PROFESSIONAL ETHICS AND

LEGAL ISSUES

Asad Saddique
BSE173063

Section S1
Assignment 02

Submitted To
MAM ALEENA SIDDIQUE
 CAPITAL UNIVERSITY OF SCIENCE AND TECHNOLOGY, ISLAMABAD

PROFESSIONAL ETHICS AND LEGAL ISSUES

ASSIGNMENT NO. 2

QUESTION No. 1

Differentiate between void agreement and void contract with the help of

illustrations.

Void Agreement: Those agreements which cannot enforceable by law are called void

agreement.

For example, A supplies the luxury goods to a B a minor for a consideration of 150,000 rupees.

B refused to make a payment. A cannot enforce the agreement with the minor in void ab-initio. It

becomes void, if any of the essential of the contract other than free consent are missing.

Agreement without consideration for example teaching students without any consideration

because no one can teaches without money.

Agreement with a person who is minor for example a person who is under 18.

Agreement which is impossible to act is void agreement for example I will make the house in

one hour if you will pay me 50,000.

Void contract: Those contract which was initially valid but due to change of circumstances it

become void are called void contract.

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For example, A agree to sell his horse to B for 80,000 rupees but horse died in an accident. It

becomes impossible to perform the contract due to destruction of the subject. Thus a valid

contract changes to void contract because of subsequent impossibility of performance.

Another example is, a contract with B that they will supply 10 tons sugar to B from a factory but

a fire caught in the factory and everything was destroyed. Thus a valid contract changes to void

contract because of subsequent impossibility of performance.

QUESTION NO.2

Differentiate between illegal agreement and void agreement.

Illegal agreement: An agreement which is prohibited by the law. For example I will give you

10,000 weekly if you will do mobile snatching with me or if you will kill someone. This is illegal

and against the law.

It is punishable and no return of money.

Void agreement: It is legal agreement and not against the law. We can go to court and get

money back. Subject and object are legal and al collateral agreements are legal.

For example Party A agree to sell a house to B, but by mistake both did not know that house

already sold. This all done by negligence but it was not illegal.

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QUESTION NO.3

Differentiate between fraud and misrepresentation with the help of

illustrations?

Fraud: The purpose of fraud is to deceive the other party.

In fraud, complete intention is involve. For example, I will give you 100$ if you develop a

website for me. After delivering website to that person, he did not replied. This was fraud, the

scammer already knows that after receiving website, he will not pay.

A Purchased 20,000 goods to shopkeeper, with the intent of not paying money to shopkeeper.

This is fraud and criminal act.

In fraud, a party have no belief that it is true, for example A says to B that own this shop because

it is giving 20k profit daily but A did not know perfectly that it is true.

Fraud is offense or criminal act. For example scamming to someone. It is illegal and criminal act.

If A know that B is doing fraud with him then he can go to court and get damages back.

Misrepresentation:

In Misrepresentation, there is no purpose to deceive the other party.

In misrepresentation, no intention is involved.

In misrepresentation, a party have complete belief that it is true, for example A says to B that

own this shop because it is giving 20k profit daily because A believes that it is true. After owing

the shop, this all was wrong.

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A says to B to purchase his car. It is functioning properly. A purchased the car but after some

days it, the car did not functioning properly. So A has to suffer a loss to repair the car. So it was

misrepresentation as B believes that car is working properly.

It is not criminal act because it was done by misrepresentation. We cannot get damages back

from court because they should have to confirm that it is true or not.

QUESTION NO.4

Explain in detail how an offer can be revoked or terminated?

There are a number of ways for an offer to be terminated. They are events that may occur after

an offer has been made which bring it to an end so that it can no longer be accepted. An offer is

terminated in the following circumstances

Lapse of Time: offer is valid for certain period of time like offer is valid until 20 October,

2020. After this date, offer will terminate. A company offer to buy their goods in cheap rates

until 20 October, 2020. The offer will terminate automatically after 20 October.

Failure of fulfilling the condition: If conditions are not fulfilled then offer will terminate.

For example company ask to send cv for job by email and we send by WhatsApp, we broke the

conditions and offer is terminated.

Revocation by Offeror: The offeror can revoke the offer before the acceptance of offeree.

For example, on offer to buy clothes in cheap rate, but later offer revoke by offeror because of

some reasons.

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Revocation by Offeree: Offeree can revoke the offer within certain period of time like offer

duration was 10 day and he accept in first 3 days, now it up to offeree that he can revoke the

offer in next 7 days.

Death of offeror or offeree: If a man who makes an offer dies, the offer cannot be accepted

after he is dead. If either the offeror or the offeree dies or any other uncertainty happened to

him/her before the offer is accepted, the offer is automatically terminated.

Counter offer: By doing bargaining, purchased in 400 rupees instead of 500 rupees because

the actual offer was of 500 rupees. So the offer will terminate.

Subsequent illegality: Offer is illegal after certain period of time like Government applied

ban on offer.  For example, if there is an offer made to sell non custom cars to people in Lahore,

but a city ordinance is passed prohibiting the sale of non-custom cars before the offer is

accepted, the offer is terminated.

Destruction of subject matter: If something destroy or damage after acceptance then offer

will revoke. For example, a party offer to buy a house and after acceptance, house damaged due

to uncertainty so offer will revoke.

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QUESTION NO.5

Will a guardian of the minor be held responsible for the contract created by

him? Explain with the help of an example.

A guardian is someone who is chosen, a trust, to make decisions for someone else when that

person, has become unable to perform those tasks for him or herself. These types of decisions

may include giving consent to medical care or treatment; purchasing or arranging for purchase of

necessities as cars, household items, and other personal items, managing finances and bank

accounts, making investments, hiring professionals, etc.

With my point of view there could be liability, but if the guardian shows that he or she has taken

all responsible actions, then the liability may be cut off.

A minor cannot enter into contract, so he choose guardian who perform all responsibilities for

him like father, mother or elder brother.

For example, a student mention his guardian that he will pay all expenses of college and

university, if mention guardian agreed then he is responsible to pay his expenses.

Another example is that a minor buy a land and mention his father as a guardian, later someone

sell his land illegally at there, guardian is responsible to support him and will go to court for

return of the land. He is responsible for all type of matters.

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QUESTION NO. 6

Explain what do you mean by the presumption of undue influence? State the

relations to which it is attached.

Presumption of Undue influence: Applying superior powers to other party to enter into

contract is undue influence.

A person using his superior powers to obtain the consent of a person who is in week position.

Some relationships, such as between a parent and a child, a patient and a doctor, teacher and

student, husband and wife, trustee and beneficiary, owner and employee, elder brother and

younger brother, lawyer and client are considered to run the risk of undue influence.

For example, a police officer bought a property worth Rs.1000, 000 for 100,000 from a person,

an accused under his custody. Later B sued to cancel the contract. Police officer used his superior

powers to pressurize him. He torture him mentally not by physically and person ready to sell the

property in 100, 000. B can cancel the contract by law because there is undue influence in this

contract.

A strong party obtain unfair advantage to week party like father is demands to his son to gift me

a land. It is criminal act, it is morally wrong. A father can dominate the will of son.

A factory owner exerts undue influence upon his employee to make certain with him if not he

will be withdrawn from job. He torture him mentally to contract with him. At there, owner using

his superior powers on employee.

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A father exerts undue influence upon his son to do anything on the will of his father. Otherwise

he will part his relation with son. Father is taking advantage of his authority which is morally

wrong.

A teacher ask his student to give him a mobile. If not, he will pass him in paper. Teacher take

advantage of his powers on student which is morally wrong.

A doctor ask his patient if he did not pay 100,000 to him, then he will treat him properly. He is

torture him mentally and put pressure on him, so patient have to pay 100,000. This is morally

wrong and using unfair powers.

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