‫مآلحظة هآمة ‪ -:‬هذه النسخة تركيز على أهم النقاط فقط وتعتبر من اجتهاد شخصي وغير مسؤول عن‬

‫أية أخطاء ويجب االطالع على الساليدات الرئيسية‬

‫‪1-1‬‬
‫‪Al-Hattami‬‬

‫‪ ‬اللون األحمر معناه النقطة الرئيسية‬

‫للساليد او النقطة التي تليها‬

‫‪ ‬اللون األخضر هو المهم للحفظ فهن‬

‫كتعاريف‬
‫‪IB5‬‬
‫‪ ‬والذي باألخضر وبجانبه نجمة‬
‫‪Subject:‬‬
‫فداخالت باالختبار بنسبة ‪%95‬‬
‫‪Business Law .‬‬
‫‪ ‬السطور او الكلمات الي تحتهن خط‬
‫أو بنفس اللون ذا احتمال بأسئلة صح‬
‫او خطأ ”)‪”Maybe as (T/F‬‬ ‫‪Chapter Three , Four , Five ,and Six‬‬
‫‪ ‬غالبا تكون الترجمة ليس للساليد‬ ‫‪Al-Hattami‬‬
‫المعدل وانما للساليد الرئيسي حق‬
‫الملزمة‬
 ‫مآلحظة هآمة ‪ -:‬هذه النسخة تركيز على أهم النقاط فقط وتعتبر من اجتهاد شخصي وغير مسؤول عن‬
‫أية أخطاء ويجب االطالع على الساليدات الرئيسية‬
‫‪1-2‬‬
‫‪Al-Hattami‬‬

‫‪ ‬اللون األحمر معناه النقطة الرئيسية‬

‫للساليد او النقطة التي تليها‬

‫‪ ‬اللون األخضر هو المهم للحفظ فهن‬

‫كتعاريف‬

‫‪ ‬والذي باألخضر وبجانبه نجمة‬ ‫‪IB5‬‬

‫فداخالت باالختبار بنسبة ‪%95‬‬ ‫‪Subject:‬‬

‫‪ ‬السطور او الكلمات الي تحتهن خط‬

‫‪Business Law .‬‬
‫أو بنفس اللون ذا احتمال بأسئلة صح‬
‫او خطأ ”)‪”Maybe as (T/F‬‬
‫‪Chapter Three‬‬

‫‪ ‬غالبا تكون الترجمة ليس للساليد‬ ‫‪Al-Hattami‬‬

‫المعدل وانما للساليد الرئيسي حق‬
‫الملزمة‬
Four theories explaining the function of punishment:
:‫أربع نظريات تشرح وظيفة العقاب‬
1. Retribution: which indicates vengeance ; that means an offender/
criminal deserves a punishment.
2. Rehabilitation: which rehabilitative sentencing is to try to change
the criminal to restart being useful in the society.
3. Deterrence: which the threat of punishment will deter people from
committing a crime.
4. Incapacitation: which the idea that society needs protection from
dangerous criminals as they will likely commit the offence again.
.‫ المجرم يستحق العقوبة‬/ ‫ هذا يعني أن الجاني‬.‫ مما يدل على االنتقام‬: ‫ القصاص‬-
.‫ ما الحكم التأهيلي هو المحاولة إلصالح الجاني الستئناف دور طبيعي ومفيد في المجتمع‬:‫ إعادة التأهيل‬-
.‫ التهديد بالعقاب سيردع الناس من ارتكاب جريمة‬:‫ الردع‬-
‫ الذي يقوم على فكرة أن المجتمع يحتاج إلى الحماية من المجرمين الخطرين كما يريدون من المحتمل أن‬:‫ العجز‬-
.‫يرتكب الجريمة مرة أخرى‬
 Criminal Law in the Business Context: ‫القانون الجنائي في سياق األعمال‬
 Criminal law can be defined as the body of rules prohibiting certain conduct on pain of
punishment. .‫ يمكن تعريف القانون الجنائي على أنه مجموعة القواعد التي تحظر سلوك معين تحت طائلة العقوبة‬-
 Different offences committed by individuals / Criminals related to business.
 A crime is an offence against the state.

 Elements of a Crime: ‫عناصر الجريمة‬:

Thus, in order to establish the guilt of a person, it is necessary for the Public Prosecutor to prove:
 A wrongful act ‫ فعل غير مشروع‬-
- Means that the crime must be committed & evidences must be proven.
 A guilty mind. .‫ عقل مذنب‬- Mens Rae
- The criminal arrested while planning to commit a crime .
- Arresting the criminal before committing the crime .
 White-Collar Crimes: ‫جرائم الياقات البيضاء‬:
 A white-collar crime is a crime committed by a person inside a business or governmental
organization,
 Due to the complexities of modern businesses, white-collar crime can be difficult to detect.
 In fact, sometimes, the victims may not even realize that they are victims.
 White-Collar Crimes: ‫جرائم الياقات البيضاء‬:
1. Embezzlement or Misappropriation:
 Embezzlement is the dishonest change of property by a person who entrusted.
 Embezzlement is different from robbery
2. Theft or Robbery:
 is the taking of someone else’s property without their permission.

3. Cheating:
 Cheating involves deception.

4. Bribery:
 Is when one person gives another anything of value in return for some advantage
or preferential treatment.
 A variation of bribery is a secret commission.
5. Insider Trading:
 Using price-sensitive information that affect the company’s shares & securities.
 the use of price-sensitive information which is not publicly available that affecting
the price of the company’s shares & securities.
 White-Collar Crimes: ‫جرائم الياقات البيضاء‬:
6. Industrial Espionage & Sabotage:
1. Industrial espionage :
 stealing private or sensitive business information of company to be used
by its competitors. .
2. Industrial sabotage :
 doing something to disrupt the efficient operations of a competitor’s
business such as infecting the competitor's computer network with a
virus.

7. Money Laundering:
 The process when criminals convert the proceeds from their illegal activities.

8. Environment Vandalism:
 relates to actions to dispose of waste products against to environmental laws and
procedures.

9. Computer Crimes:
 Embezzlement is one of the most commonly committed type of computer crimes
. ‫المقصد أنه من أشهر أنواع االختالس هو عن طريق الكمبيوتر‬
 Cybercrime:
 The Computer Crimes are the offences relating to the misuse of
computers.
 ‫مآلحظة هآمة ‪ -:‬هذه النسخة تركيز على أهم النقاط فقط وتعتبر من اجتهاد شخصي وغير مسؤول عن‬
‫أية أخطاء ويجب االطالع على الساليدات الرئيسية‬
‫‪1-7‬‬
‫‪Al-Hattami‬‬

‫‪ ‬اللون األحمر معناه النقطة الرئيسية‬

‫للساليد او النقطة التي تليها‬

‫‪ ‬اللون األخضر هو المهم للحفظ فهن‬

‫كتعاريف‬
‫‪IB5‬‬
‫‪Subject:‬‬
‫‪ ‬والذي باألخضر وبجانبه نجمة‬ ‫‪Business Law .‬‬
‫فداخالت باالختبار بنسبة ‪%95‬‬

‫‪ ‬السطور او الكلمات الي تحتهن خط‬ ‫‪ETHICS AND BUSINESS‬‬

‫أو بنفس اللون ذا احتمال بأسئلة صح‬ ‫‪PRACTICE‬‬
‫او خطأ ”)‪”Maybe as (T/F‬‬

‫‪ ‬غالبا تكون الترجمة ليس للساليد‬ ‫‪Chapter Four‬‬

‫المعدل وانما للساليد الرئيسي حق‬ ‫‪Al-Hattami‬‬
‫الملزمة‬
 ‫األخالق واألعمال‬
‫‪Ethics and Business:‬‬
‫التصرف األخالقي ينطوي على‬ ‫•‬
‫‪• Acting ethically involves acting in a morally‬‬ ‫التصرف بطريقة صحيحة أخالقية و بطريقة‬
‫مشرفة‪.‬‬
‫( ضع دائرة ( ‪correct and honorable way.‬‬ ‫االعتقاد بأن "تحقيق األرباح هو كل األمور" و‬
‫"كما دامت قانونية ‪ ،‬كل شيء على ما يرام "يتم‬
‫‪• The belief that “making profits is all the‬‬ ‫فرضها بشكل تدريجي جانبا من خالل نهج أكثر‬
‫أخالقية‪.‬‬
‫‪matters” and “as long as it is legal, it is all‬‬ ‫في حين أن سلوك العمل األخالقي قد يفرض‬
‫‪right” are gradually being forced aside by a‬‬ ‫تكلفة على األعمال التجارية ‪ ،‬قد يتم تعويض ‪/‬‬
‫تعويض هذه التكلفة بواسطة زيادة ثقة الجمهور‪.‬‬
‫‪more ethical approach.‬‬ ‫تتغير مواقف المجتمع ومعاييره‪.‬‬
‫أصبح المجتمع اآلن على دراية جيدة باألمور‬
‫‪• While ethical business conduct may impose‬‬ ‫التجارية وعواقبها ‪ ،‬وخاصة تلك العواقب التي لها‬
‫‪a cost on business, that cost may be offset/‬‬ ‫تأثير على األفراد من أعضاء تواصل اجتماعي‪.‬‬
‫كان هذا واض ًحا في العديد من الشركات انهيارات ‪،‬‬
‫‪compensated by an increase in public‬‬ ‫وال سيما االنهيار الذي كثر الحديث عنه إنرون‪.‬‬
‫وفي عام ‪ ، 2008‬انهار بنك ليمان براذرز ‪ ،‬ميريل‬
‫‪confidence.‬‬ ‫لينش ومختلف البنوك والمالية المؤسسات‪.‬‬

‫‪• If business do not adopt acceptable ethical‬‬ ‫إذا لم تتبنى األعمال األخالقية المقبولة المعايير‬
‫ثم سيحتاج البرلمان للتدخل فرض المعايير‪.‬‬
‫‪standards then Parliament will need to step‬‬ ‫على سبيل المثال ‪ ،‬في أستراليا ‪ ،‬البرلمان لديه‬
‫تعديل قانون الشركات لعام ‪ ، 2001‬ووضع جديد‬
‫(‪in to impose standards. (T/F‬‬ ‫معايير استقاللية المراجعين‪.‬‬
 Justice and the Law: . ( ‫( ضع دائرة‬
• Justice basically means that which is right or fair.

• Justice is to say that it is what right-minded members of the community; those who have the
right spirit within them; believe to be fair.

• Sometimes, however, there may be confusion or inconsistency between justice and law.

ً ‫ تعني العدالة أسا‬: ‫العدل والقانون‬

.‫سا ما هو صواب أو عادل‬

.‫ نعتقد أن تكون عادلة‬.‫العدل هو القول بأن هذا ما يصحح األعضاء المجتمع؛ أولئك الذين لديهم الروح الصحيحة في داخلهم‬

.‫ قد يكون هناك ارتباك أو التناقض بين العدل والقانون‬، ‫ ومع ذلك‬، ‫في بعض األحيان‬

 The Rule of Law:

• The underlying principle of the rule of law is that every person and organization, including the
government, is subject to the same laws.

• The rule of law, in its most basic form, is the principle that no one is above the law.

• The rule of law is hostile both to dictatorship and to anarchy.

: ‫ سيادة القانون‬
‫ هي المبدأ أن ال‬، ‫ في أبسط أشكالها‬، ‫ سيادة القانون‬.‫ هو تخضع لنفس القوانين‬، ‫ بما في ذلك الحكومة‬، ‫المبدأ األساسي لسيادة القانون هو أن كل شخص ومنظمة‬
.‫أحد فوق القانون‬

.‫ التشريع العظيم الملك جون على الخضوع للقانون ونجح في وضع قيود على الرسوم اإلقطاعية والواجبات‬/ ‫• مثال على "سيادة القانون" ؛ أجبر الميثاق‬
 Morals and Ethics:
• Morals is to deal with the distinction between right and
wrong.
• An ethical judgment is one which applied to
everyone in similar circumstances and not only to a
particular individual.
• Ethical opinions are concerned with behavior and with
establishing ways in which people should behave.
 A business ought to adopt an ethical
approach because of the following two
reasons:
1. The market will punish unethical behavior.
2. Governments may legislate to protect consumers
and to control trading, e.g. in Malaysia, the
Consumer Protection Act 1999.
‫ األخالق واألخالقية‬
‫• األخالق هي التعامل مع التمييز بين الصح‬
‫والخطأ‬
‫• الحكم األخالقي هو الحكم الذي يمكن رؤيته‬
‫للتطبيق للجميع في ظروف مماثلة وليس فقط‬
.‫لفرد معين‬
‫اآلراء األخالقية تهتم بالسلوك وبالتحديد‬ •
.‫الطرق التي يجب أن يتصرف بها الناس‬
‫ يجب أن تتبنى الشركة نه ًجا أخالقيًا‬
:‫وذلك لسببين‬
‫ سيعاقب السوق في النهاية السلوك غير‬.1
.‫األخالقي‬
‫ يجوز للحكومات سن تشريعات لحماية‬.2
‫ على سبيل المثال‬، ‫المستهلكين والتحكم في التداول‬
1999 ‫في ماليزيا المستهلك قانون الحماية‬
Theories of Ethics: ‫ نظريات األخالق‬
‫ العواقبية والنفعية‬.1
1.Consequentialism and Utilitarianism:
.‫العواقبية تعني االهتمام بـ اآلثار‬ •
• Consequentialism means concerned with the consequences.
‫هو نهج لألخالق مع تقييم السلوك تبعا لعواقب هذا‬ •
• It is an approach to morals with evaluates behavior according to
.‫السلوك‬
the consequences of that behavior.
‫ األخالق ال ُخلُقية‬.2
2. Deontological Ethics:
‫األخالق ال ُخلُقية تتطلب من الشخص أن يفعل‬ •
• Deontological ethics requires a person to do the right thing
.‫الصواب الشيء بغض النظر عن العواقب‬
however the consequences are .
‫إنه يتعارض مع أخالقيات العواقبية في ذلك تعتبر‬ •
• It is disagreeing with consequentialism ethics in that it considers
‫أن العواقب ال يمكن أن تكون أبدًا التبرير المناسب‬
that the consequences can never be an appropriate justification
.‫للفعل‬
for the act.
‫ أخالق الفضيلة‬.3
3. Virtue Ethics:
‫• الفضائل هي صفات شخصية توفر األساس لها الفرد‬
• Virtues are personal qualities that provide the basis for an
.‫ليعيش حياة طيبة ونبيلة‬
individual to have a good life.
‫• أخالق الفضيلة تشدد على نوع الصفات األخالقية التي‬
• Virtue ethics stresses the type of moral qualities that put us in a
.‫تضعها في وضع يسمح لنا بالتصرف بشكل أخالقي‬
position to act morally.
‫ النسبية‬.4
4. Relativism:
‫تقترح النسبية أن القيم األخالقية نسبية إلى بيئة‬ •
• Means that moral values are relative to a specific environment. .‫معينة‬
‫‪ETHICS IN THE BUSINESS CONTEXT :-‬‬ ‫األخالقيات في سياق األعمال‪- :‬‬

‫بعض القضايا األخالقية التي تطرح في مواقف العمل‪:‬‬

‫‪Some Ethical issues that raises in business‬‬ ‫‪T/F‬‬
‫‪Choices‬‬ ‫‪ .1‬التداول بنا ًء على معلومات داخلية‪:‬‬
‫‪situations:‬‬
‫• التداول بنا ًء على معلومات داخلية هو مثال على جرائم أصحاب‬
‫‪1. Insider Trading:‬‬ ‫الياقات البيضاء‪.‬‬

‫‪• Insider trading is an example of a white-collar‬‬ ‫‪ .2‬إعطاء الهدايا وتلقيها‪:‬‬

‫‪crime.‬‬ ‫• اعتمادًا على ظروف الهدية وطبيعتها ‪ ،‬قد ال يكون هناك شيء‬
‫خاطئ أو غير أخالقي مع تقديم الهدايا وتلقيها‪.‬‬
‫‪2. Giving and Receiving Gifts:‬‬
‫• من ناحية أخرى ‪ ،‬فإن تقديم الهدايا وتلقيها في ظل ظروف غير‬
‫‪• Depending on the circumstances and nature of‬‬ ‫قانونية وحيثما يكون طبيعة الهدية ليست اسمية من حيث القيمة‪.‬‬
‫وحيث تُعطى الهبة كإغراء أو في المقابل لصالح‪ .‬إذن ‪ ،‬فإن تقديم‬
‫‪the gift, there may be nothing wrong or unethical‬‬ ‫أمرا غير أخالقي فحسب ‪ ،‬بل إنه غير قانوني‬
‫الهدايا وتلقيها ليس ً‬
‫‪with the giving and receiving of gifts.‬‬ ‫أيضًا‪.‬‬

‫‪• On the other hand, the giving and receiving of‬‬ ‫‪ . 3‬تضارب المصالح‪:‬‬

‫‪gifts under illegal circumstances when giving in‬‬ ‫• ينشأ تضارب المصالح عندما يكون الفرد في وضع ال يستطيع فيه‬
‫‪return for a favor.‬‬ ‫التصرف بنزاهة و بما يحقق مصلحة أحد األطراف دون المساس‬
‫بحقوق ومصالح الطرف اآلخر الذين يعملون أيضًا من أجلهم‬
‫‪3. Conflict of Interest:‬‬
‫‪• Occurs when an individual’s personal interests‬‬
‫‪affect on his/her decisions or actions in the‬‬
‫‪workplace .‬‬
 ‫التضارب بين المصالح التجارية والمنفعة‬.4
4. Conflict between Commercial :‫االجتماعية‬
Interests & Social Utility: ‫• البنوك والمستشفيات الخاصة وغيرها يعتبروا‬
‫ضا يوفروا منفعة‬ً ‫منظمات تجارية هادفة للربح و أي‬
• Banks, private hospitals & others are ‫اجتماعية‬

business organizations which are ‫ ال يمكن للبنوك فرض رسوم‬، ‫• على سبيل المثال‬
.‫زائدة عن الخدمات التي تقدمها‬
profit-oriented and they also provide a
social utility.
• For example, banks cannot charge
excessive fees for the services they
provide.

T/F
Choices
5. Unconscionable Contracts: :‫ العقود غير المعقولة‬.5

• An agreement may comply with all the legal requirements ‫• قد يمتثل االتفاق لجميع المتطلبات القانونية‬
for the court to recognize it as a contract but it may ‫للمحكمة لالعتراف به كعقد ولكنه قد يكون مع‬
nonetheless be grossly unfair and against good ‫ذلك غير عادل بشكل صارخ ويتعارض مع‬
conscience. .‫الضمير السليم‬

• One of the parties may be taking excessive advantage of ‫• قد يكون أحد الطرفين يستغل بشكل مفرط‬
the misfortune or weakness of the other party. .‫سوء حظ أو ضعف الطرف اآلخر‬

• They may have included terms and conditions in the ‫• ربما قاموا بتضمين شروط وأحكام في العقد‬
contract which impose an excessive burden on the ً ‫تفرض عبئًا مفر‬
.‫طا على الطرف اآلخر‬
other party.
:‫ إساءة استخدام المسؤولية المحدودة للشركة‬.6
6. Misuse of Limited Liability of a Company:
‫ تعتبر‬، ‫• بموجب مبدأ الكيان القانوني المنفصل‬
• Under the doctrine of separate legal entity, a company is ‫الشركة كشخص اعتباري منفصل ومتميز عن‬
regarded as a legal person, separate and distinct from its .‫المساهمين والمديرين‬
shareholders and directors.
‫• هذا يعني أن الحقوق وااللتزامات (بما في ذلك‬
• This means that the rights and obligations (including debts ‫الديون التي تتكبدها الشركة) للشركة مملوكة‬
incurred by the company) of a company belong to the .‫للشركة وليس للمساهمين أو المديرين‬
company and not to the shareholders or the directors.

T/F
Choices
 Corporate Codes of Conduct
• In combating corporate fraud, every country should continue to pursue an aggressive agenda
to fight corporate fraud and abuse by:

1. Providing better information for investors.

2. Protecting small investors & workers;

3. Moving corporate accounting out of the shadows;

4. Developing a stronger, more independent corporate audit system;

5. Exposing & punishing acts of corruption;

6. Accountability of corporate officers & directors;

‫قواعد سلوك الشركة‬ 

:‫ يجب على كل دولة االستمرار في اتباع أجندة صارمة لمحاربة االحتيال وإساءة استخدام الشركات من خالل‬، ‫• في مكافحة االحتيال في الشركات‬

.‫ توفير معلومات أفضل للمستثمرين‬. .1

.‫ حماية صغار المستثمرين والعمال‬. - .2

.‫ إخراج محاسبة الشركات من الظل‬. .3

.‫تطوير نظام تدقيق مؤسسي أقوى وأكثر استقاللية‬ .4

.‫فضح أعمال الفساد ومعاقبة مرتكبيها‬ .5

.‫ مساءلة مسؤولي ومديري الشركات‬. .6

Ethical Investing
• It used to be that investment in the stock exchange was perceived as the
exclusive field of high finance operators.
• Ethical investing is investment in companies that operate ethically,
provide social benefits & are sensitive to the internment.

:‫االستثمار األخالقي‬
.‫• كان يُنظر إلى االستثمار في البورصة على أنه المجال الحصري لمشغلي التمويل الكبار‬
‫ وتوفر مزايا اجتماعية حساسة‬، ‫• االستثمار األخالقي هو االستثمار في الشركات التي تعمل بشكل أخالقي‬
.‫لالعتقال‬
• The usual guidelines for determining which company to invest or not to invest, including
considerations as to whether the company is associated with the following factors:
:‫ بما في ذلك االعتبارات المتعلقة بما إذا كانت الشركة مرتبطة بالعوامل التالية‬، ‫• • المبادئ التوجيهية المعتادة لتحديد الشركة التي ستستثمر أو ال تستثمر‬
Positive factors Negative factors
 Positive factors:  Negative factors:
1. Ethical Employment Policies. 1. Unethical Employment Practices.
2. Environment Protection. 2. Unethical Environmentally Practices.
3. Protection of Resources. 3. Terrorism.
4. Pollution Control. 4. Tobacco or Alcohol.
5. Health & Safety of the Workplace and 5. Money Laundering.
the Community. 6. Armaments.
:‫العوامل اإليجابية‬ 7. Oppressive Regimes.
.‫سياسات التوظيف األخالقية‬ .1
.‫حماية البيئة‬ .2
8. Animal Exploitation.
.‫حماية الموارد‬ .3 9. Gambling.
.‫السيطرة على التلوث‬ .4 10. Pornography and other vices.
.‫صحة وسالمة مكان العمل والمجتمع‬ .5 :‫العوامل السلبية‬
.‫ ممارسات التوظيف غير األخالقية‬. .1
.‫ الممارسات الضارة بالبيئة‬. .2
.‫ اإلرهاب‬. .3
.‫ التبغ أو الكحول‬. .4
.‫ غسل األموال‬. .5
.‫ التسلح‬. .6
.‫ األنظمة القمعية‬. .7
.‫ استغالل الحيوانات‬. .8
.‫ القمار‬. .9
.‫ المواد اإلباحية والرذائل األخرى‬. .01
 ‫ هذه النسخة تركيز على أهم النقاط فقط وتعتبر من اجتهاد شخصي وغير مسؤول عن‬-: ‫مآلحظة هآمة‬
‫أية أخطاء ويجب االطالع على الساليدات الرئيسية‬
Al-Hattami

https://quizlet.com/1639763
60/business-law-chap-5-
contracts-flash-cards/

IB5
Subject:
Business Law .
Law of Contracts

Special
Chapter Five Thanks
To :
A. Al- Eyyan
Introduction:
Contracts are an important part of our lives, as contracts are constantly contracted,
whether between individuals and individuals or companies for commercial purposes.
Contract: an agreement enforceable by law. In other words, a contract is an agreement
which legally binding between the parties.

Types of contracts:
• Sales contracts: for the sale and purchase of G&S.
• Employment contracts: for hiring employees.
• Rental or lease contract: for the rent of a property or house.

The differences between contract and agreement:-

• Every contract contains an element of agreement, but the agreement alone cannot lead
to a legally recognized contract.
• This is because the parties to the agreement sometimes do not intend to establish legal
relations.
THE BASIC ELEMENTS OF A CONTRACT:
1. Offer.
2. Acceptance .
3. Intention to create legal relations.
4. Consideration.
5. Certainty.
6. Capacity.

Explain
  THE BASIC ELEMENTS OF A CONTRACT:

1. Offer:
An offer or proposal is necessary to form an agreement. When someone expresses to
the other a desire to do or refrain from doing something, with the aim of obtaining
the consent of the other party (Definition).
Offer: All contracts start with an offer. One party requires something from the
other. The other party has the resources to satisfy it for an exchange in value.
• The person making the offer called the promisor/ offeror. ‫المتعهد‬
• The person received the offer called the offeree.
The offer or proposal is effective once it has been communicated to the offeree by
the offeror.
• An offer made verbally or in writing is called an express offer,
• while the offer without speaking (through behavior) is called an implied offer.
)‫ في حين يسمى العرض دون التحدث (من خالل السلوك‬،‫العرض اللفظي او الكتابي يسمى عرض صريح‬
.ً ‫عرضا ً ضمنيا‬
  THE BASIC ELEMENTS OF A CONTRACT:
2. Acceptance:
• When the person who gets the offer agrees, the offer will be acceptance
(Definition)
• When an offer accepted ,it becomes a promise.
• When acceptance is made with words, it is called express acceptance,
• when acceptance is made with other than that (behavior), it is called implied acceptance.
.ً ‫ في حين يسمى القبول (من خالل السلوك) قبوالً ضمنيا‬،‫• القبول بالكلمات (اللفظي او الكتابي) يسمى قبول صريح‬
• Acceptance must be absolute and unconditional for there to be complete consent, if the
approval is conditional, it is not called acceptance.
‫ وإذا كانت الموافقة مشروطة فال تسمى‬، ‫• يجب أن يكون القبول مطلقا ً و غير مشروطا ً حتى تكون هناك موافقة كاملة‬
.‫القبول‬
 Revocation of Offer and Acceptance: ‫الغاء العرض أو القبول‬ ‫عدد‬
1. Cancellation notice by the offeror to the offeree.
2. Death or mental disorder of the offeror. .‫اشعار اإللغاء من قبل العارض الى المعروض عليه‬ .1
.‫ موت أو اضطراب عقلي لمقدم الطلب‬.2
3. The time of accepting the offer has expired. .‫ انتهاء وقت قبول العرض‬.3
.‫ عدم إستيفاء القابل للشروط‬.4
4. The acceptor does not meet the conditions.
  THE BASIC ELEMENTS OF A CONTRACT:
3. Intention to Create legal Relations:-
• Contract law does not provide for the intention to create legal relations, but because some
previous cases happen , it is necessary to mention this element in contracts.
• Actually, it is up to the courts to check the intentions of the parties through the context and
language used.
4. Consideration:
• It may be money, right, interest or other benefit that is assigned to another person in return for
what he/she gave. Consideration is an important element of the contract that both parties of the
contract must clearly agreed on.
(Law Teacher Site- Malaysian Contract Law).
 Consideration not need to be Adequate:
• Under Malaysian law, the consideration not need to be enough, so an agreement is not void
merely because the consideration is inadequate.
.‫ لذا فإن االتفاق ليس باطالً لمجرد أن االعتبار غير كاف‬،ً ‫ ال يلزم ان يكون االعتبار كافيا‬: ‫• بموجب القانون الماليزي‬
 Section 26 shows the application of the rule as it reads:
• A agrees to sell a horse worth RM1000 for RM10, as consent to the agreement was freely given, so
the agreement is a contract even if the consideration not enough.
  THE BASIC ELEMENTS OF A CONTRACT:

5. Certainty:
• The terms of an agreement must be certain.
• An agreement which is uncertain or is not capable of being made certain is
void/cancelled.
• For example, if Ali agrees to sell to Mary a hundred crates/boxes of toys without
specifying what kind they are, in this case the agreement is void because of
uncertainty.
• On the other hand, if Ali is a dealer in plastic toy soldiers only, and he agrees to sell a
hundred crates of toys, the type of toys dealt with by Ali indicates the meaning of the
word ‘toys’.
  THE BASIC ELEMENTS OF A CONTRACT:
6. Capacity:
• Capacity refers to the ability of the parties to a contract to fully understand its terms and
obligations.
• The parties entering into a contract should have the legal capacity to do so.
 Who has the capacity to contract:-
• Who is of the age of majority according to the law to which he is subject, of
sound mind and not deprived of contract under any law he was subjected to.
 Exceptions of Capacity in Malaysian law:
1. Contracts for necessaries: necessities are things that are essential to a child or adult
and his reasonable comfort, e.g. Food and shelter clothes.
2. Contracts of scholarship: for example: in Malaysian law ,scholarship agreement entered
into by a child is valid when the scholarship award, loan is granted by the Federal or State
Government, or an educational institution such as a university.
3. Contracts of insurance: In Malaysian law, the child over the age of ten may enter into a
contract of insurance.
However, if he is below the age of sixteen, he can only do so with the written consent of his
parents or guardian.
Privacy of Contract:
It is a basic principle of common law that no person who is not a party to a contract
may sue over the contract.
• The third party can enter into the contract through the approval of the first party
and the second party, provided that the contract is renewed, which means replacing
an original party with a third party in a new agreement.
 ‫ أبرز النقاط في ملخص الفصل الخامس‬
 Contract: -an agreement which legally binding between the parties. -an agreement enforceable by law.
• Every contract contains an element of agreement, but the agreement alone cannot lead to a legally
recognized contract.
 THE BASIC ELEMENTS OF A CONTRACT:
1. Offer: All contracts start with an offer. One party requires something from the other. The other party
has the resources to satisfy it for an exchange in value.
• The person making the offer called the promisor/ offeror. The person received the offer called the
offeree.
• An offer made verbally or in writing is called an express offer while the offer without speaking (through
behavior) is called an implied offer.
2. Acceptance: When the person who gets the offer agrees, the offer will be acceptance .
• When acceptance is made with words, it is called express acceptance, and acceptance is made with other
than that (behavior), it is called implied acceptance.
3. Intention to Create legal Relations:- Contract law does not provide for the intention to create legal
relations, but because some previous cases happen , it is necessary to mention this element in
contracts.
4. Consideration: Consideration is an important element of the contract that both parties of the contract
must clearly agreed on.
• Under Malaysian law, Consideration not need to be Adequate/Enough.
5. Certainty: The terms of an agreement must be certain.
• An agreement which is uncertain or is not capable of being made certain is void/cancelled.
6. Capacity: refers to the ability of the parties to a contract to fully understand its terms and obligations.
‫مآلحظة هآمة ‪ -:‬هذه النسخة تركيز على أهم النقاط فقط وتعتبر من اجتهاد شخصي وغير مسؤول عن‬
‫أية أخطاء ويجب االطالع على الساليدات الرئيسية‬
‫‪Al-Hattami‬‬

‫‪IB5‬‬
‫‪Subject:‬‬
‫‪Business Law .‬‬
‫‪Law of Contracts 2‬‬

‫‪Special‬‬
‫‪Chapter Six‬‬ ‫‪Thanks‬‬
‫‪To :‬‬
‫‪A. Al- Eyyan‬‬
  1-TERMS OF A CONTRACT:
 The terms of the contract are important for determining the
rights and obligations that the parties have committed
themselves. If this terms breached by any party, then it can
lead to litigation.
 Terms may be classified as either conditions or
warranties which called express terms.
 Express Terms: it is a term that is agreed upon between
the contracting parties and is always written in the contract.
 Conditions: are the essential rules that contract contains.
 Warranties: are an additional set of rules in the contract.
The different between Conditions and Warranties:
• Conditions
• Definition: a term that is vital to the contract.
• The party affected by breach the conditions may •
cancel the contract and claim compensation.
‫يجوز للطرف المتضرر من مخالفة الشروط إلغاء العقد‬ •
.‫والمطالبة بالتعويض‬
:‫شروط العقد‬
‫ تعتبر شروط العقد مهمة لتحديد الحقوق وااللتزامات‬
‫ إذا انتهك أي طرف هذه‬،‫التي التزم بها الطرفان‬
..‫الشروط فيمكن أن يؤدي ذلك إلى المقاضاة‬
‫ يمكن تصنيف الشروط على أنها شروط أو ضمانات‬
.‫وتسمى هذه شروط صريحة‬
‫ هو مصطلح يتم االتفاق عليه بين‬:‫ الشروط الصريحة‬
.‫األطراف المتعاقدة ويتم كتابته دائ ًما في العقد‬
..‫ هي القواعد األساسية التي يتضمنها العقد‬:‫ الشروط‬
..‫ هي مجموعة قواعد إضافية في العقد‬:‫ الضمانات‬
• Warranties
• Definition: are an additional set of rules in the
contract.
If the warranties are breached , the contract is
valid, but the injured party has the right to claim
compensation.
‫ ولكن يحق‬، ‫ فإن العقد ساري المفعول‬، ‫إذا تم خرق الضمانات‬ •
.‫للطرف المتضرر المطالبة بالتعويض‬
 Implied Terms: are terms that are not agreed or written down, ‫ هي الشروط التي لم يتم‬:‫ الشروط الضمنية‬
they are generally presumed. They might be required because of ‫ ويفترض بشكل‬، ‫االتفاق عليها أو تدوينها‬
legal duty or ethical obligations. ‫ قد تكون مطلوبة بسبب واجب قانوني أو‬.‫عام‬
 Implied terms must be: .‫التزامات أخالقية‬

1. Reasonable and equitable. :‫ يجب أن تكون الشروط الضمنية‬

2. Necessary to give business efficacy to the contract. .‫ معقول ومنصف‬.1

3. So obvious .‫ ضروري إلعطاء فعالية األعمال للعقد‬.2

4. Capable of clear expression .‫ واضح جدا‬.3

5. Not in contradiction of any express term of the contract. .‫ قادرة على التعبير الواضح‬.4

 Terms implied by: .‫ أال يتعارض مع أي بند صريح من العقد‬.5

1. Custom and usage pertaining to a particular type of transaction.

2. Legal provisions.

3. The courts: based on the intention of the parties.

  2-VOIDABLE CONTRACT:
By virtue of section 14, consent is free when it is not caused by one or more of the following:
1. Coercion: it is an unlawful act done with the intention of causing the person to enter into an
agreement.
2. Undue influence: it means one of the parties is in a position to dominate, coercion, or pressure the
will of the other party and uses that position to obtain an unfair advantage.
3. Fraud: is defined in section 17 of the Contract Act to include certain acts which are committed with
intent to induce another party to enter into a contract.
 Fraud includes any of the following acts committed by a party:
• The suggestion, as to a fact, of that which is not true.
• The active concealment (cover-up) of a fact.
• A promise made without any intention of performing it.
• Any other act fitted to deceive.
• Any act or omission that the law specially determined it as fraudulent.
4. Misrepresentation: causing, even if unintentionally, the wrongdoing of one or both of the parties in
connection with the agreement.
 The different between Misrepresentation and Fraud:
Misrepresentation Fraud
The person may believe the representation is true. The person making the representation does not believe in its truth.
5. Mistake: where both the parties to an agreement are under a mistake as to a matter of fact
essential to the agreement, the agreement is void.
 Example: A agrees to buy from B a certain horse. It turns out that the horse was dead at the time
of the bargain, though neither party was aware of the fact. The agreement is void.

 3-VOID AND ILLEGAL CONTRACTS:

 Void Contract: is an agreement not enforceable by law.

The object of an agreement is unlawful if:

• It is forbidden by law.
• It would defeat any law if permitted.
• It is fraudulent.
• It involves damage to the person or property of another.
• The court regards it as immoral, or opposed to public policy.

 Consequence of Void or Illegal Agreements:

• The general rule under the Contracts Act 1950 is that the courts will not enforce an illegal
contract, also the person who received any advantage under such agreement or contract is bound
to restore it to the other party or to pay adequate compensation for the same.
 4-Discharge by Frustration, Performance and Breach:
Discharge by Frustration:
The principle of frustration applies when there is a change in the circumstances, which
renders a contract legally or physically impossible of performance.
Discharge by Performance:
As a general rule performance of a contract must be exact, and should be in
accordance with what the parties had agreed. Performance may be from a third party
and not necessarily from the promisor.
Discharge by Breach:
Where a party fails to perform their obligations as agreed, they are in breach of
contract.
 ‫مآلحظة هآمة ‪ -:‬هذه النسخة تركيز على أهم النقاط فقط وتعتبر من اجتهاد شخصي وغير مسؤول عن‬
‫أية أخطاء ويجب االطالع على الساليدات الرئيسية‬
‫‪Al-Hattami‬‬

‫‪Done Chapter 3 , 4 , 5 , 6‬‬

‫‪IB5‬‬
‫‪Subject:‬‬
‫‪Business Law .‬‬

‫‪Chapter Three , Four , Five ,and Six‬‬

‫‪Special‬‬
‫‪Al-Hattami‬‬
‫‪Thanks‬‬
‫‪To :‬‬
‫‪A. Al- Eyyan‬‬