/FONT][FONT=&quot] Bilateral contracts[/FONT][FONT=&quot]:-[/FONT]
[FONT=&quot] A bilateral contract is one where a promise by one party is exchanged for a promise by the other. The exchange of promises is enough to render them both enforceable. Thus in a contract for the sale of goods, the buyer promises to pay the price and the seller promises to deliver the goods.[/FONT]
[FONT=&quot]2.[/FONT][FONT=&quot] Unilateral contracts:-[/FONT]
[FONT=&quot] A unilateral contract is one where one party promises to do something in return for an act of the other party, as opposed to a promise, e.g, where X promises a reward to anyone who will find his lost wallet. The essence of the unilateral contract is that only one party, X, is bound to do anything. No one is bound to search for the lost wallet, but if Y, having seen the offer, recovers the wallet and returns it, he/she is entitled to the reward.[/FONT]
[FONT=&quot]4. [/FONT][FONT=&quot] ENFORCEABILITY SUBJECT TO CONTRACTS[/FONT][FONT=&quot]:-[/FONT][FONT=&quot][/FONT]

[FONT=&quot]1. "Void Contracts"[/FONT]

[FONT=&quot]A “void contract” is one where the whole transaction is regarded as a nullity. It means that at no time has there been a contract between the parties. Any goods or money obtained under the agreement must be returned. Where items have been resold to a third party, they may be recovered by the original owner.[/FONT]

[FONT=&quot]2. "Voidable contracts"[/FONT]

[FONT=&quot]A contract which is voidable operates in every respect as a valid contract unless and until one of the parties takes steps to avoid it. Anything obtained under the contract must be returned, insofar as this is possible. If goods have been resold before the contract was avoided, the original owner will not be able to reclaim them.[/FONT]

[FONT=&quot]3. "Unenforceable contracts"[/FONT]

[FONT=&quot]An unenforceable contract is a valid contract but it cannot be enforced in the courts if one of the parties refuses to carry out its terms. Items received under the contract cannot generally be reclaimed.[/FONT]
[FONT=&quot]5. [/FONT][FONT=&quot]PARTIES TO CONTRACT[/FONT][FONT=&quot]:-[/FONT]
[FONT=&quot] [/FONT][FONT=&quot] [/FONT][FONT=&quot]In a valid proposal or promise there are always two parties generally [/FONT]
[FONT=&quot] 1.PROMISOR [offeror] sec:2© of The Contract Act,1872.[/FONT]
[FONT=&quot] 2.PROMISEE [offeree] sec:2© of The Contract Act,1872.[/FONT]
[FONT=&quot]An offeror makes a promise to the offeree, requesting form the offeree an act or the restraint of an act that the offeree has the right to perform, or a return promise.

6. ESSENTIALS OF A VALID CONTRACT :-[/FONT]
[FONT=&quot] The three basic components of a contract are the offer, the consideration and the acceptance. The following elements that are to help to determine whether or not the basic components are present and meet legal criteria for a valid contract.[/FONT]

[FONT=&quot] i) [/FONT][FONT=&quot]Offer & Acceptance[/FONT][FONT=&quot] :[/FONT][FONT=&quot]When two parties have a "meeting of the minds," an agreement can said to have been made. Both parties must understand the agreement, amking sure no misunderstanding or mistakes exists between them. Such a situation usually occurs after an offer has been made by an offeror and then accepted by an offeree A valid offer has been made when another party (or several parties) is asked to enter a defined contractual agreement[/FONT].
[FONT=&quot]=> [/FONT][FONT=&quot]Relevant Provision: 2(a) Of The Contract Act, 1872.[/FONT]
[FONT=&quot] [/FONT] [FONT=&quot]ii) [/FONT][FONT=&quot]Agreement[/FONT][FONT=&quot]:[/FONT][FONT=&quot]An agreement is formed when one party accepts the offer of another and involves a “meeting of the minds”.[/FONT]

[FONT=&quot]=>[/FONT][FONT=&quot]Relevant Provision:2(h) Of The Contract Act,1872[/FONT]

[FONT=&quot] "An agreement enforceable by law is a contract".[/FONT]

[FONT=&quot] iii) [/FONT][FONT=&quot]Consideration[/FONT][FONT=&quot]:[/FONT][FONT=&quot]An exchange of consideraton must be included in any valid contract. Between the parties something of real value must be exchanged.Both parties must have provided consideration,i-e, each side must promise to give or do something for the other.[/FONT]
[FONT=&quot] => Relevant Secrtion: 23 & 24 Of The Contract Act, 1872.[/FONT]
[FONT=&quot] iv) [/FONT][FONT=&quot] Intention to create legal relations[/FONT][FONT=&quot]:[/FONT][FONT=&quot]The parties must have intended their agreement to have legal consequences. The law will not concern itself with purely domestic or social agreements.[/FONT]
[FONT=&quot] v) [/FONT][FONT=&quot]Form[/FONT][FONT=&quot] :[/FONT][FONT=&quot]In some cases, certain formalities (that is, writing) must be observed. The contract of Sale, Mortgage. Lease or Gift of Immovable Prperty are required in writing and to be registered according to the Transfer of Property Act,1882.[/FONT]
[FONT=&quot] vi) [/FONT][FONT=&quot]Capacity[/FONT][FONT=&quot] :[/FONT][FONT=&quot]The parties must be legally capable of entering into a contract. An agreement is enforceable only when the parties are competent to contract.[/FONT]
[FONT=&quot] => Relevant Provision:11 Of The Contract Act, 1872.[/FONT]
[FONT=&quot] vii) [/FONT][FONT=&quot]Free Consent [/FONT][FONT=&quot]:[/FONT][FONT=&quot]The agreement must have been entered into freely. Consent may be vitiated by duress or undue influence.[/FONT]
[FONT=&quot] => Relevant Provision:13 & 14 Of The Contract Act, 1872.[/FONT]
[FONT=&quot]viii) [/FONT][FONT=&quot]Legality[/FONT][FONT=&quot] :[/FONT][FONT=&quot]The purpose of the agreement must not be illegal or contrary to public policy.[/FONT]I[FONT=&quot]f the formation or the performance of a contract is illegal, resulting in a crime and/or tort, or opposing public policy or interest, the contract is usually considered void. [/FONT]
[FONT=&quot]ix) [/FONT][FONT=&quot]Object[/FONT][FONT=&quot] :[/FONT][FONT=&quot] The agreement should be based on a lawful object so that it's legality and validity may not be doubtful.[/FONT]
[FONT=&quot] =>[/FONT][FONT=&quot]Relevant Provision:23 Of The Contract Act, 1872.[/FONT]
[FONT=&quot]x) [/FONT][FONT=&quot]Not to be Void[/FONT][FONT=&quot] :[/FONT][FONT=&quot] The agreements must not have been expressly declared void. [/FONT]
[FONT=&quot]xi) [/FONT][FONT=&quot]Certainty[/FONT][FONT=&quot] :[/FONT][FONT=&quot] In order to give rise to a valid contract the terms of the agreement should not be vague and un-certain.[/FONT]
[FONT=&quot] => Relevant Proviosion: 29 Of The Contract Act, 1872.[/FONT]
[FONT=&quot]xii) [/FONT][FONT=&quot]Possible to be performed[/FONT][FONT=&quot] :[/FONT][FONT=&quot] Another very important requisite for a valid contract is that the agreement should not contain any condition which would humanly and phisically be impossible to do.[/FONT]
[FONT=&quot] =>Relevant Provision:56 Of The Contract Act, 1872.[/FONT]
[FONT=&quot] 7. BREACH OF CONTRACT:-[/FONT]
[FONT=&quot] When a party fails to perform the stated obligation in a contract, the party is said to be in BREACH The injured party has several recources. The injured party may RESCIND he contract or release the the other party from the obligations stated in the contract. Also, the parties may agree on NOVATION. Any of these three resolutions may be enacted without litigation. An alternate action for the injured party is to sue for INJUNCTIVE RELIEF which prohibits the other party from performing some specific act[/FONT]
[FONT=&quot]8. [/FONT][FONT=&quot]CONCLUDING REMARKS[/FONT][FONT=&quot] :-[/FONT]

.rtf

EssentilsofContract.rtf (Size: 58.08 KB / Downloads: 461) ]]> [FONT=&quot]1. Introductory Note:-[/FONT]
[FONT=&quot] [/FONT][FONT=&quot]An agreement between two or more competent parties in which an offer is made and accepted, and each party benefits. This term, in its more extensive sense, includes every description of agreement, or obligation, whereby one party becomes bound to another to pay a sum of money, or to do or omit to do a certain act; or, a contract is an act which contains a perfect obligation. In its more confined sense, it is an agreement between two or more persons, concerning something to be, done, whereby both parties are bound to each other, or one is bound to the other. [/FONT]
[FONT=&quot]2. Defintion of Contract :-[/FONT]
[FONT=&quot] i)[/FONT][FONT=&quot] Blackstone Defines [/FONT][FONT=&quot]:- [/FONT]
[FONT=&quot] =>[/FONT][FONT=&quot]"It to be an agreement, upon a sufficient consideration, to do or not to do a particular thing". [/FONT]
[FONT=&quot] ii) [/FONT][FONT=&quot]Accordint to Salmond[/FONT][FONT=&quot]:-[/FONT]
[FONT=&quot] =>"A contract is an agreement creating & defining obligations between the parties".[/FONT]
[FONT=&quot] iii) Sir Frederick Pollock:-[/FONT]
[FONT=&quot]=>[/FONT] [FONT=&quot]“A promise or set of promises which the law will enforce”.[/FONT]
[FONT=&quot] iv) [/FONT][FONT=&quot]Statutory Definition[/FONT][FONT=&quot]:-[/FONT]
[FONT=&quot] 2[/FONT][FONT=&quot](h) Of The Contract Act,1872[/FONT]
[FONT=&quot] => "An agreement enforceable by law is a contract".[/FONT]

[FONT=&quot]3.~[/FONT][FONT=&quot]CLASSIFICATION OF CONTRACTS[/FONT][FONT=&quot]~[/FONT]

[FONT=&quot]1. "Void Contracts"[/FONT]

[FONT=&quot]2. "Voidable contracts"[/FONT]

[FONT=&quot]3. "Unenforceable contracts"[/FONT]

[FONT=&quot]=>[/FONT][FONT=&quot]Relevant Provision:2(h) Of The Contract Act,1872[/FONT]

[FONT=&quot] "An agreement enforceable by law is a contract".[/FONT]

EssentilsofContract.rtf (Size: 58.08 KB / Downloads: 461) ]]> <![CDATA[define proposal?and essentials of valid proposa/offer?]]> https://vuhelp.net/Thread-define-proposal-and-essentials-of-valid-proposa-offer Sun, 23 Feb 2014 12:07:30 -0500 zohaibaslam]]> https://vuhelp.net/Thread-define-proposal-and-essentials-of-valid-proposa-offer Define Proposal & Acceptance? How proposal becomes a promise
1-PROLOUGE
Nowadays are the world of business for the benefit of society and leniency of maintaining of these transactions there is need to make laws for reconvert of rights of parties THE CONTRACT ACT 1872 provides laws.
2-INTERPRETATION OF RELEVANT TERMS
a- Proposal
I-literal meaning
“To suggest”
“To bid”
Ii-legal meaning
BY BLACKS LAW DICTIONARY
Something offered for consideration
b- Acceptance
i-literal meaning
“to follow something’
ii-legal meaning
BY BLACKS LAW DICTIONRY
“an offerees’ assent by express act or by
implication of conduct
3-STATUTORY DEFINITIONS OF TERMS

a- PROPOSAL
By section 2(a)
“When one person signifies to another his willingness to do or to 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”
b- ACCEPTENCE
By section 2(b)
“When the person to whom the proposal is made signifies his
assent there to, the proposal is said to be accepted”
c- PROPOSAL
By section 2(b)
“When the proposal is accepted becomes a promise”
d- Agreement
BY section 2(e)
“Every promise or every set of promises, forming the consideration of each other”
4--ESSENTIALS OF PROPOSAL
i- Absolute
ii- clear
iii- made by offeree
iv- specific or general offer
v- Precise and definite
vi- lawful
vii- distinction between offer & invitation to offer
5- PARTIES OF OFFER
i- promisor
ii- promisee
6-TYPES OF PROPOSAL
i-express
ii-implied
iii-special
iv-general
7-ESSENTIALS OF VALID ACCEPTENCE
i-by authorized person
Ii-express or implied
Iii-absolute & unqualified
Iv-in prescribed mode
V-communication of intention
Vi- revocation before acceptance
Vii-ignorance of proposal
viii-within time period
8-PARTIES OF ACCEPTENCE
i- promisor
ii- promisee
9-COMMUNICATION OF PROPOSAL & ACCEPTENCE
sec: 3
ASE LAW
2008mld 577 Lahore high courts
“Communication of proposal and acceptance are deemed to
be by an act or omission of party proposing or accepting by which he intends to communicate such proposal and acceptance -----mere acceptance without communicating the same cannot be binding”
sec:4 COMMUNICATION WHEN COMPLETE
CASE LAW
2007 clc 462 Karachi high court
“Contract is complete only upon acceptance of offer which acceptance should be absolute and unqualified; is the communication of offer and intimation of its acceptance which creates contract”
i)of proposal
a)explanation
b) Illustration
ii)of acceptance
a)explanation
b)illustration
10- REVOCATION OF PROPOSAL
sec : 5;
CASE LAW
2005 ylr 1443 Lahore high court
“if the acceptance of offer of the bidder is not communicated to him no conclude contract comes into being”
a) explanation
b) illustration
11-REVOCATION OF ACCEPTENCE
sec:5;a)explanation
b) illustration
12- REVOCATION HOW MADE
sec :6; a)by notice
b)by laps of time
c)by death or insanity
13-REVOCATION HOW MADE
sec:6
CASE LAW
1997pld 59 Peshawar high court
“proposal in question , having been accepted after prescribed time would be deemed to be recovered by conduct of parties”
14- TRANSFORMATON OF PROPOSL INTO ACCEPTENCE
[IMG]file:///C:\DOCUME~1\ZOHAIB~3.ZOH\LOCALS~1\Temp\msohtmlclip1\01\clip_image001.gif[/IMG] OFFER

[IMG]file:///C:\DOCUME~1\ZOHAIB~3.ZOH\LOCALS~1\Temp\msohtmlclip1\01\clip_image002.gif[/IMG] COMMUNICATION OF

[IMG]file:///C:\DOCUME~1\ZOHAIB~3.ZOH\LOCALS~1\Temp\msohtmlclip1\01\clip_image003.gif[/IMG] Proposal & Acceptance

Promise

15-CONCLUSION
2008 mld 577 Lahore high court

.doc

offffeeer.doc (Size: 31.5 KB / Downloads: 247) ]]> Define Proposal & Acceptance? How proposal becomes a promise
1-PROLOUGE
Nowadays are the world of business for the benefit of society and leniency of maintaining of these transactions there is need to make laws for reconvert of rights of parties THE CONTRACT ACT 1872 provides laws.
2-INTERPRETATION OF RELEVANT TERMS
a- Proposal
I-literal meaning
“To suggest”
“To bid”
Ii-legal meaning
BY BLACKS LAW DICTIONARY
Something offered for consideration
b- Acceptance
i-literal meaning
“to follow something’
ii-legal meaning
BY BLACKS LAW DICTIONRY
“an offerees’ assent by express act or by
implication of conduct
3-STATUTORY DEFINITIONS OF TERMS

a- PROPOSAL
By section 2(a)
“When one person signifies to another his willingness to do or to 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”
b- ACCEPTENCE
By section 2(b)
“When the person to whom the proposal is made signifies his
assent there to, the proposal is said to be accepted”
c- PROPOSAL
By section 2(b)
“When the proposal is accepted becomes a promise”
d- Agreement
BY section 2(e)
“Every promise or every set of promises, forming the consideration of each other”
4--ESSENTIALS OF PROPOSAL
i- Absolute
ii- clear
iii- made by offeree
iv- specific or general offer
v- Precise and definite
vi- lawful
vii- distinction between offer & invitation to offer
5- PARTIES OF OFFER
i- promisor
ii- promisee
6-TYPES OF PROPOSAL
i-express
ii-implied
iii-special
iv-general
7-ESSENTIALS OF VALID ACCEPTENCE
i-by authorized person
Ii-express or implied
Iii-absolute & unqualified
Iv-in prescribed mode
V-communication of intention
Vi- revocation before acceptance
Vii-ignorance of proposal
viii-within time period
8-PARTIES OF ACCEPTENCE
i- promisor
ii- promisee
9-COMMUNICATION OF PROPOSAL & ACCEPTENCE
sec: 3
ASE LAW
2008mld 577 Lahore high courts
“Communication of proposal and acceptance are deemed to
be by an act or omission of party proposing or accepting by which he intends to communicate such proposal and acceptance -----mere acceptance without communicating the same cannot be binding”
sec:4 COMMUNICATION WHEN COMPLETE
CASE LAW
2007 clc 462 Karachi high court
“Contract is complete only upon acceptance of offer which acceptance should be absolute and unqualified; is the communication of offer and intimation of its acceptance which creates contract”
i)of proposal
a)explanation
b) Illustration
ii)of acceptance
a)explanation
b)illustration
10- REVOCATION OF PROPOSAL
sec : 5;
CASE LAW
2005 ylr 1443 Lahore high court
“if the acceptance of offer of the bidder is not communicated to him no conclude contract comes into being”
a) explanation
b) illustration
11-REVOCATION OF ACCEPTENCE
sec:5;a)explanation
b) illustration
12- REVOCATION HOW MADE
sec :6; a)by notice
b)by laps of time
c)by death or insanity
13-REVOCATION HOW MADE
sec:6
CASE LAW
1997pld 59 Peshawar high court
“proposal in question , having been accepted after prescribed time would be deemed to be recovered by conduct of parties”
14- TRANSFORMATON OF PROPOSL INTO ACCEPTENCE
[IMG]file:///C:\DOCUME~1\ZOHAIB~3.ZOH\LOCALS~1\Temp\msohtmlclip1\01\clip_image001.gif[/IMG] OFFER

[IMG]file:///C:\DOCUME~1\ZOHAIB~3.ZOH\LOCALS~1\Temp\msohtmlclip1\01\clip_image002.gif[/IMG] COMMUNICATION OF

[IMG]file:///C:\DOCUME~1\ZOHAIB~3.ZOH\LOCALS~1\Temp\msohtmlclip1\01\clip_image003.gif[/IMG] Proposal & Acceptance

Promise

15-CONCLUSION
2008 mld 577 Lahore high court

.doc

offffeeer.doc (Size: 31.5 KB / Downloads: 247) ]]> <![CDATA[What contracts are specifically declared void contracts under the contract act 1872]]> https://vuhelp.net/Thread-What-contracts-are-specifically-declared-void-contracts-under-the-contract-act-1872 Wed, 30 Nov 2011 05:31:33 -0500 Xpert]]> https://vuhelp.net/Thread-What-contracts-are-specifically-declared-void-contracts-under-the-contract-act-1872 Void contract Q. What is void contract? What contracts are specifically declared void contracts under the contract act 1872.
1. Introduction:
The word void means not binding in law. A contract which can not be enforced by either party is void contract. It does not create legal relation among parties and void ab-initio. It is not recognized by law.
2. Void contract:
An agreement which is not enforceable by law is void.
Features of void contract:
(i) Not enforceable at law.
(ii) It creates no legal rights.
(iii) No obligations on any party.
(iv) No compensation can be responsible for party.
(v) Parties are not responsible for performance of contract.
Reasons for void contract:
Contract becomes void due to the following reasons?:
(i) Subsequent impossibility to perform.
(ii) Subsequent illegality.
3. Contracts which are specifically declared void:
The agreement that are expressly declared to be void are as follows.
(I) Agreement in restraint of marriage:
An agreement in which an adult person is prevented or restrains from marriage is declared void.
Illustration:
A, agrees with B that she will not marry C. it is a void agreement.
(II) Agreement in restraint of trade:
Every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind is to that extent is void.
(III) Agreement where both paries are at mistake:
If both the parties of agreement are under mistake as to a matter of fact, such agreement is void.
(IV) Agreement by way of wager:
An agreement by way of wager is void wager means a bet. A wager may be defined as an agreement to pay money on happening of a specified uncertain event.
(V) Uncertainty:
If the meaning of agreement are not clear and it is not capable of being certain in void by law.
Illustration:
A agrees to sell B his car for rupees one lack or 50 thousand. It is not clear which of the two prices is to be given. This agreement is void.
(VI) Immoral:
If an agreement is against the moral values of the society it will be void.
(VII) Unlawful object:
If the object or consideration of an agreement is not lawful, it will make the agreement void.
(VIII) Fraudulent case:
If the object or consideration of agreement involves fraud it will make the agreement void.
(IX) Injury to others:
An agreement the object or consideration of which is the causing of any injury to a property or; person, is void.
(X) Agreement in restraint of legal proceeding:
Every body is allowed by law to obtain his legal rights through the legal proceeding. So following agreements are void.
(i) An agreement by which a party is restricted absolutely from taking usual legal proceedings, in respect of any rights arising from a contract.
(ii) An agreement which limit the time within one may enforce his contract rights.
(XI) Impossible acts:
An agreement to do an act impossible in itself is void.
(XII) Contracts opposed to public policy:
Contracts opposed to public policy are void.
(XIII) Contract forbidden by law:
If the consideration or object is forbidden by law, it will be void.
5. Conclusion:
To conclusion it can be said that, void contracts are not enforceable by law. These are not recognized by the law. It does not create any rights on any parts and parties are not responsible to perform such contract is no contract in law and in the eye of law it does not exist.

.doc

Void contract.doc (Size: 28 KB / Downloads: 479) ]]> Void contract Q. What is void contract? What contracts are specifically declared void contracts under the contract act 1872.
1. Introduction:
The word void means not binding in law. A contract which can not be enforced by either party is void contract. It does not create legal relation among parties and void ab-initio. It is not recognized by law.
2. Void contract:
An agreement which is not enforceable by law is void.
Features of void contract:
(i) Not enforceable at law.
(ii) It creates no legal rights.
(iii) No obligations on any party.
(iv) No compensation can be responsible for party.
(v) Parties are not responsible for performance of contract.
Reasons for void contract:
Contract becomes void due to the following reasons?:
(i) Subsequent impossibility to perform.
(ii) Subsequent illegality.
3. Contracts which are specifically declared void:
The agreement that are expressly declared to be void are as follows.
(I) Agreement in restraint of marriage:
An agreement in which an adult person is prevented or restrains from marriage is declared void.
Illustration:
A, agrees with B that she will not marry C. it is a void agreement.
(II) Agreement in restraint of trade:
Every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind is to that extent is void.
(III) Agreement where both paries are at mistake:
If both the parties of agreement are under mistake as to a matter of fact, such agreement is void.
(IV) Agreement by way of wager:
An agreement by way of wager is void wager means a bet. A wager may be defined as an agreement to pay money on happening of a specified uncertain event.
(V) Uncertainty:
If the meaning of agreement are not clear and it is not capable of being certain in void by law.
Illustration:
A agrees to sell B his car for rupees one lack or 50 thousand. It is not clear which of the two prices is to be given. This agreement is void.
(VI) Immoral:
If an agreement is against the moral values of the society it will be void.
(VII) Unlawful object:
If the object or consideration of an agreement is not lawful, it will make the agreement void.
(VIII) Fraudulent case:
If the object or consideration of agreement involves fraud it will make the agreement void.
(IX) Injury to others:
An agreement the object or consideration of which is the causing of any injury to a property or; person, is void.
(X) Agreement in restraint of legal proceeding:
Every body is allowed by law to obtain his legal rights through the legal proceeding. So following agreements are void.
(i) An agreement by which a party is restricted absolutely from taking usual legal proceedings, in respect of any rights arising from a contract.
(ii) An agreement which limit the time within one may enforce his contract rights.
(XI) Impossible acts:
An agreement to do an act impossible in itself is void.
(XII) Contracts opposed to public policy:
Contracts opposed to public policy are void.
(XIII) Contract forbidden by law:
If the consideration or object is forbidden by law, it will be void.
5. Conclusion:
To conclusion it can be said that, void contracts are not enforceable by law. These are not recognized by the law. It does not create any rights on any parts and parties are not responsible to perform such contract is no contract in law and in the eye of law it does not exist.

.doc

Void contract.doc (Size: 28 KB / Downloads: 479) ]]> <![CDATA[What are void an voidable contract. Explain in detail]]> https://vuhelp.net/Thread-What-are-void-an-voidable-contract-Explain-in-detail Wed, 30 Nov 2011 05:29:21 -0500 Xpert]]> https://vuhelp.net/Thread-What-are-void-an-voidable-contract-Explain-in-detail Void and voidable contract Q. What are void an voidable contract. Explain in detail. (2000)
1. Introduction:
A contract is an agreement which is enforceable at law. A contract consists of two elements:
(i) An agreement
(ii) The agreement should be enforceable at law.
2. Void contract:
According to sec 2 (g)
An agreement which is not enforceable at law is void contract.
Explanation:
The word void means not binding in law. A contract which cannot be enforced by either party is void contract.
(i) Reasons of void contract
Following are main reasons when contracts become void.
(i) Subsequent impossibility to perform.
(ii) Subsequent illegality.
3. Features of void contract:
Followings are features of void contract:
(I) Not enforceable by law:
A void contract is not enforceable by law.
(II) No legal rights:
A void contract creates no legal rights.
(III) No obligation on any party:
It creates no obligations on any party.
(IV) Nature of contract:
An agreement which is against the public policy or against any law is void.
(V) No compensation:
No compensation can be paid to any party.
4. Examples of void contract:
(i) An agreement in restraint of marriage.
(ii) An agreement in restraint of trade.
5. Examples of void contract:
According to section 2 (i)
“An agreement which is enforceable by law at the option of one are more of the parties there to but not at option of the other or others is a voidable contract.
(i) Reasons of voidable contract
A contract become voidable because of the following reasons.
(i) Consent is not free.
(ii) Promior is prevented from performance by promise.
(iii) Promisor fails to perform within specified time.
6. Features of voidable contract:
Following are features of voidable contract.
(I) Enforceable at the option of one party:
It is enforceable at law at the option of one or more parties.
(II) Rights of compensation:
If the contract is revoked by a person rightfully then he can also receive the compensation.
(III) Burden of proof:
The burden of proof lies on the party who claims that his consent has been obtained by coercion, Fraud etc.
(IV) Voidable at the option of one party:
The contract is voidable at the option of the party whose consent is caused.
(V) Nature of contract:
A voidable contract is a valid contract until it is avoided by the party having the right to avoid it. Once it is avoided it becomes void.
7. Instances of voidable contract:
(i) Agreement by person of unsound minded.
(ii) Agreement by undue influence.
(iv) Agreement by Fraud.
(v) Agreement by coercion.
(vi) Agreement by misrepresentation.
(vii) Agreement by minor.
8. Distinction between void and voidable contract:
(I) As to enforceability:
(i) A void contract is not enforceable,
(ii) A voidable contract is enforceable at the option of one or more parties.
(II) As to objection:
(i) Any party can use the right of objection in a void contract,
(ii) There is no party who can object the contract.
(III) As to compensation:
(i) In void contract compensation can not be paid,
(ii) Compensation may be claimed in voidable contract.
(IV) Time factor:
(i) A void agreement is void itself in the beginning,
(ii) A voidable contract is valid unto that time when it is avoided.
(v) Legal effect:
(i) A void contract has no legal effect,
(ii) A voidable contract has legal effect until it is avoided.
(VI) Collateral agreement:
(i) A collateral agreement to void agreement is a void contract,
(ii) A collateral agreement is a voidable contract is not a void contract.
8. Conclusion:
To conclusion it can be said, that contract is a legally binding agreement between two or more persons by which rights are acquired by one or more to act for bearance one the part of others. A void contract is enforceable at the option of one party.

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Void and voidable contract.doc (Size: 33.5 KB / Downloads: 561) ]]> Void and voidable contract Q. What are void an voidable contract. Explain in detail. (2000)
1. Introduction:
A contract is an agreement which is enforceable at law. A contract consists of two elements:
(i) An agreement
(ii) The agreement should be enforceable at law.
2. Void contract:
According to sec 2 (g)
An agreement which is not enforceable at law is void contract.
Explanation:
The word void means not binding in law. A contract which cannot be enforced by either party is void contract.
(i) Reasons of void contract
Following are main reasons when contracts become void.
(i) Subsequent impossibility to perform.
(ii) Subsequent illegality.
3. Features of void contract:
Followings are features of void contract:
(I) Not enforceable by law:
A void contract is not enforceable by law.
(II) No legal rights:
A void contract creates no legal rights.
(III) No obligation on any party:
It creates no obligations on any party.
(IV) Nature of contract:
An agreement which is against the public policy or against any law is void.
(V) No compensation:
No compensation can be paid to any party.
4. Examples of void contract:
(i) An agreement in restraint of marriage.
(ii) An agreement in restraint of trade.
5. Examples of void contract:
According to section 2 (i)
“An agreement which is enforceable by law at the option of one are more of the parties there to but not at option of the other or others is a voidable contract.
(i) Reasons of voidable contract
A contract become voidable because of the following reasons.
(i) Consent is not free.
(ii) Promior is prevented from performance by promise.
(iii) Promisor fails to perform within specified time.
6. Features of voidable contract:
Following are features of voidable contract.
(I) Enforceable at the option of one party:
It is enforceable at law at the option of one or more parties.
(II) Rights of compensation:
If the contract is revoked by a person rightfully then he can also receive the compensation.
(III) Burden of proof:
The burden of proof lies on the party who claims that his consent has been obtained by coercion, Fraud etc.
(IV) Voidable at the option of one party:
The contract is voidable at the option of the party whose consent is caused.
(V) Nature of contract:
A voidable contract is a valid contract until it is avoided by the party having the right to avoid it. Once it is avoided it becomes void.
7. Instances of voidable contract:
(i) Agreement by person of unsound minded.
(ii) Agreement by undue influence.
(iv) Agreement by Fraud.
(v) Agreement by coercion.
(vi) Agreement by misrepresentation.
(vii) Agreement by minor.
8. Distinction between void and voidable contract:
(I) As to enforceability:
(i) A void contract is not enforceable,
(ii) A voidable contract is enforceable at the option of one or more parties.
(II) As to objection:
(i) Any party can use the right of objection in a void contract,
(ii) There is no party who can object the contract.
(III) As to compensation:
(i) In void contract compensation can not be paid,
(ii) Compensation may be claimed in voidable contract.
(IV) Time factor:
(i) A void agreement is void itself in the beginning,
(ii) A voidable contract is valid unto that time when it is avoided.
(v) Legal effect:
(i) A void contract has no legal effect,
(ii) A voidable contract has legal effect until it is avoided.
(VI) Collateral agreement:
(i) A collateral agreement to void agreement is a void contract,
(ii) A collateral agreement is a voidable contract is not a void contract.
8. Conclusion:
To conclusion it can be said, that contract is a legally binding agreement between two or more persons by which rights are acquired by one or more to act for bearance one the part of others. A void contract is enforceable at the option of one party.

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Void and voidable contract.doc (Size: 33.5 KB / Downloads: 561) ]]> <![CDATA[What is undue influence what is its legal effect on a contract]]> https://vuhelp.net/Thread-What-is-undue-influence-what-is-its-legal-effect-on-a-contract Wed, 30 Nov 2011 05:25:15 -0500 Xpert]]> https://vuhelp.net/Thread-What-is-undue-influence-what-is-its-legal-effect-on-a-contract Undue influence Q. What is undue influence what is its legal effect on a contract. (1999) (2000) (2001).
1. Introduction:
Undue influence is a mental or moral threat undue influence is exercised by or against the party to the agreement A contract which is the result of undue influences is void able.
2. Definition of undue influence:
According to contract act
Sec 16 (i)
“A contract is said to be induced by undue influence where the relations subsisting between the parties are such the one of the parties is in a position to dominate the will of other and uses that position an unfair advantage over the other.”
Sec 16 (ii)
A person is deemed to be in position to dominate the will of another,
(i) Where he holds a real or apparent authority over the other.
(ii) Where he stands in a fiduciary relation,
(iii) Where he makes contract with a person whose mental capacity is temporarily or permanent affected by reason of age, illness or mental bodily distress.
3. Example:
Suppose ‘B’ a guardian of ‘C advances Rs 5 lack to during his minority. ‘C’ attained the age of majority. ‘B’ use his influence of guardianship and gets a bound signed by ‘C’ for Rs. 10 Lac. ‘B’ has used undue influence.
4. Important points of undue influence:
Following are important points of undue influence.
(I) Dominating position:
Relation existing between the parties should be such that one of them must be in a position to dominate the will of other.
Example:
‘A’ a spiritual adviser induced his follower to ‘B’ to gift him all his property to gain the benefits to his soul in the next world. ‘B’ has used undue influence.
(II) Use of position:
A party is in a dominating position must have used his position to obtain an unfair, advantage from the other.
Example:
‘A having advanced money to his son B, obtains from him by misuse of parental influence, a bound for great amount than the sum advanced. A undue influence.
5. Person who can use undue influence:
Following persons can use undue influence:
(i) Parent and child,
(ii) Guardian and ward,
(iii) Doctor and patient,
(iv) Lawyer and client,
(v) Trustee and beneficiary.
(I) Burden of proof:
Burden of proof will be on the person who is in dominating position. He can rebut the presumption by arguing that:-
(i) Full disclosure of fact was made.
(ii) The price was adequate
(iii) The dominated party was in a position to receive independent advice.
(iv) The dominate party gave his free consent.
6. No presentation of undue influence:
Undue influence is not presumed in the following cases.
(i) Husband and wife
(ii) Landlord and tenant.
(iii) Creditor and debtor.
(iv) Principal and agent.
(v) Mother and daughter.
Burden of proof:
Burden of proof will be on the dominated person who will prove that undue influence has been exercised over him.
7. Legal effect of undue influence:
According to sec. 19-A
“Where consent is void able at the option of the party whose consent was so caused.”
Case law
P. L .D 1990 SC 48
It was held that a contract caused by undue influence is not free consent and the contract becomes voidable at the option of the party whose consent was so caused. Any such contract may be aside either absolutely or, if the party who was entitled to avoid it has received any benefit undue the contract, upon such terms and conditions as the court deems fit.
8. Refund of benefit:
Court has power to direct the aggrieved party to refund benefit received by him, if a contract is set aside by the court.
9. Conclusion:
To conclusion it can be said that, a contract when caused by undue influence is not valid. It is void able at the option of the party whose consent is obtained by undue influence. The burdon of proof lies upon the person who is in the position to dominate the other.

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Undue influence.doc (Size: 30.5 KB / Downloads: 432) ]]> Undue influence Q. What is undue influence what is its legal effect on a contract. (1999) (2000) (2001).
1. Introduction:
Undue influence is a mental or moral threat undue influence is exercised by or against the party to the agreement A contract which is the result of undue influences is void able.
2. Definition of undue influence:
According to contract act
Sec 16 (i)
“A contract is said to be induced by undue influence where the relations subsisting between the parties are such the one of the parties is in a position to dominate the will of other and uses that position an unfair advantage over the other.”
Sec 16 (ii)
A person is deemed to be in position to dominate the will of another,
(i) Where he holds a real or apparent authority over the other.
(ii) Where he stands in a fiduciary relation,
(iii) Where he makes contract with a person whose mental capacity is temporarily or permanent affected by reason of age, illness or mental bodily distress.
3. Example:
Suppose ‘B’ a guardian of ‘C advances Rs 5 lack to during his minority. ‘C’ attained the age of majority. ‘B’ use his influence of guardianship and gets a bound signed by ‘C’ for Rs. 10 Lac. ‘B’ has used undue influence.
4. Important points of undue influence:
Following are important points of undue influence.
(I) Dominating position:
Relation existing between the parties should be such that one of them must be in a position to dominate the will of other.
Example:
‘A’ a spiritual adviser induced his follower to ‘B’ to gift him all his property to gain the benefits to his soul in the next world. ‘B’ has used undue influence.
(II) Use of position:
A party is in a dominating position must have used his position to obtain an unfair, advantage from the other.
Example:
‘A having advanced money to his son B, obtains from him by misuse of parental influence, a bound for great amount than the sum advanced. A undue influence.
5. Person who can use undue influence:
Following persons can use undue influence:
(i) Parent and child,
(ii) Guardian and ward,
(iii) Doctor and patient,
(iv) Lawyer and client,
(v) Trustee and beneficiary.
(I) Burden of proof:
Burden of proof will be on the person who is in dominating position. He can rebut the presumption by arguing that:-
(i) Full disclosure of fact was made.
(ii) The price was adequate
(iii) The dominated party was in a position to receive independent advice.
(iv) The dominate party gave his free consent.
6. No presentation of undue influence:
Undue influence is not presumed in the following cases.
(i) Husband and wife
(ii) Landlord and tenant.
(iii) Creditor and debtor.
(iv) Principal and agent.
(v) Mother and daughter.
Burden of proof:
Burden of proof will be on the dominated person who will prove that undue influence has been exercised over him.
7. Legal effect of undue influence:
According to sec. 19-A
“Where consent is void able at the option of the party whose consent was so caused.”
Case law
P. L .D 1990 SC 48
It was held that a contract caused by undue influence is not free consent and the contract becomes voidable at the option of the party whose consent was so caused. Any such contract may be aside either absolutely or, if the party who was entitled to avoid it has received any benefit undue the contract, upon such terms and conditions as the court deems fit.
8. Refund of benefit:
Court has power to direct the aggrieved party to refund benefit received by him, if a contract is set aside by the court.
9. Conclusion:
To conclusion it can be said that, a contract when caused by undue influence is not valid. It is void able at the option of the party whose consent is obtained by undue influence. The burdon of proof lies upon the person who is in the position to dominate the other.

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Undue influence.doc (Size: 30.5 KB / Downloads: 432) ]]> <![CDATA[Discuss in detail rights and duties of an agent]]> https://vuhelp.net/Thread-Discuss-in-detail-rights-and-duties-of-an-agent Wed, 30 Nov 2011 05:22:48 -0500 Xpert]]> https://vuhelp.net/Thread-Discuss-in-detail-rights-and-duties-of-an-agent Rights and duties of agent Q. Discuss in detail rights and duties of an agent. (1998)
Q. What is the range and extent of the authority of an agent? How can it be revoked? (1999)
Q. In what cases can an agent himself sue or be sued by the party with whom he has entered into a contract on behalf of the principal. (2003)
1. Introduction:
The contract which creates relationship of principal and agent is called agency. An agent is involving party to the contract of agency. He is merely connecting link. His authority can be revoked by the principal.
2. Agent:
He is a person employed to do any act for another in dealing with third parties.
3. Appointment of agent:
According to sec. 183
“Any person who is of the age of majority according to the law to which he is subject, and who is of sound mind, may employ an agent.
4. Who may be agent:
According to Sec. 184
“As between the principal and third person, any person may become an agent, but no person who is not of the age of majority and of sound mind can become an agent, so as to reasonable to his principal to his according to provisions in that behalf herein contained.
5. Case law
Girdhari Vs. Grawford 1885
All 147, i55
It was held that liability of a husband for a wife’s debt depends on the principles of agency, and the husband can only be liable when it is shown that he has expressly or impliedly sanctioned what the wife has done.
6. Kinds of agent:
Following are kind of agent.
(I) Del-credere agent:
A del-credere agent is an agent, who guarantees to his principal that person to whom he sells will pay for that, if he will not pay, he will be liable. It is a type of mercantile agent.
(II) Factor:
A factor is an agent to whom goods are entrusted for sale.
(III) Mercantile agent:
A mercantile agent is the person who has authority to sell the goods or to buy goods or to raise money on the security of goods.
(IV) Banker:
The relationship between banker and his customer is that of debtor and creditor.
(V) Auctioner:
An auctioner is an agent who is authorized to sell goods to the highest bidder at a public sale for commission.
(VI) Sub-agent:
A sub-agent is a person employed by and acting under the control of the original agent in the business of agency.
(VII) Broker:
A broker is an agent employed for buying or selling the goods or other property. He simply acts between the two parties.
(VIII) Indenter:
He is an agent who, busy or sells on behalf of his principal.
(IX) Advocate:
An advocate also acts an agent. He appears on behalf of principal in the court.
(X) Co-agent:
Who acts jointly is called co-agent.
7. Kinds according to extent of authority:
(I) General agent:
A general agent is appointed to do all acts in connection with a particular business. Third party may assume that such an agent has power to do all that which is usual for a general agent can do in business.
(II) Special agent:
A special agent is appointed to do some particular act or represent his principal in some particular transaction.
(III) Universal agent:
A universal agent is a person whose authority is unlimited. He is authorized by principal to do all acts that can be delegated to him.
8. Rights of agent:
Following are the rights of agent.
(I) Right of remuneration:
It is basic right of an agent.
(II) Right of commission:
He has also right of commission.
(III)Right of lien:
An agent has right of lien over goods until the payment in due is received by him.
(IV) Right to retain:
An agent has right to retain goods, papers and other property until the amount due is paid.
(V) Right of compensation:
In case of injury caused to agent by the negligence of principal may be compensated by him.
(VI) Right to be indemnified:
An agent has a right to be indemnified against liabilities on him.
(VII) Right to be indemnified against consequences of acts done in good faith:
He has right to indemnified against the consequences of act done in good faith even through it causes an injury to the rights of third person.
(VIII)Right of stoppage of goods in transit:
He has right of stoppage of goods in transit.
9. Duties of an agent:
Following are the duties of an agent:
(I) Obey the instructions:
He should obey the instructions of the principal.
(II) Conducting business:
It is the duty of agent to conduct the business of principal.
(III) Showing of accounts:
He should maintain the accounts and show to principal on his demand.
(IV) Return of undue profit:
If an agent has earned undue profit from the business he should return it to principal.
(V) Use of skill and knowledge:
Agent should perform his duties as much skill and knowledge as is generally shown ordinary prudence in similar business.
(VI) Payment of all sums:
He should pay all sums to his principal received on his account.
(VII) Separate accounts:
He should not mix his account with the principal and maintain separate accounts.
(VIII) Duty in case principal die or become insane:
He should protect the interest of legal heirs.
(IX) Not to delegate authority:
He should not delegate his authority to any other.
(X) Duty to communicate with principal:
He should give all information to principal about the matters of business.
(XI) Should not make any secret profit:
He should not make any secret profit.
(XII) Performance with honesty:
He should deal the business honestly. If he conducts the business dishonestly then he is not entitled to receive the reward of his services.
10. Extent of authority of agent:
An agent having authority to do an act has authority to do every lawful thing which is necessary in order to do such act. An agent having an authority to carry on business has authority to do every lawful thing necessary for the purpose’ or usually done in the course of conducing such business.
11. Agent’s authority in case of emergency:
He has authority to do all such acts for the purpose of protecting his principal from all losses.
Illustration:
An agent for sale may have goods repaired if it be necessary.
12. Revocation the authority of agent:
In the following ways authority is revoked.
(i) If principal revoke authority before agent has exercised his power,
(ii) In case of death of agent,
(iii) In case of death of agent,
(iv) If agent give up business of agency,
(v) In case of insanity of principal,
(vi) In case of insanity of agent,
(vii) If principal becomes insolvent,
(viii) If subject matter of the agency is destroyed
(ix) On expiry of time.
13. Ground on which an agent can be sued:
Agent can be sued on the following grounds.
(i) When he does not disclose the name of the principal.
(ii) When agent receive money by mistake or fraud.
(iii) When agent performs any act without the authority of principal.
(iv) If agent made a contract with a foreigner for the sale or purchase of goods.
(v) If he make contract in his own name and not by the name of principal.
(vi) If an agent has agreed to accept the liability of the third party.
(vii) If an agent on the bill of exchange without disclosing that he is singing on behalf principal.
14. Conclusion:
To conclusion it can be said that, agent is authorized to create a contract between his principal and third party. An agent can-be sued on his personal liabilities and the authority of an agent can be revoked.

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Rights and duties of agent.doc (Size: 34.5 KB / Downloads: 530) ]]> Rights and duties of agent Q. Discuss in detail rights and duties of an agent. (1998)
Q. What is the range and extent of the authority of an agent? How can it be revoked? (1999)
Q. In what cases can an agent himself sue or be sued by the party with whom he has entered into a contract on behalf of the principal. (2003)
1. Introduction:
The contract which creates relationship of principal and agent is called agency. An agent is involving party to the contract of agency. He is merely connecting link. His authority can be revoked by the principal.
2. Agent:
He is a person employed to do any act for another in dealing with third parties.
3. Appointment of agent:
According to sec. 183
“Any person who is of the age of majority according to the law to which he is subject, and who is of sound mind, may employ an agent.
4. Who may be agent:
According to Sec. 184
“As between the principal and third person, any person may become an agent, but no person who is not of the age of majority and of sound mind can become an agent, so as to reasonable to his principal to his according to provisions in that behalf herein contained.
5. Case law
Girdhari Vs. Grawford 1885
All 147, i55
It was held that liability of a husband for a wife’s debt depends on the principles of agency, and the husband can only be liable when it is shown that he has expressly or impliedly sanctioned what the wife has done.
6. Kinds of agent:
Following are kind of agent.
(I) Del-credere agent:
A del-credere agent is an agent, who guarantees to his principal that person to whom he sells will pay for that, if he will not pay, he will be liable. It is a type of mercantile agent.
(II) Factor:
A factor is an agent to whom goods are entrusted for sale.
(III) Mercantile agent:
A mercantile agent is the person who has authority to sell the goods or to buy goods or to raise money on the security of goods.
(IV) Banker:
The relationship between banker and his customer is that of debtor and creditor.
(V) Auctioner:
An auctioner is an agent who is authorized to sell goods to the highest bidder at a public sale for commission.
(VI) Sub-agent:
A sub-agent is a person employed by and acting under the control of the original agent in the business of agency.
(VII) Broker:
A broker is an agent employed for buying or selling the goods or other property. He simply acts between the two parties.
(VIII) Indenter:
He is an agent who, busy or sells on behalf of his principal.
(IX) Advocate:
An advocate also acts an agent. He appears on behalf of principal in the court.
(X) Co-agent:
Who acts jointly is called co-agent.
7. Kinds according to extent of authority:
(I) General agent:
A general agent is appointed to do all acts in connection with a particular business. Third party may assume that such an agent has power to do all that which is usual for a general agent can do in business.
(II) Special agent:
A special agent is appointed to do some particular act or represent his principal in some particular transaction.
(III) Universal agent:
A universal agent is a person whose authority is unlimited. He is authorized by principal to do all acts that can be delegated to him.
8. Rights of agent:
Following are the rights of agent.
(I) Right of remuneration:
It is basic right of an agent.
(II) Right of commission:
He has also right of commission.
(III)Right of lien:
An agent has right of lien over goods until the payment in due is received by him.
(IV) Right to retain:
An agent has right to retain goods, papers and other property until the amount due is paid.
(V) Right of compensation:
In case of injury caused to agent by the negligence of principal may be compensated by him.
(VI) Right to be indemnified:
An agent has a right to be indemnified against liabilities on him.
(VII) Right to be indemnified against consequences of acts done in good faith:
He has right to indemnified against the consequences of act done in good faith even through it causes an injury to the rights of third person.
(VIII)Right of stoppage of goods in transit:
He has right of stoppage of goods in transit.
9. Duties of an agent:
Following are the duties of an agent:
(I) Obey the instructions:
He should obey the instructions of the principal.
(II) Conducting business:
It is the duty of agent to conduct the business of principal.
(III) Showing of accounts:
He should maintain the accounts and show to principal on his demand.
(IV) Return of undue profit:
If an agent has earned undue profit from the business he should return it to principal.
(V) Use of skill and knowledge:
Agent should perform his duties as much skill and knowledge as is generally shown ordinary prudence in similar business.
(VI) Payment of all sums:
He should pay all sums to his principal received on his account.
(VII) Separate accounts:
He should not mix his account with the principal and maintain separate accounts.
(VIII) Duty in case principal die or become insane:
He should protect the interest of legal heirs.
(IX) Not to delegate authority:
He should not delegate his authority to any other.
(X) Duty to communicate with principal:
He should give all information to principal about the matters of business.
(XI) Should not make any secret profit:
He should not make any secret profit.
(XII) Performance with honesty:
He should deal the business honestly. If he conducts the business dishonestly then he is not entitled to receive the reward of his services.
10. Extent of authority of agent:
An agent having authority to do an act has authority to do every lawful thing which is necessary in order to do such act. An agent having an authority to carry on business has authority to do every lawful thing necessary for the purpose’ or usually done in the course of conducing such business.
11. Agent’s authority in case of emergency:
He has authority to do all such acts for the purpose of protecting his principal from all losses.
Illustration:
An agent for sale may have goods repaired if it be necessary.
12. Revocation the authority of agent:
In the following ways authority is revoked.
(i) If principal revoke authority before agent has exercised his power,
(ii) In case of death of agent,
(iii) In case of death of agent,
(iv) If agent give up business of agency,
(v) In case of insanity of principal,
(vi) In case of insanity of agent,
(vii) If principal becomes insolvent,
(viii) If subject matter of the agency is destroyed
(ix) On expiry of time.
13. Ground on which an agent can be sued:
Agent can be sued on the following grounds.
(i) When he does not disclose the name of the principal.
(ii) When agent receive money by mistake or fraud.
(iii) When agent performs any act without the authority of principal.
(iv) If agent made a contract with a foreigner for the sale or purchase of goods.
(v) If he make contract in his own name and not by the name of principal.
(vi) If an agent has agreed to accept the liability of the third party.
(vii) If an agent on the bill of exchange without disclosing that he is singing on behalf principal.
14. Conclusion:
To conclusion it can be said that, agent is authorized to create a contract between his principal and third party. An agent can-be sued on his personal liabilities and the authority of an agent can be revoked.

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Rights and duties of agent.doc (Size: 34.5 KB / Downloads: 530) ]]> <![CDATA[What is contract of bailment when and how can it be revoked]]> https://vuhelp.net/Thread-What-is-contract-of-bailment-when-and-how-can-it-be-revoked Wed, 30 Nov 2011 05:19:14 -0500 Xpert]]> https://vuhelp.net/Thread-What-is-contract-of-bailment-when-and-how-can-it-be-revoked Revocation of contract of bailment Q. What is contract of bailment when and how can it be revoked. Discuss fully. (2000)
1. Introduction:
Bailment means a legal relation that arises whenever one person delivers possession of personal property to another under an agreement by which the latter is under an obligation to return the property to former.
2. Meaning:
The term bailment is derived from a French won ‘bailor’ which means to deliver.
3. Definition:
According contract act Sec. 148:
“A bailment is the delivery of goods by one person another for some purpose, upon a contract that, they shall when the purpose is accomplished be returned or other wise disposed of according to directions of the person deliver them.
4. Parties to the contract or bailment:
There are two parties involving the contract bailment.
(I)Bailor:
The person who delivers the good is called bailer.
(II) Bailee:
The person to whom the goods are delivered is called bailee.
Essentials of contract of bailment:
Following are important essential of bailment.
(I) Agreement:
There is an agreement for delivery of goods.
(II) Moveable property:
The property must be moveable:
(III) Specific purpose:
There is some specific purpose for which the property is delivered.
(IV) Change of possession:
The possession of property is changed from one person to another person.
(V) Parties:
There are two parties to the contract of bailment.
(VI) Ownership is not changed:
Ownership of the property is not changed.
(VII) Returnable:
The goods must be return able to owner.
5. Kinds of bailment
(i) According to benefit:
(a) For the benefit of bailor:
Where goods are delivered for safe custody a neighbour, relative or friend without any compensation to be paid.
(b) For the benefit of bailee:
Where goods are delivered to the bailee to be used by him without any compensation to be charged from him.
( c) For the benefit of bailor and bailee:
Where the goods are delivered for the benefit of both the bailor and bailee.
(II) According to reward:
(a) Bailment without reward:
It is bailment in which neither the bailor nor the bailee entitled remuneration.
(b) Bailment for reward:
It is a bailment where the bailor or bailee is entitled for remuneration. It is also called non-gratutious bailment.
6. Termination of bailment:
Contract of bailment is terminated on the following circumstances:
(I) Expiry of time:
Bailment is terminated on the expiry of specified time.
(II) Accomplishment of purpose:
If bailment is for a specific purpose, the bailment terminates as soon as the bailment terminates.
(III) Unauthorized use:
If baliee make unauthorized use of the goods delivered no him, the bailment terminate.
(IV) Death of elther party:
A gratuitous bailment is terminated on the death of either party.
(V) Termination by bailor:
Bailment can be terminated by the bailor at any time before the time.
(VI) Destruction of subject matter:
Bailment is terminated if the subject matter is destroyed.
7. Conclusion:
To conclusion it can be said that, a bailment is a voluntary transfer of the possession of goods by the owner to another person under a contract. The contract of bailment can be terminated under some circumstances.

Revocation of contract of bailment.doc (Size: 29 KB / Downloads: 437) ]]> Revocation of contract of bailment Q. What is contract of bailment when and how can it be revoked. Discuss fully. (2000)
1. Introduction:
Bailment means a legal relation that arises whenever one person delivers possession of personal property to another under an agreement by which the latter is under an obligation to return the property to former.
2. Meaning:
The term bailment is derived from a French won ‘bailor’ which means to deliver.
3. Definition:
According contract act Sec. 148:
“A bailment is the delivery of goods by one person another for some purpose, upon a contract that, they shall when the purpose is accomplished be returned or other wise disposed of according to directions of the person deliver them.
4. Parties to the contract or bailment:
There are two parties involving the contract bailment.
(I)Bailor:
The person who delivers the good is called bailer.
(II) Bailee:
The person to whom the goods are delivered is called bailee.
Essentials of contract of bailment:
Following are important essential of bailment.
(I) Agreement:
There is an agreement for delivery of goods.
(II) Moveable property:
The property must be moveable:
(III) Specific purpose:
There is some specific purpose for which the property is delivered.
(IV) Change of possession:
The possession of property is changed from one person to another person.
(V) Parties:
There are two parties to the contract of bailment.
(VI) Ownership is not changed:
Ownership of the property is not changed.
(VII) Returnable:
The goods must be return able to owner.
5. Kinds of bailment
(i) According to benefit:
(a) For the benefit of bailor:
Where goods are delivered for safe custody a neighbour, relative or friend without any compensation to be paid.
(b) For the benefit of bailee:
Where goods are delivered to the bailee to be used by him without any compensation to be charged from him.
( c) For the benefit of bailor and bailee:
Where the goods are delivered for the benefit of both the bailor and bailee.
(II) According to reward:
(a) Bailment without reward:
It is bailment in which neither the bailor nor the bailee entitled remuneration.
(b) Bailment for reward:
It is a bailment where the bailor or bailee is entitled for remuneration. It is also called non-gratutious bailment.
6. Termination of bailment:
Contract of bailment is terminated on the following circumstances:
(I) Expiry of time:
Bailment is terminated on the expiry of specified time.
(II) Accomplishment of purpose:
If bailment is for a specific purpose, the bailment terminates as soon as the bailment terminates.
(III) Unauthorized use:
If baliee make unauthorized use of the goods delivered no him, the bailment terminate.
(IV) Death of elther party:
A gratuitous bailment is terminated on the death of either party.
(V) Termination by bailor:
Bailment can be terminated by the bailor at any time before the time.
(VI) Destruction of subject matter:
Bailment is terminated if the subject matter is destroyed.
7. Conclusion:
To conclusion it can be said that, a bailment is a voluntary transfer of the possession of goods by the owner to another person under a contract. The contract of bailment can be terminated under some circumstances.

Revocation of contract of bailment.doc (Size: 29 KB / Downloads: 437) ]]> <![CDATA[Explain the rights and responsibilities of the finder of goods]]> https://vuhelp.net/Thread-Explain-the-rights-and-responsibilities-of-the-finder-of-goods Wed, 30 Nov 2011 05:15:32 -0500 Xpert]]> https://vuhelp.net/Thread-Explain-the-rights-and-responsibilities-of-the-finder-of-goods Responsibility of finder of goods Q. Explain the rights and responsibilities of the finder of goods. When finder of thing commonly on sale may sell them. (1994) (2002)
1. Introduction:
Undue contract act finder of lost goods have some responsibilities and duties. His position is as a bailee. He becomes responsible for the custody of lost goods when he takes charge of the goods.
2. Definition:
According to Sec. 71.
“A person who find goods belonging to another, and takes them into his custody, is subject to the same responsibility as a bailee.”
3. Responsibilities or duties of the finder of lost goods.
(I) Duty to find out the owner:
He should find out the true owner of the lost goods.
(II) Duty to take care:
It is duty to finder of goods to take care as bailee should take care of his own goods.
(III) Duty not to use the goods:
The finder of lost goods should not use the goods.
(IV) Duty not to mix the goods:
He should not mix the goods to his own goods.
(V) He must restore the goods to owner:
If real owner is found he should restore the goods to him on demand.
4. Rights of finder of goods:
Following are the rights of finder of the lost goods.
(I) Right to retain:
He can retain possession of goods against every body until the true owner is found out.
(II) Right to sue for reward:
He can file suit against the owner to recover any reward which was offered by the owner for the return of the goods.
(III) Right of sale when owner is not found:
He has right of sale when owner is not found on the following circumstances.
(a) When owner is not found:
When owner is not found, he can sell the goods.
(b) When owner refuse to pay the expenses:
When owner is found but he refuses to pay lawful charge borne by the finder of lost foods.
© Perishable goods:
He can sell the goods if they are perishable.
(d) When charges of goods amount to two thirds:
When the lawful charges of the finder amount to two thirds or more of the value of the goods found.
(IV) Suit for recovery of damages:
If any one deprives finder of the lost good the possession of goods, he can file a suit for recovery of damages.
5. Conclusion:
To conclusion it can be said that, no one is bound to take lost goods but once he take the lost goods he becomes liable for them. Finder of lost goods is bound to take reasonable care of the goods and to find out the owner of the lost goods. So the responsibility of finder of lost goods is same as bailee.

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Responsibility of finder of goods.doc (Size: 25.5 KB / Downloads: 530) ]]> Responsibility of finder of goods Q. Explain the rights and responsibilities of the finder of goods. When finder of thing commonly on sale may sell them. (1994) (2002)
1. Introduction:
Undue contract act finder of lost goods have some responsibilities and duties. His position is as a bailee. He becomes responsible for the custody of lost goods when he takes charge of the goods.
2. Definition:
According to Sec. 71.
“A person who find goods belonging to another, and takes them into his custody, is subject to the same responsibility as a bailee.”
3. Responsibilities or duties of the finder of lost goods.
(I) Duty to find out the owner:
He should find out the true owner of the lost goods.
(II) Duty to take care:
It is duty to finder of goods to take care as bailee should take care of his own goods.
(III) Duty not to use the goods:
The finder of lost goods should not use the goods.
(IV) Duty not to mix the goods:
He should not mix the goods to his own goods.
(V) He must restore the goods to owner:
If real owner is found he should restore the goods to him on demand.
4. Rights of finder of goods:
Following are the rights of finder of the lost goods.
(I) Right to retain:
He can retain possession of goods against every body until the true owner is found out.
(II) Right to sue for reward:
He can file suit against the owner to recover any reward which was offered by the owner for the return of the goods.
(III) Right of sale when owner is not found:
He has right of sale when owner is not found on the following circumstances.
(a) When owner is not found:
When owner is not found, he can sell the goods.
(b) When owner refuse to pay the expenses:
When owner is found but he refuses to pay lawful charge borne by the finder of lost foods.
© Perishable goods:
He can sell the goods if they are perishable.
(d) When charges of goods amount to two thirds:
When the lawful charges of the finder amount to two thirds or more of the value of the goods found.
(IV) Suit for recovery of damages:
If any one deprives finder of the lost good the possession of goods, he can file a suit for recovery of damages.
5. Conclusion:
To conclusion it can be said that, no one is bound to take lost goods but once he take the lost goods he becomes liable for them. Finder of lost goods is bound to take reasonable care of the goods and to find out the owner of the lost goods. So the responsibility of finder of lost goods is same as bailee.

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Responsibility of finder of goods.doc (Size: 25.5 KB / Downloads: 530) ]]> <![CDATA[the rules under which the court determine the award of damages for breach of contract]]> https://vuhelp.net/Thread-the-rules-under-which-the-court-determine-the-award-of-damages-for-breach-of-contract Wed, 30 Nov 2011 04:27:41 -0500 Xpert]]> https://vuhelp.net/Thread-the-rules-under-which-the-court-determine-the-award-of-damages-for-breach-of-contract Remedies for breach of contract Q. Explain the rules under which the court determine the award of damages for breach of contract. (1997)
Q. What is meant by breach of contract? What are the different remedies available to an aggrieved party as a result of breach of contract. (1998) (2001) (2002)
Q. What are the remedies for breach of contract. (2003)
1. Introduction:
The breach of contract means to violate the contract. When a party breaks the contract be refusing to perform his promise the breach of contract takes place. Under contract act 1872 the injured or aggrieved party has right to take action against the party who did not perform his obligations.
2. Meaning of remedy:
Osborn’s concise law dictionary
The means by which the violation of a right is prevented, redressed or compensated.
3. Remedies for breach of contract:
Following are remedies for the breach of contract.
(I) Suit for cancellation of the contract:
Where one of the parties to a contract commits breach the other party may treat the contract as rescinded and is absolved of all obligation under a contract.
According to Sec. 75.
When of the parties to a contract commits breach of contract the other party is released from his obligation under the contract.
(a) Where court may grant rescission:
The court may grant rescission if;-
(i) Where the contract is voidable by the plaintiff.
(ii) Where the contract is unlawful not apparent on its face and defendant is more be blamed that plaintiff.
(b) Where count may refuse rescission if:
The court may refuse to grant rescission if;-
(i) The plaintiff has expressly or impliedly ratified the contract,
(ii) Owing to change in circumstances the parties can’t be restored to their original position,
(iii) In the meanwhile the third party has acquired rights in good faith and for value,
(iv) Only a part of the contract is sought to be rescined and it is severable from the rest of the contract.
Case law
P.L.J 1988 Lah. 27
It was held rescission of avoidable contract may be communicated or revoked in the same manner and subject to the same rules as apply to the communication or revocation of a proposal.
(II) Suit for damage:
Suit for damages is the second remedy in case of breach of contract.
(a)Nature:
It is monetary compensation awarded to the injured party for the loss occasioned to him.
(b) Object of damages:
The object of awarding damages it to put the injured party in the same financial position in which they would have if there were no breach.
( c) Kinds of damages:
Following are the various kinds of damages.
(i) Ordinary damages:
Damages which naturally arose in the usual course of things from breach of the contract.
(ii) Special damages:
Special damages arise when a party makes a special contract through which he expects a large profits and such profits are likely to be lost through breach of the contract.
Circumstances when special damages can be claimed:
(i) The special circumstances must he known to the parties at the time of contract,
(ii) Subsequent knowledge of the special circumstances will not create such damages,
(iii) The damages must be such as would naturally result from the breach of contract,
(iv) The parties must have the knowledge about this loss.
( iii) Examplary damages:
These damages are awarded in order to punish the guilty party for breach of the contract and not to compensate the loss of the aggrieved.
( iv) Normal damages:
When the aggrieved party suffers no loss, the court may award nominal damages in the recognition of his right.
(III) Suit upon quantum merit:
It means ‘as much as is merited’. Claim on quantum merits arises only where one of the parties has not performed its part of the promise but has not been discharge because of the breach of other party.
When suit upon quantum merit can be filed:-
The aggrieved party can file suit upon quantum merit in the following cases.
(i) When an agreement becomes subsequently void.
(ii) When something is done without any intention to do so gratuitously.
(iii) When there is a promise to render services but there is no agreement as to remuneration.
(iv) When the contract is divisible.
(v) When the completion of the contract has been prevented by the other party,
(vi) When an indivisible work is performed.
(IV) Suit damages are not an ‘adequate remedy court may direct the party in breach to carry out its proceeding to the terms of the contract.
(a) Cases when specific performance granted
Following are the cases when specific performance is granted:
(i) Where compensation in money is not an adequate relief.
(ii) Where it is difficult to calculate the actual damages caused by the on-performance.
(iii) Where compensation cannot be obtained.
(b) Cases when specific performance is not granted:
Following are the cases when specific performance shall not be granted:
(i) Where contract is of personal nature.
(ii) Where the money compensation is adequate relief.
(iii) Where one of the parties is minor,
(iv) Where court can’t supervise it carry out.
(v) Where a contract is made by trustees in breach of their trust.
( IV) Suit for injunction:
Injunction is an order of a court restraining a person from doing something which he promise not to do. It is a preventive relief and a mode of securing specific performance in negative form.
Nature:
Injunction is a discretionary remedy by the court.
Case law
Warner bros v. nelson
(1937) I K. B 209
A film actress agreed to act exclusively for W for 2 years and for on one else but during this period, she contracted to act for 2 years could and for no one else also. Held she be restrained by injunction from doing so.
4. Conclusion:
To conclusion it can be said that, under contract act there are different remedies which are available to aggrieved party on the breach of contract against the guilty party.

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Remedies for breach of contract.doc (Size: 36 KB / Downloads: 576) ]]> Remedies for breach of contract Q. Explain the rules under which the court determine the award of damages for breach of contract. (1997)
Q. What is meant by breach of contract? What are the different remedies available to an aggrieved party as a result of breach of contract. (1998) (2001) (2002)
Q. What are the remedies for breach of contract. (2003)
1. Introduction:
The breach of contract means to violate the contract. When a party breaks the contract be refusing to perform his promise the breach of contract takes place. Under contract act 1872 the injured or aggrieved party has right to take action against the party who did not perform his obligations.
2. Meaning of remedy:
Osborn’s concise law dictionary
The means by which the violation of a right is prevented, redressed or compensated.
3. Remedies for breach of contract:
Following are remedies for the breach of contract.
(I) Suit for cancellation of the contract:
Where one of the parties to a contract commits breach the other party may treat the contract as rescinded and is absolved of all obligation under a contract.
According to Sec. 75.
When of the parties to a contract commits breach of contract the other party is released from his obligation under the contract.
(a) Where court may grant rescission:
The court may grant rescission if;-
(i) Where the contract is voidable by the plaintiff.
(ii) Where the contract is unlawful not apparent on its face and defendant is more be blamed that plaintiff.
(b) Where count may refuse rescission if:
The court may refuse to grant rescission if;-
(i) The plaintiff has expressly or impliedly ratified the contract,
(ii) Owing to change in circumstances the parties can’t be restored to their original position,
(iii) In the meanwhile the third party has acquired rights in good faith and for value,
(iv) Only a part of the contract is sought to be rescined and it is severable from the rest of the contract.
Case law
P.L.J 1988 Lah. 27
It was held rescission of avoidable contract may be communicated or revoked in the same manner and subject to the same rules as apply to the communication or revocation of a proposal.
(II) Suit for damage:
Suit for damages is the second remedy in case of breach of contract.
(a)Nature:
It is monetary compensation awarded to the injured party for the loss occasioned to him.
(b) Object of damages:
The object of awarding damages it to put the injured party in the same financial position in which they would have if there were no breach.
( c) Kinds of damages:
Following are the various kinds of damages.
(i) Ordinary damages:
Damages which naturally arose in the usual course of things from breach of the contract.
(ii) Special damages:
Special damages arise when a party makes a special contract through which he expects a large profits and such profits are likely to be lost through breach of the contract.
Circumstances when special damages can be claimed:
(i) The special circumstances must he known to the parties at the time of contract,
(ii) Subsequent knowledge of the special circumstances will not create such damages,
(iii) The damages must be such as would naturally result from the breach of contract,
(iv) The parties must have the knowledge about this loss.
( iii) Examplary damages:
These damages are awarded in order to punish the guilty party for breach of the contract and not to compensate the loss of the aggrieved.
( iv) Normal damages:
When the aggrieved party suffers no loss, the court may award nominal damages in the recognition of his right.
(III) Suit upon quantum merit:
It means ‘as much as is merited’. Claim on quantum merits arises only where one of the parties has not performed its part of the promise but has not been discharge because of the breach of other party.
When suit upon quantum merit can be filed:-
The aggrieved party can file suit upon quantum merit in the following cases.
(i) When an agreement becomes subsequently void.
(ii) When something is done without any intention to do so gratuitously.
(iii) When there is a promise to render services but there is no agreement as to remuneration.
(iv) When the contract is divisible.
(v) When the completion of the contract has been prevented by the other party,
(vi) When an indivisible work is performed.
(IV) Suit damages are not an ‘adequate remedy court may direct the party in breach to carry out its proceeding to the terms of the contract.
(a) Cases when specific performance granted
Following are the cases when specific performance is granted:
(i) Where compensation in money is not an adequate relief.
(ii) Where it is difficult to calculate the actual damages caused by the on-performance.
(iii) Where compensation cannot be obtained.
(b) Cases when specific performance is not granted:
Following are the cases when specific performance shall not be granted:
(i) Where contract is of personal nature.
(ii) Where the money compensation is adequate relief.
(iii) Where one of the parties is minor,
(iv) Where court can’t supervise it carry out.
(v) Where a contract is made by trustees in breach of their trust.
( IV) Suit for injunction:
Injunction is an order of a court restraining a person from doing something which he promise not to do. It is a preventive relief and a mode of securing specific performance in negative form.
Nature:
Injunction is a discretionary remedy by the court.
Case law
Warner bros v. nelson
(1937) I K. B 209
A film actress agreed to act exclusively for W for 2 years and for on one else but during this period, she contracted to act for 2 years could and for no one else also. Held she be restrained by injunction from doing so.
4. Conclusion:
To conclusion it can be said that, under contract act there are different remedies which are available to aggrieved party on the breach of contract against the guilty party.

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Remedies for breach of contract.doc (Size: 36 KB / Downloads: 576) ]]> <![CDATA[Who are the persons by whom contract may or must be performed]]> https://vuhelp.net/Thread-Who-are-the-persons-by-whom-contract-may-or-must-be-performed Wed, 30 Nov 2011 04:23:53 -0500 Xpert]]> https://vuhelp.net/Thread-Who-are-the-persons-by-whom-contract-may-or-must-be-performed Performance of contract Q. Who are the persons by whom contract may or must be performed? Can a contract be performed by a person other than a party to it? Discuss fully. (1999) (2000) (2001) (2004) (2004/S)
1. introduction:
The fulfillment, of the legal obligation in a contract is called performance of the contract. Chapter VI of the contract deals with the performance of the contracts,
2. Obligation of parties to contract:
According to sec 37 of contract act. The parties to contract must either perform or offer to perform their respective promises. Unless such performance is dispensed with or excused the provisions of this act or any other law.
3. Demand of performance:
Following can demand the performance of the contract.
(I) Promise:
Promise can demand the performance of the contract.
Example:
A promise B to pay 1000 to C. If A does not pay the amount to C. It is only B who can demand performance of contract by A who made promise.
(II) Legal representative:
If promise dies, his legal representative can demand the performance of the contract.
Example:
A borrowed some money from B. B died. The legal representative of B can demand the performance of the contract.
4. By whom contract must be performed:
Contract must be performed by the following persons.
(I) The promise himself:
Contract may be performed by the promise, either himself or through other competent person.
Example:
A promises to paint a picture for B. A must perform the promise himself.
(II) Agent:
Contract may be performed by agent of the promise.
Example:
A promise B to sell goods A may perform his promise himself or through his agent.
(III) Legal representative:
Contract may be performed by legal representative.
In case of personal skill:
In case of contract involving personal skill, the legal representative of deceased are not bound to perform the contract.
In case of not personal skill:
In case of contract not involving personal skill but impersonal nature the legal representative are bound to perform the contract.
(IV) Third person:
When a promise accepts performance of contract form a third person he can not afterward enforce it against the promise.
Example:
A borrows Rs 5 Lac from B and promises to repay within year. After few months C the brother of A pays Rs 5 Lac to B. B accepts the money. A is discharge from the liability to pay.
5. Time and place of performance
Case law
P. L. D 1974 Kar. 7 (DB)
It was held, where by the contract, a promisor is the perform his premise without application by the promise, and no time for performance is specified, the agreement must be performed with in a reasonable time.
6. Conclusion:
To conclusion it can be said that, the parties of contract must fulfill their contractual obligations. If contract is not performed with in specified time, it will be terminated.

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Performance of contract.doc (Size: 26 KB / Downloads: 324) ]]> Performance of contract Q. Who are the persons by whom contract may or must be performed? Can a contract be performed by a person other than a party to it? Discuss fully. (1999) (2000) (2001) (2004) (2004/S)
1. introduction:
The fulfillment, of the legal obligation in a contract is called performance of the contract. Chapter VI of the contract deals with the performance of the contracts,
2. Obligation of parties to contract:
According to sec 37 of contract act. The parties to contract must either perform or offer to perform their respective promises. Unless such performance is dispensed with or excused the provisions of this act or any other law.
3. Demand of performance:
Following can demand the performance of the contract.
(I) Promise:
Promise can demand the performance of the contract.
Example:
A promise B to pay 1000 to C. If A does not pay the amount to C. It is only B who can demand performance of contract by A who made promise.
(II) Legal representative:
If promise dies, his legal representative can demand the performance of the contract.
Example:
A borrowed some money from B. B died. The legal representative of B can demand the performance of the contract.
4. By whom contract must be performed:
Contract must be performed by the following persons.
(I) The promise himself:
Contract may be performed by the promise, either himself or through other competent person.
Example:
A promises to paint a picture for B. A must perform the promise himself.
(II) Agent:
Contract may be performed by agent of the promise.
Example:
A promise B to sell goods A may perform his promise himself or through his agent.
(III) Legal representative:
Contract may be performed by legal representative.
In case of personal skill:
In case of contract involving personal skill, the legal representative of deceased are not bound to perform the contract.
In case of not personal skill:
In case of contract not involving personal skill but impersonal nature the legal representative are bound to perform the contract.
(IV) Third person:
When a promise accepts performance of contract form a third person he can not afterward enforce it against the promise.
Example:
A borrows Rs 5 Lac from B and promises to repay within year. After few months C the brother of A pays Rs 5 Lac to B. B accepts the money. A is discharge from the liability to pay.
5. Time and place of performance
Case law
P. L. D 1974 Kar. 7 (DB)
It was held, where by the contract, a promisor is the perform his premise without application by the promise, and no time for performance is specified, the agreement must be performed with in a reasonable time.
6. Conclusion:
To conclusion it can be said that, the parties of contract must fulfill their contractual obligations. If contract is not performed with in specified time, it will be terminated.

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Performance of contract.doc (Size: 26 KB / Downloads: 324) ]]> <![CDATA[What is the effect of a mistake upon a contract]]> https://vuhelp.net/Thread-What-is-the-effect-of-a-mistake-upon-a-contract Wed, 30 Nov 2011 04:20:30 -0500 Xpert]]> https://vuhelp.net/Thread-What-is-the-effect-of-a-mistake-upon-a-contract Mistake Q. How will you distinguish a ‘Mistake of law’. Discuss their legal effects on a contract. (2001)
Q. What is the effect of a mistake upon a contract?
(i) Where one of the parties to the contract is undue a mistake.
(ii) Where both the parties to the contract are under mistake. (1994)
1. Introduction:
Parties of the contract should agree to the same thing and same sense. If parties give their consent under any error, there is no agreement. So valid contract should be free from any kind of mistake, it means that there should be consensus ad-idem.

Kinds of mistake:

Following are kinds of mistake.
(a) Mistake of fact
(b) Mistake of law
(I) Mistake of fact:
Case law
1990 CLC 1514
It was held that where both the parties to an agreement are under a mistake as to matter of fact essential to agreement, the agreement is void.
Mistake of facts has following kinds.
(a) Bilateral mistake
(b) Unilateral mistake
(a) Bilateral mistake:
According to sec 20
“Where both the parties to an agreement are under a mistake as to matter of fact, essential to the agreement, there is a bilateral mistake and the agreement is void.”
Conditions:
(i) Both the parties must be under a mistake.
(ii) Mistake must relate to some fact.
(iii) The fact must be essential to an agreement.
Example:
A agrees to sell to B a specific cargo of goods supposed to be its way from England to Karachi. It turns out that, before the day of bargain, the ship convening the cargo had been cats away and the goods lost. Neither party was aware of this fact. The agreement is void.
I. Types of bilateral mistake:
Bilateral mistake have following types.
(1) Mistake as to existence of subject matter:
The parties may be mistake as to existence of subject matter.
(2) Mistake as to identity of subject matter:
If both parties to contract are under mistake as to identity of subjects matter the contract is void.
(3) Mistake regarding ownership of subject matter:
If a person agree to purchase the property, which already belongs to him but both the parties are not aware of this fact, the agreement is void.
(4) Mistake regarding price of subject matter:
If both the parties are under mistake regarding price of subject matter the agreement is void.
(5) Mistake regarding the quantity of subject matter:
When both the parties are under a mistake regarding the quantity of subject matter the agreement is void.
(6) Mistake as to the quality of subject matter:
It case of mistake by parties as to the quality of subject matter, the agreement is void.
(b) Unilateral mistake:
Where only one of contracting parties is at mistake it is a unilateral mistake. Unilateral mistake is mistake of one party and does not render the contract void able.
Effect of unilateral mistake:
(a) Valid contract:
If a person due to his own negligence makes a wrong contract, he can not avoid the contract.
(b) Void able contract:
If unilateral mistake is caused by fraud etc on the part of other party, the contract is void able and can be avoid by the injured party.
( c) Void agreement
(i) Where identity of the contracting party is essential to the contract, the mistake makes the agreement void.
(ii) Where one of the parties to a contract without of his own, is made to commit a mistake as to nature of the contract, the agreement would be void.
(II) Mistake of law:
Following are kinds of mistake of law.
(a) Mistake of Pakistani law:
Mistake of law does not affect the validity of the contract.
Example:
If some one is caught while travelling without ticket in train. He can not be excused on the ground that he was not aware that ticket is must for travelling.
(b) Mistake of foreign law:
Under sec 21 of the act, a mistake as to a law not in force has the same effect as the mistake of fact. The contract may be rendered void if both parties are under mistake as to foreign law.

Conclusion:

To conclusion it can be said that, mistake relating to fact is mistake relating to law is mistaken of fact are void and contract under mistake of law are generally valid.

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Mistake.doc (Size: 33.5 KB / Downloads: 535) ]]> Mistake Q. How will you distinguish a ‘Mistake of law’. Discuss their legal effects on a contract. (2001)
Q. What is the effect of a mistake upon a contract?
(i) Where one of the parties to the contract is undue a mistake.
(ii) Where both the parties to the contract are under mistake. (1994)
1. Introduction:
Parties of the contract should agree to the same thing and same sense. If parties give their consent under any error, there is no agreement. So valid contract should be free from any kind of mistake, it means that there should be consensus ad-idem.

Kinds of mistake:

Conclusion:

To conclusion it can be said that, mistake relating to fact is mistake relating to law is mistaken of fact are void and contract under mistake of law are generally valid.

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Mistake.doc (Size: 33.5 KB / Downloads: 535) ]]> <![CDATA[What is misrepresentation? What is its effect on the contract.]]> https://vuhelp.net/Thread-What-is-misrepresentation-What-is-its-effect-on-the-contract Wed, 30 Nov 2011 04:17:59 -0500 Xpert]]> https://vuhelp.net/Thread-What-is-misrepresentation-What-is-its-effect-on-the-contract Misrepresentation Q. What is misrepresentation? What is its effect on the contract. (1994)
1. Introduction:
Misrepresentation means misstatement of a fact material to a contract. A mere expression of opinion can not be called misrepresentation. If a misrepresentation is made wrongly and intentionally, it is said to be fraud. Misrepresentation does not amount to a criminal act. It entiles the party to avoid the contract and there can be no suit for damages.
2. Definition of misrepresentation:
According to sec. 18
Misrepresentation means and includes
(i) The positive assertion in a manner not warranted by law the information of the person making it, of that which is not true, though he believes it to be true or,
(ii) Any breach of duty which, without an intent to deceive, gains an advantage to the person committing it, or any one claiming under him by misleading another to his prejudice or to the prejudice of any one claiming under him.
(iii) Causing however, innocently, a party to an agreement, to make a mistake as to the substance of the thing which is the subject matter of the agreement.
3. Types of misrepresentation:
Following types are included in misrepresentation
(I) Unwarranted statements:
When a person positively asserts that a fact is true when his information does not warrant it to be so though he believe it to be true. This is misrepresentation.
Case law sheffied nickel co
Vs
UNVIN
1867 LR 2 HL 149
A, the owner of a gold mine sold the mine to M. During the preliminary discussion. A had made certain statement about the mine, which were incorrect, though A honestly believed to be true. After having worked for 6 months M discovered the true position. There is misrepresentation.
(II) Breach of duty:
Any breach of duty which brings an advantage to the person committing it by misleading the other to his prejudice is a misrepresentation.
(III) Mistake about subject matter:
The subject matter of every agreement is supposed by the parties to possess certain value or quality. If one of the parties leads the other, however innocently, to make a mistake as to the nature of quality of the subject after, there is misrepresentation.
Case law dambardhar
Vs
State of Orrisa
Air 1980 Cri 188
The government auctioned certain forest coupes. A part of land was occupied by the tenants. The forest department knew that fact but did not disclose to the purchaser. The contract was held to be vitiated by misrepresentation.
4. Essentials of misrepresentation:
Following are essential of misrepresentation:
(I) Innocently representation:
The representation should be made innocently and believing it to be true.
(II) Untrue:
The representation must be untrue.
(III) Must relate to the fact:
The representation must relate to the fact essential to the contract.
(IV) Induce to other party to enter into contract:
The representation must induce the other party to enter into contract.
(V) No desire to deceive the other party:
It must be made without any desire to deceive the other party.
(VI) Loss:
The other party must suffer a loss.
5. Effect of misrepresentation:
(i) the aggrieved party can avoid the contract,
(ii) The aggrieved party can accept the contract and ask the other party for restoration.
Case law
P. L. D. 1999 Lac. 235
It was held such contract obtained by one person is not void but voidable at the option of the other party which can be availed by it by exercising that option.
6. Cases when aggrieved party has no remedy:
Following are cases when aggrieved party has no remedy.
(i) If consent was given with the knowledge of misrepresentation,
(ii) If third party has acquired rights in the subject mater of contract in good faith and for value.
(iii) If the aggrieved party had the means of discovering the truth with ordinary.
7. Burden of proof in case of misrepresentation:
The burden of proof that misrepresentation was used lies on the party who wants to set aside the contract.
8. Constructive fraud
Misrepresentation includes constructive fraud. In constructive fraud there is no intention to deceive, but where the circumstances are such as to make the party who derives a benefit from the transaction equally answerable in effect as if he had been actuated by motive of fraud or decit.
9. Conclusion:
To conclusion it can be said that, misrepresentation means misstatement of fact about the contract made by one party induce the other party to enter into a contract. The contract is voidable at the option of the party whose consent is caused.

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Misrepresentation.doc (Size: 29 KB / Downloads: 470) ]]> Misrepresentation Q. What is misrepresentation? What is its effect on the contract. (1994)
1. Introduction:
Misrepresentation means misstatement of a fact material to a contract. A mere expression of opinion can not be called misrepresentation. If a misrepresentation is made wrongly and intentionally, it is said to be fraud. Misrepresentation does not amount to a criminal act. It entiles the party to avoid the contract and there can be no suit for damages.
2. Definition of misrepresentation:
According to sec. 18
Misrepresentation means and includes
(i) The positive assertion in a manner not warranted by law the information of the person making it, of that which is not true, though he believes it to be true or,
(ii) Any breach of duty which, without an intent to deceive, gains an advantage to the person committing it, or any one claiming under him by misleading another to his prejudice or to the prejudice of any one claiming under him.
(iii) Causing however, innocently, a party to an agreement, to make a mistake as to the substance of the thing which is the subject matter of the agreement.
3. Types of misrepresentation:
Following types are included in misrepresentation
(I) Unwarranted statements:
When a person positively asserts that a fact is true when his information does not warrant it to be so though he believe it to be true. This is misrepresentation.
Case law sheffied nickel co
Vs
UNVIN
1867 LR 2 HL 149
A, the owner of a gold mine sold the mine to M. During the preliminary discussion. A had made certain statement about the mine, which were incorrect, though A honestly believed to be true. After having worked for 6 months M discovered the true position. There is misrepresentation.
(II) Breach of duty:
Any breach of duty which brings an advantage to the person committing it by misleading the other to his prejudice is a misrepresentation.
(III) Mistake about subject matter:
The subject matter of every agreement is supposed by the parties to possess certain value or quality. If one of the parties leads the other, however innocently, to make a mistake as to the nature of quality of the subject after, there is misrepresentation.
Case law dambardhar
Vs
State of Orrisa
Air 1980 Cri 188
The government auctioned certain forest coupes. A part of land was occupied by the tenants. The forest department knew that fact but did not disclose to the purchaser. The contract was held to be vitiated by misrepresentation.
4. Essentials of misrepresentation:
Following are essential of misrepresentation:
(I) Innocently representation:
The representation should be made innocently and believing it to be true.
(II) Untrue:
The representation must be untrue.
(III) Must relate to the fact:
The representation must relate to the fact essential to the contract.
(IV) Induce to other party to enter into contract:
The representation must induce the other party to enter into contract.
(V) No desire to deceive the other party:
It must be made without any desire to deceive the other party.
(VI) Loss:
The other party must suffer a loss.
5. Effect of misrepresentation:
(i) the aggrieved party can avoid the contract,
(ii) The aggrieved party can accept the contract and ask the other party for restoration.
Case law
P. L. D. 1999 Lac. 235
It was held such contract obtained by one person is not void but voidable at the option of the other party which can be availed by it by exercising that option.
6. Cases when aggrieved party has no remedy:
Following are cases when aggrieved party has no remedy.
(i) If consent was given with the knowledge of misrepresentation,
(ii) If third party has acquired rights in the subject mater of contract in good faith and for value.
(iii) If the aggrieved party had the means of discovering the truth with ordinary.
7. Burden of proof in case of misrepresentation:
The burden of proof that misrepresentation was used lies on the party who wants to set aside the contract.
8. Constructive fraud
Misrepresentation includes constructive fraud. In constructive fraud there is no intention to deceive, but where the circumstances are such as to make the party who derives a benefit from the transaction equally answerable in effect as if he had been actuated by motive of fraud or decit.
9. Conclusion:
To conclusion it can be said that, misrepresentation means misstatement of fact about the contract made by one party induce the other party to enter into a contract. The contract is voidable at the option of the party whose consent is caused.

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Misrepresentation.doc (Size: 29 KB / Downloads: 470) ]]> <![CDATA[What is consent and free consent. When consent said to be free]]> https://vuhelp.net/Thread-What-is-consent-and-free-consent-When-consent-said-to-be-free Wed, 30 Nov 2011 04:14:51 -0500 Xpert]]> https://vuhelp.net/Thread-What-is-consent-and-free-consent-When-consent-said-to-be-free Free consent Q. What is consent and free consent. When consent said to be free.
1. Introduction:
Consent is essential of a contract. A contract cannot be made without consent. When consent to an agreement is caused by coertion, undue influence, fraud or misrepresentation the agreement is voidable at the option of that party whose consent was caused so.
2. Definition of consent:
According to sec 13 of contract act.
Two or more persons are said to consent when they agree upon the same thing in same sense.
3. Essentials of consent:
(i) Two or more persons.
(ii) Agree upon the same things.
(iii) Agree upon the same sense.
4. Age of consent:
Consent can be given only by adult. A consent which is given by minor in a contract is void.
5. Forms of consent:
Following are forms of consent:
(i) Intelligent consent
(ii) Implied consent
(iii) Written consent
6. Consent of unsound person:
A consent which is given by unsound person has no legal value. If a contract is made upon such contract it shall be void.
7. Free consent:
Contract act sec 14
Consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.
8. Reasons which make consent unfree or when consent is not free:
Case law
P. L. D 1990 S. C. 387
It was held that a contract is made by obtaining consent by coercion of a party, if does not remain a free consent, and thus the contract becomes voidable.
Following are the reasons which make consent unfree.
(I) Coertion:
If the consent is obtained under coertion it will be not free consent.
(II) Undue influence:
Undue influence is a mental or moral threat. In undue influences the contract is voidable.
(III) Fraud:
If contract is made by way of fraud. In case of fraud the contract is voidable at the option of defrauded party.
(IV) Misrepresentation:
Misrepresentation means misstatement about the facts in case of misrepresentation the contract is voidable at the option of the party whose consent is caused.
(V) Mistake:
Where the parties give their consent under a mistake, there is not agreement.
9. Conclusion:
To conclusion it can be said that, free consent is the consent which is obtained by the free will of the parties. Free consent is historic essential of a valid contract. A contract is voidable if there is no free will. Not only consent but free consent is necessary to complete the validity of contract. So where there is no consent or no real or certain object of consent there can be contract at all.

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Free consent.doc (Size: 25.5 KB / Downloads: 650) ]]> Free consent Q. What is consent and free consent. When consent said to be free.
1. Introduction:
Consent is essential of a contract. A contract cannot be made without consent. When consent to an agreement is caused by coertion, undue influence, fraud or misrepresentation the agreement is voidable at the option of that party whose consent was caused so.
2. Definition of consent:
According to sec 13 of contract act.
Two or more persons are said to consent when they agree upon the same thing in same sense.
3. Essentials of consent:
(i) Two or more persons.
(ii) Agree upon the same things.
(iii) Agree upon the same sense.
4. Age of consent:
Consent can be given only by adult. A consent which is given by minor in a contract is void.
5. Forms of consent:
Following are forms of consent:
(i) Intelligent consent
(ii) Implied consent
(iii) Written consent
6. Consent of unsound person:
A consent which is given by unsound person has no legal value. If a contract is made upon such contract it shall be void.
7. Free consent:
Contract act sec 14
Consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake.
8. Reasons which make consent unfree or when consent is not free:
Case law
P. L. D 1990 S. C. 387
It was held that a contract is made by obtaining consent by coercion of a party, if does not remain a free consent, and thus the contract becomes voidable.
Following are the reasons which make consent unfree.
(I) Coertion:
If the consent is obtained under coertion it will be not free consent.
(II) Undue influence:
Undue influence is a mental or moral threat. In undue influences the contract is voidable.
(III) Fraud:
If contract is made by way of fraud. In case of fraud the contract is voidable at the option of defrauded party.
(IV) Misrepresentation:
Misrepresentation means misstatement about the facts in case of misrepresentation the contract is voidable at the option of the party whose consent is caused.
(V) Mistake:
Where the parties give their consent under a mistake, there is not agreement.
9. Conclusion:
To conclusion it can be said that, free consent is the consent which is obtained by the free will of the parties. Free consent is historic essential of a valid contract. A contract is voidable if there is no free will. Not only consent but free consent is necessary to complete the validity of contract. So where there is no consent or no real or certain object of consent there can be contract at all.

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Free consent.doc (Size: 25.5 KB / Downloads: 650) ]]> <![CDATA[What is fraud? What is the suggestion of a fact not fraud but a misrepresentation]]> https://vuhelp.net/Thread-What-is-fraud-What-is-the-suggestion-of-a-fact-not-fraud-but-a-misrepresentation Wed, 30 Nov 2011 04:10:57 -0500 Xpert]]> https://vuhelp.net/Thread-What-is-fraud-What-is-the-suggestion-of-a-fact-not-fraud-but-a-misrepresentation Fraud Q. What is fraud? What is the suggestion of a fact not fraud but a misrepresentation? Explain it by giving examples. (1997) (1998)
1. Introduction:
Fraud is intentional misrepresentation. The parties of the contract should not conceal anything and not make false colour to the dealing. The term fraud includes all acts committed by a party to induce the other to enter into a contract with an intention to deceive other.
2. Definition of fraud:
According to contract act sec 17
Fraud means and includes any of the following acts committed by a party to a contract or with his connivance or by his agent.
(i) The suggestion, as a fact, of that which is not true, by one who does not believe it to be true,
(ii) The active concealment of a fact by one having knowledge or belief of the fact,
(iii) A promise made without any intention of performing it.
(iv) Any other act fitted to deceive and.
(v) Any such act or omission as he the law specially declared to be fraudulent.
3. Cases of fraud:
Following are cases of fraud in accordance with sec 17
(I) Suggestion regarding fact:
When a party to the contract makes a false statement intentionally he would be liable for fraud.
Exception:
If a person honestly believe his statement is to be true he can not be held liable for fraud.
Example:
“A” knows that his mobile is made Pakistan. In order to sell his mobile phone he tells that it is made of England “B” buys it. “A” is guilty of fraud.
(II) Active concealment of fact:
When the party to the contract material fact essential to the contract. He is guilty of fraud.
Example:
A sells a car to B the engine of the car is defective but A conceals it. A is guilty of fraud.
(III) Promise without intention of performing:
A promise without intention of performing amounts of fraud.
Example:
A purchases certain items from “B” without intention to pay him. “A” is guilty of fraud.
(IV) Any act with intention to deceive:
All the unfair ways which a man can adopt to deceive the other party will be considered fraud.
Example:
‘A’ tells ‘B’ that his cow is pregnant on this suggestion ‘B’ purchases cow. A is guilty of fraud.
(V) Any act or omission:
Any act or omission as the law specially declares to be fraudulent.
4. Essentials of fraud:
Following are the important essentials of fraud.
(I) False representation:
There must be false representation without representation there can be no fraud.
(II) Representation of a fact:
The representation must relate to a fact.
(III) Representation must be made before conclusion of contract:
The representation must be mad before conclusion of contract with the intention of causing the other party to enter into a contract.
(IV) Knowledge of falsity:
The representation must have been made with the knowledge of its falsity.
(V) Suffering of loss:
The other party acting on the representation must have suffered a loss.
(VI) The other party must have been deceived:
The other party must have been deceived.
(VII) The other party must have relied upon the representation:
The other party must have relied upon the representation which is made by fraudulent means.
5. Consequences of fraud:
A contract made by fraud is voidable at the option of the party defraud.
Case law
P. L. D 1969 SC 167
It was held that burden of proof lies on the party alleging fraud.
6. burden of proof:
The burden of proof that fraud was used lies on the party who wants to set aside the contract on plea of fraud.
7. Remedies:
Following remedies in case of fraud are available.
(I) To avoid the contract:
Party can avoid the contract but it must be done within reasonable time.
(II) Suit for damages:
Suit for damages can be instituted defrauded by party.
(III) Suit for specific performance:
Suit for specific performance can be filed.
8. Can silence be fraudulent:
According to sec 17 “Mere silence as to facts likely to effect the willingness of a person to enter into a contract is not fraud. Unless the circumstances of the case are such that regard being had to them. It is the duty of the person keeping silence to speak, or unless his silence is in itself equivalent to speech.
9. conclusion:
To conclusion it can be said that, fraud is willful and intentional misrepresentation. The contract is voidable at the option of aggrieved party. Fraud is committed wherever one man causes another to act on a false belief by representation which he does not himself believe to be true. Fraud can not be directly proved, it has to be inferred from surrounding circumstances and the conduct of the parties.

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Fraud.doc (Size: 29.5 KB / Downloads: 342) ]]> Fraud Q. What is fraud? What is the suggestion of a fact not fraud but a misrepresentation? Explain it by giving examples. (1997) (1998)
1. Introduction:
Fraud is intentional misrepresentation. The parties of the contract should not conceal anything and not make false colour to the dealing. The term fraud includes all acts committed by a party to induce the other to enter into a contract with an intention to deceive other.
2. Definition of fraud:
According to contract act sec 17
Fraud means and includes any of the following acts committed by a party to a contract or with his connivance or by his agent.
(i) The suggestion, as a fact, of that which is not true, by one who does not believe it to be true,
(ii) The active concealment of a fact by one having knowledge or belief of the fact,
(iii) A promise made without any intention of performing it.
(iv) Any other act fitted to deceive and.
(v) Any such act or omission as he the law specially declared to be fraudulent.
3. Cases of fraud:
Following are cases of fraud in accordance with sec 17
(I) Suggestion regarding fact:
When a party to the contract makes a false statement intentionally he would be liable for fraud.
Exception:
If a person honestly believe his statement is to be true he can not be held liable for fraud.
Example:
“A” knows that his mobile is made Pakistan. In order to sell his mobile phone he tells that it is made of England “B” buys it. “A” is guilty of fraud.
(II) Active concealment of fact:
When the party to the contract material fact essential to the contract. He is guilty of fraud.
Example:
A sells a car to B the engine of the car is defective but A conceals it. A is guilty of fraud.
(III) Promise without intention of performing:
A promise without intention of performing amounts of fraud.
Example:
A purchases certain items from “B” without intention to pay him. “A” is guilty of fraud.
(IV) Any act with intention to deceive:
All the unfair ways which a man can adopt to deceive the other party will be considered fraud.
Example:
‘A’ tells ‘B’ that his cow is pregnant on this suggestion ‘B’ purchases cow. A is guilty of fraud.
(V) Any act or omission:
Any act or omission as the law specially declares to be fraudulent.
4. Essentials of fraud:
Following are the important essentials of fraud.
(I) False representation:
There must be false representation without representation there can be no fraud.
(II) Representation of a fact:
The representation must relate to a fact.
(III) Representation must be made before conclusion of contract:
The representation must be mad before conclusion of contract with the intention of causing the other party to enter into a contract.
(IV) Knowledge of falsity:
The representation must have been made with the knowledge of its falsity.
(V) Suffering of loss:
The other party acting on the representation must have suffered a loss.
(VI) The other party must have been deceived:
The other party must have been deceived.
(VII) The other party must have relied upon the representation:
The other party must have relied upon the representation which is made by fraudulent means.
5. Consequences of fraud:
A contract made by fraud is voidable at the option of the party defraud.
Case law
P. L. D 1969 SC 167
It was held that burden of proof lies on the party alleging fraud.
6. burden of proof:
The burden of proof that fraud was used lies on the party who wants to set aside the contract on plea of fraud.
7. Remedies:
Following remedies in case of fraud are available.
(I) To avoid the contract:
Party can avoid the contract but it must be done within reasonable time.
(II) Suit for damages:
Suit for damages can be instituted defrauded by party.
(III) Suit for specific performance:
Suit for specific performance can be filed.
8. Can silence be fraudulent:
According to sec 17 “Mere silence as to facts likely to effect the willingness of a person to enter into a contract is not fraud. Unless the circumstances of the case are such that regard being had to them. It is the duty of the person keeping silence to speak, or unless his silence is in itself equivalent to speech.
9. conclusion:
To conclusion it can be said that, fraud is willful and intentional misrepresentation. The contract is voidable at the option of aggrieved party. Fraud is committed wherever one man causes another to act on a false belief by representation which he does not himself believe to be true. Fraud can not be directly proved, it has to be inferred from surrounding circumstances and the conduct of the parties.

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Fraud.doc (Size: 29.5 KB / Downloads: 342) ]]> <![CDATA[What are the essentials of a valid contract? Discuss them briefly]]> https://vuhelp.net/Thread-What-are-the-essentials-of-a-valid-contract-Discuss-them-briefly Wed, 30 Nov 2011 04:07:58 -0500 Xpert]]> https://vuhelp.net/Thread-What-are-the-essentials-of-a-valid-contract-Discuss-them-briefly Essentials of valid contract Q. What are the essentials of a valid contract? Discuss them briefly. (2000) (2003).
1. Introduction:
Law of contract 1872 provides the rules relating to commercial transactions. It is very important branch of mercantile law. It determines the circumstances. In which promises made by the parties to a contract shall be legally binding on them. The contract Act 1872 extends to whole of Pakistan. It does not affect any usage or custom of trade or any incidents of any contract not inconsistent with the provisions of the Act.
2. Definition of contract:
(I) Simple words
“A contract is an agreement between two or more persons to do or not to do some particular thing such agreement being enforceable at law.
(II) According the contract act 1872:
“An agreement enforceable at law is a contract”
(III) According to Salmond:
“An agreement creating and defining obligation: between the parties”.
(iv) According to Pollack:
“Every agreement and promise enforceable at law is contract.”
3. Conditions for contract:
There are two conditions for contract
(i) An agreement
(ii) An agreement should be enforceable by law. Contract = Agreement + Enforceability.
4. Classification of contracts
Classification of contracts is as under:
(i) According to validity or enforceability.
(ii) According to formation or creation.
(iii) According to performance.
5. Illustration:
If there is an agreement between A and B that A will construct a house for B and B will pay 5 Lack to A, that agreement is a contract.
6. Essentials for valid contract:
Followings are essentials for valid contract.
(I) Proposal:
There must be lawful proposal by one party to another party.
(II) Acceptance;
There must be lawful acceptance by other party.
(III) Agreement:
There should be an agreement between the two parties i. e. proposer and Acceptor.
(IV) Written :
It is necessary that agreement between the parties should be in written form.
(V) Lawful relationship:
Agreement between parties must be lawful, because unlawful agreement cannot be enforceable at law.
(VI) Legal relationship:
Parties must intend to create legal relationship.
(VII) Lawful object:
The object of contract must not be
(i) Illegal or unlawful
(ii) Immoral
(iii) Opposed to public policy
(VIII) Competency of parties:
Parties of the contract must be competent to enter into contract. According to the contract act every person is competent to contract. Who
(a) Has attained the age of majority
(b) Who is of sound mind.
© Is not disqualified from contracting by law to which he is in subject.
(IX) Consideration:
Consideration is “something in return”. An agreement is invalid if it has been concluded without any consideration.
(X) Free consent:
For a valid contract, it is necessary that the consent of the parties to the contract must be free.
(XI) Certain and definite:
Contract must not be uncertain, vague, or indefinite where the agreement is vague and its meaning can’t be ascertained, it shall be unenforceable.
(XII) Not declared void:
Agreement must not have been declared void by any law in force in the country because a void agreement is not enforceable by law and it has not legal existence.
(XIII) Possibility of performance:
In order to make valid contract it is necessary that it must be capable of being performed.
7. Legal formalities:
(a) Registration
(b) Attestation
8. Conclusion:
To conclusion it can be said that, a contract is an agreement which is enforceable at law. An agreement becomes enforceable by law when it fulfils some conditions. These conditions may be called essentials of a valid contract. If any of the essential element is missing the contract is either voidable, void, illegal or unenforceable in the eye of law.

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Essentials of valid contract.doc (Size: 29.5 KB / Downloads: 531) ]]> Essentials of valid contract Q. What are the essentials of a valid contract? Discuss them briefly. (2000) (2003).
1. Introduction:
Law of contract 1872 provides the rules relating to commercial transactions. It is very important branch of mercantile law. It determines the circumstances. In which promises made by the parties to a contract shall be legally binding on them. The contract Act 1872 extends to whole of Pakistan. It does not affect any usage or custom of trade or any incidents of any contract not inconsistent with the provisions of the Act.
2. Definition of contract:
(I) Simple words
“A contract is an agreement between two or more persons to do or not to do some particular thing such agreement being enforceable at law.
(II) According the contract act 1872:
“An agreement enforceable at law is a contract”
(III) According to Salmond:
“An agreement creating and defining obligation: between the parties”.
(iv) According to Pollack:
“Every agreement and promise enforceable at law is contract.”
3. Conditions for contract:
There are two conditions for contract
(i) An agreement
(ii) An agreement should be enforceable by law. Contract = Agreement + Enforceability.
4. Classification of contracts
Classification of contracts is as under:
(i) According to validity or enforceability.
(ii) According to formation or creation.
(iii) According to performance.
5. Illustration:
If there is an agreement between A and B that A will construct a house for B and B will pay 5 Lack to A, that agreement is a contract.
6. Essentials for valid contract:
Followings are essentials for valid contract.
(I) Proposal:
There must be lawful proposal by one party to another party.
(II) Acceptance;
There must be lawful acceptance by other party.
(III) Agreement:
There should be an agreement between the two parties i. e. proposer and Acceptor.
(IV) Written :
It is necessary that agreement between the parties should be in written form.
(V) Lawful relationship:
Agreement between parties must be lawful, because unlawful agreement cannot be enforceable at law.
(VI) Legal relationship:
Parties must intend to create legal relationship.
(VII) Lawful object:
The object of contract must not be
(i) Illegal or unlawful
(ii) Immoral
(iii) Opposed to public policy
(VIII) Competency of parties:
Parties of the contract must be competent to enter into contract. According to the contract act every person is competent to contract. Who
(a) Has attained the age of majority
(b) Who is of sound mind.
© Is not disqualified from contracting by law to which he is in subject.
(IX) Consideration:
Consideration is “something in return”. An agreement is invalid if it has been concluded without any consideration.
(X) Free consent:
For a valid contract, it is necessary that the consent of the parties to the contract must be free.
(XI) Certain and definite:
Contract must not be uncertain, vague, or indefinite where the agreement is vague and its meaning can’t be ascertained, it shall be unenforceable.
(XII) Not declared void:
Agreement must not have been declared void by any law in force in the country because a void agreement is not enforceable by law and it has not legal existence.
(XIII) Possibility of performance:
In order to make valid contract it is necessary that it must be capable of being performed.
7. Legal formalities:
(a) Registration
(b) Attestation
8. Conclusion:
To conclusion it can be said that, a contract is an agreement which is enforceable at law. An agreement becomes enforceable by law when it fulfils some conditions. These conditions may be called essentials of a valid contract. If any of the essential element is missing the contract is either voidable, void, illegal or unenforceable in the eye of law.

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