BUSSINESS

LAW
FIRST ASSIGNMENT

SUBMITTED TO:

ROLL NUMBER 27
2020
Question no 1:
Definition of an Agreement:
When an individual (promisor) offers something to somebody else (promisee), and the concerned
individual acknowledges the proposition with proportionate thought, this commitment is known as
the understanding. When two or more than two people concur upon the same thing within the same
sense, this character of minds is understanding. The taking after are the sorts of assention are as
under:

 Wagering Agreement
 Void Agreement
 Voidable Agreement
 Implied Agreement
 Express Agreement
 Conditional Agreement
 Illegal Agreement.

It can too be characterized as the contract which needs enforceability by law is known as the understanding.

Definition of a Contract:
To be exact, a lawfully enforceable assention for doing or not doing an act is known as a contract. A
contract must contain these components: Offer and Acknowledgment, Satisfactory and Unrestricted
Thought, Free Assent, Capacity, Legal question, Certainty, Purposeful of making lawful
commitments, and the Assention ought to not be pronounced void.

The contract may be oral or written. The major types of contract are as under:

 Void Contract
 Voidable Contract
 Valid Contract
 Unilateral Contract
 Bilateral Contract
 Express Contract
 Tacit Contract
 Contingent Contract
 Implied Contract
 Executed Contract
 Executory Contract
 Quasi Contract etc.
Question no 2:
Parties of a Contract:
A party to a contract is one who holds the commitments and gets the benefits of a legitimately official
understanding. When two parties are in an understanding, there are two parts each play: the promisor
and the promisee. The promisor is the party that produces the guarantee, whereas the promisee is on
the accepting conclusion of the promise. The promisor and the guarantee are not the as it were parties
who advantage from a contract. Sometimes there are two more that's intended and accidental parties.
These third party-beneficiaries pick up remunerate from the terms of a contract. A individual whose
advantage is expecting is called a intended party and gets benefits from a contract and is by and large
expressed or named inside the contract.

Example:

Ali is planning a family event at home garden. Hi first call is to Darbar Catering. Chef Hammad and
Ahmed carefully choose the culinary creations for the party. Once they agree on the tasty dishes and
the price, a contract will be formed. The contract will include the important details about the event,
like the date, venue and menu choice. But the information that creates a legally binding agreement
includes:

 Names of the parties

 Price quotation

A clause that expressly states agreement to the terms of the contract stated a different way, the
agreement between Ali and Darbar Catering must contain two or more parties, an offer, agreement
and consideration. These elements obligate both parties to the terms and conditions. The elements
also provide the agreed upon benefits, like food and amount (cash).

Question no 3:
Breach of a Contract:
Business contract makes certain commitments that are to be satisfied by the parties who entered into
the understanding. Lawfully, one party's disappointment to fulfill any of its legally binding
commitments is known as a "breach" of the contract. Depending on the specifics, a breach can happen
when a party falls flat to perform on time, does not perform in understanding with the terms of the
understanding, or does not perform at all.

Appropriately, a breach of contract will more often than not be categorized as either a "material
breach" or an "immaterial breach" for purposes of deciding the suitable lawful arrangement or
"cure" for the breach.
Example:

Let's assume that Karachi electric contracts with fuel company for the purchase of some of its
products, for delivery by the following Monday morning. If oil company delivers the oil to K.E on
the following Tuesday morning, its breach of the contract would likely be deemed immaterial, and
K.E would likely not be entitled to money damages (unless he could show that he was somehow
damaged by the late delivery).

However, assume now that the contract stated clearly and explicitly that "time is of the essence" and
the oil MUST be delivered on Monday. If oil company delivers after Monday, its breach of contract
would likely be deemed "material," and karachi electric damages would be presumed, making oil
company's liability for the breach more severe, and likely relieving K.E of the duty to pay for the oil
under the contract.

Question no 4:
Damages of Breach of a Contract:
The payment of damages of breach of a contract is the most common remedy for a breach of contract.
There are many kinds of damages which are as follows:

1. Compensatory damages aim to put the non-breaching party in the place that they would have
been in if the breach had not occurred.
2. Punitive damages are payments that the wrong doing party must make, above and beyond the
point that would fully compensate the non-breaching party damages. Punitive damages are
meant to punish a breaching party for particularly wrongful acts, and are rarely awarded in the
business contracts setting.
3. Nominal damages are token damages (small amount of damages) charged when a breach
occurred, but no actual money loss to the non-breaching party was proven.
4. Liquidated damages are specific damages that were previously known by the parties in the
contract itself, in the event that the contract is breached. Liquidated damages should be a
reasonable amount of actual damages that might result from a breach.