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Assignment No 1
Farhan Hussain 10583
Law is solemn expression of the will of the supreme power of the state. subjected to sanctions or legal consequences. It must be followed by citizens. having binding legal force. Word’s meaning: A rule or method according to which phenomenon or actions co exists or follow each other.Farhan Hussain 10583 LAW Law in normal sense seem to me as some commands and conditions that are to be followed or acted upon by all to maintain a proper sense of equilibrium in the society/country governed by that law. “Ignorance of Law is no excuse” These three terms can be used interchangeably • • • Business law Mercantile law Commercial law *The FBR site will give the information about the tax. General Sense: A body of rules of actions or conduct prescribed by controlling authority. or rules mentioned. *more than 70% tax payers in Pakistan are salaried employees. *Basic salary structure would include • • • Basic salary House rent Conveyance 2 . Those who would not follow it would be subjected to punishment decided by court of Law. tax return and slab rates on basis of which tax is to be deducted.
It is an exemption to the ordinary law of the land. philosophical. Believed to be the direct word of God as revealed to Muhammad through angel Gabriel in Mecca and Medina. The dictionary of English law defines custom as a law not written. 3 . has from long usage obtained the force of law. The judges depend on their own sense of right and wrong and decide the disputes. and every custom is limited in its application. social. Custom as a source of law got recognition since the emergence of savigny on the horizon of jurisprudence.C CUSTOMS A custom is a rule which in a particular family or in a particular district or in a particular section. such decisions become authority or guide for subsequent cases of a similar nature and they are called precedents. The judgements passed by some of the learned jurists became another significant source of law.. PRECEDENTS Precedent is one of the sources of law. Precedent is more flexible than legislation and custom. the scripture specifies the moral. used. political and economic basis on which a society should be constructed. when there is no legislature on particular point which arises in changing conditions. Class or tribe.Farhan Hussain 10583 • Utilities SOURCES OF LAW QURAN The Qur'an is the first and most important source of Islamic law. The dictionary of English law defines a judicial precedent as a judgement or decision of a court of law cited as an authority for deciding a similar state of fact in the same manner or on the same principle or by analogy. which being established by long use and consent of our ancestors has been and daily is put into practice. It is always ready to be.
Farhan Hussain 10583 Legislation Legislation is that source of law which consist in the declaration of legal rules by a competent authority. Legislature frames new laws amends. is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. FORMS OF BUSINESS • • • Corporation Partnership Proprietorship (Sole) A corporation is a legal entity that is created under the laws of a state designed to establish the entity as a separate legal entity having its own privileges and liabilities distinct from those of its members. A partnership is an arrangement where parties agree to cooperate to advance their mutual interests A sole proprietorship. the old laws and cancels the existing in all countries. The owner receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts. The term legislature means any form of law making. Its scope has now been restricted so a particular form of law making. also known as the sole trader or simply a proprietorship. most of which are used to conduct business. Legislature is the direct source of law. 4 . It not only creates new rules of law it also sweeps away existing inconvenient rules. Every asset of the business is owned by the proprietor and all debts of the business are the proprietor's. This means that the owner has no less liability than if they were acting as an individual instead of as a business. It is a "sole" proprietorship in contrast with partnerships. In modern times this is the most important source of law making. There are many different forms of corporations.
which you have put in as capital. VOID: you have no recourse. Limited Liabilities: Only those assets would be at stake. A company is artificial judicial person created by Law. Contract Laws in Pakistan 5 . *Private limited can’t sell or retain cash from public but a public limited company can. A company cannot be involved into Business void or unlawful activities.Farhan Hussain 10583 *FBR: Federal Board of revenue *CBR: Central Board of Revenue MEMBERS ALLOWED IN Different kinds of ventures -single member private limited company = 1 -PVT limited 2 to 50 -Public Limited unlisted > 3 -Public Limited Listed > 7 *sole proprietorship unlimited liabilities Unlimited Liabilities: To satisfy the claim of your creditor all the personal assets are at claim. even those of your children of age greater than 18 and of your spouse. you can’t go to court of law to claim anything.
Farhan Hussain 10583 • • Pakistan follows Pakistan Contract Act 1872. A knowledge of Contract Acts can be helpful in our daily lives and save us some big frauds • What is Contract? • Definition o o o “An agreement enforceable by law is a contract “A contract is an agreement creating and defining obligations between the parties” An agreement between two or more parties which is intended to be enforceable at law and is constituted by the acceptance by one party of an offer made to him by the other party to do or to abstain from doing some act” Elements of a Contract • There are two elements of a contract o o Agreement Enforceability Agreement • Agreement is defined as “every promise and every set of promises. It provides all the rules pertaining to transactions done commercially.it is his contract that the bread is of good quality unless otherwise specified and we give money as its “consideration”. when we go to buy a bread. How? The shop keeper gives the bread .For example. it’s a contract. It is not related only to commercial aspect but everday common people also indulges in large no of contracts. forming the consideration for each other is an agreement” 6 .
An agreement is initiated from one party and if the other party agrees. Enforceability • • • • • • It is the 2nd requirement of an contract. Legal agreements : In law. This is called identity of mind. a person enters in to agreement when he offers his skills at a job and expects to get salary which he has agreed upon the management in return. For example. then the agreement takes place. “All Contracts are agreements. the agreement cannot take place of an contract Social Agreements are those agreements among the members of an organized society or between the governed and the government defining and limiting the rights and duties of each. If one party fails to perform the Contract. “Agreement is an accepted proposal” A proposal is offer by one party with some terms and conditions for want of a particular thing. agreement is what a person says he will do in exchange of some reward he must be getting in return. every agreement is a proposal which is accepted by both the parties • • • • • • Essentials of an Agreement • For an agreement to take place. Acceptance is when the other party agrees to the proposal A promise is an proposal which is accepted. Plurality of Persons: 2 or more persons 2. Consensus Ad Idem: All the parties must be on the same understanding at the same time. They are not enforceable by law. a contract is a binding legal agreement that is enforceable in a court of law or by binding arbitration • 7 . but not all agreements are Contract” This above definition gives the idea that without the enforceability clause.Farhan Hussain 10583 • In simple words. the other party may take them to the Court of Law for legal actions. Enforceability is the legal status of the contract. Examples: dowry is a social agreement. there must be 1. To sum it up.
Offer and Acceptance • When one person signifies to another his willingness to do or abstain from doing anything with a view to obtaining the assent of that other to such act or abstinence he is said to make a proposal. Offer and acceptance 2. 9. 10. 7. Not expressly declared Void. Capacity of Parties 5.Farhan Hussain 10583 Essentials Elements of a Valid Contract 1. Lawful consideration 4. Free Consent. 8 . Writing & registration. Legal Relationship 3. 8. Possibility of performance. 6. Certainty. Lawful Object.
with a view to obtaining the acceptance of that another person to whom the offer is made. A proposal when accepted becomes a promise.2 Million is the consideration of Mr. Illustrations: o Zardari is selling his BMW to Gilani for Rs. It is the most essential element of the contract.Gilani to pay Rs. Free Consent 9 .(1) Promise and (2) Consideration for the promise.Zardari and the BMW car is the consideration for Mr. As a general rule. However natural love and affection is a consideration. agreement without consideration is void. The Rs. an invitation to a dinner does not create any legal relation and therefore is not a contract. or does or abstains from doing or promises to do or to abstain from doing something such act or abstinence or promise is called a consideration for the promise.2 Million. consideration here. and who is of sound mind. When the person to whom the proposal is made signifies his assent thereof the proposal is said to be accepted. The promise for a promise in return is consideration. Every contract consists of two parts . Lawful Consideration • When at the desire of the promisor the promisee or any other person has done or abstained from doing. and is not disqualified from contacting by any law to which he is subject. A proposal when accepted becomes a promise.2 million • • • Capacity of parties • Every person is competent to contract who is of the age of majority according to the law to which he is subject.Farhan Hussain 10583 • The first step towards creating a contract is that one person shall signify or make a proposal or offer to the other. Consideration is the cause of the promise. • Legal relationship Agreements which create legal relations or are capable of creating legal relations are contracts. A promise is often made in return for a promise for example a buyer realizes the goods for the price. for example. Price for goods is therefore.
Mere consent is not enough. It does not give rise to any rights and obligations. the contract must not be vague. for example it must not have been obtained (1) coercion. (4) misrepresentation. and sale. It has no legal sanctity. in writing mortgage. for example both the parties must agree upon the same thing in the same sense. Contracts which are vague cannot be enforced Possibility of performance • Contracts based on impossibility of performance are not valid. Two or more persons are said to consent when they agree upon the same thing in the same sense. Various agreements are expressly declared void under the Act. or (5) mistake. gift. if permitted it would defeat the provisions of any laws (3) is fraudulent. Certainty • The terms of a contract should be clear. Every agreement if which the object or consideration is unlawful is void. if is a valid contact. Not expressively Declared Void • A void agreement is not enforceable by law (Sec 2(g)). the consideration or object of an agreement is said to be unlawful. The contracts must be capable of being performed.Farhan Hussain 10583 • Parties to a contract must give their consent. or (2) is of such a nature that. or (4) involves or implies injury to the person or property of another (5) the court regards it as immoral or opposed to public policy In each of these cases. The parties must be ad idem. Writing and registration Oral contract registered. (3) fraud. In other words. 10 . (2) undue influence. for example. Lawful Object • The consideration or object of an agreements is unlawful if --(1) it is forbidden by law. so required by However the contract must be any law. Consent of parties must be free.
Farhan Hussain 10583 11 .
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