In the fulfillment of the course

“BUSINESS AND CORPORATE LAW”

BBA morning program

Submitted to:

Spring - (2019)

FINAL EXAMINATION 2021

Answer: 01

AGENCY:
In the simple words meaning of “agency” is that the relationship between the agent and the
principal is fragile and high trust The agent has a dominant position in this type of relationship
and has no right to transfer of the property of the principal in his own favor or in favor of his
associates without the consent of his principal. An advocate falls within the definition of an
agent. State law gives citizens the right to appoint representatives to act on their behalf.
AGENT:

An agent is an individual who is basically employed to do any act for another or represent
another in dealing with the third individual.

AGENTS AUTHORITY:
 AGENTS AUTHORITY MAY BE EXPRESSED OR IMPLIED
In this term an authority is meant to be expressed of to be implied when it is given by
words which are spoken or in the written form. An authority is said to be implied when it is to be
conclude from the situation of the case and things are spoken or in the written form or the
ordinary course of dealing may be accounted by the situations of the case.
EXAMPLE:

Ahmed owns a shop in Multan living himself in Islamabad and visiting the shop
occasionally. The shop is managed by Basit, and he is in the habit of ordering goods
from Salman in the name of Ahmed for the purposes of the shop, and of paying for
them out of Ahmed’s funds with Ahmed’s knowledge. Basit has an implied authority
from Ahmed to order goods from Salman in the name of Ahmed for the purposes of
the shop.

 AUTHORITY OF AGENT TO ENTER INTO COMPROMISE

The broker’s compromise power is sufficient to transfer most of the property to an unfounded
small valuation.
EXTENT OF AGENTS AUTHORITY
An agent having an authority to do an act has command to do every law related thing
which is mandatory in order to do such kind of acts. A competent agent must comply with all
laws and related thing necessary for the given motive or usually done in the course of conducting
such business.
EXAMPLE:
Ahmed constitutes Basit his agent to carry on his business of a shipbuilder. Basit may purchase
timber and other materials and hire workmen for the purpose of carrying on the business.

 AGENTS AUTHORITY IN AN EMERGENCY

 An agent has the authority in an emergency to do all the possible acts for the motive of
defending and saving his principal from loss as would be done by an individual of ordinary
judgment in his own case under the similar situations.
EXAMPLE:
Ahmed consigns provisions to Basit at Karachi with directions to send them immediately
to Salman at Karachi. Basit may sell the provisions at Lahore if they will not bear the journey to
Karachi without spoiling.

SUB- AGENT:
The sub- agents are defined as an individual employed by and acting under the supervision of the
original agent in the business of the agency.
 AGENT RESPONSIBILITY FOR SUB-AGENTS
The agent is responsible to the principle for the acts of the sub agents.
 SUB-AGENTS RESPONSIBILITY
The sub agent is basically responsible for his acts to the agent but not to the given
principle only except in case of fraud or willful wrong.
 WHEN AGENT CANNOT DELEGATE
Under this circumstance, the contractor cannot enter into a contract with others for the
acts that he directly or indirectly bear unless the sub-broker can be entrusted in
accordance with commercial practice, or the sub-broker must be entrusted due to the
nature of agency.

TERMINATION OF AGENCY:
An agency is terminated by the principle renounce his authority:
 By becoming of unsound mind
 By the business of the agency being completed
 By either the principle or agent dying
 By the agent renouncing the business of the agency

RATIFICATION:
Ratification is defined as the right of individual as to acts done for him without his authority.
It also can be expressed or implied in the conduct of the person on whose behalf the acts are
done.

Example: Ahmed without Basit’s authority lends Basit’s money to Salman. Afterward basit’s
accepts interest on the money from Salman. Basit’s conduct implies a ratification of the loan.
AHMED (principle) BASIT (agent)

RATIFICATION

SALMAN
ANSWER: 02

THE JUDICIAL SYSTEM:

Pakistan legal system is basically based on the Islamic law and the English common law. Islamic
law was limited to the circle of personal status issues, such as marriage, inheritance and divorce
in the year between 1947 and 1978. The origin of Pakistani law is based upon the legal system of
the ancient British India, including the common law of England and wales. The amendments in
Pakistan legal system came during the reign of General Mohammad Zia-ul-haq, when the factors
of Sharia law were incorporated into Pakistani law. Tribal area (FATA) is the system of law
employing traditional practices and it is determined at the local level. At this level, JIRGA which
is basically a council of tribal elders resolves the disputes. The Constitution of Pakistan is the
delegate of the superior judiciary with the obligation to preserve, save and defend the
constitution.
However, neither High court nor Supreme Court can do the jurisdiction to tribal areas only
except of the special case. The disputed Azad Kashmir region and Gilgit-Baltistan region have
different judicial system. Each of the four provinces has a high court and a high court in the
capital Islamabad.

Pakistan judiciary is a hierarchical system which includes two classes of courts:

1. The superior judiciary

2. The subordinate judiciary.

The superior judiciary

(Supreme Court)

The Supreme Court is the court of final appeal and therefore the final arbiter of the law and the
constitution. The court exercises original jurisdiction in intergovernmental debate in between the
provincial government and federal governments. The Supreme Court is the top court of the land,
appellate and advisory jurisdiction. The court has appellate jurisdiction in civil and the criminal
matters. In addition, the court has advisory jurisdiction and can give opinions to the government
on legal issues.
High court:

High court supervises and controls all the courts inferior to it. The Court practices original
jurisdiction in the enforcement of Fundamental Rights and appellate jurisdiction in judgments in
orders of the subordinate courts in civil and criminal matters.

Federal sharia court

The federal Sharia court is the court which is in its own motion or with the help of petition by a
provincial or federal government or a citizen. The decisions of the court are necessary on the
high courts as well as inferior judiciary. If certain provisions of the law are found to be illegal,
the government is obliged to take necessary steps to amend the law so as to bring it in conformity
with the injunctions of Islam. The decision of the court is binding on the high court and lower
judicial organs.

The subordinate judiciary:

In subordinate judiciary decisions and judgments of some special courts are assailable before the
superior judiciary through the appeal or revision. The High Court is however practicing
administrative control over such courts. The subordinate judiciary may be widely divided into
two terms, criminal court and civil courts.
District and sessions court:

All regions in each province have district courts with civil and criminal jurisdiction and whereas
session court is a trial court for disgraceful offences for example: rape, murder or armed robbery.
When listening to the criminal cases, it is called the Sessions Court, and when it hears civil cases,
the District Court.

Special courts:

Special courts are the kinds of courts which functions under the ministry of law and justice. In
the special courts the Constitution authorizes the federal legislature to establish administrative
courts and tribunals for dealing with federal subjects. Consequently, several special courts or
tribunals have been made which operate under the administrative control of the Federal
Government.
ANSWER: 03

CONTRACT:
The contract is defined as:

‘An agreement enforceable by law is Contract’

For example:

A duty which is enforceable by the law.

Kinds of contract:
The main kinds of contract are as follow:

1) ACCORDING TO ENFOREABILITY :

This can be contract can be under the valid contract, void contract, voidable contract.

 VALID CONTRACT
A valid contract is enforceable by the law. An agreement becomes enforceable by law when all
main essentials of a valid contract are present.
Obligatory parties:
All the parties are legally responsible for the performance of the contract in a valid contract.

 VOID CONTRACT:
A contract which get stop to be enforceable by law becomes void when it get stop to be
enforceable. This means that an invalid contract is not considered invalid in the first place. The
word void actually means not binding in law.
Obligatory parties:
In obligatory parties both the individual parties are not legally responsible to fulfill the contract.
  VOID
An agreement which is not enforceable by law is called to be void. In void agreement
there is absence of one or more essentials of valid Contract except the free consent. An
agreement with minor and an agreement without consideration are void from the initial level.
Obligation parties:

Any party in the void agreement who has received any leverage which is bound to restore it to
the party which he received it. Neither party is responsible for the implementation of the
agreement.

 VOIDABLE CONTRACT:

In the voidable contract an agreement which is enforceable by law at the option one or
more of the individual parties there to, but not at the option of the other or others. When an
individual promises to do something for another individual but the other individual prevents him
from performing his promise, the Contract becomes voidable at his option.

Obligations of parties:

It is a valid Contract for both the individual parties if it is not rejected by the party having the
right to reject.

 ILLEGAL AGREEMENT:
An agreement is illegal when its performance is banned by the law; such an agreement
can never become a Contract as well as it is illegal by law or is of such a nature that, if permitted,
it would defeat the provision of any law or it is fraudulent or related to causing harm to the
person or property of others, or the court considers it to be immoral or contrary to public order.
Obligations of parties
The parties to this agreement are not responsible to keep and perform their promises.
There is a punishment for the parties according to law as well.

2) ACCORDING TO FORMULATION:

According to formulation a contract is consist of three kinds:

 a) EXPRESSED CONTRACT
A contract in which one is express in words spoken or written is known as express contract. In
express when concluding such an agreement, it is not difficult to understand the rights and
obligations of the parties. In an express contract, the parties directly set the contract terms.

IMPLIED CONTRACT
A Contract which is made otherwise than by words spoken or written is known implied
contract. It comes from the acts, conduct of the parties, course of dealings or situations. It comes
when one individual without being requested to do so, renders service under the situations
indicating that he expects to be paid for them, and the other individual, knowing such situations,
accept the benefit of those services.

b) QUASI CONTRACT
In a Quasi Contract law it forces the particular obligations under some situations. It is based
upon the principle of equity that an individual shall not be allowed to get the leverages at the cost
of another. In fact, it is not a contract, but creates a contract-like relationship. It is also called
constructive Contract.

3) ACCORDING TO PERFORMANCE
In according to performance a contract it is consist of two kinds of the following
which are mention below:

a) EXCECUTED CONTRACT:
A Contract is said to be executed when both the individual parties have completely
performed their obligations.

b) EXECUTORY CONTRACT:

In an Executory Contract something remains to be done. In other words a Contract is said to be

Executory when both the parties to a Contract have still something to perform their obligations.

4) ACCORDING TO PARTY
According to party have to kinds which are mentioned below:

A) UNILATERAL CONTRACT
The unilateral is a contract where only one party is bound to but the other party chooses to be
bound by it
B) BILATERAL CONTRACT
Bilateral contract is a contract where as soon as the contract is made, both the individual
parties are bound by it. In basic words bilateral contract is a contract in which both
parties have yet to perform their obligations.