MGT611-Business & Labor Law

Assignment # 1

a) Murtaza and Abdullah entered into an agreement for the construction of a bungalow. The
agreement stipulated that payment would only be made upon completion of the project. This type
of contract is considered a contingent contract under the Contract Act, 1872. Contingent
contracts are characterized by the occurrence of a specific event, in this case, the completion of
the project, which determines the contractual obligations and payment.
 Scope of contingent contract
 On happening of the event
 On fulfillment of condition stipulated
 Contingency to be condition precedent
 Contingency to be collateral to the contract

b) In the contract between A and B for the sale of a scooter, there appears to be a discrepancy in
the understanding of the scooter's specifications. A intended to sell a 3G scooter, while B
believed it to be a 4G scooter. The legal status of this contract may be affected by the
inconsistency in the understanding of the subject matter. Further analysis and interpretation of
the contract terms and any accompanying communications would be necessary to determine the
specific legal consequences.

c) In the scenario where a gang of thieves steals a valuable painting and sells it to a rich landlord,
resulting in unequal distribution of proceeds among the gang members, the aggrieved thief may
have certain remedies available. The specific legal status of this contract and the remedies would
depend on the jurisdiction and the applicable laws regarding illegal contracts and distribution of
proceeds from illegal activities. It is advisable to seek legal counsel to explore the available
remedies in this situation.

d) Umar, acting as Ibrahim's lawyer, convinces him to transfer his agricultural land in order to
avoid imprisonment in a fraud case. However, the validity of this contract may be questioned due
to a lack of free consent, which is a crucial condition for a valid contract. The principle of free
consent requires that both parties enter into a contract willingly, without any undue influence or
coercion. In this case, Ibrahim's consent may have been influenced by Umar's advice, raising
concerns about the validity of the contract.