Q1

Majid agreed to sell his house to Arif after three days. The house was burnt the next day

of forming a contract. What happened to the contract and why?

ANSWER

Arif was supposed to settle into the house after three days and so as per law if the property is
damaged before the buyer moves into it then the contract would be considered as invalid or void
and the entire deposit for the sale of that particular property would be returned, it is the same in
this case as the house was supposed to be sold after three days and since Majid has not taken legal
ownership and it was to happen after three days than there would be no contract between them
both. This is also described as that it is now not possible to sell the house since there is not the
physical house so the contract cannot occur.

Q2

Waseem agrees to sell 100 bags wheat to Shahzaib. Before delivery of the wheat, the

government of Pakistan puts a ban on private trade of wheat. What happened to the

contract and why?

Answer

In this particular case the agreement was finalized and was performed after using the correct
method but since before the delivery of the heat the government placed a ban on the sale of it, then
now the contract is no longer supported by law, any contract that is no longer supported by law
does not have any legal value, this is primarily done by companies because of the fact that they have
to ascertain that there is an equilibrium in the market. The contract as mentioned would no longer
be acceptable and would be considered as void since it is not supported by law.

Q3

Nadeem compels Sohail to sell his car on gunpoint. Is it a contract if it is what kind of

contract it is and why?

Answer

This type of contract is a voidable contract, this term is used because proof has to be presented in
the court and if it is proved that the contract was made because of undue pressure then the contract
would be declared as void, the court utilizes several steps to ascertain if the contract was really
made under undue influence, such as in this case Nadeem compelled Sohail to sell his car by pointing
a gun at him, this contract is therefore a void contract since Sohail was forced to sell his car in order
to save his life, but it is not so easy and Sohail would have to prove that he was forced to do it.

Q4
Asim gives money to smugglers to buy smuggled good. Is it a contract, if it is what kind

of contract it is and why?

ANSWER

No this is not a contract as it can only be formed while abiding by the law and this is termed as an
illegal agreement which is not supported in law, also this means that in case of any misfortune the
parties cannot go to the court as it doesn’t recognize any such action that is against the law.

Q5

Arshad sent a letter to Bashir to sell him 1 ton of Iron and the same time Bashir

unknowing of Arshad’s letter, sent Arshad a letter to buy 1 ton of Iron from him. Is the

contract formed, why or why not?

ANSWER

No the contract is not formed since both the parties are unaware of each other’s willingness to enter
into a contract of selling the goods, even though this sale covers the entire aspect that there are for
a lawful contract except that they are not aware so it cannot be formed, if they both agree and are
aware of each other’s desire for the purchase and sale then and only then can the contract be
formed.

Q6

Nasir offered Waleed to buy his car for Rs. 500,000, Waleed agreed to buy it for Rs.

450,000. Is the contract formed, why or why not?

ANSWER

No the contract is not formed since the offer and acceptance clause of this contract is not fulfilled
and for it to be contract all of the clauses have to be fulfilled, this can only be declared as a contract
if Waleed also agrees to buy it for 500000 or if Nasir agrees to sell it for 450000.