MGT611 Assignment 1 Solution and Discussion

[zareen]

Semester Fall 2019
MGT611-Business & Labor Law
Assignment No. 01
DUE DATE: 14th November, 2019
Read the examples given below and answer the questions. (4 marks each)

1. Bader, the owner of Mashoor Farms, sent one of his employees Aftab in search of his pet horse which had been missing for 5 days. Bader advertised a reward of Rs. 20,000 in a newspaper for anyone who finds his missing horse. Aftab, unaware of the newspaper advertisement, traced the horse. Subsequently, on knowing about the reward Aftab claimed it from Bader.
   Under the provisions of the Contract Act, 1872 identify the type of offer which was made by Bader. Also state whether Aftab would be able to claim the amount of reward under the circumstances.
2. Mohsin promised Ahsan that he will pay his university fee. Later Mohsin suffered losses in his business and refused to pay the fee. Mohisn is of the view that since the agreement was without consideration, it does not constitute a valid contract. However, Ahsan believes that the agreement is enforceable under law as it meets certain other conditions.
   You are required to narrate the conditions which Ahsan may be referring to.
3. Mr. A promises Mr. B to sell his horse after one month to Mr. B for Rs. 50,000. Before the completion of one month, the horse died. State whether the contract can be performed or not. Also mention the legal status of this contract.
4. Mr. X threatens Mr. Y with dire consequences unless Mr. Y enters into a contract to sell a piece of land to Mr. X at Rs. 1 lac. Is this a valid contract? Justify your answer with reason.
5. Asif stole cash and merchandise from the ABC Store. Basit, the owner of store, initiated legal proceedings against him. Asif contacted Basit with an offer to return the stolen cash and merchandise if Basit withdraws the suit. Basit accepted the offer. Is it a valid agreement? Discuss.
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[zareen]

PART 1: SOLUTION
Under the provisions of the Contract Act, 1872 this is a valid contract. Because according to the Scope of Contract under sec. 2(h) and the Proposal or Offer base on the following.The offer must be communicated to the other party. According to section 4 of the Act, the communication of a proposal is complete when it comes to the knowledge of the person to whom it is made. 1. The terms of the offer must be definite and clear 2. The offer must be capable of creating legal relationships. 3. The offer must be made to obtain acceptance. An invitation to receive an offer is not an offer. Yes, Aftab would be able to claim the amount of reward under the circumstances because he has evidence in the newspapers form and he can easily claim about Badar so this contract imposed by enforceable by law.
PART 2: SOLUTION
As we know that according to the contract act of 1872 a promise and Consideration section 2 (g), All of the agreements are not contracts, meaning thereby that all agreements are not enforceable at law. Such agreements are called void agreements. So this is Void Agreement and this agreement not enforceable by law is said to be void agreement.Yes, it is possible and enforceable by law in this situation if this agreement with a written form or registered so than Aftab can claim and imposed this agreement by law if Mohsin breach this contract or Promise.
PART 3: SOLUTION
The contract should not be performed because the horse died through a natural death so the contract should over. If this contract in written and register from so according to act 1872 B can claim about Mr. A and then this contract would enforceable by law and called to be Valid contract. So an agreement made by the parties which are not legally competent to enter into the contract is not enforceable at law that is void. Here are a Scope of Promise –Sec. 2 (b)
• Promise under the Act stands for an accepted proposal • Acceptance of a conditional offer leads to acceptance of the proposal. • Communication of offer is necessarily leading to acceptance or otherwise. • If the accepted offer requires that terms of the contract are to be reduced into writing, in such circumstances writing of a contract would only constitute the completion of the formalities and shall not have any effect on the validity of acceptance.
PART 4: SOLUTION
No this is not a valid contract because for the contract both parties must be agreed, the promisee and promisor and that contract did without forcefully. If Y doesn’t want to sell his house and X threaten him forcefully to sold his house so in this situation the second party is not agreed so the proposal not be accepted by 2nd party and without acceptable proposal and consideration promises and the contract could not be made.
PART 5: SOLUTION
Yes, this contract is valid because one party Asif is giving offers or proposals to second party Basit and Basit accept this proposal without forcefully and as we know that without proposal and consideration promise or contract could not be made.
Here are the following essentials of Valid Contract:1. These are outlined below:2. Offer and acceptance3. Legal relationship4. Legal consideration5. Competent parties6. Free consent of the parties7. Lawful Object8. Terms of an agreement to be complete and certain9. Possibility of performance10. Contract to be got registered & in writing, wherever required

[maryum]

mgt 611 assignment solution idea fall 2020 last 14 dec 2020 a) Asim agreed to construct a bungalow for Ali at Rs. 50 million. However, it was
agreed that payment would only be made upon completion of the project.
State with reasons whether this contract can be treated as a contingent contract under
the Contract Act, 1872. Also, list down characteristics of a contingent contract.
b) Sohail and Afaq lent Rs. 20 million to Mohsin, Laila, and Faizan jointly for their
business firm for 1 year. On the due date, the firm becomes insolvent. Without
sharing this fact with Sohail and discussing the recovery issues, Afaq contacts Mohsin
to repay the full amount to him only. Under the provisions of Contract Act, 1872:
(a) Whether Mohsin can be compelled to pay the full amount to Afaq; and
(b) What rights are available to Mohsin, if he repays the full amount?
c) Maimar promised to manufacture and deliver unspecified remote-controlled toy
helicopters to Nasir in the first week of November, 2020. Nasir, in turn, promised to
pay for them by the second week of the same month. However, Maimar could not
deliver the toys at all. Should Nasir keep his promise and what remedy, if any, is
available to him?
d) Bader, the city’s famous businessman had lost his expensive pet horse three days ago.
He had also sent Aftab, one of his employees to search the horse. Now, Bader has
also advertised a reward of Rs. 20,000 in a local newspaper for anyone who finds his
missing horse. Aftab, unaware of the advertisement, traced the horse and handed it
over to Badar. Later, on knowing about the reward, Aftab claimed it from Bader.
Under the related provisions of the Contract Act, 1872, identify the type of offer
made by Bader. Also, state whether Aftab would be able to claim the amount of
reward.

[zaasmi]

Mansoor are bound to carry on the business of the firm to the greatest advantage, to the just and faithful to aslam and to render true accounts and full information of all things affecting the firm to any partner or his legal representative.
MAnsoor shall indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm.
b)
They convert their agency relationship into partnership by sharing their profits and losses and also by investments.
A relationship becomes a partnership when both parties begin to seek solution that serve the long-term interests of each other; not just their own.
Necessary for a partnership:
Mutual Understanding
Significant Contribution
shared destiny
Make sacrifices
Show Vulnerability
c)
assets by mansoor =25.75
assets by aslam=25.50
total assets= 25.75+25.50 = 51.25
mansoor
=25.75/51.25100
=50.25%
Aslam
=25.50/51.25100
=49.75%
d)
See this paragraph and get answer your question
RELATIONS OF PARTNERS TO ONE ANOTHER 9. General duties of partners.— Partners are bound to carry on the business of the firm to the greatest common advantage, to be just and faithful to each other, and to render true accounts and full information of all things affecting the firm to any partner or his legal representative. 10. Duty to indemnify for loss caused by fraud.— Every partner shall indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm. 11. Determination of rights and duties of partners by contract between the partners.— (1) Subject to the provisions of this Act, the mutual rights and duties of the partners of a firm may be determined by contract between the partners, and such contract may be expressed or may be implied by a course of dealing. Such contract may be varied by consent of all the partners, and such consent may be express or may be implied by a course of dealing. (2) Agreements in restraint of trade. Notwithstanding anything contained in section 27 of the Contract Act, 1872 such contracts may provide that a partner shall not carry on any business other than that of the firm while he is a partner. 12. The conduct of the business.— Subject to contract between the partners - (a) every partner has a right to take part in the conduct of the business.

[zaasmi]

@maryum said in MGT611 Assignment 1 Solution and Discussion:

mgt 611 assignment solution idea fall 2020 last 14 dec 2020 a) Asim agreed to construct a bungalow for Ali at Rs. 50 million. However, it was
agreed that payment would only be made upon completion of the project.
State with reasons whether this contract can be treated as a contingent contract under
the Contract Act, 1872. Also, list down characteristics of a contingent contract.
b) Sohail and Afaq lent Rs. 20 million to Mohsin, Laila, and Faizan jointly for their
business firm for 1 year. On the due date, the firm becomes insolvent. Without
sharing this fact with Sohail and discussing the recovery issues, Afaq contacts Mohsin
to repay the full amount to him only. Under the provisions of Contract Act, 1872:
(a) Whether Mohsin can be compelled to pay the full amount to Afaq; and
(b) What rights are available to Mohsin, if he repays the full amount?
c) Maimar promised to manufacture and deliver unspecified remote-controlled toy
helicopters to Nasir in the first week of November, 2020. Nasir, in turn, promised to
pay for them by the second week of the same month. However, Maimar could not
deliver the toys at all. Should Nasir keep his promise and what remedy, if any, is
available to him?
d) Bader, the city’s famous businessman had lost his expensive pet horse three days ago.
He had also sent Aftab, one of his employees to search the horse. Now, Bader has
also advertised a reward of Rs. 20,000 in a local newspaper for anyone who finds his
missing horse. Aftab, unaware of the advertisement, traced the horse and handed it
over to Badar. Later, on knowing about the reward, Aftab claimed it from Bader.
Under the related provisions of the Contract Act, 1872, identify the type of offer
made by Bader. Also, state whether Aftab would be able to claim the amount of
reward.

a) Asim agreed to construct a bungalow for Ali at Rs. 50 million. However, it was agreed that payment would only be made upon completion of the project. State with reasons whether this contract can be treated as a contingent contract under the Contract Act, 1872. Also, list down characteristics of a contingent contract.
b) Sohail and Afaq lent Rs. 20 million to Mohsin, Laila, and Faizan jointly for their business firm for 1 year. On the due date, the firm becomes insolvent. Without sharing this fact with Sohail and discussing the recovery issues, Afaq contacts Mohsin to repay the full amount to him only. Under the provisions of Contract Act, 1872:
a) Whether Mohsin can be compelled to pay the full amount to Afaq; and
b) What rights are available to Mohsin, if he repays the full amount?
c) Maimar promised to manufacture and deliver unspecified remote-controlled toy helicopters to Nasir in the first week of November, 2020. Nasir, in turn, promised to pay for them by the second week of the same month. However, Maimar could not deliver the toys at all. Should Nasir keep his promise and what remedy, if any, is available to him?
d) Bader, the city’s famous businessman had lost his expensive pet horse three days ago. He had also sent Aftab, one of his employees to search the horse. Now, Bader has also advertised a reward of Rs. 20,000 in a local newspaper for anyone who finds his missing horse. Aftab, unaware of the advertisement, traced the horse and handed it over to Badar. Later, on knowing about the reward, Aftab claimed it from Bader.
Under the related provisions of the Contract Act, 1872, identity the type of otter made by Bader. Also, state whether Aftab would be able to claim the amount of reward.

Section 31 of the Contract Act
No, this is not a contingent contract as the condition i.e. construction of a bungalow is not collateral to the contract; but in itself forms a consideration and is thus an integral part of the contract.
Essentials of a contingent contract

The following are the essential characteristics of a contingent contract:

1. the performance of such a contract depends upon the happening or non-happening of some future event;
2. the event must be uncertain;
3. the event must be collateral i.e, incidental to the contract.
   b) Sohail and Afaq lent Rs. 20 million to Mohsin, Laila, and Faizan jointly for their business firm for 1 year. On the due date, the firm becomes insolvent. Without sharing this fact with Sohail and discussing the recovery issues, Afaq contacts Mohsin to repay the full amount to him only. Under the provisions of Contract Act, 1872: (a) Whether Mohsin can be compelled to pay the full amount to Afaq; and
   (b) What rights are available to Mohsin, if he repays the full amount?

Section 43 and 44 of the Contract Act
(a) Afaq alone cannot compel Mohsin to make payment unless a contrary intention appears from the contract. The right to claim performance rests with all the promises jointly and a single promise cannot demand performance.
(b) Mohsin may compel every other joint promisor to contribute equally with himself to the performance of the promise, unless a contrary intention appears from the contract. Therefore, Faizan must share the loss arising from default of Laila equally with Mohsin.

Maimar promised to manufacture and deliver unspecified remote-controlled toy helicopters to Nasir in the first week of November, 2020. Nasir, in turn, promised to pay for them by the second week of the same month. However, Maimar could not deliver the toys at all. Should Nasir keep his promise and what remedy, if any, is available to him?
Solution:
Section 54 of the Contract Act
No, Nasir need not perform his promise to pay and Maimar must compensate Nasir for any loss which Nasir may sustain due to Maimar’s non-performance.
(d) Bader, the city’s famous businessman had lost his expensive pet horse three days ago. He had also sent Aftab, one of his employees to search the horse. Now, Bader has also advertised a reward of Rs. 20,000 in a local newspaper for anyone who finds his missing horse. Aftab, unaware of the advertisement, traced the horse and handed it over to Badar. Later, on knowing about the reward, Aftab claimed it from Bader. Under the related provisions of the Contract Act, 1872, identify the type of offer made by Bader. Also, state whether Aftab would be able to claim the amount of reward.

Under the provisions of the Contract Act, 1872

This is a valid contract. Because according to the Scope of Contract under sec. 2(h) and the Proposal or Offer base on the following. The offer must be communicated to the other party.
According to section 4 of the Act, the communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.

1. The terms of the offer must be definite and clear
2. The offer must be capable of creating legal relationships.
3. The offer must be made to obtain acceptance. An invitation to receive an offer is not an offer.
   Yes, Aftab would be able to claim the amount of reward under the circumstances because he has evidence in the newspapers form and he can easily claim about Bader so this contract imposed by enforceable by law.