B Law assignment
Q 1: Case:
1. Under the contract act, 1872, advise Rashid whether he is entitled to the profit made on the local sale of 100 tons of sugar.
According to act 1872, Rashid is entitled to the profit made on the local sale of 100 tons of sugar because Ali is the manager of Rashid’s business and he is making deal with dsl on the behalf of Rashid. As Ali is the agent of Rashid and According to agent theory “agent cannot make a secrete profit”.
Q 2: What are the essentials of valid contract? Explain each one in detail with examples.
A contract is an agreement that can be enforceable by law. An agreement is an offer and its acceptance. An agreement which can be enforceable by law must have some essential elements. According to Section 10 "All agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void" As per the above section, a contract must have the following elements.
1. Intention to create legal relationship.
2. Lawful object
3. Agreement not expressly declared void
4. Proper offer and its acceptance
5. Free Consent
6. Capacity of parties to contract
7. Certainty of meaning.
8. Possibility of performance.
9. Lawful consideration
10. Legal formalities
Intention to create legal relationship:
The parties entering into a contract must have an intention to create a legal relationship. If there is no intention to create a legal relationship that agreement cannot be treated as a valid contract. Generally there is no intention to create a legal relationship in social and domestic agreements. Invitation for lunch does not create a legal relationship. Certain agreements and obligation between father and daughter, mother and son and husband and wife does not create a legal relationship. An agreement wherein it is clearly mentioned that "This agreement is not intended to create formal or legal agreement and shall not
1. Under the contract act, 1872, advise Rashid whether he is entitled to the profit made on the local sale of 100 tons of sugar.
According to act 1872, Rashid is entitled to the profit made on the local sale of 100 tons of sugar because Ali is the manager of Rashid’s business and he is making deal with dsl on the behalf of Rashid. As Ali is the agent of Rashid and According to agent theory “agent cannot make a secrete profit”.
Q 2: What are the essentials of valid contract? Explain each one in detail with examples.
A contract is an agreement that can be enforceable by law. An agreement is an offer and its acceptance. An agreement which can be enforceable by law must have some essential elements. According to Section 10 "All agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void" As per the above section, a contract must have the following elements.
1. Intention to create legal relationship.
2. Lawful object
3. Agreement not expressly declared void
4. Proper offer and its acceptance
5. Free Consent
6. Capacity of parties to contract
7. Certainty of meaning.
8. Possibility of performance.
9. Lawful consideration
10. Legal formalities
Intention to create legal relationship:
The parties entering into a contract must have an intention to create a legal relationship. If there is no intention to create a legal relationship that agreement cannot be treated as a valid contract. Generally there is no intention to create a legal relationship in social and domestic agreements. Invitation for lunch does not create a legal relationship. Certain agreements and obligation between father and daughter, mother and son and husband and wife does not create a legal relationship. An agreement wherein it is clearly mentioned that "This agreement is not intended to create formal or legal agreement and shall not