ASSIGNMENT NO O1

Submitted By:

Name: Muhammad Qasim

Student ID: FA19-BBAH-0081
Name: Saif Ali Khan Balouch
Student ID: FA19-BBAH-0103
Name: Taha Nawaid Khan
Student ID: FA19-BBAH-0088

Submitted To: Sir Asim Mehboob

Spring 21 (Semester No.04)

Mohammad Ali Jinnah University

 Consent
An agreement is valid when it is made with free consent of the parties. According to
section 13 two or more people are said to consent when they agree upon the same
thing in the same sense.

Definition: free consent (CUFMM):

According to section 14, Consent is said to be free when it is not caused by coercion,
undue influence, fraud, misrepresentation or mistake.

Example:
A agrees to sell his car to B. A owns three cars and wants to sell the Maruti. B thinks he
is buying his Honda. Here A and B have not agreed upon the same thing in the same
sense. Hence there is no consent and subsequently no contract.

Coercion:
Section 15 defines coercion as coercion is the committing or threatening to commit any
act forbidden by the Pakistani penal code or the unlawful detaining or threatening to
detain any property to the prejudice of any person whatever with the intention of causing
any person to enter into an agreement.

Example:
Ali threatens to shoot Qasim if he does not give his flat on rent. Ali agrees the consent
of Qasim is obtained by coercion.

Undue influence:
The term undue influence means the unfair use of one superior power in order to obtain
the consent of a person who is in a weaker position. It is described under section 16 (1
and 2)

Example:
Rehan, a spiritual adviser, induced his follower Ali to gift him his property to secure
benefits in the world. It was held that the gift was obtained by undue influence as rehan
was in a position to dominate.

Fraud:
Section 17 states fraud means and includes any of the following acts committed by a
party to a contract or with his connivance, or by his agent with intent to deceive another
party thereto or his agent or to introduce him enter.
Example:
Ali knows that his watch has been made in Pakistan but tells Ibrahim that it has been
made in japan. Ibrahim buys the watch. Ali is guilty fraud.

Mistake:
When the parties give their consent under any mistake there is no agreement. It means
that there should be consensus ad-idem. Mistake can be divided into two types (mistake
of facts bilateral and unilateral mistake) (mistake of law Pakistani law, foreign law)

Example:
A Pakistani agrees to sell a particular medicine to B a foreign national. The law of that
country has banned the sale and purchase of that particular medicine. This is a mistake
and the agreement is void.

Misrepresentation:
Misrepresentation means an innocent misstatement of fact about the contract made by
one party to induce the other party to enter into a contract.

Example:
Amjad tells Tariq that my land produces 5000 kg of wheat per acre. Amjad believes it to
be true Tariq buys it. Later, it appears that the land produces 1000 kg of wheat per acre.
This is a misrepresentation.
 Void Agreement
An agreement not enforceable by law is called a void agreement. A void agreement
does not give rise to any legal consequences and is void ab initio from beginning.
(Section 2)

Agreement in Restraint of Marriages:

Every agreement in restraint of the marriage of any person other than a minor is void. It
means that any agreement which prevents a person from marrying is void thus if a
Muslim having two living wives promises any of his wives not to marry again then
agreement is void. A promise to marry a particular person is not considered restraint of
marriage. (Sec 26)

Example:
Ali promises his father Sameer that he will marry Mehwish; it is a void agreement.

Agreement in Restraint of Trade:

Every agreement by which any one is restrained from exercising a lawful profession,
trade or business of any kind is to that extent void. An agreement that interferes with a
person's right to engage in any lawful trade, occupation or profession is called an
agreement in restraint of lawful business. Every person has a right to carry on any
lawful trade business or profession. (Sec. 27)

Example:
An agreement in which one party agrees to close his business against the promise of
the other party to pay some amount is void, as it is an agreement in restraint of lawful
business Qasim, Taha and saif.

Agreement in restraint of legal proceedings:

Every agreement by which any party there is restrained absolutely from enforcing his
rights under or in respect of any contract, by the usual legal proceeding in the ordinary
tribunals, or which limits the time within which he may enforce his rights, is void to that
extent. ( Sec. 28)

Example:
Tayab gives Rs. 1 lac to Akbar as a loan for one year and agrees that if Akbar fails to
return the loan, Tayyab must sue within two year otherwise Akbar will not be liable if the
agreement is void.
Uncertain Agreement:
Section (29) states that uncertain agreement means of which is not certain, or capable
of being made certain are void. It means that the term of an agreement must be clear,
complete and certain. The ambiguity may be regarding existence, quality, quantity, price
or title of the subject matter of the agreement.

Example:
Hamza agreed to sell his horse to Asim for Rs 600 to Rs 800. The sale price did not
clear that's why the agreement is void.

Wagering Agreement:
Wager means a bet. A wager is an agreement to pay money or money’s worth on the
happening or non-happening of a future event. Each party has an equal chance to win
or lose the bet. The parties should have no interest in the agreement other than the
betting amount.

Example:
A and Z agree that if it rains today A will pay Rs 1500 to Z if it does not rain Z will pay
Rs1500 to A.

Agreement contingent on impossible events:

Contingent agreement to do or not to do anything if an impossible event is known or not
to the parties to the agreement at the time of formation. (Sec.36)

Example:
Rabia agreed to pay Rs. 15000 to Akbar if he can run at 500 kilometer per hour. The
agreement is void.

Agreement to do impossible Acts:

An agreement to do an impossible act itself is void. (Sec 56 para 1)

Example:
Qasim agrees with Taha that he will discover gold by magic. The agreement is void.