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Business and Commercial Law. (Knowledge Level).

2010.

Bismillahir Rahmanir Rahim.

Business and Commercial Law.
Knowledge Level.

M. Nannu Mian (A. Qasem & Co).

Page 1

Business and Commercial Law. (Knowledge Level).

2010.

contents

Sl.No
O1. 02. 03. 04. 05. 06.

Act
The Contract and Agency Act------------1872. The Sales of Goods Act---------------------1930. The Partnership Act------------------------1932. The Negotiable Instrument Act-----------1881. The Bankruptcy Act------------------------1997. The Arbitration Act-------------------------2001.

Page
3-24 25-31 32-41 42-48 49-50 51-52

M. Nannu Mian (A. Qasem & Co).

Page 2

Business and Commercial Law. (Knowledge Level).

2010.

Contract Act 1872.
1. What is contract?
An agreement enforceable by law is a contract. Therefore in a contract there must be – i). an agreement ii). the agreement must be enforceable by law. There some agreements like an agreement to play cards or to go to a cinema, which cannot be enforced through the courts of law, are not contract. So an agreement, which can be enforced through the courts of law, is called a contract.

2. What are the elements of a contract?
An agreement becomes enforceable by law when it fulfills certain conditions. These conditions, which may be called the essential elements of a contract, are explained hereunder:i). Offer and acceptance ii). Intention to create legal relationship iii). Lawful consideration iv). Capacity of the parties v). Free consent vi). Legality of the object vii). Certainty viii). Possibility of performance ix). Void agreement x). Writing, registration and legal formalities.

3. Definition of acceptance & proposal.
Proposal: 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. Offer: A proposal is also called an offer. The promisor or the person making the offer is called offeror. The person to whom the offer is made is called the offeree.

4. When is the communication of proposal and acceptance complete? Completion of proposal: The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.

5. How and when can be revoked a proposal and acceptance?
Revocation/Lapse of proposal : A proposal comes to an end, and no longer opens to acceptance under the following circumstances: i). By notice ii). By lapse of time iii). After expiry of reasonable time iv). By failure of reasonable time v). By failure of a condition precedent vi). By death of insanity vii). Counter offer viii). By refusal Revocation of Acceptance An acceptance can be revoked any time before the acceptance comes to the knowledge of the proposer but not afterwards.

M. Nannu Mian (A. Qasem & Co).

Page 3

Business and Commercial Law. (Knowledge Level).

2010.

6. What do you mean by consideration?
Consideration is an essential element in a contract. Something which receives and gives by each party to an agreement is called consideration.

7. Types of consideration.
Consideration may be classified into three types, as follows: i). Past consideration ii). Present consideration iii). Future consideration

8. What is good consideration?
The rules or necessary factors for consideration can be summed up as follows: i). There must be desire of the promisor ii). It must be real iii). Reasonable iv). Not illegal, immoral or opposed to public policy v). Present past or future vi). From the promisee of promisor

9. What are the Characteristics / Rules / Essential Factors of consideration? The following rules may be laid down regarding consideration: i). Desire (request) ii). The consideration must be real iii). Public duty iv). Promise to a stranger v). Consideration need not be adequate vi). The consideration must not be illegal, immoral, or opposed to public policy vii). The...
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