MGT611 Official Handouts

Table of Contents

Lecture Title

Page No.

Classification & sources of law Contract act – scope & significance Contract act – definition & scope Consideration & essentials of contract Contracts – essentials and kinds Kinds & legal capacity of parties to a contract Legal capacity and free consent Free consent Free consent – fraud & misrepresentation Void agreements Contingent contracts & performance of contracts

Performance & discharge of contracts Modes of discharge of contract

Remedies for breach of contract Contract of guarantee & indemnity Contracts of bailment, pledge & agency Contract of agency Contract of agency Law of partnership – kinds & mutual rights & duties Law of partnership Companies ordinance, 1984 Law relating to companies Law relating to companies Establishment of non banking finance company & winding up of companies Winding up & SECP act, 1997 SECP & code of corporate governance Code of corporate governance Negotiable instruments Negotiable instruments Negotiable instruments—endorsement & negotiation Transfer of property Law relating to sale of goods

Lesson 1

Objectives of the Course

This course has been designed with the objective of developing clear perception and understanding of the students about the different laws concerning business and labour. This course would enable the students to apply these laws in real life situations.

The course is comprised of the following modules containing different laws confronting the businesses and labour force.

Course Management · UMODULE 1 · Scope of Law and Legal System of Pakistan

1. Concept of law
2. Significance of law
3. Meaning and importance of jurisprudence
4. Kinds of jurisprudence including the following: i) ii) Historical jurisprudence iii) Ethical jurisprudence
5. Definitions of law according to point of view of different jurists
6. Classification of law
7. Essentials of imperative law
8. Legal sources of law including the following: i) Legislation ii) Precedents iii) Customs iv) Agreements

UMODULE 2

Law of Contract (Contract Act, 1872)

We shall start with the law of contract, which is a very important branch of law and is of great significance for everyone whether an individual or a corporate entity or a government. Every one of us enters into different contracts and these contracts do affect in our every day transaction and dealing. The influence of the contract can be judged from the following: Every purchase we make Loan to a friend Admission in the school / college Ride one takes on a bus Opening a bank account or taking a bank loan so on and so forth

Hence studying the general principles is of great importance for every one of us.

The contract is a binding force that holds the fabrics of any economic system. If there is no contracts and there is no law at the back of these contracts, there will be chaos in the business world rather society at large. The contracts give rise to rights and obligations amongst the contracting parties and law of contract provides the mechanism through which It can be determined weather the promises or agreements between the parties have legal binding and enforceable at course of law. Similarly the law regarding partnerships, companies, negotiable instruments and other statutes outline in the modules or equally important for individuals and business and shall be discussed at length.

1. Definitions and concept of agreement, promise, promiser, promisee, consideration, void agreements and proposal.
2. Concept and scope of consideration
3. Essentials of a valid contract including the following: (i) Offer and acceptance (ii) Legal relationship (iii) Legal consideration (iv) Competent parties (v) Free consent of the parties
4. Concept of the legal capacity of contracting parties
5. Importance and scope of free consent
6. Kinds of contracts including the following: (i) Valid contract (ii) Voidable contract (iii) Void contract (iv) Unenforceable contract (v) Express contract (vi) Implied contract (vii) Executed contract viii) Executory contract
7. Contingent contracts
8. Performance of contracts
9. Performance of reciprocal promises
10. Discharge of contract
11. Different modes in which a contract is stands discharge including the following:

• By performance
• By impossibility of performance
• By agreement of parties
• By operation of law
• By breach of contract

12. Essentials of valid tender including the following:

• Unconditional--There is no obligation on the counter party to accept a conditional tender.
• Tender to be made at proper time and proper place.
• Tender should be in entirety as per stipulations of the agreement.
• In case of tender relating delivery of goods, the Promisee should be provided opportunity to examine the goods according to the stipulations of the contract
• Tender must be offered to a person who is able to perform the promise under the contract
• Tender to be made to the Promisee or his agent
• In case of joint Promisee, tender can be made to any of the joint promises.
• In case tender of money, the exact amount should be mentioned.

13. Breach of contract
14. Remedies for breach of contract including the following:

• Suit for damages: Sec. 73
• Suit for compensation-- Party rightfully rescinding contract entitled to compensation: Sec. 75
• Suit for specific performance
• Suit for Injunction

15. Contracts of indemnity and guarantee
16. Contracts of bailment and pledge