Muneeb Gul Final Exam

20181-23742 26-08-2020

Corporate and Business Law

A .1
This is the case for a general offer as made to the public.
Aftab cannot claim the reward under his circumstances.
As a contract is signed with the individual who has the knowledge of the deal and works on
the terms of the offer. Under the circumstances, however, Aftab cannot demand the sum of
compensation from Bader because Aftab did not know about the reward when he found the
missing horse. Aftab could only accept the offer if he knew about it, because an offer
accepted without its knowledge does not grant any legal rights on the acceptor.

A.2
(a) According to the provisions of Companies Act, 2017, this statement is not correct.
Because, any chief executive other than the company's first chief executive shall be
appointed by the directors within 14 days from the date of their election, or within 14 days
from the vacancy of the chief executive 's office.
The chief executive, rather than the company's first chief executive, is appointed for a term
not exceeding three years, a chief executive nominated against a casual vacancy is appointed
till a chief executive is chosen by the directors in next election.
(b) Answered in Question Number 13

A.3
As KRL holds more than 50% shares of NSL so KRL is the holding company of NSL. NSL just
holds 14% of the TIL shares but is the holding company as NSL can appoint more than 50% of
the directors of TIL through an agreement with other shareholders and thus regulate its
board composition.
So, KRL is also the holding company of TIL according to the definition of holding and
subsidiary company under the Act.

A.4
Shafiq may not be able to rescind the contract under the provisions of Contract Act, 1872
due to following settings:

Sensitivity: Public
  If Shafiq had the means of discovering the truth with ordinary diligence
Or
 Abad’s misrepresentation was not the basis for Shafiq’s consent
OR

 After becoming aware of the misrepresentation Shafiq may have taken benefit under
the contract
OR

 If an innocent third party had acquired for consideration and in good faith some
interest in the property
OR

 Shafiq and Abad cannot be restored to their original positions.

A.5
(a) Lalazar Limited has eight directors on their board, therefore they follow the requirements
of law under the Company’s Act, 2017 section 154 “a public company other than a listed
company shall have not less than three directors”.
A company's directors shall set the number of the company's elected directors no later than
35 days before the general meeting is held at which the directors are to be elected. It is
possible to change but the number of directors so set shall not change except with the prior
consent of a company's general meeting. Section 159 Procedure for election of directors

 (b) Any casual vacancy that comes up among the directors can be filled by the
directors. For the rest of the tenure, Mr. Aslam shall hold the office of the director
Mr. Javed, in whose place he was appointed.
(c) A corporation can replace a director appointed to fill the casual vacancy or a director
appointed by representatives at the company's general meeting through resolution by vote
of a general meeting of the company.
(i) The situation is that the director appointed to fill in the casual vacancy is removed.
Therefore, the number of votes cast against the resolution should not be equal to or
exceed the total number of votes for the time being computed in a manner similar to
the method used for directors’ election divided by the number of directors, which in
this case would be 10,000,000 x 8 ÷ 8 = 10,000,000.
(ii) Mr Badar will be disqualified from his office only if the votes cast against the
resolution are fewer than 220,000, i.e. the minimum number of votes through which
the director was elected in the immediately preceding election of directors.
A.6
Following are the rights and responsibilities of Mehboob;

 Mehboob is not responsible for non-performance;

Sensitivity: Public
  in case of performance by Saulat on Mehboob’s demand, Mehboob will be
responsible to perform his promise;
 he will not lose his rights to claim damages under the contract, for instance he will be
entitled to compensation and contract will become voidable at his option.
Essentials of a valid offer of performance under Contract Act, 1872:

 it must be unconditional;
 This must be done at the correct time and place, and in such circumstances that the
person to whom it is made will have a fair opportunity to determine that the person
by whom it is made is competent and willing to do all that he is expected to do;
 If the offer is an attempt to give something to the Promisee, the Promisee must have
a fair opportunity to see if the attempt is what the Promisee is expected to provide.
An offer to one of a number of joint promisees has the same legal implications as an
offer to all.
A.7
(a) Afaq alone cannot compel Mohsin to pay, unless there is a contrary intention in the
contract. The right to assert results rests collectively with all promisees and one promisee
cannot demand the performance alone.
(b) Mohsin may force every other joint promiser to contribute equally to the fulfillment of
the agreement with himself, unless a contrary purpose emerges out of the contract.
Therefore, Faizan must share equally with Mohsin the loss resulting from Laila 's default.
A.8
Unless there is a contrary intention in the contract the right to claim performance falls,
(a) with Hatim and Tahir jointly
(b) after the death of Hatim, with the representative of Hatim jointly with Tahir
(c) after the death of both Hatim and Tahir, with the representative(s) of both, jointly.

A.9
No, Nasir need not to perform his promise to pay as Maimar couldn’t be able to perform his
promise of delivering toy helicopters on agreed time and this contract is breached under
missing timelines. And Maimar must compensate Nasir for any loss which Nasir may sustain
due to Maimar’s non-performance.
A.10
(a) Bilal applies the payment correctly, and Wasim 's objection is invalid. In the absence of
any intimation from the debtor or conditions indicating to which debt payment is to be
applied, the creditor is free to use his options and apply it to any lawful debt actually due
and payable to him from the debtor whether or not his recovery is, for the time being,
barred by the law in force as to the limitation of suits.
(b)

Sensitivity: Public
 (i) The payment should be applied in discharging the following debts:
Debt of Rupees
March 2, 2009 20,000
August 30, 2010 50,000
70,000
As Ubaid has written the break-up of payment at the back of the cheque, it implies
that payment should be applied to discharge those particular debts.
(ii) The payment should be applied in discharging the debts in the order in which they
became due.
It is irrelevant whether the debts are or are not barred by the law in force for the
time being as to limitation of suits.
A.11
(a) All the prerequisites for the formation of contract are valid and both were liable to pay
each other in any case anyone doesn’t show up and as Goga doesn’t show up for the match,
but the contract seems wagering and isn’t enforced by law so Sheeda may not be able claim
any amount Goga as the wagering contract are void.
(b) Moiz has discounted the meat and tried to save it from getting in bad condition.
Rightof person as to acts done for him without his authority, effect of ratification.
A.12
Corporate and business law is a detailed study and implication of laws and regulation
encompasses around the business and corporate environment. Activities that are necessary
to run the businesses and corporate are bound by certain norms which are duly entertained
by this subject of study. It provides means and measures of law governing the rights,
relations, and conduct of persons within companies, organizations and businesses. In other
sense, this deals with the formation and operations of corporate entities which are related
to commercial and contract law. A few detailed and specific areas are being summarized to
understand the what corporate and business law holds and provides,
Mercantile law gives a detailed view for legal systems, law of contact, offer and acceptance
its criteria, basics of contracts and detailed implications and avoidance ways, how contracts
can be formed and what makes these voids, how partnership act hold the values and what
free consent means to an entity.
Company Law gives us insights about the legal standing on companies’ base that how
companies are formed what their basis are what has to be the structure, its share capital
companies’ bindings towards rule of court, management decision criteria, corporate
structure and level, investments, accounts, audits and many a lot.
A.13

Sensitivity: Public
 Process of Incorporation:
Company itself being a separate legal entity and is formed by filing with the business
registrar Memorandum and Articles of Association, and some other documents. Filing of
such documents issued by registrar means that the corporation was established as a
separate legal entity. Subsequent measures are actively involved in business
formation/registration of company.

 Getting availability of suitable name from the registrar of companies

 Preparing Memorandum of Association
 Preparing Articles of Association
 Filing the Memorandum and Articles of Association and other documents with the
registrar and obtaining the certificate of incorporation of company
 Filing documents necessary for obtaining certificate of commencement of business if
the company is required to obtain it.

Sensitivity: Public