Corporate Law

A report of Contracts, Social Agreements, and Employment Contract for better concepts as a part of the Mid Term Assignment. | Contracts A contract is an agreement entered into voluntarily by two parties or more with the intention of creating a legal obligation, which may have elements in writing, though contracts can be made orally. The remedy for breach of contract can be “damages” or compensation of money. Example 1.

My cousin wanted to go abroad for his job he wanted to sell his bike in market I also need a bike for daily travelling so I asked him for his bike and made a contract with him to sale his bike HONDA CD 70(2010) to me for rupees 40,000 I requested him for the installment of this amount in the form of 10,000 per month. He agreed and hand over (sale) his bike to me with a written stamp paper. And in next 4 months I pay the entire amount due and full fill a valid contract.

It was a valid contract and meting all the fundamentals of a valid contract a view of the fundamentals has been given below with the context of this contract Offer & acceptance There must always be a law full offer and an acceptance in this regard for being a contract in the above contract I offered my cousin for the sale of his bike and he accepted. This offer also creating lawful relations and law full offer and acceptance as well. Oral or written

A contract may be in Oral or written form But it is better to be written because it provide the proof if required in the court in this contract the offer was oral but when it turned into a contract a written document in the form of stamp paper has been prepared. If I didn’t full fill the contract my cousin was able to sue against me and he can also prove me guilty for the breach of contract. Capacity of Parties Parties must be competent to contract according to contract Act the parties must have the following characteristics 1. Major not of un sound mind.

2. not disqualified by law In this contract this essential is also going to be full filled because we both are major (more than 18years) totally rationally and sound minded . We have not any kind of criminal record so we are not disqualified by law and we made a contract with sound minds and also discharged by the performance that were required for this contract Lawful consideration Consideration means something in return. It is actually a price which could be in form of some benefit paid by one party for the promise of the other party.

The consideration should be lawful. My contract also full fill this essential of a valid contract bike is my need for daily travelling so bike is a consideration for me and 40000 Rupees is the need of my cousin regarding his foreign job so money is a consideration for my cousin and these consideration are lawful for both of us Legal relationship Parties in an agreement must create legal relationship I offered my cousin to sell his bike to me and he accept it so it is a valid contract as it creates a legal relationship Free consent.

Parties to an agreement said to have consent if are agreed upon some thing in the same sense. Consent is said to be free when it is not obtained by coercion undue influence fraud misrepresentation or mistake. In this contract the consent of both of us was free no one force us to enter in to a contract with these actions that are mentioned above. Clarity of term In this contract all the term and conditions were clear to each other I know about the model, color price and my cousin also know that I shall pay him in installments Possibility of performance.

For being a valid contract it must be capable or being performed and it should not be legally or physically impossible. In our contact the element of performance was include and it was legally and physically possible Not expressly declared void In sections 24-30 of contract Act agreement are mentioned which are expressly declared void (no enforceable by law) my contact is not expressly declared void sale of a is consider a legal action and still today it is consider a valid action and not expressly declared void Example no 2 We are 6 family members were living in Sargodha.

We are 3 brothers and one sister with our parents and we all are getting education. With the passage of time my brothers and sister passed there Fs. c and bsc exams so they need to move in a big city to carry on their study further the hostel expenditures was not easy to met so we all decided to get shift Lahore and arrange a house on rent for all of us so we contact with a property dealer in Lahore he arrange a house on rent for rupees 7500 per month we agreed and he prepared a stamp paper for us that contain all the term and condition of the contract like division of bills, use of water motor etc.

Offer & acceptance There must always be a lawful offer and an acceptance in this regard for being a contract in the above contract in this contract the offer made my the property dealer was law full and our acceptance as well So our contract for the house is valid Oral or written A contract may be in Oral or written form But it is better to be written because it provide the proof if required. This contact was written and have a legal worth (stamp paper) so this essential of a valid contract also relate to this contract Capacity of Parties.

In this contract this essential is also going to be full filled because we both are major (more than 18years) totally rationally and sound minded My father made this contract He is Major (more than 18 years) a rational and not disqualified by law due to any illegal record and the dealer also have these qualities so this contract also fall in the arrange of a valid contact Lawful consideration As explained above Consideration means something in return. It is actually a price which could be in form of some benefit paid by one party for the promise of the other party.

The consideration should be lawful. In this contract the consideration is law full for both parties 7500 rent have lawful consideration for the owner of the house and the house has consideration for us regarding our living perspective Legal relationship Parties in an agreement must create legal relationship the owner of the house want to rent out his house and we were willing for it so out contact also creates legal relationship Free consent Parties to an agreement said to have consent if are agreed upon some thing in the same sense.

Consent is said to be free when it is not obtained by coercion undue influence fraud misrepresentation or mistake. In this contract the consent of both parties were free above mentioned element were not include in our contract so our contract can be called a valid contract Clarity of term In this contract all the term and conditions were clear to each other. Before entering in the contract we and the owner were clear with the term and condition that are enroll in the stamp paper Possibility of performance.

For being a valid contract it must be capable or being performed and it should not be legally or physically impossible. In our contact the element of performance was include and it was legally and physically possible Not expressly declared void In sections 24-30 of contract Act agreement are mentioned which are expressly declared void (no enforceable by law) our contract was totally valid because our agreement was legal and enforceable by law Example no 3 This contract relates to the 2nd contract as I mentioned above that before.

that contract we live in Sargodha and want to move Lahore for this we have to sell our house for this propose we contact with a property dealer of Sargodha for Rupees 80, 00,000 one day he met us with a party that was interested to purchases our house my father define all the term and condition to that party he agree and we prepared a stamp paper and enter in a valid contract All the fundamentals of a valid contract a view of the fundamentals has been given below with the context of this contract Offer & acceptance.

There must always be a lawful offer and an acceptance in this regard for being a contract in the above contract in this contract the offer made by us was law full and the acceptance by the interested party was also lawful the first essential of a valid contract has been full filled in this contract Oral or written A contract may be in Oral or written form But it is better to be written because it provide the proof if required. Our contract is an important contract so we made a stamp paper for the legal proof of this agreement 2nd essential has been also full filled in this contract Capacity of Parties

In this contract this essential is also going to be full filled because we both are major (more than 18years) totally rationally and sound mind as well. So we both have capacity to made a contract between us. Lawful consideration As I explain above Consideration means something in return. It is actually a price which could be in form of some benefit paid by one party for the promise of the other party. The consideration should be lawful. In this contract 80, 00,000 has consideration for us and our house was consideration for the interested party Legal relationship.

Parties in an agreement must create legal relationship we want to sell our home and the other party was agree to purchase it so it create a legal relationship between us Free consent Parties to an agreement said to have consent if are agreed upon some thing in the same sense. Consent is said to be free when it is not obtained by coercion undue influence fraud misrepresentation or mistake. In this contract the consent of both parties were free above mentioned element were not include in our contract so our contract can be called a valid contract Clarity of term.

In this contract all the term and conditions were clear to each other. Before entering in the contract we and the interested party were clear with the term and condition that are enroll in the stamp paper Possibility of performance For being a valid contract it must be capable or being performed and it should not be legally or physically impossible. In our contact the element of performance was include and it was legally and physically possible Not expressly declared void.

In sections 24-30 of contract Act agreement are mentioned which are expressly declared void (no enforceable by law) our contract was totally valid because our agreement was legal and enforceable by law Example no 4 One of the family members wanted to change residence due to social conflicts. In this regard, they sold their house for 85 lakhs. They sold this property to one of the distant relatives who showed interest in buying the house on lump sum payment basis. They contracted that the payment be made in a week’s time of the commencement of agreement and the property be handed over within 2 months. Offer & acceptance.

There must always be a lawful offer and an acceptance in this regard for being a contract in the above contract in this contract the offer made by us was law full and the acceptance by the interested party was also lawful the first essential of a valid contract has been full filled in this contract Oral or written A contract may be in Oral or written form But it is better to be written because it provide the proof if required. Our contract is an important contract so we made a stamp paper for the legal proof of this agreement 2nd essential has been also full filled in this contract Capacity of Parties.

In this contract this essential is also going to be full filled because we both are major (more than 18years) totally rationally and sound mind as well. So we both have capacity to made a contract between us. Lawful consideration Consideration means something in return. It is actually a price which could be in form of some benefit paid by one party for the promise of the other party. The consideration should be lawful. In this contract 85, 00,000 has been the consideration for the house. Legal relationship.

Parties in an agreement must create legal relationship we want to sell our home and the other party was agree to purchase it so it create a legal relationship between us Free consent Parties to an agreement said to have consent if they are agreed upon same things in the same sense. Consent is said to be free when it is not obtained by coercion undue influence fraud misrepresentation or mistake. In this contract the consent of both parties were free above mentioned element were not include in our contract so our contract can be called a valid contract..

Clarity of terms In this contract all the term and conditions were clear to each other. Before entering in the contract both the interested party were clear with the terms and condition that are enroll in the stamp paper Possibility of performance For being a valid contract it must be capable or being performed and it should not be legally or physically impossible. In our contact the element of performance was include and it was legally and physically possible Not expressly declared void In sections 24-30 of contract.

Act agreement are mentioned which are expressly declared void (no enforceable by law) our contract was totally valid because our agreement was legal and enforceable by law Example no 5 A cousin was considering to sell his land. For this purpose he contacted another cousin who accepted the offer and considered buying it while exchanging gold along with further monetary some to fulfill the amount. proper legal contract was formulated in this regard and the gold and jewelry worth 2 crore rupees was finalized along with a monetary some of 77 lakhs. On the due date all the proceedings were fulfilled in the presence of a lawyer hence completing the contract.

Offer & acceptance There must always be a lawful offer and an acceptance in this regard for being a contract in the above contract in this contract the offer made by us was law full and the acceptance by the interested party was also lawful the first essential of a valid contract has been full filled in this contract Oral or written A contract may be in Oral or written form But it is better to be written because it provide the proof if required. Our contract is an important contract so we made a stamp paper for the legal proof of this agreement 2nd essential has been also full filled in this contract Capacity of Parties.

In this contract this essential is also going to be full filled because we both are major (more than 18years) totally rationally and sound mind as well. So we both have capacity to made a contract between us. Lawful consideration Consideration means something in return. It is actually a price which could be in form of some benefit paid by one party for the promise of the other party. The consideration should be lawful. In this contract gold and cash worth 2 crore 77 lakh has been the consideration for the land. Legal relationship.

Parties in an agreement must create legal relationship we want to sell our home and the other party was agree to purchase it so it create a legal relationship between us Free consent Parties to an agreement said to have consent if they are agreed upon same things in the same sense. Consent is said to be free when it is not obtained by coercion undue influence fraud misrepresentation or mistake. In this contract the consent of both parties were free above mentioned element were not include in our contract so our contract can be called a valid contract Clarity of terms.

In this contract all the term and conditions were clear to each other. Before entering in the contract both the interested party were clear with the terms and condition that are enroll in the stamp paper Possibility of performance For being a valid contract it must be capable or being performed and it should not be legally or physically impossible. In our contact the element of performance was include and it was legally and physically possible Not expressly declared void.

In sections 24-30 of contract Act agreement are mentioned which are expressly declared void (no enforceable by law) our contract was totally valid because our agreement was legal and enforceable by law Social agreement These types of agreement are not enforceable by law. No intention to create legal relationship. No one can sue for the non- performance Example no 1 We promise to our group fellow Maria Adnan to attend her wedding ceremony for this she gave us wedding cards also but when the time came we were not able to attend her ceremony she became very angry and consider us as a guilty person.

but it was a agreement not a contract because it is not enforceable by law and that is why its is said “all the contracts are agreement but all the agreement are not contract” this type of case happened there Although the above agreement is meeting some essential of a valid contract but its not a contract because it has not any legal value so Maria can’t sue against us for the breach of this agreement and this contract doesn’t creates any legal relationship Example no 2 My father promises me that if I will get good marks in exams he shall buy a bike for me.

I really work hard for this and also told to my best friend about this he know all about me he come to my father in my absence and told him that I am dangerous biker and also arrange motor races. I got marks in the exams and I asked to my father about his promise but he refused to full fill it. I became very angry but I knew that the agreement between me and my father is of social agreement and this type of agreement has not any legal worth and I can’t sue against this agreement so I just accepted the decision of my father Example no 3.

My uncle promise to bring a I phone S 4 for me for abroad day to day I refresh my promise to my uncle and on every call he showed a positive response finally the day he return back and I was very excited about my gift. I asked him about that promise. I became very surprise to listen, he has forgotten his promise I was very angry and want to sue against him for his mistake but after a while I realized that the agreement with between me and my uncle was a social agreement not a contract and social agreement full fills some essentials of a valid contract but does not create any legal relationship between us so I can’t sue against him.

Example no 4 Tahir promise to arrange a birthday party for his best friend Ali in zee grill Tahir also invited some other friends on the day Ali forgot his birthday party. The entire friend came except Ali. Tahir was entertaining his other friend but All the eyes were waiting for Ali but he didn’t come finally the party has been ended without start. All the arrangement has been wasted.

Tahir was very angry and wanted to sue against Ali for his carelessness but a person told him that you can’t sue against Ali because the agreement between you and Ali was of social nature that doesn’t create any legal relationship. Example no 5 Asim promise to his friend waqar that they will to the picnic on the coming Sunday Asim arrange a surprise party for waqar regarding his marriage ceremony Asim decorated the picnic spot one day before. But on Sunday waqar didn’t come.

Asim become angry and went into the court to sue against waqar. Court explained Asim that the promise between you and waqar was of social nature that doesn’t create any legal relationship so you can’t sue against waqar. Employement Contracts Example 1 A random applicant applied for a job in one of the reputable companies. Since he had a vast experience and a very reasonable resume, the company did not want to loose him. He was therefore given a consideration to accept a 5 year employement contract along with 20% increament twice a year.

With that a car and a non furnished house and other allowances. He accepted the offer with slight changes in vacation policies and hence joined the firm. Example 2 An honorable and reputed professor was offered to join a private university as a visiting faculty member. He was offered transport, medical, lunch, and additional hourly wages (for extra hours) as a part of an elaborated package. Sensing good future prospects and a healthy salary package, he signed on to the contract for employment.