buiness law

 

 

Important questions 1. Discu cuss ss e  ess ssential ential of  of  valid  valid contr contract 2. What are the kinds kinds o  of  f  contr  contract explain them 3. Explain the essential ssentials s of   of  valid  valid o er 4. What are the ess essential entials s o  of  f  a  a valid acceptance? 5. Discu cuss ss void  void arreement in detail a !. What are the rule ules s and exceptions exceptions o  of  f  cons  conside iderration ". What do #ou unde unders rstand tand $# capacit# to contr contract? What ar are the eff ects ects  of   a arreement eements s ma  mad de $# the pers person on not competent to contrract? cont %. What do #ou mean $# free free cons consent dis discu cuss ss in  in detail &. What are the 'a# a#s s in 'hich a contr contract ma# $e dis discha charred 1(. )ive the remedie emedies s availa$le to the ar arieved par part# in cas case of  of   $r $reach of  of   contrract cont 11. Discu cuss ss in  in detail the pos position of  a   a *uas *uasi+cont contrract 'hen the o$liations o$liation s of   o f  contr   contract ar are impos imposed $# the la' la' 12. Diff erentiate $et' $et'een indemnit# and uarrantee 13. What ar ua are the f eatur eatures of   of   $ailment? 14. What ar are the riht ihts s and duties duties of  $ailerr? 15. What ar $aile are the riht ihts s and duties dutie s of   of  ,ailee?  ,ailee? 1!. What ar are the essential ssential f eatur eatures o  of  f  plede?  plede? 1". What ar are the riht ihts s and duties duties of   -lede lederr? 1%. What ar are the riht and duties dutie s of   of  pledee  pledee 1&. Diff erentiate $et' $et'een the sale and areement to sell 2(. ihts ar ihts and duties duties o  of  f   unpaid selle ellerr 21. Discu cuss ss the  the riht ihts s o  of  f  $u#er  $u#er in a contr contract of  of  sale 22. Discu cus s the rule ules s relatin to the deliver deliver# in a contrract of  cont of  sale 23. ihts ihts dutie  duties s and lia$ilities lia$ilities o  of  f   common carr carrie ierr 24. ihts ihts dutie  duties s and lia$ilities lia$ilities of   of  rail ail' 'a# as as a common carr carrie ierr 25. Diff erentiate $et' $et'een the common carr carrie ierr and pr private car caree eerr 2!. Diff erentiate $et' $et'een the $ill of  of  ladin  ladin and charrter cha tered par part# 2". What ar are the t#pes t#pes o  of  f   cr cross ssin in of  che*ue  che*ue 2%. Diff erence $et' $et'een $ill of  of  exchane/  exchane/ che*ue and promi omiss sso or# note 2&. What ar are the re*ui e*uirrement ements s f or the rei eis stration of  of   tr trade union? 3(. What ar are the po' po'ers and rs and f unctions unctions o  of  f  national  national indus industrial relation elations ship

 

commiss commi ssion ion

2

 

 

Contract 0n areement 0n  areement  enforcea$le enforcea$le  at at  la' la'  is is   called  contract. called

Ever# promise Ever#  promise  or or  set set  of   promises  formin promises

Agreement

consideration for consideration  for  each each   other  is other is  called called  areement.

Types of  agreement i. ocial  areement  ii. areement eal   eal areement

Social agreement 0reements 'hich 0reements  'hich  do do  not not  create create  leal leal  o$liation o$liation  $et'een $et'een  the the   parties  are parties are  called called  social social  areements. areements.  n n  social social  areements/ areements/  parties parties   to  to a contract contract  are are  not not  leall# leall#  $ound $ound  to to  perform perform  the the  contract

Legal Agreements 0reements 'hich 0reements  'hich  create create  leal leal  o$liation o$liation  $et'een $et'een  the the  parties are  called are called  leal leal  areements. n n  leal leal  areements/ areements/  parties parties  are are  leall# leall#  $ound $ound  to to  perform perform  the the  contract.

Promise When one When  one  person person  makes makes  a proposal proposal  and and  other other  person person  accept accept  it/ it/  it it   $ecomes  promise $ecomes r 0n  accepted 0n accepted  oer oer  is is  called called  promise

Enforceable 0n areement 0n  areement  creatin creatin  leal leal  relationship relationship  $et'een $et'een  the the  parties parties  is is   enforcea$le.  f  a contract enforcea$le. contract  does does  not not  create create  leal leal  o$liation o$liation  $et'een $et'een   the  parties the parties  it  it is is  not not  enforcea$le enforcea$le  $# $#  la'.

-ae 3

 

Q#1 An agreement enforceable at law is contract iscuss !r "escri be te essentials $ requirements o off %ali  contract Cont ntrac ractt 0n ar areement enf  enf orcea$le at la' la' is  is called contr contract. Ess sse ent ntial ials s of  a %ali %ali  co cont ntrac ractt 1& 1&  !ff er' er' Acce ccept pta ance 5or a valid contr contract ther there mus must $e la'f  la'f ul ul off  off er and la'f  la'f ul ul acceptance. a'f  a 'f ul ul means means that the o  o er and acceptance mus must f u ulf  lf ill ill the re*ui e*uirrement of  la'  la' E(amp E(a mple le 0 off   off ers rs to  to sell her her hou  hous se to , f or 1( lac/ this this i  is s an off  off er. 6ania ar aree ees s  to $u#s $u#s he  herr hou  hous se/ ther there is is an acceptance. )& )&  Legal Legal  !bliga ligattion ion  6here mus  6her must $e leal o$liation 7 relation $et' $et'een the par partie ties s to make a contrract valid cont 3f  par  partie ties s d  do o not intend 8 enf  en f orcea$le at la' la'.

9 to cr create leal relation elations ship/ contr contract is is not

E(amp E(a mple le 0 a  arree ees s to sell his his hou  hous se to , f or 2(. ac. 3t iis s a valid contr contract as as it is c  crreatin leal relation elations ship $et' $et'een the par partie ties s *& *&  La Lawfu wfull co cons nsiiera erattion ion :onside :ons iderration is is the pr price paid $# the one par part# f or the pr promi omis se of  of   otherr pa othe  parrt#. 6hus 6hus f or a valid contr contract cons conside iderration mus must $e la'f  la'f u ull E(amp E(a mple le 0 a  arree ees s to sell his his hou  hous se to ; f or s  s 2( lac <   5or 0 2( lac is is con  cons side iderration <   5or , hous house is is the cons conside iderration -ae 4

 

 

+& +&  Comp mpe etent nt  to co cont ntrac ractt 5or a valid contr contract par partie ties s mu  mus st $e of  of  sound mind/ mus must attain the ae of  of   ma=orrit# and ar ma=o are not dis dis*uali *ualif  f ied ied from from contr contractin $# la' la' E(amp E(a mple le 0/ a pers person on of  of  uns  unsound mind ar aree ees s t  to o sell his his c#cle to , f or   s s 1(. 6he is is  void as as the par partie ties s not competent to contr contract ,& ,&  -ree -ree  co cons nse ent 5or a valid contr contract the cons consent of  of  par  partie ties s mu  mus st $e fr free. ee. :ons :onsent is is fr free ee 'hen it is is not o$tained $# coer coercion/ cion/88 9 undue inf  inf luence luence 8 9 mi  misr srep eprresentation and fr fraud aud E(amp E(a mple le 0 compel  compels s 8 9 > to enter enter into an ar areement on unpoint/ it is is a valid contr contract $ecau $ecaus se the cons consent of  of  a  a par part# is is not fr free ee Lawfu La wfull !b.ec b.ectt  6he o$=ect of  ar  areement mus must not $e illeal/ immor immoral 8 pu$lic polic# or or to impl# in=ur in=ur# # to an# pers person on

9 oppo  oppos sed to

E(amp E(a mple le 0 a  arree ees s to sell his his c#cle to , f or rs 2 rs 2( ((( if  if  he  he $eats $eats :. the ar areement is is  void as as it  its s o$=ect is is illeal /ritting ' regi /ri regist stra rattion ion 0 cont  contrract ma# $e or oral 8 9 or  or in 'r 'ritin itin $ut it is is p  prref era$le that the contrract mus cont must $e in 'r 'ritin itin $ecaus $ecause it is is ea  eas s# to pr prove in cour court. 3f   re*ui e*uirred $# la' la' ce  cerrtain ar areement eements s mu  mus st $e in 'r 'ritin itin sined and attes atte sted $# 'itne itness ss and  and rei eis ster tered E(amp E(a mple le > ve  verr$all# pr promi omis se to sell his his $ook  $ooks s to  ?.  ?. it is is a valid contr contract as as it does doe s not re*ui e*uirred in 'r 'ritin itin 0 ve  verr$all# pr promi omis se to sell his his hou  hous se to ,. it is is a void ar areement $ecause la' $ecaus la' re*ui e*uirres it in 'r 'ritin. itin. Cer erttaint ainty y of  ter erms ms 5or a valid contr contract it si ess essential ential that the ter terms and conditions conditions o  of  f  

 

contract mus contr must $e def  def inite inite and clear clear. 0reement eements s the meanin of  of  'hich is not clear clear a  arre void -ae 5

 

 

E(amp E(a mple le 0 p  prromi omis sed to sell one of  of  his  his $ook  $ooks s to ,. 3t iis s void ar areement $ecaus $ecause it is not mentioned 'hich $ook 0 'ant ants s to sale Possiibili Poss ilitty of  per erf  f orm ormance 0n ar areement to do an imposs impossi$le i$le act is is void. 3f  the  the act is is leall# or or  ph#s ph# sicall# imposs impossi$le i$le to to pe  perf  rf orm the ar areement is is not enf  enf orcea$le $# la' la' E(amp E(a mple le > p  prromi omis sed  ?/  ?/ that she 'ill dis discove coverr old $# maic. 3t iis s a void ar areement as it is is impo  imposs ssi$le i$le to perf  perf orm

 

 

-ae !

 

 

Q#) /at are te 0 ins of  contract E(plain tem  6he contr contract can $e class classiif ied ied into f ollo' ollo'in f our our cateo  cateorrie ies s 1. 0cc ccor ordin din to enf orcea$ilit# 2. enf  0cc ccor ordin din to f ormation 3. 0cc ccor ordin din to perf  pe rf ormance 4. 0cc ccor ordin din to par partie ties s

1&  Accoring to enforceability 0cc ccor ordin din to enf  enf orcea$ilit# a contr contract has has  f ollo' ollo'in f ive ive t#pes t#pes i.   @alid contr contract ii.   @oid contrract cont iii. @oid areement ar iv iv..   @oida$le ar areement v.   Anen nenf  f orcea$le contr contract i&

2ali ali  co cont ntrac ractt

0 contract contract  is is  valid valid  onl# onl#  'hen 'hen  it  it contains contains  all all  essentials essentials  of  a valid valid  contract !bliga ligattion ion of  par artties ies 3n a valid contr contract all the par partie ties s a  arre leall# $ound to perf  perf orm their their  o$liations. 3f  one o$liations   one par part# ref uses to perf  perf orm the other other pa  parrt# can enf  enf orce it thr throuh cour court. E(amp E(a mple le 0  a arree ees s  to sale his his  ca carr  to ,. 3t is  a valid contr contract if  if   it f u ulf  lf iils ls  all the ess ssential entials s  of  a   a valid contr contract. ii&

2oi oi  co cont ntrac ractt

0 cont  contrract is is void 'hen it is is not enf  enf orcea$le $# la' la' !bliga ligattion ion of  par artties ies 3n a void contr contract $oth the par partie ties s  are not leall# $ound to perf  perf orm the o$liations o$liations  of   contr contract. 3f   an# par part# has has  received $enef  $enef it it fr from om void contrract is cont is leall# $ound to retu eturrn it to other other pa  parrt#.

 

E(amp E(a mple le -ae "

 

0  a arree ees s  'ith , to smule sua uarr. :ontr :ontract $et' $et'een the par partie ties s  is  void as as  smulin is is illeal. iii&

2oi oi  agree agreem ment

0n a arreement 'hich does does  not cr create leal o$liation $et' $et'een the parrtie pa ties s  is  void. 0n ar areement 'ith minor minor and ar areement 'ithout cons con side iderration is is void. !bliga ligattion ion of  par artties ies 3n a void contr contract $oth the par partie ties s  are not leall# $ound to perf  perf orm the o$liations o$liations  of   contr contract. 3f   an# par part# has has  received $enef  $enef it it fr from om void contrract is cont is leall# $ound to retu eturrn it to other other pa  parrt#. E(amp E(a mple le 0li ar aree ees s  'ith 1hahid a minor minor  to $u# hi his s  hou hous se. :ontr :ontract $et' $et'een the parrtie pa ties s  is  void as as a  arreement 'ith minor minor is  is void. i% i%&&

2oi oi able le  co cont ntrac ractt

0 cont  contrract 'hich is is en  enf  f orcea$le at the option of  of  one  one par part# $ut not at the option of  other  other pa  parrt# 0  contr contract is is  voida$le 'hen cons consent of  of   one par part# is  not fr free. ee. @oida$le contrract can $e avoided $# the par cont part# 'ho hos se cons consent is is not fr free. ee. E(amp E(a mple le Baria comp compel els s  Cadia to sell her her ,a. 6he cons consent is is made 'ith coer coercion. 3t can $e avoided 'hen Cadia ref uses to perf  perf orm it. %&

3ne 3n enf orceab orceable le  co cont ntrac ractt

0  contr contract is is  unenf  unenf orcea$le 'hich cannot $e enf  enf orced in cour court of   la' la'. ,ecaus ,ecau se of   some technical def  def ects ects/ 1uch as as a$  a$s sence of  of  'r 'ritin itin and rei eis stration E(amp E(a mple le 0li orall# ar areed to sale his his  hou hous se to ,ilal. :ontr :ontract is is  unenf  unenf orcea$le $ecaus $ecau se 'r 'ritin itin and rei eis stration f or thi  this s cont  contrract is is re*ui e*uirred $# la' la'

)&  Accoring to formation 0cco ccorrdin to f ormation a contr contract has has f ollo' ollo'in thr three t#pes t#pes. a. Express Expr contrract cont $. 3mplied contr contract c. ua uas si contrract cont

 

-ae %

 

a&  a&  E( E(p pre ress ss  co cont ntrac ractt When a con contract is is f ormed $# the 'ords spoken or or 'r 'ritten itten it is is called expr express ss   contrract cont E(amp E(a mple le 0li tells tells saad on telephone that he 'ant ants s to sell his his ca  carr. 3t iis s an expr express ss   contrract. cont b&  Imp Implie lie  co cont ntrac ractt 0n implied contr contract ar arises  from from the acts acts/ cours course e of   dealin or or ci cirrcum cums stance tances s. 3t arises  'hen one one pe pers rson on 'ithout as askin to do so/ rende enderr  service vices s  under under  cir circum cums stance tances s indicatin that he expect to $e paid f or the service vices s and other other pe  pers rson on accept the $enef  $enef it it of  of  thos  those service vices s. E(amp E(a mple le 0li 'ent to a hotel and had a cup of  o f  tea/  tea/ it is is an implied contr contract and 0li 'ill pa# f or the cup of  of  tea.  tea. c&  c&  Quas uasii co cont ntrac ractt ua uas si contr contract acts s  are $a $as sed on the pr principle of  of  e*uit#   e*uit# and =us =ustice. 6hat a pers pe rson on shall not $e allo' allo'ed f or the $enef  $enef it it at the cos cost of  of  other  other E(amp E(a mple le 1hahid f inds inds the los lost oods oods of   of  Ba==id. 1hahid is is $ound to retu eturrn the oods oods to Ba  ==id.

*&  Accoring to performance 5ollo ollo' 'in ar are the t#pes t#pes acco  accorrdin to perf  perf ormance i.

Executed

contrract ii. cont Executorr# Executo contrract cont i&

E(ecut ute e co cont ntrac ractt

When all the par partie ties s to a contr contract have perf  perf ormed their their o$liation  o$liations s the contrract is cont is  said to $e executed. E(amp E(a mple le E aleem aleem $u#s $u#s a ,ook from from 1hahFe$. 1hahFe$ deliver delivered $ook and kaleem made the pa#ment. ,oth the pa parrtie ties s have perf  perf ormed their their o$liation $liations s. ii&

E(ecut utory ory  co cont ntrac ractt

When one of  of  the   the par partie ties s ha  has s #et to perf  perf orm his hi s o$liation  o$liations s/ such contr contract is called executor executor# contr contract.

 

-ae &

 

E(amp E(a mple le E aleem aleem $u#s $u#s a ,ook from from 1hahFe$. 1hahFe$ deliver delivered $ook $ut kaleem has ha s not #et made the pa#ment.

+&  Accoring to parties 0cco ccorrdin to par partie ties s the contr contract has has f ollo' ollo'in t' t'o t#pes t#pes a. Anilate nilaterral contrract $. cont ,ilaterral contr ,ilate contract

a&  a&  3n 3nila ilatteral eral  co cont ntrac ractt 3t is  a contr contract 'he herre onl# one par part# is  $ound to perf  perf orm the contr contract and the other other  pa parrt# choos chooses to perf  perf orm contr contract E(amp E(a mple le 0li pr promi omis sed to ive 1((( s s to the pers person on 'ho f inds inds hi  his s lo  los st $a. 3t iis s a unilaterral contr unilate contract it 'ill come into exis existence 'hen the $a is is f ound. ound. b&  4ila 4ilatteral eral  co cont ntrac ractt 3t iis s a contr contract 'he herre $oth the par partie ties s have #et to perf  perf orm their their o$liation  o$liations s. E(amp E(a mple le E halid halid pr promi omis sed to manuf  manuf actur acture a chair chair  f or  Cadeem and Cadeem promi omis sed to pa# 1 1  4( 4(( (( to E halid halid

-ae 1(

 

 

Q#*

er $ proposal& E(plain te essentials of  a "ef ine te o5 er er %ali o5 er !5er $ proposal When one When  one  person person  sho's sho's  his his  'illinness 'illinness  to to  do do  or or  not not  to to  do do   somethin  to somethin to  o$tain o$tain  the the  consent consent  of   other/ other/  it it  is is  kno'n kno'n  as as  oer

!5eror $ Promisor  6he  person  6he person  makin makin  the the  offer offer  is is  called called  eror eror  or or  -romisor.

!5eree  6he  person  6he person  to to  'hom 'hom  offer offer  is is  made made  is is  called called   fferee. fferee.  r r  the the  person person   acceptin  the acceptin the  offer offer  is is  called called  fferee.

Essentials of  a %ali o5 er er  6he  follo'in  6he follo'in  are are  the the  essentials essentials  of  a valid valid  offer 1. 1.   Express Express  or or   implied  2. implied 2.   eal eal   relation 3. 3.   Definite Definite  G clear 4. 4.   pecific pecific  G eneral 5. 5.   :ommunication :ommunication  'ith 'ith   fferee  !.  fferee !.  Ceative Ceative   condition ". ".   :onditions :onditions  in  in  oer  %. oer %.   :ross :ross   offers

16  E(press or implie 0n oer 0n  oer  ma# ma#  $e $e  made made  $# $#  'ords 'ords  or or  conduct conduct  8 9. 9.  0n 0n  offer offer  'hich 'hich   is is  made made  $# $#  'ords 'ords  spoken spoken  or or  'ritten 'ritten  is is  called called  express express  oer. 0n implied 0n  implied  offer offer  appears appears  from from  the the  actions actions   of  parties/ parties/   course  of  dealin course dealin   or or  circumstances circumstances  of  case.

 

Example 0li oer 0li  oer  to  to ma=id ma=id  to  to sell sell  his his  motorc#cle motorc#cle  for for  4((( 4(((  s. s.   6his  6his  is is  an an  express express   oer -ae 11

 

 

Ce' khan Ce'  khan  run run  $uses $uses  to  to carr# carr#  passeners passeners  at at  scheduled scheduled  rates/ rates/  this this  is is  an an   implied  oer implied

)6  Legal relation or  a valid or valid  contract contract  the the  offer offer  must must  $e $e  made made  to to  create create  leal leal  relation. relation.  f  an  offer an offer  does does  not not  create create  leal leal  relation relation  it it  is is  not not  a valid valid  offer. Example 0li invites 0li  invites  arrukh arrukh  to to  dinner. dinner.  t  t is is  not not  a valid valid  offer offer  $ecause $ecause  it it  does does   not  create not create  leal leal  relation relation  $et'een $et'een  the the  parties Baria oer Baria  oer  to  to sell sell  her her  'atch 'atch  to to  0nam 0nam  for for  s. s.  2((. 2((.  t t  is is  a  valid valid   contract  as contract as  it  it create create  leal leal  relation relation  $et'een $et'een  parties

*6  "e7nite ' clear  6erms  6erms  and and  conditions conditions  of  offer offer  must must  $e $e  clear clear  and and  definite. definite.  f  the the   terms  and terms and  conditions conditions  are are  not not  clear/ clear/  it  it cannot cannot  $e $e  called called  valid valid  oer. Example Ba=id has Ba=id  has  t'o t'o  motorc#cles/ motorc#cles/  he he  offer offer  halid halid  to to  sold sold  one one  motorc#cle motorc#cle  for for   s.  4((((. s. 4((((.  t  t is is  a void void  contract contract  as as  it  it is is  not not  clear clear  that that  'hich 'hich  motorc#cle he  offered he offered  to  to sale

+6  Speci7c or general When an When  an  offer offer  is is  made made  to to  a specific specific  person person   it it  is is  called called  specific specific  offer. offer.   uch  an uch an  offer offer  can can  $e $e  accepted accepted  onl# onl#  $# $#  the the  person person  to to  'hom 'hom  it it  is is   made. When  an When an  offer offer  is is  made made  to to  eneral eneral  pu$lic pu$lic  it it  is is  called called  eneral eneral  offer. offer.   uch  an uch an  offer offer  can can  $e $e  accepted accepted  $# $#  an# an#  person person  'ho 'ho  fulfils fulfils  the the   conditions  of  oer conditions Example 0li oered 0li  oered  to to  sell sell  his his  c#cle c#cle  to to  Ba=id. Ba=id.  t  t is  is  a specific specific  offer offer  and and  onl# onl#  ma=id ma=id   can  accept can accept  it ,asher announced ,asher  announced  in  in a  ne'spaper ne'spaper  a re'ard re'ard  of  s s  5((. 5((.  or or  an#one an#one   'ho  finds 'ho finds  his his  lost lost  C. C.  card.

,6  Communication  wit !5eree 0n oer 0n  oer  is is  valid valid  onl# onl#  'hen 'hen  it it  is is  communicated communicated  to to  the the  eree. eree.  f  is is  not communicated  to communicated to  eree eree  it  it is is  not not  a valid valid  oer

 

Example -ae 12

 

idra 'ants idra  'ants  to to  sale sale  her her   $a $a  to  to Beh'ish Beh'ish  $ut $ut  foret foret  to to  communicate her  a$out her a$out  offer. offer.   6hus  6hus  there there  'ill 'ill  no no  acceptance acceptance  as as  it it  is is  not not   communicated  to communicated to  fferee.

86  9egati%e  conitions 0n oer 0n  oer  must must  not not  include include  neative neative  conditions. conditions.  uch uch  as as  an an   eror eror   cannot  sa# cannot sa#  that that  if  the the  acceptance acceptance  is is  not not  communicated communicated  'ithin 'ithin  a  specific  period specific period  of  time time  the the  offer offer  'ould 'ould  $e $e  treated treated  as as  accepted. Example Ba=id 'rote Ba=id  'rote  to  to sa=id sa=id  to  to sell sell  his his  'atch 'atch  addin addin  that that  if   he he  did did  not not  repl# repl#   'ithin  2 da#s/ 'ithin da#s/  the the  offer offer  'ill 'ill  $e $e  considered considered  accepted.

:6  Conitions  in o5er 0n oer 0n  oer  ma# ma#  include include  some some  comedians. comedians.  or or  a valid valid  contract contract  all all  the the   conditions  must conditions must  $e $e  accepted. accepted.  f  the the  eror eror  prescri$e prescri$e  a specific specific   mode/  it  mode/ it must must  $e $e  accepted accepted  in  in the the  same same  manner. Example hahid asks hahid  asks  ;ammad ;ammad  to to  send send  him him  repl# repl#  of  his his  offer offer  $# $#  teleram/ teleram/   $ut  hammad $ut hammad  repl# repl#  him him  $# $#  letter. letter.  hahid hahid  ma# ma#  re=ect re=ect  the the   acceptance.

;6  Cross o5er When $oth When  $oth  parties parties  makes makes  similar similar  offer offer  'ithout 'ithout  havin havin  kno'lede kno'lede  of   otherHs  offer. otherHs offer.  t  t is is  called called  valid valid  oer. oer.  0cceptance 0cceptance  of  such such  oer oer  does does  not not   result  in result in  complete complete  0reement. Example Wasim 'rote Wasim  'rote  to to  arim arim  to  to sell sell  him him  his his  motorc#cle. motorc#cle.  n n  the the  same same  da# da#   arim  'rote arim 'rote  to to  Wasim Wasim  that that  he he  'ants 'ants  to  to $u# $u#  his his  motor motor  c#cle. c#cle.   6here  6here   is is  no no  contract.

 

-ae 13

 

 

Q#+ "ef ine te acceptance& E(plain te essentials of  a  %ali acceptance Acceptance 0cceptance  is 0cceptance is  the the  act act  of  ivin ivin  consent consent  to to  the the  offer. Example Ba=id oer Ba=id  oer  to to  sell sell  his his  house house  to to  sa=id sa=id  for for  2(lac 2(lac   s. s.  f  sa=id sa=id  arees arees   to to  $u#/ $u#/   this  is  this is an acceptance.

Essentials of  a %ali o5 er er  6he  follo'in  6he follo'in  are are  the the  essentials essentials  of  a valid valid  offer &. &.   0cceptance 0cceptance  $# $#  oeree 1(.Definite  G unconditional 1(.Definite 11. e eason asona$le a$le  manner 12. :ommun :ommunicat ication ion  'ith 'ith  fferor 13. Expr Express ess  or or  implies 14. 0ccep 0cceptance tance  after after  offer 15. e eason asona$le a$le  time

16  Acceptance by o5eree or a valid or  valid  acceptance acceptance  it it  is is  necessar# necessar#  that that  it it  must must  $e $e  accepted accepted  $# $#  the the   person  to  person to 'hom it it  is  is made. made.  f  the the  offer offer  is is  made made  to to  a roup roup  it it  can can  $e $e  accepted accepted  $# $#  an# an#   mem$er  of  roup. mem$er f  offer offer  is  is made made  to to  eneral eneral  pu$lic pu$lic  it  it can can  $e $e  accepted accepted  $# $#  an# an#  person person  'ho 'ho   has  the has kno'lede  of  it. kno'lede Example

 

0 oer oer  to  to , to  to sell sell  his his  motorc#cle motorc#cle  for for  4((( 4(((  s. s.  : 'as 'as  a'are a'are  of  this this  offer/ offer/   he  said he said  that he  is  he is read# read#  to to  $u# $u#  his his  motorc#cle/ motorc#cle/  there there  is is  no no  contract contract  'ith 'ith  :. -ae 14

 

)6  "e7nite an unconitional or a valid or  valid  contract contract  the the  acceptance acceptance   must must  $e $e   definite definite  and and  unconditional. unconditional.  f   acceptor attach an# attach  an#  condition condition  'ith 'ith  his his  acceptance/ acceptance/  it it  is is  not not  acceptance acceptance  $ut $ut  a  counter  oer counter Example Baria oer Baria  oer  to  to sell sell  her her  'atch 'atch  to to  0nam 0nam  for for  s. s.  2((. 2((.  0nam 0nam  replies replies   that that  she she   can  $u# can $u#  it it  for 1((  s. 1(( s.  there there  is is  no no  acceptance acceptance  $ut $ut  a counter counter   offer

*6  <easonable  manner 0cceptance  must 0cceptance  must  $e $e  iven iven  in  in a particular particular  manner manner  as as  prescri$ed prescri$ed  in in  offer. offer.  f   no particular manner particular  manner  is is  prescri$ed prescri$ed  than than  it it  must must  $e $e  accepted accepted  in in   a reasona$le reasona$le   manner. Example haFia oered haFia  oered  to  to Cadia/ Cadia/  and and  ask ask  her her  to  to accept accept  the the  offer offer   $# $#  teleram. teleram.  ,ut ,ut   Cadia   send Cadia her  acceptance her acceptance  $# $#  post/ post/  haFia haFia  ma# ma#  re=ect re=ect  her her  acceptance

+6  Communication  wit !5eror 0n acceptance 0n  acceptance  is is  valid valid   onl# onl#  'hen 'hen  it it  is is  communicated communicated  to to  the the  fferor. fferor.  f  it it  is is   not communicated  to  communicated to fferor fferor  it it  is is  not not  a valid valid  0cceptance Example idra 'ants idra  'ants  to to  sale sale  her her   $a $a  to  to Beh'ish/ Beh'ish/  she she  express express  her her  intention intention  to to  $u# $u#   it it  $ut $ut  did did  not repl#.  idra repl#. idra  sold sold  it it  to to  Baria. Baria.  Beh'ish Beh'ish  cannot cannot  sue sue  sidra.

,6  E(press or implie 0cceptance  iven 0cceptance iven  $# $#  the the  'ord 'ord  spoken spoken  or or  'ritten 'ritten  is is  called called  express express   acceptance. When acceptance When  acceptance  is is  iven iven  $# $#  the the  action action  or or  conduct conduct  it it  is is  called called  implied implied   acceptance.

 

Example

-ae 15

 

hahid 'rote hahid  'rote  a letter letter  to to  ma=id ma=id  that that  he he  is  is aree aree  to to  $u# $u#  his his  mo$ile mo$ile  for for  45(( 45((   s.   6his s.  6his  is is  an express  acceptance. express  Iunaid 'ent  Iunaid  'ent  to to  a tea tea  stall stall  and and  took took  a cup cup  of  tea. tea.   6his  6his  is is  an an  implied implied   acceptance appearin  from appearin from  the the  action

86  Acceptance after offer 0cceptance  must 0cceptance  must  $e $e  iven iven  after after  receivin receivin  the the   offer. offer.  f  acceptance acceptance  is is  iven iven   'ithout havin kno'lede havin  kno'lede  of  offerJ offerJ  there there  is is  no no  contract contract  $ecause $ecause  acceptance acceptance   cannot  $e cannot $e  iven 'ithout  oer 'ithout Example 0sad oered 0sad  oered  a re'ard re'ard  for for  an#one an#one  'ho 'ho  finds finds  his his  lost lost  mo$ile. mo$ile.  hurram hurram  in in   inorance  of  inorance offer finds offer  finds  his his  $a $a  and and  return return  it it  to to  0sad. 0sad.  hurram hurram  cannot cannot  claim claim  for for  the the   re'ard

:6  <easonable  time ffer must ffer  must  $e $e  accepted accepted  'ithin 'ithin  a prescri$ed prescri$ed  time. time.  f  time time  of  acceptance acceptance  is is   not mentioned  than mentioned than  it it  should should  $e $e  accepted accepted  'ithin 'ithin  a reasona$le reasona$le  time Example aFi$ 0pplied aFi$  0pplied  for for  admission admission  in  in a collee. collee.  ,ut ,ut  admission admission  'as 'as  made made  after after  !  month  of  month application. aFi$ application.  aFi$  can can  refuse refuse  to to  take take  admission admission  as as  it it  'as 'as  not not  accepted accepted   'ithin reasona$le  time. reasona$le

 

-ae 1!

 

Q#, /at agreements a%e been eclare %oi by law 2oi agreement 0n areement not enforcea$le $# la' is called void areement follo'in are the areements that are declared void 1. 0reement in restraint of marriae 2. 0reement in restraint of trade 3. 0reement in restra restraint int of leal proceedins 4. Ancertain areements 5. 0reement $# 'a# of 'aer !. 0reement aainst the pu$lic polic# ". 0reement to do an impossi$le act %. 0reement under mistake &. 0reement 'ithout consideration

Agreement in restraint of  marriage Ever# areement 'hich prevents a person other than minor from marr#in is void. 0 contract 'hich interfere 'ith the freedom of choice in marriae is also called void

E(ample 0slam arees 'ith ,ilal that he 'ill not marr# 'ith atima. t is a void areement

Agreement in restraint of  trae Ever# person has a riht to carr# on a la'ful $usiness/ profession/ or trade. 6hus/ ever# areement 'hich prevent a person from doin a la'ful $usiness/ profession or trade is void

E(ample 0m=ad arees 'ith 6a##a$ to ive him 1(((( s. f he stops doin $usiness in aisala$ad/ such areement is void

 

-ae 1"

 

Agreement in restraint of  legal proceeings 0n areement 'hich restrict a person from enforcin his riht in court of la' is void. 0n areement 'hich limits the time 'ithin 'hich he can enforce his riht is void

E(ample ahad sells 'heat to Ba=id. ,oth parties aree that if an# part# fails to perform the contract/ none of them 'ould file a case/ the areement is void.

3ncertain agreements f the meanin of an areement is not certain or it cannot $e made certain/ the areement is void

E(ample hehroF arees hehroF  arees  to to  sell sell   his his  $ooks $ooks  to  to 0li 0li  and and  there there  is is  no no  indication indication   'hich  $ooks 'hich $ooks  are are  to  to $e $e  sold/ sold/  the the  areement areement  is is  void

Agreement by /ay of  /ager Waer mean Waer  mean  $et/ $et/  a 'aer 'aer  is is  an an  areement areement  to to  pa# pa#  on on  the the  happenin or  non+happenin or non+happenin  of  future future  event/ event/  each each  part# part#  has has  e*ual e*ual  chance chance   to to   'in  or 'in or  lose lose  the the  $et $et  and and   the the  parties parties  are are  onl# onl#  interested interested  in in  $ettin $ettin   amount.

E(ample Wahid and Wahid  and  Ba=id Ba=id  aree aree  that that  if  -akistan -akistan  'on 'on  the the  cricket cricket  match match  toda#/ Wahid  'ill Wahid 'ill   pa# pa#  Ba=id Ba=id  1(( 1((  s. s.  f  -akistan -akistan  loses loses  Ba=id Ba=id  'ill 'ill  pa# pa#  1(( 1((  s. s.   t t  is  is a 'aer 'aer  areement/ areement/  so so  declared declared  void

Agreement against te public policy Ever# areements Ever#  areements  'hich 'hich  is is  aainst aainst   the the  pu$lic pu$lic  polic# polic#  or or  involve involve   in=ur#  to in=ur# to  person person  is is  called called  void

E(ample Amair arees Amair  arees  'ith 'ith  asif  that that  if  he he  adds adds  drus drus  in in  food food  he he  'ill 'ill  pa# pa#  him him  s s   1(((.  6he  areement  6he areement  is is  void

 

-ae 1%

 

Agreement to o an impossible act 0n  areement 0n areement  to to  do do  an an  impossi$le impossi$le  act act  is is  called called  void.

E(ample haFia  arees haFia arees  'ith 'ith   6  6ania ania  to to  discover discover  )old )old  $# $#  maic/ maic/  is is  void

Agreement uner =ista0e Ever# areement Ever#  areement  'here 'here  $oth $oth  the the  parties parties  are are  under under  the the  mistake mistake   and  the# and the#  donHt donHt  have have  clear clear  information information  a$out a$out  the the  fact/ fact/  the the   areement  is  areement is void

Agreement witout Consieration Ever#  areement Ever# areement  'hich 'hich  is is  made made  'ithout 'ithout  consideration/ consideration/  is is  void

E(ample 0hmed  0rees 0hmed 0rees  to to  ive ive  his his  car car  to to  ;assan ;assan  'ithout 'ithout  consideration consideration  is is  void

-ae 1&

 

Q#8 w# w#a at are are  t# t#e e ess sse ent ntial ials s of  co cons nsiiera erattio ion n !r !r  w# w#a at are are  t# t#e e rule les s  of  co cons nsiiera erattion ion Cons nsiiera erattion ion :ons :on side iderration is is the pr price paid $# one par part# f or the pr promi omis se of  of  other  other. E(amp E(a mple le 0li sold his his  hou hous se to ;ass ssan an f or   s s. 5((/(((. 5or  ;ass ssan an hous house is the conside cons iderration and f or 0li s s5((/ ((( is is con  cons side iderration.

Essentials of  a consieration 1& 1&   "esire ire  of  pro rom misor 5or a valid cons conside iderration the act mus must $e done at the des desire of  of   pr promi omis sor. 0n# act done 'ithout the des desire of  of   pr promi omis sor cannot f orm a valid cons con side iderration. E(amp E(a mple le aFi$ saved Behmood ehmoodHs Hs   hou hous se from from f ire. Behmood did not as ask f or the help. aFi$ cannot demand pr price f or hi  his s service. )& )&   Act 0 con  cons side iderration ma# $e an act or or doin of  of  some thin E(amp E(a mple le 1adia pr promi omis sed to stitch Cadia adiaHs Hs   dress ss.. 0nd Cadia pr promi omis sed to pa# s s  4(( to sadia as as con  cons side iderration f or stitchin her her d  drress ss.. *& *&   Abst Abstiinence 0$stinence means means  promi omis sin not to do somethin. :ons :onside iderration ma# $e decided f or p  prromi omis sin not to do somethin. E(amp E(a mple le 0li promi omis sed not to sue 'a*a a*as s/ if   he pa# pa#s s  'a*a a*as s  s. 2((((. 6he a$s a$ stinence of  of   0li is the cons conside iderration f or ,Hs  ,Hs pa#ment  pa#ment +& +&   Pro Prom mise 5or a valid contr contract ther there mus must $e pr promi omis se fr from om $oth the par partie ties s. E(amp E(a mple le Ba=id asride ar ees ee  toon cell hisf o his  mo$ile to ,ilal f or s   s 4%((. 5or  Ba=id s s4%(( is is  the con cons ider rsati atio and r 0li mo$ile is the is con cons side iderration -ae 2(

 

,& ,&   <eal eal  an n  cer certtain ain 5or  a valid cons conside iderration it mus must $e real and cer certain. 3f   the pa#ment of   con cons side iderration is is  ph# ph#s sicall# imposs impossi$le i$le it 'ould not real. 4n the other other hand if  if  the   the pa#ment of  of  cons  conside iderration is is unce  uncerrtain it 'ould $e void. E(amp E(a mple le a9  0li pr promi omis sed to put lif  lif e in shaan haanHs Hs dead  dead $od# if  if  he   he pa# him s s 5((( liHs romi omis se is ito s ph#  ph#s icall# impossi$le. imposs $9  00li liHs p p pr pr romi omis sed sellshis hi s mo$ile toi$le. Cadia f or  some amount of  of  mone#.  mone#. :ons :on side iderration is is not valid as as the value of  of  mo$ile  mo$ile is is not decided. 8& 8&   Legally  Legally imp mpo oss ssiible 0 p  prromi omis se to do somethin illeal is is al  als so void and do not f orm a valid cons con side iderration. E(amp E(a mple le E hur huram promi omis sed 0$id to pa# s s 4((( if  if  he   he ,eats ,eats ,ilal. 6he cons con side iderration to $eat ,ilal is is illeal. :& :&   9ee ee  to be aequ qua ate 3t iis s not necess necessa ar# that the cons conside iderration mus must $e ade*uate. 4nl# -re -resence of  of  cons  conside iderration is is nece  necess ssa ar#. E(amp E(a mple le 0li pr promi omis sed to sell his his hou  hous se to 'a*a a*as s 'orth s s 5((((( f or   s s 2((((( onl#/ and his his con  cons sent is is free. free. 6he cons conside iderration is is valid. ;& ;&   La Lawfu wfull  6he cons conside iderration and mus must $e la'f  la'f ul ul and should not aains aainst the pu$lic polic#. :ons :on side iderration is is unla  unla'f  'f ulK ulK 3f  it  it is is f or$idden $# la' la' 3t iis s fraudulent fraudulent 3t involve pr prope operrt# of  of  other  other 3t iis s oppo  oppos sed to the pu$lic polic#

>& >&   Pa Past st  co cons nsiiera erattion ion

-ae 21

 

When the act have $een done $ef  $ef ore a contr contract is is made it is is called pas past cons con side iderration E(amp E(a mple le 0 ive  ives s  some service vices s to , at ,Hs ,Hs   de des sire. aterr on , compens ate compensate 0 f or hi  his s service vices s. 1?&  Pre 1?& Pres sent nt  co cons nsiiera erattio ion n 3f   the cons conside iderration is is  decided at the time 'hen contr contract is is made it is is called

present cons conside iderration. E(amp E(a mple le

0li sold his his  ca carr to , and 0li make the pa#ment at the same time it is is called pr present cons con side iderration.   11&  -utu 11& uture re  co cons nsiiera erattion ion When $oth the par partie ties s  promi omis se to do somethin in f utur uture it is is called cons con side iderration. E(amp E(a mple le 0li pr promi omis sed to sell his his hou  hous se , af  af ter ter 1( da#s da#s. , als also pr promi omis sed to pa# the pr price af ter ter ten da#s da#s.

Q#8@b6 wat are te e(ceptions of  consieration 0cco ccorrdin to la' la' a  arreement 'ithout cons conside iderration is is void. 5ollo ollo' 'in ar are the ar areement eements s that ar are valid even 'ithout cons conside iderration. 1&  9atural lo%e an affection  6he areement 'hich is i s expressed in i n 'ritin 'r itin and is made on account of natural natura l love is valid even f there is no consideration.

E(ample 0li promises to pa# s 2((( to his son =unaid for no consideration. 0li ot it in 'ritin and reistered 'ith la'. Iunaid can enforce it

)&  2oluntary compensation 0 promise to compensate a person 'holl# or partl# a person 'ho has alread# voluntaril# do somethin for the promisor is enforcea$le even if there is no consideration.

E(ample

 

-ae 22

 

0li ave medical treatment to ,ilal voluntaril#. ,ilal after discharin from hospital promised to -a# s. 4((( to 0li. 0li can enforce it.

*&  ift )ift does not need an# consideration. 0n# ift iven or received is valid even if 'ithout consideration. consideration. Donor cannot take $ack the oods 'hich are are delivered as a ift.

E(ample rum ave her 'atch to Bis$ah as ift. rum cannot et $ack the 'atch as there 'as no consideration for her.

+&  Contract of  agency :onsideration is not paid to the aent on his appointment. Cormall# an aent is paid commission aainst his services.

E(ample 0li appointed aFi$ as his aent. 6he areement $et'een 0li and aFi$ is valid even 'ithout consideration.

,&  "iscount  $ remission f a creditor arees to receive less than 'hat is due/ it is kno'n as remission or discount. 6here is no need of consideration for the remitted amount.

EBA=PLE 0li $orro'ed s. !((( from 0hmed. ater 0li paid s. 55(( as full settlement of  claim/ the 'hole de$t is dischared

8&  To e(ten te time for performance 0reement to extend the time for the performance of contract needs no consideration.

E(ample Lu$air areed to construct aFi$Hs house 'ithin three month. ater Fu$air re*uested to extend the time for the completion of contract/ there is no need to of consideration for the extended time.

-ae 23

 

Q#: /#at  o  you  un uner erst sta an n   by  t# t#e e  ca cap paci acitty  of   par arttie ies s  St Sta ate  t# t#e e  positio ions ns   of   a  minor or  un uner er  co cont ntrac ractt ac actt !r /#at  o  you  un uner erst sta an n   by  t# t#e e  ca cap paci acitty  of   par arttie ies s  /#at  is  t# t#e e  eff ect ect  of   agree agreem ment nt  mae by t# t#e e per ers son not co comp mpe etent nt  to to   cont co ntrac ractt !r E(plai E(p lain n t# t#e e eff ect ect of  co cont ntrac ractt mae by t# t#e e per ers son not qu quali alif  f iie e to  cont co ntrac ractt !r /#at o you ou  un uner erst sta an n  by co cont ntrac ractu tual al  ca cap paci acitty

5or ente  enterrin in to a valid contr contract the partie ties s mu  mus st $e competent to contr contract Ever# perso Ever person n is i s competent to contr contract 'ho is i s o  of  f  ae   ae of  of  ma=or   ma=orit#/ is is o  of  f   sound mind and is is  not dis dis*uali *ualif  f ied ied from from contr contractin $# la' la' 9atu ture re  of  minor ors s  agree agreem ment 1. @oid arreement 2. a Bino inorr a  as s a parrtne pa tnerr 3. Bino inorr a  as s a $enef  $ene f iciar iciar# 4. Bino inorr  as a aent 5. Bino inorr  and ins insolvenc# !. Bino inorr and rati atif  f ication ication ". :ontr :ontract $# minor minor and adult %. Bino inorr a  as s mem$e  mem$err of  compan#  compan# &. 1uret# f or  a minor minor 1(. Bino inorHs rHs pa  parrent

16  2oi oi  Agree greem ment Bino inorr  is  a pe pers rson on 'ho has has  not attained the ae of  of   ma=or ma=orit# 81% #ears9 #ears9.. 0reement 'ith minor minor  is void from from $einnin $ecaus $ecause minor minor  ha has s no leal capacit# to enter enter in to an ar areement. ;e is not lia$le to perf  pe rf orm an# act or p  prromi omis se under under the ar areement.

 

E(amp E(a mple le -ae 24

 

ashid enter as enter  in to an ar areement 'ith a minor minor  1hahid/ on the date of  of  perf  pe rf ormance 1hahid ref uses  to perf  perf orm the contr contract. as ashid cannot sue 1hahid $ecaus $ecause a arreement 'ith minor minor  is void. )6  =i =in nor or  as a par artn tner er 0  minor minor  cannot $ecome a par partne tnerr  in prof it it and loss losse es  of   a f irm. ;o'eve everr  a minor minor can $e admitted to the $enef  $enef its its o  of  f  the  the f irm onl#. E(ample E(amp le 0li/ and 1hahid ar are par partne tners rs in  in a f irm the# admitted a ne' ne' pa  parrtne tnerr sa=id a minorr in pr mino prof its it s and loss loss o  of  f  f irm. 6his 6his is  is a void ar areement as as mino  minorr cannot $e admitted to pr prof its its and loss loss.. ,ashir ,as hir  and CaFi aFirr  are pa parrtne tners rs   in a f irmJ the# admitted a minor minor  ,ilal in prof its its  of   the f irm onl#. 6his 6his is  is valid ar areement *6  =i =in nor or  as a benef iciary iciary 3f   an ar areement is is  made f or  the $enef  $enef iitt of   minor minor  then the minor minor  can take the $enef  $enef iitt of   th that at a arreement. 0  minor minor  can enter enter  in to an# arreement 'hich do not re*ui a e*uirred to $ear $ear  an# o$li o$liation ation.. 0 mino  minorr  can enf  en f orce a pr promi omiss sso or# not note e 'hich is is  prepa eparred in his his  f avor avor  $ut he is is  not lia$le. E(amp E(a mple le 1a=id/ a minor minor  deliver delivered oods oods  to ;a$i$ under under  an ar areement. ;a$i$ ref used to make -a#ment. 3t 'as held that minor minor can recove ecoverr the pr price of  of   oods ood s +6  =i =in nor or  as Age gent nt 0  minor minor  can act as as  an aent. ,ut a minor minor  is  not respon pons si$le f or  an# nelience. 3f   a minor minor  $reache eaches s  an# dut#/ he cannot $e held held respon pons si$le. 6her 6heref ore the 'hole the risk oes oes to the pr principal. E(amp E(a mple le 0li appoints appoints  Buni unirr a minor minor  as  his his aent to sell his his  hou hous se to a thir third pa parrt#. Buni unirr  makes makes an ar areement to sale his his hou  hous se to sa=id. 6h 6he ar areement is is  valid.

,6  =i =in nor or  an n  ins nsol%e ol%en ncy 0 mino  minorr cannot $e cons conside iderred ins insolvent $ecaus $ecause he is is not lia$le to perf  pe rf orm an# o$liations o$liations. 4nl# his his p  prrope operrt# is is lia$le. 3f  he  he has has no pr prope operrt# than the pa#ment cannot $e recove ecoverred E(amp E(a mple le

 

-ae 25

 

1hahid a minor minor $u#  $u#s s medicine from from iaF under under an ar areement. 1hahid has has  no pr prope operrt#. 1ha hah hid cannot $e held respon pons si$le. ;e cannot $e declar declared ins insolvent. 86  =i =in nor or  an n  <atif icat ication ion 0 mino  minorr cannot conf  conf irm thos those a arreement eements s that 'ere f ormed dur durin the ae of  of  minor   minor it#. 3t iis s nece  necess ssa ar# that a fre fresh ar areement should $e made af ter ter attainin the ae of  of  ma=or  ma=orit#. :6  Cont ntrac ractt by minor or  an n  au ullt 3f  a   a minor minor and ma=or ma=or  8adult adult99 =ointl# enter enter into an ar areement 'ith other other  parrt#/ onl# ma=or pa ma=or  'ill $e lia$le $ut a minor minor 'ill not $e respon pons si$le E(amp E(a mple le E halid halid a Bino inorr and adult =ointl# enter enter in to an ar a reement to pur purcha chas se 0li liHs Hs hous hou se. 3n cas case of  of   $r $reach of  of  contr  contract onl# adult is is lia$le $ut not minor minor. ;6  =i =in nor or  as =e =emb mber er  of  co comp mpa any 0  minor minor  cannot dir directl# $u# sha harres  of   the compan# $ecaus $ecause he is is  not competent to contr contract. 3f   pa parrent ents s  of   a minor minor  are sha harreholde eholders rs   of   a compan#/ comp an#/ the comp compan# an# can tran ansf  sf er  sha harres  in f avor avor  of   minor minor  af ter ter  the death of  of  his  his pa  parrent ents s. E(amp E(a mple le  Iamaal  Iamaal holds holds  sha harre of   a compan#. ;e dies dies  and leaves leaves  Lain 8; 8;iis  1on on99  a minorr  as  his mino his  le leal rep eprresentative. :ompan# is is $ound to tr tran ansf  sf er sha harres to B. >6  Su Sure retty f or  or =i =in nor When an adult ives ives  suret# in a contr contract of  of   ua uarrantee/ onl# the adult is  lia$le under under  the contr contract. Bino inorr is  is not respon pons si$le f or an# o$liation. E(amp E(a mple le 0li a minor minor make  makes s a contr contract 'ith 'a*a a*as s. 0hmed ives ives suret# f or 0li. 6he contrract is cont is valid. 1?66  =i 1? =in nor ors s  pare arents nts 3f   an ar areement is is  made $# a minor minor  than par parent ents s  of   minor minor  are not respon pons si$le f or  the pa#ment. 6he par parent ents s ar  are respon pons si$le onl# 'hen minorr act mino  acts s a  as s an aent of  of  his  his pa  parrent. E(amp E(a mple le

 

0li send ends s hi  his s  son to $u# oods oods  from from  Iamaal/  Iamaal/ his his  son $ouht oods oods  fr from om  Iamaal.  Iamaal. 0li is i s  lia$le to make pa#ment.

-ae 2!

 

Q#;  /at  is  consent  an  f ree ree  consent  /at  is  te  e5 ec ect  of  consent on contract !r /at is consent /at is te e5 ec ect of  consent wen  it is not f ree ree Consent When t' t'o or  mo morre pa parrtie ties s  ar aree upon the same thin in the same mannerr  in the same sen manne ens se/ 'hen the $o $oth the par partie ties s  a arree upon the same thin in the diff  diff erent manner manner  it is not a real cons consent. -ree co -ree  cons nse ent :ons :on sent is is free free 'hen it is is not o$tained o$tained $#J i9 :oerrcion :oe ii ii99 Andue inf  inf luence luence iii9 iii9 Bisr srep eprresentation iv iv99 5r 5raud aud v9 Bistake

E5 ec ects of  consent on te %aliity of  contract 1& 1&   Coercio oercion n :oercion means :oer means committin or or  thr threadin to commit an# act 'hich is is  f or$idden $# la' la'. 3n other other 'ords coe  coerrcion means means o$tainin the cons consent of  of   otherr pa othe  parrt# $# thr threatenin him. Eff ects ects  on co cons nse ent i&

Comm mmiitt ttiing or or  t# t#rea reattening to co comm mmiit

When a pers person on commits commits  or  thr threaten eatens s  to do a pers person on a 'ork 'hich is is  f or$idden $# la' la'. 3s 3s called  called coer coercion Example 0li thr threat eats s  to kill Ba=id/ if  if   he does does  not ave his his  ca carr  to Boh ohs sin. 6he arreement is a is  void as as con  cons sent is is not free free ii&

3nla 3n lawfu wfully lly  etai ain ning or or  t# t#rea reattening to etain ain pro rop per ertty

When a pers person on unla'f  unla'f ull# ull# detain the pr prope operrt# of  of  other   other pe  pers rson on f or the purrpo pu pos se of  of  compellin  compellin him to enter enter into an ar areement/ it is is c  co oercion -ae 2"

 

E(amp E(a mple le 0 d  drrive iverr  ref uses to deliver deliver the documents documents o  of  f  car  car to his his emplo#e  emplo#err unle  unless ss he  he is paid s s 1((( it is is coe  coerrcion Eff ect ect of  coercio ercion n on t# t#e e %ali %ali ity of  co cont ntrac ractt 0  contr contract f ormed under under  the coer coercion/ the contr contract is is  voida$le at the option of  of   that par part# 'ho hos se cons consent is is not fr free. ee.

)&  3nue influence Andue inf  inf luence is is 'hen one par part# us uses hi  his s po  pos sition or or po  po' 'er to dominate the 'ill or or con  cons sent of  of  other  other pa  parrt# and us uses hi  his s po  po' 'er to o$tain unf  unf air air  advantae over over the other other. 3t iis s f urthe therr explained as as f ollo's ollo'sKK i&

"ominating position ion

3n orde derr  to prove undue inf  inf luence. luence. 6he relation $et' $et'een the par partie ties s  should $e such that th the one of  of  them  them should $e in a dominatin dominatin po  pos sition. ii&

3nf air  air a%a %ant ntage age

3n or orde derr to pr prove ove undue inf  inf luence/ luence/ it is is nece  necess ssa ar# to pr prove that the pers person on 'ho has has dominati  dominatin n pos position has has us  used his his po  po' 'ers rs to  to et unf  unf a air ir advantae. Eff ect ect of  unu unue e inf luence ce  on t# t#e e %ali %ali ity of  co cont ntrac ractt :ontract made under :ontr under  the undue inf  inf luence can $e avoided $# the par part# 'ho hos se cons consent is is o$tained $# undue inf  inf luence. luence. *& *&   -ra rau u 0ll acts acts committed $# a par part# 'ith the intention to deceive the other other pa  parrt#.  6herre is  6he is fraud fraud in the f ollo' ollo'in cas casesK i&

-alse st sta atement

When a par part# to contr contract makes makes f als alse statement intentionall#/ he is is lia$le f or  fr fraud aud E(amp E(a mple le E hur huram khurrr khurrram am kno's kno's that  that his his mo$ile has has $een made in -aki akis stan $ut tells tell s  0hmed that the mo$ile made in I in  Iapan/ apan/ khurrr khurrram am is is lia$le f or fr fraud. aud. ii&

!b.ec b.ectt of  f rau rau

-ae 2%

 

 6he o$=ect of   fraud fraud mus must $e to deceive other other  pa parrt# and the other other  pa parrt# have $een actuall# deceived $# the other other pa  parrt#. iii&

Loss

3t iis s al  als so necess necessa ar# that the par part# actin upon the misr misrep eprresentation has has  suff ered loss loss Eff ects ects  of  f rau rau  on co cons nse ent  6he f ollo' ollo'in remedie emedies s a  arre availa$le to the ar arieved par part#K a9  ;e can avoid the contrract $9 cont $9  ;e can sue f or the damaes damaes c9  ;e can as ask f or the speci pecif  f ic ic perf  perf ormance and restor toration +& +&   =i =is sre rep pre res sent nta atio ion n Bisr srep eprresentation means means  the ivin the f als alse statement of  of   f act act a$out contract to o$tain th contr the consent of  of   con cons sent of  of   other other  pa parrt#. Bisr srep eprresentation mus must $e made 'ith the intention to deceive other other parrt#. pa 3n or orde derr to pr prove ove misr misrep eprresentation the f ollo' ollo'in ins s thin  thins s ar  are necess necessa ar#K i.   3t mus must relate to the contrract ii.   3t mus cont must $e untrrue unt iii. 6he other pa  parrt# mus must suff er lo  loss ss iv. 6he other pa  parrt# cannot dis discove coverr the tr truth $# or ordina dinarr# dilience Eff ects ects  of  f rau rau  on co cont ntrac ractt  6he cont contrract is is  voida$le at the option of  of   that par part# 'ho hos se cons consent is is aff ected ected $# the misr misrep eprresentation.  6he contr contract ma# $e accepted $# the in in =u  =urred par part#.

 

-ae 2&

 

Q#> /at is iscarge of  contract /at are te  ways in wic a contract may be iscarge $  terminate "iscarge of  contract When the When  the  rihts rihts  and and  duties duties  created created  $# $#  la' la'  come come  to to  an an  end end  the the   contract  is contract is  said said  to to  $e $e  dischared dischared  or or  terminated 0 contract contract  can can  $e $e  dischared dischared  $# $#  the the  follo'in follo'in  'a#s 1. 1.   Dischare Dischare  $# $#   -erformance  2. -erformance 2.   Dischare  $# Dischare $#   0reement 3. 3.   Dischare Dischare  $# $#  u$se*uent u$se*uent   impossi$ilit#  4.  impossi$ilit# 4.  Dischare Dischare  $# $#   aps  of  time aps 5. 5.   Dischare Dischare  $# $#  peration peration   of  la' la'   !.  !.  Dischare Dischare  $# $#   ,reach  of  contract ,reach

"iscarge by Performance When all When  all  the the  parties parties  to to  a contract contract  have have  performed performed  there there  services services   re*uired  $# re*uired $#  la' la'  the the  contract contract  is is  dischared dischared  $# $#  performance. performance.  f  onl# onl#   one  part# one part#  performs performs  his his  duties duties  he he  is is  alone alone  dischared. dischared.   6he  6he   performance  ma# performance ma#  $eJ i. ii.

0ctual performance 0ttem ttempt pted ed  performance performance  8or9 8or9  tender

Actual performance When all When  all  the the  parties parties  to to  a contract contract  have have  performed performed  their their  promise promise  the the   contract  comes contract comes  to  to an an  end end  $# $#  actual actual  performance

E(ample haFia arees haFia  arees  to to  sell sell   her her  $a $a  to to  Baria Baria  for for  5(( 5((   s. s.  haFia haFia  delivers delivers   her  $a her $a  and and  Baria Baria  makes makes  pa#ment. pa#ment.   6his  6his  is is  an an  actual actual  performance

Attempte performance @or6 Tener When one When  one  of  the the  parties/ parties/  oered oered  to  to performed performed  contract contract  $ut $ut  other other   part#  does part# does  not not  accept accept  it.  it.  6his  6his  is is  an an  attempt attempt  to to  perform

E(ample haFia arees haFia  arees  to to  sell sell   her her  $a $a  to to  Baria Baria  for for  5(( 5((   s. s.  haFia haFia  offers offers  to to   deliver  her deliver her  $a $a  $ut $ut  Baria Baria  does does  not not  accept accept  it. it.   6his  6his  is is  an an  attempted attempted   performance.

 

"iscarge by Agreement

-ae 3(

 

0 contract contract  ma# ma#  $e $e  dischared dischared  $# $#  the the  areement areement  $et'een $et'een  the the   parties  in parties in  an# an#  of  the the  follo'in follo'in  'a#s i. Covation   ii. Covation 0lteration iii. escission   iv escission iv.. emission v. Waiver

9o%ation Covation means Covation  means  the the  replacement replacement  of  old old  contract contract  $# $#  ne' ne'  contract. contract.  n ne'  contract ne' contract  the the  parties parties  ma# ma#  chane chane   or or  remains remains  the the  same/ same/  thus thus   an an   old  contact old contact  is is  dischared dischared  'ith 'ith  the the  ne' ne'  contract

E(ample

0 o'ed 8 9 to , and , to :/ 0Hs de$t to $ is cancelled and : accepts 0 as his h is De$tor De$tor.. t is novation

Alteration 0lteration means 0lteration  means  the the  chanin chanin  in  in the the  terms terms  and and  conditions conditions  of   contract.  f  alteration contract. alteration  is is  made made  'ith 'ith  the the  consent consent  of  all all  the the  parties parties  the the   contract  is contract is  dischared dischared  and and  a ne' ne'  contract contract  takes takes  place

E(ample 0li arees 0li  arees  to to  sale sale  oods oods  to to  iaF iaF  for for  s s  1(((. 1(((.  ater/ ater/  iaF iaF  decided decided   to  to purchase purchase  hih hih  *ualit# *ualit#  )oods )oods  for for  s s  2(((. 2(((.    6he  6he  old old  contract contract  is is   altered.

<escission

escission  means escission  means  the the  cancellation cancellation   of  contract contract  $# $#  mutual mutual  areement.  6he  cancellation  6he cancellation  free free  the the  parties parties  from from  o$liations o$liations  of  contract

E(ample Ba=id 0rees Ba=id  0rees  to  to sale sale  oods oods  to to  a=id a=id  for for  s s  2(((. 2(((.  ater/ ater/  a=id a=id   re*uested  Ba=id re*uested Ba=id  to  to cancel cancel  the the  suppl# suppl#  of  )oods. )oods.   6his  6his  is is  rescission.

/ai%er When a part# When  part#  surrenders surrenders  his his  riht riht   to to  contract/ contract/  the the  other other  part# part#  is is   free  from free from   his his  part part  of  o$liation. o$liation.  t  t is is  called called  'aiver.

E(ample

0li o'es Ba=id s. 5(((. 0li arees to accept s. 4((( in full satisfaction of claim. 6he 'hole de$t is dischared.

 

-ae 31

 

"iscarge by Subsequent impossibility f  the the  performance performance  of  contract contract  is is  possi$le possi$le  at at  time time  of  formation formation   of   contract contract  $ut $ut  after'ards after'ards  it it  $ecomes $ecomes  impossi$le impossi$le  or or  unla'ful. unla'ful.    6he  contract  6he contract   'ill 'ill  $e $e  dischared.

E(ample a9   ,ilal a9 ,ilal  promise promise  to to  sell sell  'heat 'heat  ;a$i$/ ;a$i$/  $efore $efore  deliver# deliver#  overnment overnment   $anned  private  private  tradin tradin   of   'heat $9   $anned $9 arukh   and arukh and   idra idra   promise promise  to to  marr# marr#  each each  other/ other/  $efore $efore   the  time the time  fixed fixed  for for  marriae marriae  arukh arukh  dies. dies.   6he  6he  contract contract   $ecomes  void $ecomes void  and and  dischared

"iscarge by Laps of  time 0ccordin  to 0ccordin  to  the the  limitation limitation  act/ act/  the the  contract contract  should should  $e $e  performed performed   'ithin  a specified 'ithin specified  or or  reasona$le reasona$le  time. time.  n n  case case  of  $reach $reach  of  contract/ contract/   leal  action leal action  should should  $e $e  taken taken  'ithin 'ithin  a specified specified  period period  of  time. time.  f  no no   leal  action leal action  is is  taken taken  'ithin 'ithin  specified specified  period period  of  time time  the the  contract contract  is is   dischared.

E(ample ,ashir took ,ashir  took  loan loan  form form  CaFir. CaFir.  ast ast  date date  for for  repa#ment repa#ment  of   loan loan  has has   expired  $ut expired $ut  no no  leal leal  action action  has has  $een $een  taken taken  $# $#  CaFir CaFir  for for  3 #ears. #ears.   ,ashir  is  ,ashir is dischared dischared  from from  his his  lia$ilit#.

"iscarge by operation of  Law 0 contract contract  ma# ma#  $e $e  terminated terminated  $# $#  the the  operation operation  of   la' la'  in in  the the  follo'in follo'in   'a#s i. nso solv lven enc# c# ii. Death of   an# an#   part#  iii. part# iii. 0l 0lte tera rati tion on

Insol%ency 0 contract contract  is is  dischared dischared  'hen 'hen  court court  declares declares  a person person   insolventJ  such insolventJ such  person person  is is  dischared dischared  from from  his his  lia$ilities lia$ilities  incurred incurred   $efore  insolvenc#. $efore

"eat of  any party f  an# an#  of  the the  part# part#  $efore $efore  performance performance  dies/ dies/  the the  contract contract  is is  dischared.

Alteration 0lteration means 0lteration  means  chane chane  in  in rihts rihts  and and  duties duties  of  the the  parties. parties.  f  the the   terms  and terms and  conditions conditions  are are  chaned chaned  $# $#  an# an#  part# part#  'ithout 'ithout  consent consent  of   other  part# other part#  the the  contract contract  is is  dischared

"iscarge by 4reac of  contract

 

-ae 32

 

,reach of  contract ,reach  contract  means means  'hen 'hen  one one  or or   more more  of   the the  parties parties  fail fail  to to   perform  their perform their  o$liations. o$liations.  ,reach ,reach  of  contract contract  dischare dischare  the the   arieved  part# arieved part#  from from  performin performin  his his  o$liation. ,reach  of  contract ,reach contract  ma# ma#  of  t'o t'o  t#pesJ i. ii. ii.

0ctual $reach 0n 0nti tici cipa pato tor# r#  $reach

i6 Actual 4reac When  a part# When part#  fails fails  to to  perform perform  his his  o$liations o$liations  'hen 'hen  the the  performance performance  is is  due

E(ample th

Leeshan  arees Leeshan  arees   to  to  sale sale   oods oods   to to   aFi$ aFi$   on on   ! Covem$er/ Covem$er/   $ut $ut   he he   does   not does not   deliver deliver  oods oods  at at  areed areed  time. time.   6his  6his  is is  actual actual  $reach.

ii6

Anticipatory 4reac

0n anticipator# 0n  anticipator#  $reach $reach  occurs occurs  $efore $efore  the the  time time  fixed fixed  for for  performance. performance.  t t   has   t'o has t'o  t#pes Express  $reach Express $reach  and and  implied implied  $reach.

a&  E(press breac When  one When  one   part# part#   communicates communicates   the the   other other   part# part#   his his   attention attention   not not   to  to  perform perform   the the  contract. contract.   6his  6his  is is  express express  $reach.

E(ample Behmood arees to sale his house to aFi$. ,efore the date of performance Behmood informs aFi$ that he 'ill not sale his house.

b&  Implie 4reac When a part# does an act 'hich makes the contract impossi$le to perform. 6his is called implied $reach.

E(ample th

Bis$ah  arees Bis$ah  arees   to to   sale sale   her her   $a $a   to to   0nam 0nam   on on   " Covem$er Covem$er   $ut $ut   $efore   the $efore the   due due   date date  Bis$ah Bis$ah  sold sold  her her  ,a ,a  to to  *ra.

-ae 33

 

Q#1? /at  are  te  remeies  a%ailable  to  an  aggrie%e  party  for  breac  of  contract !r "iscuses te consequences of  breac of  contract !r State te principles on wic court awar for breac of   contract

4reac of  contract ,reach 8 9  of   contract ,reach  contract   means means   'hen 'hen   one one   part# part#   fails fails   or or   refuses refuses   to perform   his perform his  o$liation

<emeies for breac of  contract ollo'in  remedies ollo'in  remedies  8 9 are are  availa$le availa$le  to to  arieved arieved  8 9  part#  for part# for  $reach $reach  of  contract contract  aainst aainst  the the  uilt# uilt#  8  9 part# 1. 1.   uit uit  for for   rescission  2. rescission 2.   uit  for uit for  damaes 3. 3.   uit uit  upon upon  *uantum *uantum  meruit 4. 4.   uit uit  for for  specific specific   performance  5.  performance 5.  uit uit  for for   in=unction

16  Suit for rescission escission   means escission  means   cancellation cancellation   of   contract. contract.   When When   one one   part# $reaches   the $reaches the   contract contract   the the   other other   part# part#   ma# ma#   rescind rescind   contract contract   and refue   to  refue to  perform perform   his his   part part   of   o$liation. o$liation.    6he  6he   arieved arieved   part# part#   ma# sue  the sue the  uilt# uilt#  for for  damaes Example 0 arees    to to   sell sell    his his    car car  to  to   ,  for for   !  lac lac    s. s.   ,ut ,ut    on on   due due    date date   0   refuses refuses  to  to  arees hand   over hand over    his his   car. car.   ,  is is   dischared dischared   from from   contract contract   and and   can can   claim claim      damaes

 

-ae 34

 

)6  Suit for amages Damaes  are Damaes  are   the the   monetar# monetar#   compensation compensation   allo'ed allo'ed   to to   arieved part#   for part# for   the the   lose lose  suffered suffered   $# $#   him him   as as   a  result result   of   $reach $reach   of   contract.  6he   arieved  6he arieved   part# part#   can can   claim claim   the the  follo'in follo'in  damaes i9 i9   )eneral damaes  ii9 damaes pecific  damaes pecific ii iiii9 Exem emp plar# damaes   damaes iv9 i*uidated damaes

i6

eneral amages

rdinar# damaes rdinar#  damaes  are are  those those  'hich 'hich  naturall# naturall#  arise arise  as as  a result result  of   $reach $reach   of  contract or  example or  example   in  in  a  contract contract   of   sale sale   of   oods oods   the the   dierence dierence   $et'een $et'een   the   contract the contract   price price  and and  market market  price price  are are  the the  damaes damaes  that that  can can  $e $e   claimed

ii6

Speci7c amages

 6hese  are  6hese  are   the the   direct direct   loses loses   'hich 'hich   arise arise   due due   to to   the the   $reach $reach   of   contract.   6hese contract.  6hese   damaes damaes  arise arise  under under  some some  special special  cases

iii6

E(emplary amages

 6hese  6hese    damaes damaes   are are    a'arded a'arded    not not   to to   punish punish    the the     uilt# uilt#    part# part#    and and   not   compensate not compensate  the  the in=ured  8arieved9 in=ured 8arieved9   part# part#   for for  the  loss the loss   suffered.

i%6

Liquiate amages

When  the When  the   parties parties   to to   a  contract contract   fix fix   the the   amount amount   of   damaes damaes   at at   the the   time   of   formation time formation   of  contract contract  such such  damaes damaes  are are  called called  li*uidated li*uidated  or or   nominal  damaes. nominal

*6  suit for quantum meruit uantum  meriut uantum  meriut   means means   pa#ment pa#ment   in in   proportion proportion   of   'ork 'ork   done. ometimes   one ometimes one   of   the the   parties parties   has has   done done   a  part part   of   his his   o$liation o$liation   $ut the  other the  other   part# part#   commits commits   the the   $reach $reach   of   contract. contract.   n n   such such   case case   the part#   'ho part# 'ho   has has   performed performed   some some   'ork 'ork   has has   riht riht   to to   claim claim   for for  the the  value of   'ork 'ork  done done  and and  damaes damaes  for for  the the  remainin remainin  'ork.

 

E(ample 0  arees arees   to to   construct construct   a  three three   stor# stor#   house house   for for   ,.  ,.  'hen 'hen   onl# onl#   one one   stor# 'as   constructed/ 'as constructed/   ,  prevented prevented   0  from from   doin doin   more more   'ork. 'ork.   o o   here here   0 is is   entitled entitled   to to   et et   the the   reasona$le reasona$le   compensation compensation   for for   the the   'ork 'ork   done and  the and the  damaes damaes  for for  remainin remainin  'ork. -ae 35

 

+6  Suit for speci7c performance When  onl# When  onl#   damaes damaes   are are   not not   enouh enouh   to to   compensate compensate   then then   the the   court court   ma#   order ma# order   uilt# uilt#   to to  perform perform  specific specific  performance pecific  performance pecific performance  is is  ranted ranted  in  in the the  follo'in follo'in  'a#s a9  When a9  When  compensation compensation  in  in mone# mone#  is is   not  enouh not enouh  $9 $9   When When  compensation compensation   cannot  $e cannot $e  o$tained c9  c9  Where Where  one one  of  the the  parties parties  is  is a minor d9   Where d9 Where  the the  contract contract  involves involves  personal personal  skills/ skills/  taste taste  and and   *ualification Example 0li  arees 0li  arees   to to   sale sale   his his   plot plot   of   land land   to to   Ba=id Ba=id   'ho 'ho   arees arees   to to   purchase purchase   it it   to  to  erect erect   his his   mill mill  there. there.  ater/ ater/  0li 0li  commits commits  $reach. $reach.  t t  'as 'as  held held  $# $#  court court   to  to carr#out carr#out  contract

,6  Suit for in.unction n=ection  is n=ection  is   an an   order order   from from   the the   court court   of   la' la'   prohi$itin prohi$itin   a  person person   from from   doin   a  specific doin specific  act. act.  t  t is is  ranted ranted  'here 'here  the the  damaes damaes  are are  not not  the the   ade*uate  relief  ade*uate Example arrah  a  lad# arrah  lad#   siner siner   enter enter   into into   an an   areement areement   'ith 'ith   alman alman   to to   sin sin   at salmanHs   theater salmanHs theater   and and   no'here no'here   else. else.   0fter'ards 0fter'ards   arrah arrah   made made   a contract   'ith contract 'ith   heraF heraF   to to   sin sin   at at   his his   theater theater   and and   refused refused   to to   perform her   contract her contract   'ith 'ith   alman. alman.   t  t  'as 'as   held held   that/ that/   arrah arrah   could could   not not   $e compelled   to compelled to   sin sin   at at   salmanHs salmanHs   theater theater   she she   'as 'as   prohi$ited prohi$ited   $# $#   the court   form court form  sinin sinin   for for  heraF.

 

-ae 3!

 

 

Q#11 "iscuss  in  etail  te  position  of   a  quasiD contract  wen  te obligations of  contract are  impose by te law !r /at are te types of  quasi contract

Quasi $ constructi%e  $ implie  Contract uasi contracts uasi  contracts  are are  $ased $ased  on on  the the  principle principle   of  e*uit# e*uit#  8  Iustice  8 9.  Iustice

9 and and  

t t   means means   that that   no$od# no$od#   is is   entitled entitled   to to   $enefit $enefit   at at   the the   cost cost   of   other. other.   ome time  la' time  la'   re*uires re*uires   that that   a  particular particular   person person   must must   perform perform   some o$liations   such o$liations such   o$liations o$liations   are are   called called  *uasi *uasi  M contract contract  the# the#  are are  also called  constructive called constructive  or or  implied implied  contract.

ins of  contract !r Conitions uner wic quasi contract arise 1.  1.  uppl# uppl#  of  necessaries 2.  2.  -a#ment -a#ment  $# $#  interested interested  person 3.  3.  :ompensation :ompensation  for for  non non   ratuitous  acts ratuitous acts  4. 4.   inder inder  of   oods 5.  5.  Bistake Bistake  or or  under under  coercion

16  Supply of  necessaries Where  necessaries Where  necessaries   are are   supplied supplied   to to   a  person person   'ho 'ho   is is   incompetent to  to  contract contract   or or   to to   someone someone   'hom 'hom   he he   is is   leall# leall#   $ound $ound   to to   support/ the   supplier the supplier   is is   entitled entitled   to to   recover recover   the the   price price   from from   the the   propert# propert#   of  incompetent  person. incompetent

E(ample 0li  supplies 0li  supplies   ;ammad ;ammad   a  minor/ minor/   necessaries necessaries   suita$le suita$le   to to   their their   conditions   in conditions in   life. life.   0li 0li   is is  Entitled Entitled  to to  reim$urse reim$urse  8 9 form form  ;ammadHs ;ammadHs  

 

-ropert#.

)6  Payment by intereste  person -ae 3"

 

0 person person  'ho 'ho   is is   interested interested   in  in  the the   pa#ment pa#ment   of   mone# mone#  'hich 'hich   another another  is $ound   $# $ound $#  la' la'  to  to pa# pa#  and and  'ho 'ho  therefore therefore  pa#s pa#s  itJ itJ  it it  is is  entitled entitled  to to  $e $e   reim$ursed   $# reim$ursed $#  other.

E(ample a9   0 pa#s a9 pa#s  arrears arrears  of  rent rent  of   , to  to avoid avoid  dispute dispute  $et'een $et'een  ,  and  his and his  landlord landlord  8 9 0 cannot cannot  recover recover  from from  as as  he he  has has  no no  interest interest  in in  pa#ment $9   0  imported $9 imported   )oods )oods   and and   stored stored   in in   ,Hs ,Hs   'arehouse 'arehouse   'ithout pa#in   the pa#in the   custom custom   dut#. dut#.    6he  6he   custom custom   dut# dut#   0uthorities recovered   custom recovered custom   dut# dut#   from from   ,.  ,.  ,  can can  recover recover  from from  ,

*6  Compensation  for 9onD gratuitous  act When a person When  person  la'full# la'full#  does does  an#thin an#thin  for for  another another  person/ person/   or or  delivers delivers   an#thin  to  an#thin to him/ him/  not not  intendin intendin  to  to ive ive  as as  a free free  ift/ ift/  the the  other other  person person   also  en=o#s also en=o#s  $enefit $enefit  thereof. thereof.  ater ater  he he  is is  $ound $ound  to to  compensate compensate  former former  8 9.

E(ample 0 coolie coolie  takes takes  the the  luae luae  of  passener passener  at at  the the  rail'a# rail'a#  station station   'ithout  askin. 'ithout askin.  -assener -assener  does does  not not   o$=ect o$=ect  8 9 to to  it. it.  :oolie :oolie  can can   et  the et the  pa#ment

+6  -iner of  goos 0 person person  'ho 'ho  finds finds  the the  oods oods  $elonin $elonin  to to  other other  and and  takes takes  them them  into his  custod#/ his custod#/  he he   is is  entitled entitled  to to  recover recover  compensation compensation  for for  the the  trou$le trou$le  in in   findin  the findin the  o'ner o'ner  of  oods. oods.  f   he he  fails fails  to to  find find  the the  true true  o'ner o'ner  he he  can can   retain  the retain the  rin

E(ample 0li found 0li  found  a rin rin  at at   a part# part#  he he  told told  the the  other other  uests uests  a$out a$out  it it  $ut $ut   could  not could not  find find  the the  o'ner. o'ner.  0li 0li  can can  retain retain  the the  rin.

 

-ae 3%

 

Q#1) wat is te ifference between  inemnity an guarantee 4as 4a si s  =ean =ea nin g

Partties Par ies

Liab Lia bilit ility

uara arant ntee ee Inemn Ine mniity 0  contr contract of  of   indemnit# In In   co cont ntrac ractt  of   gura rant ntee ee is  to com coman ans sate the loss loss one  per ers son gi%e gi%es s t# t#e e su ered $# a pers person on from from gura rant ntee ee f or or the con conduct of  of   an# thi thirrd t#e t# e  per erf  f orm ormance ce   of  pers pe rson on 3n a contr contract of  of   indemnit# therre are th the thrree par partie ties s/ indemnif  indemni f ier ier  and indem indemnit# nit# holderr holde  6he lia$ilit# of   indemni demnif  f ier ier  is p  prrima imarr#

9umber   9umber of   cont co ntrac ractt

3n contr contract of  of   indemnit# therre is onl# one cont the contrract $et' $et 'een the ind indem emni nif  f ier ier and indemnit# holder holder

Perf  Per of  orm r ma n ce f  ce  o cont co ntrac ractt

3n c ontract of  indemnit# perf  pe rf ormance depends depends upon the po poss ssi$ilit# i$ilit# of  of  loss  loss  6his  6hi s  contr contract is is  made f or  the pa#ment of  loss  loss  6he indemnif  indemnif ier ier/ promi omis ses  'ithout the re*ue e*ues st of  of   de$torr de$to

9atu ture re <equ que est

cont co ntrac ractt 3n a contr contract of  of   ua uarrantee therre are ther the there par partie ties s/ suret#/ de$torr/ cr de$to credito editorr  6he lia$ilit# of   suret# is is seconda econdarr# as  he is  lia$le onl# 'hen the cr credito editorr  f ails ails  to pa# the de$t  6herre ar  6he are ther there contrract cont acts s ,et  ,et' 'een suret# and cr credito editorr  ,et' ,et 'een cr credito editorr and principal ,et' ,et'een suret# and pr principal 3n contract of  u urrantee the perf  perf ormance depends depends upon if  if   the credito editorr f ails ails to make the pa#ment. 6hi 6his s  contrract is cont is made f or the pa#ment of  of  de$t  de$t 3t iis s nece  necess ssa ar# that the suret# mus mu st ive the ur urantee at the re*ue e*ues st of  of  de$tor  de$tor

 

-ae 3&

 

Q#1* /FAT IS 4AILE=E9T ALS! EBPLAI9 TFE ESSE9TIAL -EAT3<ES !- 4AIL=E9T& Contract of bailment 4ailm 4ail ment ,ailment is is a voluntar voluntar# tran ansf  sf er  of  oods   oods $# the o' o'ne nerr to another another  pe pers rson on f or  speci pecif  f ic ic pur purpo pos se under under  a condition that such other other  pe pers rson on shall retu eturrn the oods oods  af ter ter  the pur purpo pos se is accompli  accomplis shed. E(amp E(a mple le 0li deliver delivered a piece of  of  cloth  cloth to ,as ,ashir hir to make a suit/ ther there is is a contr contract of  of  $ailment $et' $et'een 0li and ,as ,ashir hir. 4ailor  6he pers person on 'ho delivers delivers the  the oods oods to the other other pe  pers rson on is is called ,ailor ,ailor. 4ailee  6he pers person on to 'hom oods oods a  arre deliver delivered under under the contr contract of  of  $ailment  $ailment is is  called ,ailee Ess sse ent ntial ial  f eatu eature res s i. :ontract ii.   1peci pecif  f ic ic pur purpo pos se iii.   Co chane of  of   o'ne ners rsh hip iv. eturn of  of   same oods oods 1& 1&   Cont ntrac ractt  6here mus  6her must $e a contr contract of  of  $ailment  $ailment $et' et'een the par partie ties s. 3f  the  the oods ood s a  arre deliver delivered $# mis mistake/ ther there is is no $ailment )& )&   Sp Speci ecif  f iic  c pu pur rpose  6he oods oods mu  mus st $e deliver delivered f or some speci pecif  f ic ic pur purpo pos se. 3f  the  the oods oods ar  are deliverred 'ithout an# pur delive purpo pos se ther there is is no contr contract of  of  $ailment.  $ailment.

*& *&   9o c#ange ge  of  own wner ers# s#iip 3n contr contract of  of  $ailment  $ailment onl# the poss posse ess ssion ion of  of  oods  oods chaned $ut the o'ne ners rship hip remain emains s in the same hands hands. 3f  the  the o' o'ne ners rship hip of  of  oods  oods i  is s  chaned it cannot $e called $ailment. +& +&   <etu tur rn of  same goo goos s theto puthe pur rpo pos se of  of r $ailment  .$ailment iss accompli is  accomplis shed/ ood s mu  mus st $e rWhen eturrned etu $aile $ailer 6he depos depo it of  of  mone#  mone# in asame $ankoods is not is $ailment $ecaus $ecau se $ank cannot retu eturrn the same mone#/ ho' ho'eve everr note  notes s and other other  valua$le oods oods depo  depos sited in $ank ar are the examples examples o  of  f  $ailment.  $ailment. -ae 4(

 

Q#1+ wat are te rigts an uties of  4ailor ihts iht s and dutie uties s of   of  ,ailor  ,ailor a  arre iven $elo elo' '

<igts of  4ailor 5ollo ollo' 'in ar are the riht ihts s of   of  ,ailor  ,ailor

1& 1&   <ig#t g#t  to reco%er reco%er  amage ages s ,ailor  can claim f or  the damaes ,ailor damaes  that ar arise due to $aileeHs $aileeHs   nelience. ;e can als also claim damaes damaes a  arrisin due to unauthor unauthoriFed us use of  of  oods  oods. E(amp E(a mple le 0li $ailed some oods oods  to Lees Leeshan $ut due to the nelience of  of   Lees Lee shan the oods oods  'ere stolen. 0li can recove ecoverr the damaes damaes. )& )&   <ig#t ig#t  to eman n  re retu tur rn of  goos  6he ,ailo ,ailorr  ha has s  riht to et $ack the oods oods  $ailed af  af ter ter  as  soon as as the pur purpo pos se is accompli  accomplis shed. 3f  ,ailee  ,ailee f ails ails to retu eturrn the ,ailor ,ailor can claim f or the compens compensation E(amp E(a mple le 1a==id ive a car car to ma==id on hir hire f or 5 da#s da#s. Ba==id f ails ails  to retu eturrn on 5thd da#. 1a==id can claim damaes damaes *& *&   <ig#t ig#t  to clai claim m increa creas se  6he ,ailor ,ailor can claim an# incr increa eas se or or p  prrof iit/ t/ 'hich ma# accr accrued fr from om the $ailed oods ood s. Example 0sad $ailed a co' 0sad co' to khurr khurram. am. :o' :o' ave $ir $irth to a calf  calf . 0s 0sad ad can claim co' co'  alon 'ith calf  calf . +& +&   <ig#t ig#t  to ter erm minate bail ailm ment  6he ,ailo ,ailorr  ha has s  a riht to ter terminate the $ailment if  if  ,ailee   ,ailee does does an# act 'hich is is aain  aains st the ter terms and conditions conditions o  of  f  $ailment.  $ailment. E(amp E(a mple le 0li ives ives hi  his s ca  carr on hir hire to  Iunaid  Iunaid f or pe  pers rsonal onal us use $ut  Iunaid  Iunaid star tart dr d rivin it as a s ca  carr rriae. iae. 0li can ter terminate contr contract. ,& ,&   <ig#t ig#t  to su sue e -ae 41

 

,ailorr can sue ,ailee if  ,ailo if  he  he f ails ails to retu eturrn oods oods o  orr $  $rreache eaches s cont  contrract. E(amp E(a mple le 0li ives ives hi  his s mo$ile to Lain f or repai epairrin. Lain sold it to 6ania. 0li can sue Fain. 8& 8&   Comp mpe ens nsa ation ion 3f   the ,ailee 'ithout the per permi miss ssion ion of  of   ,ailor ,ailor  mixes mixes  the oods oods  of   ,ailor ,ailor 'ith his his  o'n oods oods in such a 'a# that it $ecomes $ecomes impo  imposs ssi$le i$le to sepa eparrate them/ the ,ailor ,ailor  ha has s  a riht to claim f or the comp compen ens sation f or the loss loss   of  oods ood s. E(amp E(a mple le Boshsin $ailed 2 $as $as o  of  f  ,as  ,asmati ice to ;ass ssan. an. ;ass ssan an mixed them 'ith his his o  o' 'n rice that 'as of   of  cheap  cheap *ualit#. Boshsin can claim f or the compens compen sation "utie "ut ies s of  4ailor 5ollo ollo' 'in ar are the duties duties of   of  ,ailor  ,ailor i9 Dut# to dis disclo clos se f aults aults ii ii99 Dut# to repa# necess necessa ar# expens expenses iii iii99 Dut# to repa# extr extra or ordina dinarr# expens expen ses iv  iv99 Dut# to indemnif  indemnif # f or def  de f ective ective title v9 v9 Dut# to receive $ack oods oods 1& 1&   "uty  "uty to isclo clos se f aults )& )&   3t is  the dut# of  of   ,ailor ,ailor  to dis disclo clos se all the f aults aults  in $ailed oods oods 'hich ar are kno' kno'n to him. 3f   he does does  not dis disclo clos se them he 'ill $e lia$le f or the damaes damaes a  arrisin due to such f aults aults. E(amp E(a mple le 0li hir hires  a ca carr rriae iae of  of   Behmood. 6he carr carriae iae 'as  un uns saf e and Behmood had not dis disclo clos sed that f act act to 0li. 0li is is in=ur  in=ured. Behmood is is lia$le f or the damaes damae s. *& *&   "uty "uty  to re rep pay ay  e( e(p pens nse e When the ood oods s a  arre to $e kept or or ca  carr rried ied $# the ,ailee. 3t iis s the dut# of  of   ,ailorr to $ear ,ailo $ear all the expens expense incurr incurred ed on the $ailed oods oods. E(amp E(a mple le 0li deliver delivered a car car  to shahid f or the saf e cu cus stod#. 4ne tir tire of  the   the car car  'as  $urs $u rstt on the 'a#. 1hahid spe pen nt s s.4((( to replace tir tire. 0li is is lia$le to pa# s. 4((( +& +&   "uty "uty  to re rep pay ay  e( e(ttra ra  or or inary ary  e( e(p pens nse es

 

-ae 42

 

3f   the extr extra ordina dinarr# expens expenses  are incurr incurred ed $# the ,ailee on the $ailed oods ood s then it iis s the dut# of  of  ,ailor  ,ailor to repa# thos those expens expenses. E(amp E(a mple le ;a$i$ $ailed his his ho  hors rse e to 0s 0siif  f or =ou  =ourrne#. 6he expens expense f or f eedin eedin hors horse e is is ordina dinarr# expens expense e and f alls alls  on ,ailee $ut if  if   ho hors rse e $ecomes $ecomes  sick then it is  the dut# of  of   ,ailor ,ailor  to repa# the expens expenses incu  incurr rred ed on the tr treatment of  of  hors ho rse. e. ,& ,&   "ut "uty y to in ne emn mniif y f or  or t# t#e e ef ect ecti%e i%e  title Where the title of  Wher of  oods   oods to ,ailor ,ailor  is  de def  f ective ective and ,ailee suff ers rs   lo loss ss due  due to such title/ 3t is the dut# of  of  ,ailor  ,ailor to indemnif  indemnif # the ,ailee f or such loss loss.. E(amp E(a mple le 0li ives ives hi  his s neih$o  neih$orHs rHs  scoote cooterr to ,ilal f or us  use 'ithout neih$orHs neih$orHs   perrmi pe miss ssion. ion. 6he Ceih$o eih$orr f iles iles a suit on ,ilal and received compens compensation. 0li is is lia$le to compens compensate ,ilal. 8& 8&   "uty "uty  to recei%e recei%e  bac ac0  0  goo goos s 3t is  the dut# of  of   ,ailor ,ailor  to receive $ack oods oods  'hen the ,ailee retu eturrns  them af  af ter ter  the accompli accomplis shment of  of  pur  purpo pos se E(amp E(a mple le 0li $ailed his his  ho hors rse e to ,ilal to f eed eed f or  t'o months months. 0li doe does s  not take his his hors ho rse e af ter ter  t'o months months. ,ilal has has to spend mor more to f eed eed hors horse. e. 3t iis s the dut# of  of  0li to compens compensate ,ilal.

-ae 43

 

Q#1, wat are te rigt an uties of  4ailee <igts of  4ailee ollo'ins  are ollo'ins are  the the  rihts rihts  of  ,ailee

1&  <igt to reco%er amages 0 ,ailee ,ailee  has has  riht riht  to to  recover recover  damaes damaes  suffered suffered  due due  to to  fault fault  in in  $ailed $ailed   oods  that oods that  'ere 'ere  kno'n kno'n  to to  the the  ,ailor

E(ample 0li hires 0li  hires  a carriae carriae  of  Behmood. Behmood.   6he  6he  carriae carriae  'as 'as  unsafe unsafe  and and   Behmood  had Behmood had  not not  disclosed disclosed  that that  fact fact  to  to 0li. 0li.  0li 0li  is is  in=ured. in=ured.   Behmood  is  Behmood is lia$le lia$le  to  to compensate compensate  for for  the the  damaes.

)&  <igt to reco%er e(pense t t  is is  the the  riht riht  of  ,ailee ,ailee  to to  recover recover  expenses expenses  that that  'ere 'ere  incurred incurred  on on  the the   $ailed  oods. $ailed

E(ample 0li  delivered 0li  delivered   a  car car   to to   shahid shahid   for for   the the   safe safe   custod#. custod#.   ne ne   tire tire   of   the the   car 'as   $urst 'as $urst   on on   the the   'a#. 'a#.   hahid hahid   spent spent   s.4((( s.4(((   to to   replace replace   tire. tire.   hahid has   a riht has riht  to  to  claim claim  for for  the the  expenses expenses  incurred incurred  on on  the the  car.

*&  <igt to compensation f   ,ailee ,ailee   suffers suffers   loss loss   due due   to to   the the   defective defective   title title   of   oods oods   to to   ,ailor/ ,ailor/   6he  6he   $ailee   has $ailee has   riht riht  to to  claim claim  for for  the the  compensation.

E(ample 0li ives 0li  ives  his his  neih$orHs neih$orHs  scooter scooter  to to  ,ilal ,ilal  for for  use use  'ithout 'ithout  neih$orHs neih$orHs   permission.   6he permission.  6he  Ceih$or Ceih$or  files files  a suit suit  on on  ,ilal ,ilal  and and  received received   compensation.  ,ilal compensation. ,ilal  has has  riht riht  to to  receive receive  compensation compensation  from from  ,ailor.

+&  <igt to stop eli%ery f  the the  person person  other other  than than  ,ailor ,ailor  claim claim  $ailed $ailed  oods oods  from from  ,ailee/ ,ailee/  the the   ,ailee  ma# ,ailee ma#  appl# appl#  to  to the the  court court  to to  stop stop  deliver# deliver#  of  oods oods  to to  ,ailor ,ailor  and to  to decide decide  the the  title title   of  oods.

E(ample -ae 44

 

heraF $ailed heraF  $ailed  oods oods  to  to araF. araF.  ;ammad ;ammad  claimed claimed  that that  he he  is is  the the  o'ner o'ner   of  oods oods  and and  demand demand  oods oods  form form  araF. araF.  araF araF  can can  stop stop  the the  deliver# deliver#   of  oods oods  to  to heraF heraF  and and  re*uest re*uest  the the  court court  to to  decide decide  the the  o'nership o'nership  of   oods.

,&  <igt to sue f  an an  unauthoriFed unauthoriFed  person person  forcefull# forcefull#  uses uses  or or  take take  the the  procession procession  of   $ailed oods/ $ailed  oods/  the the  $ailee $ailee  has has  riht riht  to  to sue sue  that that  unauthoriFed unauthoriFed  person. person.   ,ailor  can ,ailor can  also also  file file  a suit suit  for for  those those  oods.

E(ample 0li ives 0li  ives  a piece piece  of  cloth cloth  to  to  6a#lor  6a#lor  to  to make make  a  coat. coat.  heraF heraF  an an   unauthoriFed  person unauthoriFed person  forcefull# forcefull#  take take  the the  coat coat  form form   6a#lor  6a#lor  and and  start usin  it.  usin it. 0li 0li  or or   6a#lor  6a#lor  can can  file file  a  suit suit  aainst aainst  heraF.

8&  <igt of  lien ien means ien  means  the the  riht riht  to  to  retain retain  the the  oods oods  until until  he he  is is  not not  paid paid  for for  the the   services  rendered. services 0 $ailee $ailee  has has  a riht riht  to  to retain retain  the the  $ailed $ailed  oods oods  until until  he he  is is  not not  paid for  the for the  services services  rendered.

E(ample 0li ives 0li  ives  his his  'atch 'atch  to to  alman alman  for for  repairin. repairin.  alman alman  can can  retain retain  the the   'atch  till 'atch till  he he  is is  not not  paid paid  for for  his his  services

"uties of  bailee ollo'in  are ollo'in are  the the  duties duties  of  $ailee

1&  "uty to ta0e reasonable care t t  is  is the the  dut# dut#  of  $ailee $ailee  to  to take take  reasona$le reasona$le  care care  of   oods oods  $ailed. $ailed.  f  he he   does  not does not  take take   care care  of  oods oods  and and  the the  oods oods   are are  damaed damaed  due due  to to  his his   nelience  he nelience he  is is  responsi$le responsi$le  for for  the the  damaes.

E(ample hakeel $ailed hakeel  $ailed  his his  car car  to to  naFir. naFir.  CaFir CaFir  did did  not not  lock lock  up up  the the  car. car.   6he  6he  car car  is stolen.   CaFir stolen. CaFir  is is  lia$le lia$le  for for  the the  damaes

)&  "uty not to  ma0e unautoriGe  use

-ae 45

 

 6he $ailee  6he  $ailee  must must  use use  the the   oods oods  accordin accordin  to to  the the  terms terms  and and   conditions.  f   he conditions. he  makes makes  an an  unauthoriFed unauthoriFed  use use  of  oods/ oods/  he he  is is  lia$le lia$le   for  the for the  damaes damaes  to to  the the  oods.

E(ample 0li ives 0li  ives  his his   car car  on on   hire hire  to  to  Iunaid  Iunaid  for for   personal personal   use. use.   Iunaid  Iunaid  allo's allo's  araF to  to drive drive  $ut $ut  he he  ot ot  accident accident  and and  ot ot  in=ured. in=ured.   Iunaid  Iunaid  is is  lia$le lia$le  to to   compensate  0li. compensate

*&  "uty not to  mi( te goos f   the the   ,ailee ,ailee   'ithout 'ithout   the the   permission permission   of   ,ailor ,ailor   mixes mixes   the the   oods oods   of  ,ailor   'ith ,ailor 'ith   his his   o'n o'n  oods oods   in  in  such such   a  'a# 'a#   that that   it it   $ecomes $ecomes   impossi$le to  to  separate separate   them/ them/   it it   is is   the the   dut# dut#   of   $ailee $ailee   to to   compensate compensate   ,ailor ,ailor   for the  loss the loss  of  oods.

+&  "uty to return goos t t   is is   the the   dut# dut#   of   $ailee $ailee   to to   return return   the the   oods oods   to to   $ailer $ailer   as as   soon soon   as as   the purpose   of   $ailment purpose $ailment   is is   accomplished. accomplished.   f   he he   fails fails   to to   return return   oods oods   at specified   time specified time   he he   is is   responsi$le responsi$le   to to  compensate compensate  $ailer $ailer  for for  the the  loss.

E(ample 0li  $ailed 0li  $ailed   his his   horse horse   to to   ,ilal ,ilal   to  to  feed feed   for for   t'o t'o   months months   $ut $ut   ,ilal ,ilal   does does   not return   the return the   horse horse   after after   t'o t'o   months. months.    6he  6he   horse horse   dies dies   after after   the the   period of   $ailment $ailment   'ithout 'ithout   an# an#   fault fault   of   ,ilalHs ,ilalHs   part. part.   ,ilal ,ilal   is is   lia$le lia$le   for for   the loss.

,&  "uty to return increase t t  is  is the the  dut# dut#  of  $ailee $ailee  to  to return return  an# an#  increase increase   or or  proNt proNt  accrued accrued  from from  the the   oods  $ailed. oods

E(ample 0sad  $ailed 0sad  $ailed   a  co' co'   to  to  khurram. khurram.   :o' :o'   ave ave   $irth $irth   to to   a  calf. calf.   t t   is is   the the   dut#   of   hurram dut# hurram   to to  return return  co' co'  alon alon  'ith 'ith   calf.

 

-ae 4!

 

Q#18 /FAT IS PLE"E !< PA/9 /FAT  A<E TFE ESSE9TIAL -EAT3<ES !- PLE"E Ple Ple ge  6he $ailment of  of  oods  oods a  as s secu ecurrit# f or the pa#ment of  of  de$t  de$t or or  perf  pe rf ormance of  of   pr promi omis se is is called plede. 4r 4r ,ailment  ,ailment is is the tr tran ansf  sf er o  of  f   poss po sse ess ssion ion of  of  movea$le  movea$le pr prope operrt# $# one pers person on to another another pe  pers rson on to et loan. E(amp E(a mple le 0li $orr $orro o's 's 5((  5(( s s. 5r 5rom om saad and keeps keeps hi  his s 'atch as as secu ecurrit# f or the pa#ment of  of  loan.  loan. 6he $ailment of  of  'atch is is called plede. Partties Par ies of  ple lege i.   -lee leerr7 pa' pa 'ne nerr ii. -leee 77-a'nee Ple Ple ger ger  $ pawn wnor or  6he pers person on deliver deliverin his his ood  oods s a  as s secu ecurrit# is is called pa' pa'ne nerr Plegee  $ Pa Plegee Pawn wnee ee  6he pers person on to 'hom the poss posse ess ssion ion of  of  oods  oods i  is s iven is is called -a'nee. -eatu -ea ture res s of  ple le ge 1& 1&   =o%ea =o%eab ble  le pro rop per ertty 0 plede is is onl# valid 'hen movea$le pr prope operrt# is is pleded. 3t includes includes  an# kind of  of  oods  oods/ documents documents/ valua$les valua$les. )& )&   Tra Transf  nsf er  er of  poss sse ess ssio ion n 3n plede onl# the poss posse ess ssion ion of  of  oods  oods is  is tr  tran ansf  sf err rred ed $# the pa' pa'no norr to -a'nee *& *&   9ot Tra ransf  nsf er  er of  own wner ers# s#iip 3n contr contract of  of  plede/  plede/ o' o'ne ners rship hip is is not tr tran ansf  sf err rred ed fr from om pa' pa'no norr to -a'nee +& +&   =ere  =ere cust usto oy of  goo goos s  6he pers person on havin onl# the cus custod# of  of  oods  oods cannot plede them. 5or  example a servant havin the contr control of  of   pr principal incipalHs Hs ood  oods s cannot make a valid plede of  of  them.  them.

-ae 4"

 

Q#1:EBPLAI9 TFE <IFTS A9" "3TIES !- PLE"E< <ig <i gts ts  of  Pleger 1& 1&   <ig#t ig#t  to reco%er reco%er  amage ages s -lede lederr  can claim f or  the damaes damaes  that ar arise due to pledeeHs pledeeHs   nelience. ;e can als also claim damaes damaes ar  arisin due to unauthor unauthoriFed use of  of  oods  oods. :& :&   <ig#t ig#t  to eman n  re retu tur rn of  goos  6he -lede lederr ha  has s  riht to et $ack the oods oods  -leded af  af ter ter  as  soon as as  the pa#ment of  of  de$t   de$t is is made. 3f  -ledee f ails ails to retu eturrn/ the -lede lederr can claim f or the compens compensation ;& ;&   <ig#t ig#t  to clai claim m increa creas se  6he -lede lederr can claim an# incr increa eas se or or p  prrof iit/ t/ 'hich ma# accr accrued fr from om the -leded oods oods. >& >&   <ig#t ig#t  to ter erm minate Ple Ple ge  6he -lede lederr ha  has s  a riht to ter terminate the -lede if  if   -ledee does does an# act 'hich is is aain  aains st the ter terms and conditions conditions o  of  f  -lede. 1?&  <ig#t 1?& ig#t  to su sue e -lede lederr can sue -ledee if  if  he  he f ails ails to retu eturrn oods oods o  orr $  $rreache eaches s cont  contrract. 11&  Comp 11& mpe ens nsa ation ion 3f   the -led led ee 'ithout the per permi miss ssio ion n  of   -lede lederr  mixes mixes  the oods oods  of  -lede lederr  'ith his his  o'n oods oods  in such a 'a# that it $ecomes $ecomes  imposs impossi$le i$le to sepa eparrate them/ the -lede lederr  ha has s  a riht to claim f or the compen compens sation f or the loss loss o  of  f  oods  oods.

"uties of  Pleger 5ollo ollo' 'in ar are the duties duties of   of  -lede lederr :& :&   "uty "uty  to isclo clos se f aults 3t iis s the dut# of  of  -lede lederr to dis disclo clos se all the f aults aults in -leded oods oods 'hich are kno' kno'n to him. 3f  he  he does does not dis disclo clos se them he 'ill $e lia$le f or the damaes damae s a  arrisin due to such f aults aults. ;& ;&   "uty "uty  to re rep pay ay  e( e(p pens nse e When the oods oods  are to $e kept or or ca  carr rried ied $# the -ledee. 3t iis s the dut# of  of   -lede lederr to $ear $ear all the expens expense incurr incurred ed on the -leded oods oods. >& >&   "uty "uty  to re rep pay ay  e( e(ttra ra  or or inary ary  e( e(p pens nse es

 

-ae 4%

 

3f  the   the extr extra or ordina dinarr# expens expenses a  arre incurr incurred ed $# the -ledee on the -leded oods ood s then it is is the dut# of  of  -lede lederr to repa# thos those expens expenses. 1?&  "uty 1?& "uty  to in ne emn mniif y f or  or t# t#e e ef ect ecti%e i%e  title Wherre the title of  Whe of  oods  oods to -lede lederr is  is de  def  f ective ective and -ledee suff ers rs lo  loss ss   due is the dut# of  of  -lede lederr to indemnif  indemnif # the -ledee f or such loss loss..to such title/ it is 11&  "uty 11& "uty  to recei%e recei%e  bac ac0  0  goo goos s 3t iis s the dut# of  of  -lede lederr to receive $ack $ack ood  oods s 'hen the -ledee retu eturrns them af  af ter ter the accomplis accomplishment of  of  pur  purpo pos se

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Q#1; EBPLAI9 TFE <IFTS A9" "3TIES !-  PLE"EE <igts of  Plegee 1& 1&   <ig#t ig#t  to re rettain ain  6he -leee has has riht to retain the oods oods until his his due  dues s ar  are paid. ;e can retain them f or pa#ment of  of  de$t  de$t or or pe  perf  rf ormance of  of   pr promi omis se and all necess nece ssa ar# expens expenses incu  incurr rred ed $# him f or the saf et# et# of  of  oods  oods E(amp E(a mple le 1hahid $orr $orro o'ed s s. 2 lac from from 3rf an an and pledes pledes hi  his s diamond rin. 3f   shahid does does not retu eturrn the loan shahid can retain the rin )& )&   <ig#t ig#t  to re rettain ain f or  or t# t#e e ot# t#er er  ebt 3f  the  the -lede lederr aain takes takes loan af  af ter ter the f irs rstt loan/ -leee can retain the oods ood s ove  overr the second loan. E(amp E(a mple le 0li $orr $orro o'ed s s 4((/((( from from 1he herraF and pledes pledes hi  his s ca  carr. 0f ter ter  3months 3month s 0li $orr $orro o'ed another another sum of  of   s s. 3((/((( and pa#s pa#s the f irs rstt de$t. 1he herraF can retain the car car aain  aains st his his second loan. *& *&   <ig#t ig#t  to e( e(ttraor raor inary ary  e( e(p pens nse es  6he -ledee has has riht to recove ecoverr all thos those e expens expense that ar are incurr incurred ed on the saf et# et# of  of  oods  oods. ,ut -ledee cannot retain oods oods i  if  f  such expens expenses ar  are not paid/ he can onl# sue -lede lederr f or the recove ecoverr# of  of  extr  extra or ordina dinarr# expens expenses. E(amp E(a mple le 0li pledes pledes hi  his s ho  hors rse e to ,ilal. ;orse rse f alls alls sick and ,ilal spent 4(( s s f or  the tr treatment of  of  hors  horse. e. ,ilal can sue 0li f or the recove ecoverr# of  of  expens  expenses. +& +&   <ig#t ig#t  to sell 3f  the  the -lede lederr ref uses to make pa#men pa#ment or or de$t or or pe  perf  rf ormance of  of   promi omis se/ the -leee has has riht to sell oods oods af   af ter ter ivin the notice of  of   intention of  of  sale to -lede lederr. 5ollo ollo' 'in points points mu  mus st $e cons conside iderred. i. easona$le notice is is nece  necess ssa ar#. ii.   -ledee cannot sale oods oods to hims himsel elf  f 

iii.   3f  the  the amount recove ecoverred from from sale is is le  less ss than  than the amount of  of  

 

de$t/ he can recove ecoverr the $alance amount fr from om -lede lederr. -ae 5(

 

E(amp E(a mple le 0li pledes pledes hi  his s ca  carr to shahid to o$tain a loan of  of   s s 5((/(((. ,ut on the due date 0li f ails ails to pa# the amo amount of  of  loan.  loan. 1hahid can sale car car af   af ter ter ivin a notice of  of  sale.

"uties of  Plegee 5ollo ollo' 'in ar are the duties duties of   of  -ledee 8& 8&   "uty  "uty to ta0 e rea reas sonable  le care 3t iis s the dut# of  of  -ledee to take rea eas sona$le car care of  of  oods  oods pleded. 3f  he  he does does not take car care of  of  oods  oods and the oods oods a  arre damaed due to his his nelience he is respon pons si$le f or the damaes damaes. E(ample ple 1hakeel pleded his his ca  carr to naFir naFir. CaFi aFirr did not lock up the car car. 6he car car i  is s  stolen. CaFi aFirr i  is s lia$le f or the damaes damaes :& :&   "uty  "uty not to ma0 e un una aut# ut#oriGe oriGe  us use e  6he -ledee mus must us use the oods oods acco  accorrdin to the ter terms and conditions conditions. 3f  he  he makes makes an unauthor unauthoriFed us use of  of  oods  oods/ he is is lia$le f or the damaes damaes  to the oods oods. E(ample ple 0li pleded his his  ca carr  to  Iunaid.  Iunaid.  Iunaid  Iunaid sta tarrt usin it as as  ca carr rrie ierr. 0li can sue  Iunaid  Iunaid f or unautho  unauthorriFed us use ;& ;&   "uty  "uty not to mi( i(  t# t#e e goo goos s 3f   the -ledee 'ithout the per permi miss ssion ion of  of   -lede lederr  mixes mixes  the oods oods  of  -lede lederr  'ith his his  o'n o ood ods s  in such a 'a# that it $ecomes $ecomes  imposs impossi$le i$le to sepa eparrate them/ it is is  the dut# of  of   -ledee to compens compensate -lede lederr  f or the loss loss of  oods  oods. >& >&   "uty  "uty to re retu tur rn goo goos s 3t is  the dut# of  of   -ledee to retu eturrn the oods oods  to -lede lederr  as  soon as as  the purrpo pu pos se of   plede is is accompli  accomplis shed. 3f   he f ails ails  to retu eturrn oods oods  at speci pecif  f ied ied time he is is  respon pons si$le to compens compensate -lede lederr f or the loss loss.. E(ample ple 0li pleded pleded  his his  ho hors rse e to ,ilal f or  t'o 'o   months months  $ut ,ilal does does  not retu eturrn the hors ho rse e af ter ter  t'o months months. 6he hors horse e dies dies  af ter ter the per period of  $ailment   $ailment 'ithout an# f ault ault of  of  ,ilalHs   ,ilalHs pa  parrt. ,ilal is is lia$le f or the loss loss..

 

Q#1> wat is te ifference  between sale an agreement to  sell 4asis

Sale  6he pr prope operrt# of  of  oods  oods 

1& 1&   Tra ransf  nsf er er of   pro rop per ertty )& )&   Tra ransf  nsf er er of   own wner ers# s# *& *&   Type of   goos goo s

pass pa sse es from from the selle ellerr to th the $u#er immediatel#. $u#er 4'ne 4' ners rship hip of  of  the  the oods oods i  is s  tran ansf  sf erred rred immediatel# af ter ter the sale 0 sale can on onl# $e in cas case of  exis  existin and speci pecif  f ic ic oods ood s onl#.

Agreement to sell  6he tr tran ansf  sf er o  of  f   pr prope operrt# of  the  the oods oods i  is s to take place at a f utur uture time. 4'ne 4' ners rship hip of  of  oods  oods  does doe s no chane until the pr prope operrt# is is  0n ar areement to sell is is  mos mo stl# in cas case of  of  f utur uture and continent oods oods.

if  the  the +& +&   <is0  of  lo loss ss   3n sale the if  oods ood s a  arre des destro#ed/ the entir entire loss loss i  is s  ellerr cannot ,& ,&   <ig ig#t #t  to re re  H  3n a sale the selle sell re M sell the oods oods 8& 8&   9atu ture re  of   rig#ts rig #ts

:& :&   4reac 4reac# #

 

;& ;&   Ins Insol%e ol%en nc

3n an ar areement to sale the 'hole loss loss i  is s su ered $# the selle ellerr 3t iis s me  merrel# a contr contract the $u#err can sue the selle $u#e ellerr f or  damaes damae s in cas case of  of  re M sale  6he $u#er $u#er $ecome  $ecomes s the  6he $u#e $u#err doe  does s not o'ne nerr of   of  oods  oods. 3f  the  the selle ellerr  $ecome $ecomes s the o' o'ne nerr o  of  f  oods  oods ref uses to deliver deliver the oods oods and he can onl# sue f or the the $u#er $u#er can sue f or the damaes damae s 3f  the  the $u#er $u#er f ails ails to pa# the 3n an ar areement to sale/ if  if   price the selle ellerr can sue f or  $u#err  f ails $u#e ails to pa# the selle ellerr  the recove ecoverr# of  of   pr price can sue f or the damaes damaes not f or the recove ecoverr# of  of   pr price

1?& 9atu 1?&  ture re  of  

3f  the  sthe selle ellerthe r $ecome  $ecomes   ins in olvent/ $u#ers can $u#er recove ecoverr the oods oods from from o icial icial receive eceivers rs o  of  f  selle ellerr  $ecaus $ecau se $u#er $u#er is  is the o' o'ne nerr  3f  the  the $u#er $u#er $ecome  $ecomes s  ins insolvent and the pr price of  of   oods ood s is  is paid than his his leal rep eprresentative can demand the oods oods from from the selle ellerr. 3f   price of  of  oods  oods is  is not paid/ 0 sale is is an executed

if  $u#er  $u#e r ha  has sthe  paid the price of  of  ood oods s and selle eller r  pr $ecomes $ecome s in  ins solvent/ he can recove ecoverr the pr price of  of  oods  oods  $ut he cannot recove ecoverr the 3f  the  the selle ellerr $ecome  $ecomes s  in ins solve olven nt $ef  $ef ore the pa#ment of  of  oods  oods than the selle ellerr can ref use to sale oods ood s until the pr price is is  paid $# the leal 0n ar areement to sale

goos goo s

contrract cont

is an executor executor#

y of  seller

>& >&   Insol%en Insol%e nc y of  bu buyer yer

 

-ae 52

 

Q#)? /at are te rigts of  an unpai seller 3npai seller 0n unpaid selle ellerr is  is a pers person/ on/ 'ho has has sold the oods oods f or a pr price/ $ut the price has has not $een paid to him or or the ins instrument 'hich 'as iven to him has has di  dis shono honorred.

<igts of  unpai seller 0n unpaid selle ellerr ha  has s the f ollo' ollo'in riht ihts s 0. iht aain aains st oods ood s ,. iht aains aain st $u#er $u#er

A&  <igt against goos 1& 1&   <ig#t ig#t  of  lie lien n 0n unpaid selle ellerr  ha has s  the riht to stop the deliver deliver# of   oods oods  and to keep the oods oods  in his  proce ocess ssion ion until the pr price is is  paid. 3f   he has has deliverred a par delive part of  of  oods  oods/ he can stop the deliver deliver# of  of  remainin oods oods. 1elle ellerr can exer exercis cise the riht of  of  lien  lien in the f ollo' ollo'in cas casesJ i. When the oods a  arre sold on cas cash ii. When the oods a  arre sold on cr credit and per period of  of   cr credit has ha s $een expir expired iii. iii. Wh When en tthe he $u $u#e #err $ecome  $ecomes s in  ins solvent <ule <u les s regar regar ing lie lien n 5ollo ollo' 'in ar are the rule ules s rea earrdin the lien of  of  oods  oods. i. When the oods a  arre in the pr proce ocess ssion ion of  of  selle ellerr ii. 6he selle ellerr can us use the riht onl# f or the pr price/ not f or  the other other cha  charre es s iii. 3f  the  the selle ellerr ha  has s delive  deliverred a par part of  of  oods  oods/ he can retain the reminde eminderr Example a. 0 sell ells s hi  his s ca  carr to $ f or   s s. 1((/((( to $e paid in cas cash. , f ails ails to make mak e the pa#ment. 0 can retain the pr proce ocess ssion. ion. $. 0  sold a machine to , f or  s. 2(((/ it 'as  not 'orkin pr prope operrl# so , deliver delivered it $ack to 0 f or repai epairs rs// it 'as held that 0 could not stop the deliver deliver#.

 

-ae 53

 

)& )&   <ig#t ig#t  of  st sto opp ppage age  of  goo goos s  in tra rans nsiit When the $u#e u#err  f unds unds that the $u#er $u#er $ecame ins insolvent then he has has the riht of  of   stoppin the oods oods in tr tran ans sit.  6he selle ellerr can us use this this riht in the f ollo' ollo'in cas cases a. When the ood oods s a  arre still in tr tran ans sit $. When the prope operrt# has has not pass passed ed to the $u#er $u#er c. When the $u#e $u#err  $ecomes $ecome s in  ins solvent d. When the selle ellerr ha  has s riht of  of  toppin  toppin of  of  oods  oods in tr tran ans sit *& *&   <ig#t ig#t  of  re res sale 0  selle ellerr ha  has s the riht to resale the oods oods i  if  f  the   the $u#er $u#er doe  does s not pa# the price of  of  oods   oods. 1elle ellerr can us use this this riht in f ollo' ollo'in cas cases a. When the ood oods s  are of   pe perrish sha$le a$le natur nature and the $u#er $u#er  f ails ails  to pa# the rice 'ithin rea eas sona$le time $. When the selle ellerr ha  has s iven the notice of  of  his  his intention to resale c. When he riht to resale is is exp  exprress ssed ed in contr contract $et' $et'een the par partie ties s.

4&  <igt against buyer 1& 1&   Price 3f  the  the selle ellerr ha  has s delive  deliverred oods oods and $u#er $u#er f ails ails to pa# the pr price of  of  oods   oods.  6he selle ellerr ha  has s riht to sue f or the pr price of  of  oods  oods. Example 0 1old oods oods to ,/ , f ails ails to pa# the pr price. 0 can sue , f or the recove ecoverr# of  of   pr price )& )&   "amage ages s f or  or non acce accept pta ance When the selle ellerr ha  has s delive  deliverred the oods oods and the $u#er $u#er  ref uses to accept them. 6he selle ellerr  has riht to sue f or the recove ecoverr# of  of  damaes  damaes. Example 0  sold and deliver delivered oods oods to ,/ $ut , ref uses to accept the oods oods and pa# the pr price. 6h 6he selle ellerr ha  has s riht to sue f or the recove ecoverr# of  of  damaes  damaes *& *&   Sp Special ecial  amage ages s an n  int ntere erest st 3f  the  the $u#er $u#er f ails ails to make the pa#ment at ar areed time $ut he 'ill pa# late.  6he selle ellerr ha  has s riht to sue f or the recove ecoverr# of  of  inter  interest at rea eas sona$le rate. Example 0 1old oods oods to ,/ , f ails ails to make pa#ment and pr promi omis sed to pa# later later. 0  has ha s riht to sue f or the recove ecoverr# of  of  inter  interest -ae 54

 

Q#)1 /#at are t# t#e e rig rig#ts #ts of  bu buyer yer in a co cont ntrac ractt of   sale 4uyers rigt  6he $u#e ollo'in riht ihts s aain  aains st the selle ellerr/ iif  f  the  the selle ellerr $  $rreache eaches s the contrr$u#er cont act. r has the f ollo' 1& 1&   "amage ages s f or  or non eli%ery  6he $u#er $u#er has riht to sue the selle ellerr f or damae  damaes s in cas case the selle ellerr  ref uses to deliver deliver the oods oods. E(amp E(a mple le 0 sale ales s ice to , $ut does does not deliver deliver them to the $u#er $u#er at ar areed time/ the $u#er $u#er ha  has s riht to sue f or the damaes damaes. )& )&   "amage ages s f or  or t# t#e e breac reac# # of  warra arrant nty y When the selle ellerr $  $rreache eaches s the contr contract of  of  'arr rrant#/ ant#/ the $u#er $u#er can sue f or  the damaes damaes i  if  f  he  he has has paid the pr price. ,ut if  if  he  he has has not #et paid the pr price/ then he can claim f or the reduction in price. E(amp E(a mple le 0 p  prromi omis ses to sell and deliver deliver the ta$les ta$les to , on 15 Covem$e ovem$err/ $ut he deliverred the oods delive oods on 25 Covem ovem$ $er/ the $u#er $u#er can recove ecoverr damae  damaes s  fr from om selle ellerr. *& *&   4re 4rea ac# of  co con niitio ion n When the selle ellerr $  $rreache eaches s the condition of  of  contr  contract/ the $u#er $u#er can ter terminate contr contract and claim damaes damaes. E(amp E(a mple le 0 p  prromi omis ses to sell Cokia phone to ,/ $ut he deliver delivered  Bo$ile. 6he $u#err can avoid contr $u#e contract. +& +&   <ec eco o%ery %ery  of  price rice  wit# t#  int ntere erest st 3f  the  the $u#er $u#er ha  has s paid the pr price $ut selle ellerr f ails ails to deliver deliver the oods oods/ the $u#err ha $u#e  has s riht to recove ecoverr the pr price 'ith inter interest at rea eas sona$le rate. E(amp E(a mple le 0 p  prromi omis sed to $u# 'heat from from , and make the pa#ment in advance/ $ut , f ails ails to deliver deliver the 'heatJ the $u#e u#err can claim pr price plus plus inte  interrest.

 

-ae 55

 

Q#)) w# w#a at are t# t#e e rule les s regar regar ing t# t#e e  eli%ery of  goo goos1 s1 !r w# w#a at are t# t#e e 0 ins of   eli%ery "eli%ery Delive eliverr# means means volunta  voluntarr# tr tran ansf  sf er of   of   pr proce ocess ssion ion of  of  oods  oods $# one pers person on to anotherr pe anothe  pers rson. on.

=oes $ 0ins of  eli%ery 5ollo ollo' 'in ins s a  arre the kinds kinds of   of  deliver  deliver# 1& 1&   Actu tual al  eli%ery When the pr proce ocess ssion ion of  of  oods  oods is  is t  trran ansf  sf err rred ed fr from om $u#er $u#er to selle ellerr/ it is is called actual deliver deliver#. Example 0 sold his his ca  carr to ,. 0 handed over over the car car to ,/ it is is actual deliver deliver#. )& )&   Symb mbolic olic  eli%ery When the o ood ods s a  arre sold in $ulk and the actual deliver deliver# is is not poss possi$le/ i$le/ in such a cas case the contr control over over ood  oods s is  is t  trran ansf  sf err rred ed to the $u#er $u#er/ it is is  called s#m$olic deliver deliver#. Example 0 sold oods oods in $ulk to , 'hich ar are locked in odo' odo'n. 0 handed over over the ke# of  of  )odo odo' 'n to ,/ it called s#m$olic deliver deliver#. *& *&   Const nstr ructi%e i%e  eli%ery When pr proce ocess ssion ion of  of  oods  oods chaned 'ithout an# chane in the actual cus cu stod# of  of  the  the oods oods/ it is is called cons constructive deliver deliver# Example 0 1old rice to , l#in in :Hs :Hs odo  odo' 'n. 0 or  orde ders rs :  : to tr tran ansf  sf er rice to ,. : tran ansf  sf ers rs the  the rice in his his $ook  $ooks s to ,. <ule <u les s of  t# t#e e eli%ery eli%ery  of  goo goos s 1& 1&   "uty "uty  of  seller eller  an n  bu buyer yer 3t iis s the dut# of  of  the  the selle ellerr to sell the oods oods and $u#er $u#er to accept oods oods and pa# the pr price. Example

0 sold oods oods to , f or   1 1 3((. 3t is is the dut# of  of  0 to deliver deliver the oods oods and , is respon pons si$le to pa# s s 4(( to 0.

 

-ae 5!

 

)& )&   Place  Place of  eli%ery  6he oods oods mu  mus st $e deliver delivered at a place 'hich is is stated in contr contract. *& *&   Tim Time of  eli%ery 3t iis s the dut# of  of  selle ellerr to deliver deliver the oods oods 'ithin the f ixed ixed time. 3f  time  time is not f ixed/ ixed/ than deliver deliver# should $e made 'ithin rea eas sona$le time. +& +&   E( E(p pens nse es of  eli%ery Expenses of  Expens  of  deliver  deliver# of  of  oods  oods mu  mus st $e $ear $ear $# the selle ellerr o  orr acco  accorrdin to the arreement. a ,& ,&   Inst Install allm ment nt  eli%ery  6he $u#er $u#er i  is s not $ound to take the deliver deliver# of  of  oods  oods in ins installment unless unless it  it 'as a  arreed 8& 8&   /ro /ron ng eli%ery When the o ood ods s delive  deliverred to the $u#er $u#er a  arre not in accor accordance 'ith oods oods  speci pecif  f ied ied in contr contract/ the $u#er $u#er can re=ect the oods oods. :& :&   "eli%ery eli%ery  to carrier 3f  the  the oods oods a  arre deliver delivered to carr carrie ierr f or t  trran ansf  sf er to $u#er $u#er/ it is is deemed the deliver deliver# to the $u#er $u#er. ;& ;&   Proce Process ssio ion n of  goo goos s  by t# t#ir ir  per ers son 3f  at  at the time of  of  sale the oods oods a  arre in pr proce ocess ssion ion of  of  thir  third pers person. on. 6her 6here is is  no contr contract until th that thir third pers person on ackno' ackno'lede ledes s the $u#er $u#er that he holds holds  the oods oods on his his $ehal  $ehalf  f . >& >&   "eman n  of  eli%ery ,u#er should demand f or the deliver ,u#er deliver# of  of  oods  oods/ other' other'iise he cannot $lame selle ellerr f or the deliver deliver# of  of  ood oods s. 1?& Eff ects 1?&  ects  of  par artt eli%ery When a par part of  of  oods  oods is  is t  trran ansf  sf erred rred to $u#er $u#er 'ith the intention to deliverr the rest of  delive of  oods  oods al  als so/ the o' o'ne ners rship hip in the 'hole of  of  the  the oods oods  is deemed to pass pass to  to the $u#er $u#er. 11&   =o 11& =o e of  eli%ery  6he deliver# deliver# o  of  f  oods  oods can $e made $# an# of  of  the  the 'a# a#s s on 'hich the par partie ties s  arree. a 1)&  Lia 1)& Liab bilit ility in ca cas se of  re refus fusiing to ta0 e eli%ery eli%ery  of  goo goos s 3f  selle ellerr delive  delivers rs the  the oods oods to $u#er $u#er and $u#er $u#er ref uses to take the deliverr# of  delive of  oods  oods 'ithout an# rea eas son. 6he $u#er $u#er i  is s lia$le f or the damaes damae s. 1*&  E(a 1*& E(am mining t# t#e e goo goos s

When the o ood ods s a  arre deliver delivered to the $u#er $u#er/ the $u#er $u#er should $e iven a rea eas sona$le time f or the examination of  of  oods  oods.

 

-ae 5"

 

Q#)*  w# w#a at  are  t# t#e e  rig rig#ts #ts  ut utie ies s  an  liab lia bili ilittie ies s  of   a co comm mmo on carrier "efinition 0  common carr carrie ierr  is  an ass ssociation ociation or or   pe pers rson on 8othe otherr  than the overrnment ove nment99  'ho ar aree ees s to carr carr# # oods oods on hir hire to tr tran ansf  sf er the oods oods  fr from om one place to another another place.

<igts of  common carrier 1& 1&   <emun munera erattion ion 0  common carr carrie ierr  has has  riht to receive remune emunerration f or  the 'ork perf  pe rf ormed. 3f   the remune emunerration have not $een ar areed than he has has riht to receive rea eas sona$le remune emunerration )& )&   <ig ig#t #t  of  lie lien n 0 common carr carrie ierr ha  has s riht to retain the oods oods until the char chare es s o  of  f  hir  hire ar are paid. *& *&   <ig ig#t #t  to reco%er reco%er  e( e(p pens nse e 3f   the carr carrie ierr  ha has s  incurr incurred ed some expen expens ses  f or  the saf et# et# of  of   oods oods/ 6he carr ca rrie ierr  ha has s  riht to recove ecoverr such expens expenses +& +&   <ig ig#t #t  to reco%er reco%er  amage ages s 0  common carr carrie ierr  ha has s  riht to recove ecoverr  damaes damaes  arisin due to cons con sino inorHs rHs   nelience. 5or  example if  if   the oods oods  are not pr prope operrl# packed and the carr carrie ierr  su er  in=ur in=ur# from from them/ the carr carrie ierr can recove ecoverr damaes damae s ,& ,&   <ig ig#t #t  to sell ell  goo goos s  6he carr carrie ierr ha  has s riht to sell oods oods if   if  the  the cons consinee ref uses to receive the oods ood s and the oo oods a  arre of  of  per  perisha$le natur nature. 8& 8&   <ig ig#t #t  of  re refus fusal al  6he common carr carrie ierr ha  has s riht to ref use to carr carr# # the oods oods unde  underr the f ollo' ollo'in ci cirrcum cums stance tances s i. When the oods a  arre not prope operrl# packed iiii. When tth he carr ca rriae iae is is f ull ull iii. When the oods a  arre of  of  such natur nature 'hich he does doe s not carr carr# # iv. When the con cons sino inorr i  is s not paid rea eas sona$le char chare es s :& :&   <ig ig#t #t  to gi%e gi%e  co con nce cess ssio ion n 0 commo  common n  ca carr rrie ierr  ha has s  riht to ive concess concession ion to an# pers person on ho' ho'eve everr  he cannot char chare an unr unrea eas sona ona$ $le char chare es s fr from om an# cus custome tomerr

;& ;&   <ig ig#t #t  to li lim mit #is lia liab bilit ility

 

0 common carr carrie ierr ha  has s riht to limit his his lia$ilit# $# enter enterin into a special arreement 'ith th a the cons consino inorr.

-ae 5%

 

>& >&   <ig ig#t #t  of  reco%ery reco%ery  of  goo goos s 0 common has has  riht to recove ecoverr the pr price or or ood  oods s  fr from om the pers person on 'ho has ha s  'r 'ron onf  f ull# ull# take the delive deliverr# of  of  oods  oods

"uties of  a common carrier 1& 1&   Carry arry  goo goos s 3t iis s the dut# of  of  common  common carr carrie ierr to carr carr# # the oods oods o  of  f  all  all pers person ons s  accorrdin to his acco his p  prrof ess ssiion. 3f  the  the cons consino norr i  is s pa#in rea eas sona$le amount/ he cannot ref use to carr carr# # oods oods. )& )&   Tra Transp nspor orttatio ion n of  goo goos s 3t iis s the dut# of  of  carr  carrie ierr to tr tran ans spo porrt oo oods on hir hire fr from om one place to another another  place. *& *&   "eli%ery eli%ery  of  goo goos s 3t iis s the dut# of  of  common   common carr carrie ierr to deliver deliver ood  oods s in time. 3f  time  time of  of   deliverr# is delive is not mentioned in the contr contract the carr carrie ierr i  is s $ound to deliver deliver the oods ood s 'ithin the rea eas sona$le time. +& +&   "eli%ery eli%ery  to t# t#e e rig rig#t #t  per ers son 3t is  the dut# of  of   ca carr rrie ierr  to deliver deliver  the oods oods  to the riht pers person/ on/ if  if   he 'ron 'r onf  f ull# ull# delivers delivers   oods oods  to the other other  pe pers rson on then it is is  the dut# of  of  common carr carrie ierr  to et $ack the oods oods  and deliver deliver  th them em tto o th the e riht pers pe rson. on. ,& ,&   Saf ety of  goo goos s 3t iis s the dut# of  of  common  common carr carrie ierr to deliver deliver the oods oods saf el#/ el#/ common carr ca rrie ierr i  is s respon pons si$le f or the loss loss to  to th the oods oods ar  arisin due to him. 8& 8&   !bey ey  inst nstr ruction ion 3t iis s the dut# of  of  common   common carr carrie ierr to o$e# the ins instruction uctions s o  of  f  cons  consino inorr  rea earrdin the deliver deliver#/ 'hen the oods oods a  arre in tr tran ans sit. :& :&   "eli%ery eli%ery  at rig rig#t #t  place 3t iis s the dut# of  of  common  common carr carrie ierr to deliver deliver the oods oods to the pers person on speci pecif  f ied ied $# the cons consino inorr.

Liabilities of  common carrier 1& 1&   Lia Liab bilit ility f or  or elay 0 common carr carrie ierr is  is lia$le f or the damaes damaes ar  arisin due to the dela# in deliver deliver# of  oods  oods )& )&   4reac 4reac# # of  ut uty y 0 ca  carr rrie ierr i  is s al  als so respon pons si$le f or the loss loss a  arrisin due to the $r $reach of  of  an#  an# dut#. *& *&   Lia Liab bilit ility of  loss loss

0 ca  carr rrie ierr i  is s al  als so lia$le f or the loss loss cau  caus sed to oods oods 'hile it is is in his his cu  cus stod#

 

-ae 5&

 

Q#)+ /at is te i5erence between  common carrier an pri%ate carrier 4asis 1& 1&   Act

Common carrier  6he common carr carrie iers rs act/  act/ 1%!5

)& )&   <eg egu ular busiiness bus

overns a commo over common carr carrie ierr 0 common carr carrie ierr ca  carr rrie ies s the oods ood s

as re ular $u  $us sine iness ss to  to ear earn carrie ierr ca  carr rrie ies s  *& *&   Per Pers sons   0 common carr

+& +&  

Pri%ate carrier 0 p  prrivate carr carrie ierr i  is s ove  overrned $# contrract act/ 1%"2. cont 0 p  prrivate carr carrie ierr ca  carr rrie ies s the oo o ods not as a re ular $u  $us sine iness ss.. 0 p  prrivate carr carrie ierr ca  carr rrie ies s the

the oods oods of   of  all  all the pers person ons s.

oo o ods o  of  f  a  a par particula ticularr pe  pers rson on

0 common carr carrie ierr cannot

0 p  prrivate carr carrie ierr can re=ect

<e .ec  .ecttio ion n re=ect the o  o er of   of  oods  oods f or    common carr carrie ierr ref uses  ,& ,&   "amage ages s   3f   common

the off  off er 'ithout an# rea eas son 0 p  prrivate carr carrie ierr cannot $e

to carr carr# # the oods oods 'itho ithou ut

sued f or the damaes damaes on his his 

an# suff icient icient rea eas son/ he

ref usal to carr carr# # oods oods

can $e sued and made lia$le f or d  da ama es 0 common carr carrie ierr ca  carr rrie ies s the oods ood s

0 p  prrivate carr carrie ierr ma# carr carr# # the oods ood s

:& :&   Ter erms ms

f or hi  hirre 8rent 8rent99 :ommon carr carrie ierr ha  has s f ixed ixed

f or hi  hirre or or fr free ee 0 p  prrivate carr carrie ierr dete  deterrmine mines s the

;& ;&   Eff ects ects

te terrm of  of  carr ca rriia e of   ood oods s 0 common carr carrie ierr is  is eff   eff ected ected

ter terms of  carr  carriia e of   ood oods s. 0 p  prrivate carr carrie ierr i  is s not aff  aff ected. ected.

8& 8&   Fire

 

on 

$# the chane in rule ules s and

busiines bus

reulation of  of  over  overnment

-ae !(

 

Q#), w# w#a at are ut utie ies s an lia liab bili ilittie ies s of   a rail railw way as a carrier /#at are t# t#e e ut utie ies s an lia liab bili ilittie ies s of  a  railw rail way as a bailee of  goo goos s  Liabilities of  railway 1& 1&   Lia Liab bilit ility u ue e to elay ail'a# is ail' is lia$le f or the loss loss o  of  f  oods  oods a  arrisin due to the dela# in deliver deliver#. 5or example if  if  the  the oods oods 'ere of  of  per  perisha$le natur nature and $ecome us usele eless ss   due to the dela# in deliver deliver#/ rail ail' 'a# is is lia$le f or such loss loss )& )&   Lia Liab bilit ility u uri rin ng tra rans nsiit When the o ood ods s a  arre cons consined at rail ail' 'a# a#Hs Hs  risk then it is is the lia$ilit# of  of   rail ail' 'a# to $ear $ear lo  loss ss occu  occurr rrin in dur durin tr tran ans sit When the o ood ods s a  arre deliver delivered at o' o'ne nerHs rHs  risk than the rail ail' 'a# is is not respon pons si$le f or such loss loss *& *&   Lia Liab bilit ility f or  or wro ron ng eli%ery 3f  the  the oods oods a  arre deliver delivered to the 'r 'ron on pers person on the rail ail' 'a# is is  respon pons si$le to et $ack the oods oods and deliver deliver them to the riht pers pe rson on +& +&   Lia Liab bilit ility as carriage carriage  of  animals als 3n cas case of  of  animals  animals the lia$ilit# of  of  rail ail' 'a# shall not exceeds exceedsK s. 5(((( per per elephant s. 1(((( per per ho  hors rse e s. 15((( per per mule or or ho  horrned cattle s. 1((( per per do/ donke#/ oat/ pin or or othe  otherr animal. ,& ,&   Carriage arriage  of  pass sse enger gers s  luggage ail'a# is ail' is not respon pons si$le f or an# loss loss to  to the luae of  of  pass  passene enerr unle  unless ss   luae is is $ooked. 8& 8&   Acci cci ent nt  of  pass sse enger When a pass passene enerr die  dies s or  or is  is in=u  in=urred due to the tr train accident. 6he rail ail' 'a# is is respon pons si$le to pa# s s. 1((/((( to the heirs heirs o  of  f  deceas  deceased pers pe rson on and s s 1(/((( to the in=ur in=ured pers person. on. :& :&   Acci cci ent nt  of  per ers son ot# t#er er  t# t#a an pass sse enger

-ae !1

 

3f  the  the pers person on other other than pass passene enerr die  dies s or  or i  is s in=u  in=urred/ 6he rail ail' 'a# is is  respon pons si$le to pa# s s. 1((/((( to the heirs heirs o  of  f  deceas  deceased pers person on and s s  1(/((( to the in=ur in=ured pers person. on. ;& ;&   Lia Liab bilit ility f or  or t# t#e e %al %alu uable  le goo goos s  6he rail ail' 'a# a#s s i  is s not respon pons si$le f or the loss loss o  of  f  an#  an# par parcel the value of  of   'hich exceeds exceeds   s s. 1(((( unless unless the  the pers person on sendin the oods oods ha  has s  declarred the value of  decla of  oods  oods >& >&   oo oos s  f als alsely ely  escri crib b e 0 rail ail' 'a# is is not respon pons si$le f or the loss loss i  if  f  the  the oods oods have $een f als alsel# des descri$ed.

"uties of  railway ;& ;&   Carry arry  goo goos s 3t iis s the dut# of  of  rail ail' 'a# carr carrie ierr to carr carr# # the oods oods on hir hire fr from om one place to anotherr place anothe >& >&   "eli%ery eli%ery  of  goo goos s 3t iis s the dut# of  of  rail ail' 'a# carr carrie ierr to deliv deliver ood  oods s in time. 3f  time  time of  of  deliver  deliver# is not mentioned in the contr contract the carr carrie ierr i  is s $ound to deliver deliver the oods oods  'ithin the rea eas sona$le time. 1?&  "eli%ery 1?& eli%ery  to t# t#e e rig rig#t #t  per ers son 3t iis s the dut# of  of  carr  carrie ierr to deliver deliver the oods oods to the riht pers person/ on/ if  if  he  he 'ron 'r onf  f ull# ull# delivers delivers ood  oods s to the other other pe  pers rson on then it is is the dut# of  of   common carr carrie ierr to et $ack the oods oods and deliver deliver them to the riht pers pe rson. on. 11&  Saf ety of  goo 11& goos s 3t iis s the dut# of  of  rail ail' 'a# carr carrie ierr to deliv deliver the oods oods saf el#/ el#/ rail ail' 'a# carr carrie ierr  is respon pons si$le f or the loss loss to  to th the oods oods a  arrisin due to rail ail' 'a# a#Hs Hs   nelience. 1)&  !bey 1)& ey  inst nstr ructio ion n 3t iis s the dut# of  of  common  common carr carrie ierr to o$e# the ins instruction uctions s o  of  f  cons  consino inorr  rea earrdin the deliver deliver#/ 'hen the oods oods a  arre in tr tran ans sit. 1& 1&   "eli%ery eli%ery  at rig rig#t #t  place 3t iis s the dut# of  of  common  common carr carrie ierr to deliver deliver the oods oods to the pers person on speci pecif  f ied ied $# the cons consino inorr. )& )&   "eli%ery eli%ery  at rig rig#t #t  place 3t iis s the dut# of  of  common  common carr carrie ierr to deliver deliver the oods oods to the pers person on speci pecif  f ied ied $# the cons consin inor or..

 

Q#)8 /at is te i5erence between bill  of  laing an cartere party 4asis 1& 1&   9atu ture re

4ill of  laing

Cartere party

a $ill of  ladin  ladin is is an evidence

0 cha  charrter tered par part# is is a

of  receipt of  of  oods  oods on )& )&   Tit Title

 

0 cha  charrter tered par part iis s not a

document of  of  title  title of  of  

document of  of  title  title of  of  

tran ansf  sf era$le $#  

,& ,&   Sets

8& 8&   Pay Paym ment

:& :&   St Sta amp mpiing

hi hirrin of  of  the  the ship

0 $ill of  of  ladin  ladin is is a

*& *&   Tra Transf  nsf erab erabilit ility   0 $ill of  of  ladin  ladin is is

+& +&   Purpose

contrract relatin to the cont

0 cha  charrter tered par part# is is not tran ansf  sf era$le

0 $ill of  of  ladin  ladin is is al  al' 'a# a#s s  0 cha  charrter tered par part# ma# f or $e f or

 

0  $ill of  of  ladin  ladin is is d  drra'n in  

 

  par 0 cha  charrter tered part# is is not dra'n in sets ets

  5r 5riht iht is is ene  enerrall#

5r 5reiht eiht is is paid af  af ter ter 

paid in advance

the saf e deliver deliver# of  of  

3t ma# ma# or  or ma#

3t iis s al  al' 'a# a#s s stamped

not $e stamped

 

-ae !3

 

Q#): wat are te types of  crossing of   Ceque Types of  crossing 5ollo ollo' 'in ar are the t#pes t#pes of   of   cr cross ssin in of  of  che*ue  che*ue 1. )ene enerral cross ssin in 2. 1pecial cr cross ssin in 3. 0cc cco ount unts s pa#ee or or restrictive cross ssin in 4. Cot neotia$le cross ssin in

1&  eneral crossing )ene enerrall# a che*ue can $e cr crossed ssed 'henJ i. 6here ar are t' t'o tr tran ans sve vers rse e par parallel lines lines/ mar marked acrross ac ss it  its s f ace ace or or ii  ii. 6he che*ue $ears an rs an a$$rreviation OGcoP $et' a$$ $et'een t' t'o lines lines  or iii. 6he che*ue $ears the rs the 'ords Onot neotia$leP $et' $et'een t' t'o lines lines iv. 6he che*ue $ears the rs the 'ords O  O0 07c/ pa#eeP $et' $et'een t' t'o par parallel lines lines o  orr 0 c  crross ssed ed che*ue can $e made $ear $earer che*ue $# cancellin the cr cross ssin in and 'r 'ritin itin that the cr crossin ssin is is cancelled and aff  aff ixin ixin the f ull ull sinatu inaturre of  of  dra'er.

)&  Special crossing When a par particula ticularr $ank  $ankQs Qs name  name is is 'r 'ritten itten in $et' $et'een the t' t'o par parallel lines line s the che*ue is is said to $e speciall# cr cross ssed. ed. $c&  Payee Payee  !nly lyRR/ R9ot  3n addition to the 'ord $ank/ the 'ords RA$c& 9ego egottia iab bleR leR ma# als also $e 'r 'ritten. itten. 6he pa#ment of  of  such che*ue is is not made unless unless the  the $ank named in cr cross ssin in is is p  prresentin the che*ue. 6he e ect ect of  of  sp special ecial cr cross ssin in is is that the $ank makes makes pa#ment onl# to the $anker 'ho $anker hos se name is is 'r 'ritten itten in th the cr cross ssin. in. 1peciall# cr cross ssed ed che*ues che*ues  are saf er than ener enerall# cr crossed ssed che*ues che*ues.

 

-ae !4

 

*&  Account payee or restricti%e crossing  6his c  6his  crross ssiin can $e made in $oth ener eneral and special cr cross ssin in $# addin the 'ords O  O0 0ccount pa#eeP. 3n this this t#pe of  of   cr cross ssin in it $ecomes $ecomes the dut# of  collectin  collectin $ank to cr credit the amount of  of  che*ue  che*ue to the account of  of  the  the pa#ee named in the che*ue.

+&  9ot negotiable crossing  6he 'ord Onot neotia$le can $e added to the ener eneral as as 'ell as as special cross ssin. in. 3t can $e tr tran ansf  sf erred rred $# pa#ee. 6he tr tran ansf  sf eree 'ill et the same riht ihts s/ as as rea earrds pa#ment/ as as the tr tran ansf  sf eror had.  6he o$=ect of  not  not neotia$le che*ue is is to pr provide pr protection to the holder holder  or d  drra'er o  of  f  a  a che*ue $ecaus $ecause even if  if  such che*ue oes oes to the 'r 'ron on hands hand s/ the tr true o' o'ne nerr 'ill not los lose his his claim.

-ae !5

 

Q#); /#at  is  t# t#e e  i5 eren erence  betw twee een n  c#equ que e  bill ills s  of   e(c e(c# #ange an pro rom miss ssory ory note 4as 4a sis

 

4ills of  4ills e(c# e(c #an

,ills of   of  exchane  exchane is is 1 "ef inition ion ,ills an ins instrument in 'ritin 'r itin 'hich contains contain s or  orde derr of   of   pa#ment $# case of  of  $ill  $ill of  of   ) par artties ies   3n cas exchane ther there ar are thr hree ee par partie ties s/ dra'er d  drra'ee and 0cceptance $# *  Acce ccept pta ance dra'ee is is  necess nece ssa ar#.

Prom Pro miss ory note

-r -romi omiss sso or# note is is  an ins instrument in 'hich de$tor de$tor  promi omis ses to pa# a cerrtain amount to ce 3n cas case of  of   promi omiss sso or# note therre ar the are t' t'o parrtie pa ties s make  makerr and  6herre is  6he is no need of  of   acceptance

C#e C# equ que e :he*ue is is an in ins strument 'hich is is  used to 'ithd ithdrra'  mone# fr from om $ank

+  ,ills of  ,ills  of  exchane  exchane -r -romi omiss sso or# note "isco count untiing can $e dis discounted cannot $e  6hrree r  6h race da#s da#s   6hree r  6hr race da#s da#s  , race race   ays are allo' allo'ed to make are allo allo' 'ed to make pa# pa #ment pa#ment 8 Area   -romi -romiss sso or# note -r -romi omiss sso or# can $e inland or or  note is is  of  1tamp on -astin of  of   : st sta amp   -astin of  $ills $ill s of   of  exchane  exchane is is  1tamp on

3n cas case of  of  che*ue  che*ue therre are thr the three parrtie pa ties s  depos deposito itorr/ $ank and pa#ee 3n cas case of  of  che*ue  che*ue therre is the is no need of  of   acceptance/ as as it is is  orde derr $# the :he*ue cannot $e 3n cas case of  of  che*ue  che*ue no r race da#s da#s ar  are allo' allo 'ed f or  :he*ue is is d  drra'n on onl# depos deposito itorHs rHs   Co stamp is is  re*ui e*uirred to pas paste

leall# re*ui e*uirred 3t iis s an unconditional orde derr f or makin case of  of  ,ills  ,ills of   of   > lia liab bilit ility   3n cas exchane it is is the lia$ilit# of  of   dr dra'ee to make the pa#ment 1?   1? Cotin char chare es s a  arre paid in cas case of  of   9oting  dis di shono honorr of   of  $ills  $ills of   of   c#arge

on che*ue :he*ue is is an unconditional orde derr f or makin 3n cas case of  of  che*ue  che*ue it is the lia$ilit# of  of   $ank to make pa#ment Cotin char chare es s ar  are not paid in cas case of  of   di dis shono honorr o  of  f  che*ue  che*ue

; 9atu ture re

 

-ae !!

promi omiss sso or# note   3t iis s an unconditional promi omis se f or 3n cas case of  of   promi omiss sso or# note it is the lia$ilit# of  of   dra'er to make Cotin char chare es s ar  are not paid in cas case of  of   dis di shono honorr o  of  f  

 

0 $ill  $ills s of   of  exchane  exchane can $e dr dra'n on simple or or p  prrinted paperr pape

0 p  prromi omiss sso or# note can $e dr dra'n on simple or or p  prrinted paperr pape

0 che*ue is is al  al' 'a# a#s s  dra'n on pr printed paperr that is pape is  provided $# the $ank

-r -romi omiss sso or# note cannot $e cr cross ssed ed

:he*ue can $e cross ssed ed

3n cas case of  of   promi omiss sso or# note the dr dra'ee and the pa#ee ma# $e

3n cas case of  of  che*ue  che*ue the dr dra'er and the pa#ee ma# $e same pers pe rson on

3n cas case of  of  $ills  $ills o  of  f   exchane the dra'er i  is s  respon pons si$le to

3n cas case of  of  che*ue  che*ue the $ank is is  respon pons si$le to make pa#ment

3n cas case of  of  $ills  $ills of   of   exchane the people sho ho's 's le  less ss  

3n cas case of  of   promi omiss sso or# note people sho ho's 's le  less ss  

3n cas case of  of  che*ue  che*ue the people sho ho's 's   mor ore e conf  conf idence idence as as

conf idence conf  idence as as  comparred to the compa che ue -a#ment of  of  $ills  $ills of  exchane  exchane cannot $e

conf idence conf  idence as as  comparred to the compa che ch e ue an and d$ $il illls o  of  f   -a#ment of  of  promi omiss sso or# note cannot $e stopped

comparred to the compa $ills o $ills  of  f  exchane  exchane and romi omiss sso or   -a#ment of  of  che*ue  che*ue can $e stopped on the or orde ders rs o  of  f  

-a#ment per period is is  'ritten 'r itten on the note

:he*ue can $e cas ca shed 'ithin the perriod of  pe of  six months month s fr from om the

,ills ,ill s of   of  exchane  exchane is is

-r -romi omiss sso or# note is is

:he*ue is is mo  morre

less less u  us sed than che*ue and mor more used than the note

less less u  us sed than the $ills $ill s o  of  f  exchane  exchane and che*ue

popular than the popular $ill and note

Dra a'er of   of  $ill  $ill is is  1> "ra 1>  raw wer   Dr al' al'a# a#s s a selle ellerr

Dra'er o Dra  of  f  the  the note is is al  al' 'a# a#s s  $u#err $u#e

Dra'er o Dra  of  f  the  the che*ue is is al  al' 'a# a#s s an account holder holder

Dra a'ee of  of  $ills  $ills is  is  )? ra )?  raw wee   Dr al' al'a# a#s s a $u#er $u#er

Dra'ee of  Dra of  note  note is is  al' al'a# a#s s a selle ellerr

Dra'ee of  Dra of   che*ue is is 

11  11  Print Pri nte e  f orm orm

,ills of   of  exchane  exchane 1) Cro 1)  ross ssiing ,ills cannot $e cr cross ssed ed  

1* Payee 1* 

3n cas case of  of  $ills  $ills of   of   exhnae the dra'er and the pa#ee ma# $e

case of  of  $ills  $ills of   of   1+ "ef ault   3n cas 1+  exchane the dra'ee is is  respon pons si$le to 1, Trust 1, 

18  18  Sto St op  pay aym me

 

1: Perio 1:  Perio    -eriod f or makin pa#ment of  of  $ills  $ills of   of   exchane is is 'r 'ritten itten on it 1; 3s 1;  3se e

-ae !"

 

Q#)> /at are te requirements for te  registration of  trae union Trae union 3t iis s a continuous continuous a  ass ssociation ociation of  of  'ae ear earne ners rs  f or the pur purpo pos se of  of   maintainin or or imp  imprrovin the 'ork conditions conditions o  of  f  their  their emplo#ment.

or t#e registration of  trae union <equirement f or  1& 1&   App Applica licattion ion 5or the pur purpo pos se of  of  rei eis stration of  of   tr trade union it is is re*ui e*uirred to su$mit the application f or rei eis stration. 1uch application mus must $e sined $# the sec ecrreta etarr# and pr president of  of  union.  union.  6he application mus must contain the f ollo' ollo'in inf  inf ormationK  6he name/ occupation and add address ss o  of  f  the  the mem$ers mem$ers makin  makin application  6he name of  of  tr  trade union and the addr address ss o  of  f   its its head off  off ice ice )& )&   Const nstiitut tutio ion n :onstitution of  :ons of  the  the tr trade union contains contains in  inf  f ormation a$out the f ollo' ollo'in matters matte rs i&

9ame ' a re ress ss

 6he name and complete complete add addrress ss o  of  f  head  head o  o ice ice of  of  tr  trade union ii&

!b.ec b.ectt

 6he o$=ect f or 'hich the tr trade union is is f ormed iii&

3se 3s e of  funs

0ll pur purpo pos ses f or 'hich the f unds unds of   of   tr trade union 'ill $e us used af  af ter ter it  its s rei eis stration i%&

E(ecut uti%e i%e  memb mber ers s

 6he num$er num$er of   of  pers  person ons s 'ho 'ill f orm the executive $od# of  of  tr  trade union mus mu st als also $e 'r 'ritten itten in cons constitution %&

4enef its  ts to memb mber ers s

0ll thos those conditions conditions acco  accorrdin to 'hich a mem$er mem$er  is entitled to $enef  $enef it it must als mus also $e 'r 'ritten itten in cons constitution

 

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%i&

-ines to memb mber ers s

0ll thos those conditions conditions unde  underr 'hich a mem$er mem$er 'ill $e f ined ined and his his  mem$ers mem$e rship hip 'ill $e cancelled mus must $e 'r 'ritten itten in cons constitution. %ii&

List st  of  memb mber ers s

i is st of  of  mem$ers  mem$ers o  of  f   tr trade union mus must $e pr provided 'ith the application. %iii& Saf ety of  funs 0 con  cons stitution should pr provide the ur urantee f or the saf e cus custod# of  of  f unds unds. i(&

Auiit Au

 6he cons constitution should pr provide the manners manners o  of  f  audit  audit of  of  accounts  accounts (&

"iss ssol olut utio ion n

:i :irrcum cums stance under under 'hich the tr trade union 'ill $e diss dissolved olved mus must $e 'r 'ritten itten in cons con stitution titution.. (i&

Altera erattio ion n

 6he pr proced ocedur ure e $# 'hich the alter alteration in cons constitution is is made mus must $e iven. (ii&

=eetings

 6he pr proced ocedur ure es of   of  meetins  meetins of   of  the  the executive $od# and ener eneral $od# mus must $e iven in cons constitution. (iii& (ii i& Pr Proc oce eu ure re  of  no co conf  nf ience  6he pr proced ocedur ure e of  of  expr  express ssin in no conf  conf idence in an# off  off icer icer mu  mus st $e iven in cons con stitution. *& *&   Issu Issua ance ce  of  cer certtif icat icate 3f  the  the rei eis strar is  is sati atisf  sf ied ied 'ith the infor information mation pr provided $# the tr trade union/ he iss issue ues s a cer certi tif  f icate icate of  rei eis stration 'ithin 15 da#s da#s. Co' the trade union is is rei eis ster tered.

-ae !&

 

Q# )> @b6 /at are te circumstances  uner wic te registration of  trae  union is cancelle 1&  Act against orinance 3f  the  the tr trade union does does an# act aains aainst the or ordinance/ the la$or la$or  courrt ma# cancel the rei cou eis stration of  of   tr trade union.

)&  Act against constitution 3f  the  the tr trade union does does an# act 'hich aains aainst its its o  o' 'n cons constitution/ the la$our la$our cou  courrt can cancel the rei eis stration of  of  tr  trade union. *& *&   "isqu squali alif  f icat ication ion of  an o5 icer icer  6he rei eis stration ma# als also $e cancelled if  if  the  the tr trade union has has  appointed an off  off icer icer 'ho is is di  dis s*uali *ualif  f ied ied to $e an off  off icer icer $# the cour court. +& +&   Cancella cellattio ion n by regi regist strar rar  6he eis eistrar cancel  cancels s the rei eis stration of  of   tr trade union if  if  it  it has has $een diss dissolved olved it its sel elf  f .

-ae "(

 

Q#*? /at  are  te  powers  an  functions  of   national  inustrial  relation commission /at are te powers an functions of  registrar 1& 1&   <egi egist stra rattio ion n of  tra ra e un unio ion n  6he main f unction unction of  of   trade union is is  to rei eis ster ter  trade union and to iss issue ue the cer certif  tif icate icate of  of  rei eis stration. )& )&   App Appoi ointm ntme ent nt  of  collec collectti%e i%e  bargai argain ning age agent nt  6he rei eis strar  can appoint an# off  off icer icer  as  collective $ar $arainin aent. ;e hims himsel elf  f   decides decides 'hich tr trade union is is entitled to $e as as collective $arrainin aent. $a *& *&   Insp Inspec ecttion ion of  acco accounts unts  6he rei eis strar ha  has s the po' po'ers to rs to ins inspect the $ooks $ooks o  of  f  accounts  accounts o  of  f  tr  trade union at an# time. ;e can author authoriFe his his su$o u$orrdinate dinates s to do this this 'ork. +& +&   Comp mplai laints nts  to t# t#e e lab labor or  co cou urt eistrar can su$mit complaints eis complaints  to the la$or la$or  cou courrt f or the cancellation of  of   rei eis stration. if  if  the   the tr trade union does does an# act aains aainst the or ordinance and cons con stitution. ,& ,&   Cancella cellattion ion of  regi regist stra rattion ion :ommission :ommiss ion has has  po po' 'ers  rs  to cancel the rei eis stration of  of   trade union if  if   the tr trade union is is di  diss ssolved olved its itself  elf . 8& 8&   "eali ealin ng wit# t#  t# t#e e unf air  air prac racttice ices s  6he commi commiss ssion ion has has  po po' 'ers  rs  to take action aains aainst the unf  unf air air  practice actices s  of   la$our la$our. ;e can pr proceed dir directl# 'ith the cas case and ma# ref er to the courrt. cou :& :&   Po Pow wer er  to pun puniis#  6he commi commiss ssion ion has has  the po' po'ers  rs  to punis punish an# pe pers rson on 'ho have not o$e#ed the or orde ders rs   of  commiss  commissio ion n or  or he is is oin aains aainst the or orde ders rs o  orr  di dirrection ections s o  of  f  tr  trade union. ;& ;&   Pro Prom motio ion n of  tra ra e un unio ions ns 0nothe notherr  ma=or ma=or  f unction unction of  of   the commiss commission ion is is  to promote the f ormation

of   trade union at national level

 

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