Ch-2 CAF-4

3/25/2024
BL-1 BL-2 BL-3 BL-4 BL-5
Introduction to Contract Act, Partnership Negotiable Anti-money

the legal 1872 Act, 1932 instruments laundering
system Data protection
Arbitration act
Ch-2- Ch-11 Ch-14 Ch-16

Ch-1 Ch-13 Ch-15 Ch-18
Ch-10
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Paper Pattern
MCQS Theory Case study
15 % 35 % 50 %
Paper Pattern
Legal Contract Partnership Negotiable Anti-money

System Act 1872 Act instruments laundering
4% 40 % 16 % 11 % 14 %
1% 8% 2% 2% 2%
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Challenges in
CAF-4
Legal interest Legal language Retention
✓ Teaching through story telling. I have a comprehensive plan to We will use latest mind sciences
✓ Corelating with daily life. improve legal drafting through techniques for retention of
✓ Focus on concept. 25 -30 magical words. knowledge.
BC AD
0
-500 -1 0 1 622 2021
Birth Of Jesus
Christ
Hijrah
‫حضرت عیسی‬ Madinah
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Story of
Not Egypt X
✓ Writing
Not Greece X
✓ Astronomy Not Rome X
✓ Law
✓ Civilization
Mesopotamia
(present-day Iraq and Syria)
Around 2000BC, the ancient

ruler Ur-Nammu had formulated the
first law code, which consisted of
“if and then statements”
Around 1760 BC,
King Hammurabi further
developed Babylonian law, by
codifying and inscribing it in stone.
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282 Hammurabi’s Code was carved

onto a massive, finger-shaped black
stone stele (pillar) that was looted by
invaders and finally rediscovered in
1901.
Standardized
justice system.
Ch- 02
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Historical Evolution
of
Contract Law
Before British
Roman period British regime
regime
Muslim Law Hindu law
Pakistan adopted
Contract Act 1872
Contract Act 1872
1st of September 1872

266 sections 11
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The person accepting the The person making

proposal is called the the proposal is called Mr. Kamran
“promisee”. the “promisor”
I am willing to purchase house for Rs. 10,000,000
Mr. Noman Offeror
Offeree Object
Will you purchase my house for Rs. 10,000,000
Offeror is one who makes an offer to another.

Offeree is one who accepts the offer. 12
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When a person signifies to another his willingness

OFFER to do something or
Proposal not to do something,
to obtain the assent of other person, he is making
an offer.
+ve To do Abstinence -ve Act
Abstain from
Act doing
Act something
OFFER Offeree
OFFER Offeree
Ramla Loan Kamla
Denied to repay I will sue you to

Kamran Noman recover my loan
500,000 If you don’t sue me for

Agreed not to file sue.
next 6 months I will pay
additional Rs. 50,000 13
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Promise.
When the person to whom the proposal is made signifies his assent to
it, the proposal is said to be accepted.
A proposal, when accepted becomes a promise.
Proposal Acceptance Promise
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Agreement.
Every promise and every set of promises forming the consideration for
each other is an agreement.
Promise(s) Consideration Agreement
Contract.
An agreement enforceable by law is a “contract”.
Agreement Enforceability Contract
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Proposal Acceptance Promise
Promise(s) Consideration Agreement
Agreement Enforceability Contract
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Tom agrees to sell his car to Jerry for Rs.500,000.
Tom Jerry
✓ Tom’s PROMISE to sell ✓ Jerry PROMISE to pay

the car to Jerry. Rs.500,000 to Tom.
✓ Jerry’s payment serves ✓ Tom’s car serves as
as CONSIDERATION CONSIDERATION for
for Tom. Jerry.
Agreement is a two-way street, so each party must receive
something from the other party.
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Contract.
An agreement enforceable by law is a contract.
Contract
Agreement Enforceable
Offer + Acceptance by law
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Enforceable by Law?
Impossible Illegal Intention
Not enforceable Not enforceable Enforceable
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Enforceability.
Every contract is an agreement, but every agreement is not always a
contract. An agreement creating a legal obligation is said to be enforceable
by law. The parties to an agreement must be bound to perform their
promises and in case of default by either of them, must intend to sue. For
an agreement to be enforceable by law there should be legal obligation
instead of social, moral or religious obligation.
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Agreement
Social Commercial
Domestic
Intention to
Religious
create legal relation
Unless specifically
No intention to agreed upon
create legal relation
Unless specifically
agreed upon
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Agreement = Consideration-Some Intention to create

Offer+ Accept thing in exchange legal relation
TEA
A B Social Agr NO NO
OFFER ACCEPT
Gold
H Ring W Domestic Agr NO NO
OFFER ACCEPT
Donation NO
X M Religious Agr NO
OFFER ACCEPT
Mobile
X Y Commercial Agr YES YES
OFFER ACCEPT
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Adeel invited Babar on a dinner at his home. Babar accepted the invitation.
It is a social agreement. If Adeel fails to serve dinner to Babar then Babar
cannot go to court for enforcing the agreement and similarly if Babar did not
turn up then Adeel cannot go to court for enforcing the agreement.
Adeel invited Babar on a dinner at some function. Babar accepted the

invitation and it is agreed upon that they have legal intention to enforce the
agreement.
It is a social agreement with intention to create legal relation.
If Adeel fails to serve dinner to Babar then Babar can go to court for
enforcing the agreement and similarly if Babar did not turn up then Adeel
can go to court for enforcing the agreement.
Note: In examination if it is clearly mentioned that parties have legal
intention then we consider it enforceable by law only written agreement will
not create enforceability. 23
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Kinds of Offer
How made? To whom made?
Express offer Implied offer General offer Specific offer
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How made?
Express Offer Implied Offer
If the proposal or If the proposal or

acceptance of any promise acceptance is made
is made in words, the otherwise than in words,
promise is said to be the promise is said to be
express. implied.
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Express Offer
Offeror
Offeree Object
Mr. Noman
Mr. Kamran
Spoken
Will Wordsmy houseWritten
you purchase Words
for Rs. 10,000,000
Written words Written words
If the proposal or acceptance of any promise is made in words, the

promise is said to be express. 26
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Implied Offer
When the offer is not communicated expressly but communicated
by conduct or by the circumstances of the case, then offer is called
an implied offer.
By Action
If the proposal or acceptance is made otherwise than in words, the

promise is said to be implied. 27
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To whom made?
General Offer Specific Offer

▪ Offer made to public at large . ▪ Offer is made to specific or
▪ Anyone can accept by ascertained person.
performing according to the ▪ Can be accepted only by that
conditions. specified person.
▪ It is continuing offer until
withdrawn.
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OFFER
Essentials
Two persons Conditional
Certain and definite Negative confirmation
Contractual intention Invitation of an offer
Communication Communication of
special conditions
Objective of consent
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OFFER
Essentials Two persons
Two persons For a valid offer there needs to be two

persons. A person cannot make an offer to
Certain and definite
himself.
Contractual intention Amjad offers to sell his Suzuki Mehran
2008 model to Habib for Rs. 450,000/-. It
Communication is a valid offer.
Conditional
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OFFER Certain and definite
Essentials
A valid offer is one which is certain and
Two persons definite.
No contract can come into existence if
Certain and definite offer is uncertain.
Salman purchased a horse from Irfan and
Contractual intention
promised to buy another, if the first one
Communication proves lucky. Salman refused to buy the
second horse. Irfan could not enforce the
Objective of consent agreement, it being loose and vague.
Conditional
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OFFER Contractual intention

Essentials
An offer must be made with an intention
Two persons to create a contract.
Adeel invites Babar to dinner. It does not
create legal relations, so there is no valid
Contractual intention offer
Communication
Conditional
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OFFER
Communication
Essentials
▪ The offer must be communicated to the
Two persons offeree.
Certain and definite ▪ The communication is complete when it
comes to the knowledge of the person to
Contractual intention whom it is made.
▪ In case an offer is made by post, its
Communication communication will complete when the
letter reaches the offeree.
▪ An offer can be made by words spoken or
Conditional written or through conduct of the
person. 33
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OFFER Communication
Essentials
▪ Mohsin says to Noor that he is willing to
Two persons sell his motor cycle to him for Rs. 20,000.
Certain and definite This is an offer communicated expressly.
▪ A shoe shiner starts shinning one’s shoes,
Contractual intention without being asked to do so, in such
circumstances that any reasonable man
could guess that he expects to be paid for
this, this is an offer communicated
impliedly.
Conditional
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OFFER Objective of consent

Essentials An offer must be made with a view to
obtain the consent of the other person to
Two persons
proposed act or abstinence.
Communication
Conditional
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OFFER Conditional
Essentials
An offer may be subject to some condition.
Two persons It is on the sole discretion of the person to
whom such offer is made to either accept or
reject it. A conditional offer lapses when
condition is not accepted.
Arslan offers to sell his furniture to Amjad
Communication for Rs. 250,000/- on the condition that
advance payment is made within three days
Objective of consent of the offer. If Amjad does not pay within
three days, he cannot accept the offer.
Conditional
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OFFER Negative confirmation
Essentials An offer cannot be in the form of negative

Negative confirmation
confirmation i.e. if it is not accepted within
a specific time then it will be presumed to
Invitation of an offer have been accepted.
Communication of
special conditions
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OFFER Invitation of an offer
Essentials Invitation to offer is not an offer.

An invitation to offer is an action inviting
other parties to make an offer to form a
Invitation of an offer contract.
Display of the menu of a restaurant
Communication of
Advertisement for auction.
special conditions
Sales purchase by tender.
Display of goods in store.
Circulation of price list.
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Invitation to
Offer
offer
Offer is made to get accepted by Invitation to offer is made to get

other party. offer from other party
Object of invitation to offer is to

Object of offer is to enter into receive offers from people
contract. thereafter contract will be
created.
Offer becomes an agreement An invitation to offer becomes

when it is accepted an offer.
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OFFER Communication of
special conditions
Essentials
When there are special terms and conditions
Negative confirmation in an offer these must be specifically
communicated to the other party.
Invitation of an offer
Communication of
special conditions
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When the person to whom the proposal is made signifies his assent to it, the proposal is
ACCEPTANCE
said to be accepted.
▪ Acceptance means assenting to an offer made.
▪ An offer when accepted becomes a promise. Mr. Kamran
I am willing to purchase house for Rs. 10,000,000
Mr. Noman Offeror
Offeree Object

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Essentials of Acceptance
Absolute and unconditional
Communication
Reasonable time
Reasonable mode
Awareness of proposal
Before lapse of an offer
Once rejected can’t be
accepted
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Essentials of Acceptance Absolute and unconditional
Absolute and unconditional An offer should be accepted without any

condition.
Communication
If any condition is imposed on an offer then it
Reasonable time
turns out to be counter offer instead of
acceptance.
Reasonable mode
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Essentials of Acceptance Communication
Absolute and unconditional ▪ The acceptance may be complete when it is

communicated to the offeror.
Communication ▪ An offer can be accepted by words spoken or
written or through conduct of the person.
Reasonable time ▪ Valid acceptance is communicated either by
the offeree himself or any person authorized
Reasonable mode by him to communicate to the offeror.
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Essentials of Acceptance Reasonable time

A valid acceptance is when it is accepted
Communication within the time specified or within a
reasonable time where no time is specified.
Reasonable time
Reasonable mode
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Essentials of Acceptance Reasonable mode
Absolute and unconditional ▪ Acceptance should be made in the manner

specified or in a usual manner where no mode
Communication is specified.
▪ If the proposal prescribes a manner in which
Reasonable time offer is to be accepted and the acceptance is
not made in that manner. The offeror shall, in
Reasonable mode this case, when the acceptance is
communicated to him, insist that his proposal
shall be accepted in the prescribed manner
and not otherwise.
▪ If the offeror fails to insist within a reasonable
time it is deemed that he has accepted the
performance. 46
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Essentials of Acceptance Awareness of proposal

The acceptor must be aware of the proposal at the time
Communication of acceptance of the proposal.
Reasonable time
Reasonable mode
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Essentials of Acceptance Before lapse of an offer
Absolute and unconditional The acceptance must be given before the offer lapses
or is withdrawn.
Communication
Reasonable time
Reasonable mode
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Essentials of Acceptance Negative confirmation

A proposal is not considered accepted if the
Communication offeree remains silent.
It cannot be in the form of negative
Reasonable time confirmation i.e. if it is not accepted within a
specific time then it will be presumed to have
Reasonable mode been accepted.
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Communication Of proposal
The communication of proposals is deemed to be made by any act or

omission(not do something) of the party proposing by which he intends to
communicate such proposal or which has the effect of communicating it.
It means that an offer can be made by words spoken or written or through
conduct of the person.
When Communication of proposal Complete.
The communication of a proposal is complete when it comes to the
knowledge of the person to whom it is made.
A shoe shiner starts shinning one’s shoes, without being asked to do so, in
such circumstances that any reasonable man could guess that he expects
to be paid for this, this is an offer communicated impliedly.
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Acceptance
When the person to whom the proposal is made signifies his assent to it,
the proposal is said to be accepted. Therefore, the act of signifying the
assent to a proposal is “acceptance”.
The communication of acceptance of proposals is deemed to be made by
any act or omission of the party accepting by which he intends to
communicate such acceptance or which has the effect of communicating
it.
Note: A proposal is not considered accepted if the offeree remains silent.
It cannot be in the form of negative confirmation i.e. if it is not accepted
within a specific time then it will be presumed to have been accepted.
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Acceptance
Communication of acceptance when Complete.
Against the Proposer
▪ The communication of acceptance by post is complete as against the proposer
when it is put in a course of transmission.
▪ In case of acceptance made by post, the proposer becomes bound as soon as the
letter of acceptance is posted even if such letter is lost or delay.
Against the Acceptor
▪ The communication is complete as against the acceptor when it comes to the
knowledge of the proposer.
▪ In case of acceptance by post, the acceptor becomes bound when the letter of
acceptance is actually received, before that acceptor may revoke his acceptance.
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When communication complete
Proposal Acceptance
When it comes to Proposer Acceptor

the knowledge of
the person to
whom it is made. When it is put in a When it comes to the
course of knowledge of the
transmission to him, proposer.
so as to be out of the
power of the
acceptor
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A proposes, by letter, to sell a

house to B at a certain price.
B accepts A's proposal by

Proposal by A
a letter sent by post
The Proposer-A Acceptor-B

Communication of
the proposal is
as against A, when the as against B, when the
complete when B
letter is posted by B letters received by A
receives the letter.
letter.. 54
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A proposes, by letter dated 15th Jan 2021, to sell a house to B for

Rs.20,000,000. B receives the letter on 18th Jan 2021. B accepts A's
proposal by a letter sent through post on 20th Jan 2021.B receive
the letter of acceptance on 25th Jan 2021.
When communication of offer is complete?
When communication of acceptance is complete as against A?
When communication of acceptance is complete as against B?
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Acceptance of Offer
18th Jan 2021 20th Jan 2021 25th Jan 2021
Offeror
Offeree Object
Mr. B
Mr. A
15th Jan 562021

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Acceptance of Offer
Offeror
Offeree Object
Mr. B
Mr. A

15th Jan 572021
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Acceptance of Offer
Offeror
Offeree Object
Mr. B
Mr. A

15th Jan 582021
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Acceptance of Offer
Offeror
Offeree Object
Mr. B
Mr. A

15th Jan 592021
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A makes an offer to B on 10th by a letter which reaches B on

12th. B posts letter of acceptance on 14th which reaches A on
16th. The communication of acceptance is complete as against
A on
a) 12th
b) 14th
c) 16th
d) 10th
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Communication
Telephone/telex/fax
▪ A contract by telephone / telex / fax is treated on the same principle
as an oral agreement made between two parties when they are face
to face with each other.
▪ In such cases, the contract will complete only when the acceptance is
received by the proposer and not when it is transmitted by the
acceptor.
▪ The offeree must make sure that his acceptance is received, heard
and understood by the offeror; otherwise there is no contract.
FAX machine is used to transmit

printed-paper or documents from one
location to another.
Telex was a method of sending
written messages electronically
between businesses.
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Revocation meaning and time limit [Section 5]

Revocation means the act of taking back, withdrawing or cancelling.
An offer or acceptance may be revoked subject to following time limits:
▪ A proposal may be revoked at any time before the communication of
its acceptance is complete as against the proposer, but not
afterwards.
▪ An acceptance may be revoked at any time before the communication
of its acceptance is complete as against the acceptor, but not
afterwards.
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Revocation of offer and

acceptance
Proposal Acceptance
A proposal may be revoked An acceptance may be

and communicated at any revoked and communicated
time before the at any time before the
communication of its communication of the
acceptance is complete as acceptance is complete as
against the proposer. against the acceptor.
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When communication of revocation is complete
When it is put in a
course of transmission
A) As against the person to the person to whom
who make it it is made so as to be
out of the power of the
person who make it.
B) As against the person When it comes to his

to whom it is made. knowledge.
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Revocation of offer & acceptance
Offeror
Offeree Object
Mr. B
Mr. A
15th Jan 652021

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A proposes, by letter dated 15th Jan 2021, to sell a house to B for

Rs.20,000,000. B receives the letter on 18th Jan 2021. B accepts A's
proposal by a letter sent through post on 20th Jan 2021.B receive
the letter of acceptance on 25th Jan 2021.
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ICAP Study Text Example 60

On 3 September 2018 Saleem offered, by a letter, to sell his laptop to
Ghazi for Rs. 50,000. Ghazi received the letter on 5 September 2018.
On 6 September 2018 Ghazi posted the letter of acceptance to Saleem.
The letter reached Saleem on 8 September 2018. Saleem wrote a letter
of revocation of his offer and posted it to Ghazi on 5 September 2018.
The letter reached Ghazi on 7 September 2018.
Under the provisions of the Contract Act, 1872 briefly describe when
the communication of the offer and acceptance and the revocation of
the offer was completed as against Saleem and Ghazi under the above
circumstances and whether a binding contract was created between
Saleem and Ghazi.
(ICAP, CAF 03 Level – Autumn 2018)
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Revocation of offer & acceptance

7th Sep- 2018
5th Sep-2018 6th Sep-2018 8th Sep-2018
Offeror
Offeree Object
Mr Ghazi
Mr. Saleem
Will you purchase my laptop for Rs. 50,000
5th Sep- 2018 3rd Sep- 682018

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Communication of offer was completed on 5 September 2018 i.e. when it

came to the knowledge of Ghazi.
Communication of acceptance was completed as against Saleem when the
letter was posted i.e. on 6 September 2018 and as against Ghazi it was
completed when the letter of acceptance reached Saleem i.e. on 8
September 2018.
The communication of revocation of offer was completed as against Saleem
on 5 September 2018 i.e. when the letter of revocation was posted, and as
against Ghazi on 7 September 2018, when the letter of revocation was
received by him.
Since Ghazi had posted his letter of acceptance on 6 September 2018 and
revocation of offer was communicated to him on 7 September 2018, his
acceptance was valid Saleem cannot revoke his offer after 6 September 2018,
when the communication of acceptance was completed as against him.
Therefore, a binding contract had been created between Saleem and Ghazi.69
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ICAP Study Text Example

Ahmed being interested in purchasing Adil’s DHA property sent
him this letter on 01 March 2019, “I have heard that you are
selling your DHA property. I am very much interested in
purchasing it. Will you please consider selling the same to me?
What is the highest price you have been offered so far?” Adil
replied, “The highest quote for the property till now is Rs. 35
million.” Ahmed replied, “I agree to buy your DHA property for Rs.
36 million.” Subsequently, Adil received an offer from Hamid
quoting Rs. 38 million for the said property. What will be Adil’s
liability towards Ahmed if he wishes to make the sale to Hamid?
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The first letter from Ahmed and Adil’s response on it were

merely ‘asking for information’ and ‘providing information’
respectively and not offer and acceptance. The second letter
from Ahmed sent as a reply to Adil was itself an offer and not
the acceptance of an offer. Since this offer had not been
accepted by Adil, there is no binding contract between the
parties. Accordingly, there is no liability if Adil sells his bungalow
to Hamid.
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Manner of revocation of proposal [Section 6]

A proposal may be revoked in following ways:
a) by the communication of notice of revocation by the proposer to the
other party;
b) by the lapse of the time prescribed in such proposal for its acceptance, or,
if no time is so prescribed, by the lapse of a reasonable time, without
communication of the acceptance;
c) by the failure of the acceptor to fulfil a condition precedent to acceptance;
or
d) by the death or insanity of the proposer, if the fact of his death or insanity
comes to the knowledge of the acceptor before acceptance.
e) An offer is also terminated by non-acceptance or rejection by offeree.
f) An offer is also terminated by counter offer. A counter offer is an offer by
offeree in response to the original offer.
g) An offer once accepted becomes a contract and cannot be revoked. 72
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OBJECTIVE BASED Q&A

01. Lawful offer is
(a) Promise
(b) Legal relation
(c) Proposal
(d) Presentation
01. (c) An offer is a proposal by one person to another for entering into a
legally binding agreement with him
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02. Which of the following result/results in an offer?

a) A declaration of intention
b) An invitation to offer
c) An advertisement offering reward to anyone who finds the lost dog of the
advertiser
d) An offer made in a joke
02. (c) An advertisement offering reward to anyone who finds the lost dog of
the advertiser is an offer.
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03. A letter of acceptance, for a lawful and legal matter, sufficiently stamped
and duly addressed is put into course of transmission. There is
(a) A valid contract as against the acceptor
(b) A contract voidable at the option of offeror
(c) No contract at all
(d) A valid contract as against the proposer
03. (d) A valid contract as against the proposer, as the communication is

complete as against the proposer.
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04. An offer is not different from

(a) Advertisement
(b) Price list
(c) Proposal for doing or not doing something
(d) Display of the goods
04. (c) An offer is a proposal for doing or not doing something.
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05. A makes an offer to B on 10th by a letter which reaches B on 12th. B

posts letter of acceptance on 14th which reaches A on 16th. The
communication of acceptance is complete as against A on
(a) 12th
(b) 14th
(c) 16th
(d) 10th
05. (b) 14th because the communication of acceptance as against offeror is

complete when the offeree posts letter of acceptance.
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06. Offer is simply a

(a) Mere expression of willingness to do or not to do some thing
(b) Intention to create legal relationship
(c) Intention to get assent of other party for offered act or abstinence
(d) All of the above
06. (c) Intention to get assent of other party for offered act or abstinence.
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07. An offer cannot be made

(a) By the words of mouth
(b) By the conduct of party
(c) By the circumstances
(d) To the offeror himself
07. (d) For a valid offer there is needs to be two persons. A person cannot
make an offer to himself
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08. An offer is said to be revoked

a) By non-fulfilment of condition precedent to acceptance
b) Acceptance is not in prescribed mode, but offeror does not object to it.
c) Acceptance is not given within reasonable period of time, but offeror does
not object
d) Misunderstanding has arisen between offeror and offeree
08. (a) By non-fulfilment of condition precedent to acceptance because it is

necessary on the part of offeree to fulfil the condition precedent to
acceptance
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09. Acceptance must be given in:

(a) Usual manner
(b) Prescribed manner
(c) Any manner suitable to the offeree
(d) More effective manner
09. (b) Prescribed manner because an offer come to an end if it is not

accepted according to the prescribed manner (if any)
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10. Which of the following statements is true

a) A proposal may be revoked at any time before the communication of its
acceptance is complete as against the offeree.
b) Acceptance may be revoked at any time, before the communication of
acceptance is complete as against the acceptor
c) An offer initially rejected may subsequently be accepted
d) Letter of offer may be sent after letter of acceptance
10. (b) Acceptance may be revoked at any time, before the communication of
acceptance is complete as against the acceptor
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11. A person cannot make an offer

(a) To a person of sound mind
(b) To his friend
(c) To himself
(d) To the citizen of a foreign country
11. (c) To himself because for a valid offer there needs to be two persons
at least.
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12. An offer gets legal consequences

(a) As soon as it is made
(b) As soon as it is communicated
(c) As soon as it is revoked
(d) As soon as it is accepted
12. (d) Offer has no legal consequence or value unless it is accepted
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13. Implied acceptance is inferred

(a) From the silence of offeree
(b) From the conduct of the offeree
(c) From the written statement of the offeree
(d) From the oral statement of the offeree
13. (b) The implied acceptance may be complete when it is communicated

to the offeror through conduct of the offeree.
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85
14. Abdullah offered by letter to sell Karim his motorbike for Rs. 5,000. Karim
wrote back saying he accepted the offer and would pay in two instalments at
the end of the two following months. Is there a contract?
a) No, because Karim is trying to amend the contractual terms. Abdullah can be
assumed to revoke the offer
b) Yes, there has been as offer and acceptance and a binding contract applies
c) No, Karim’s response constitutes a counteroffer and is effectively a rejection
of Abdullah’s offer
d) Yes, Karim’s response is merely a clarification of contractual terms.
14. (c) No, Karim’s response constitutes a counteroffer and is effectively a

rejection of Abdullah’s offer. This is also known as bargaining
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86
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15. The Law of Contract is

(a) Law of agreements
(b) Law of agreements which creates legal obligation
(c) Law of all agreements
(d) Law of personal and social agreement
15. (b) The contract law deals with agreements having legal consequences.
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44

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Ch-2 CAF-4

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BL-1 BL-2 BL-3 BL-4 BL-5

Introduction to Contract Act, Partnership Negotiable Anti-money

Ch-2- Ch-11 Ch-14 Ch-16

MCQS Theory Case study

Legal Contract Partnership Negotiable Anti-money

Legal interest Legal language Retention

Around 2000BC, the ancient

282 Hammurabi’s Code was carved

Muslim Law Hindu law

1st of September 1872

The person accepting the The person making

Mr. Noman Offeror

Will you purchase my house for Rs. 10,000,000

Offeror is one who makes an offer to another.

When a person signifies to another his willingness

Denied to repay I will sue you to

500,000 If you don’t sue me for

Proposal Acceptance Promise

Promise(s) Consideration Agreement

Agreement Enforceability Contract

Proposal Acceptance Promise

Promise(s) Consideration Agreement

Agreement Enforceability Contract

Tom agrees to sell his car to Jerry for Rs.500,000.

✓ Tom’s PROMISE to sell ✓ Jerry PROMISE to pay

Impossible Illegal Intention

Not enforceable Not enforceable Enforceable

Agreement = Consideration-Some Intention to create

Adeel invited Babar on a dinner at some function. Babar accepted the

How made? To whom made?

Express offer Implied offer General offer Specific offer

Express Offer Implied Offer

If the proposal or If the proposal or

Written words Written words

If the proposal or acceptance of any promise is made in words, the

If the proposal or acceptance is made otherwise than in words, the

General Offer Specific Offer

Two persons Conditional

Certain and definite Negative confirmation

Contractual intention Invitation of an offer

Two persons For a valid offer there needs to be two

OFFER Certain and definite

OFFER Contractual intention

OFFER Objective of consent

OFFER Negative confirmation

Essentials An offer cannot be in the form of negative

OFFER Invitation of an offer

Essentials Invitation to offer is not an offer.

Offer is made to get accepted by Invitation to offer is made to get

Object of invitation to offer is to

Offer becomes an agreement An invitation to offer becomes

I am willing to purchase house for Rs. 10,000,000

Mr. Noman Offeror

Will you purchase my house for Rs. 10,000,000

Absolute and unconditional

Before lapse of an offer

Essentials of Acceptance Absolute and unconditional

Absolute and unconditional An offer should be accepted without any

Before lapse of an offer

Essentials of Acceptance Communication

Absolute and unconditional ▪ The acceptance may be complete when it is

Before lapse of an offer

Essentials of Acceptance Reasonable time