Business & Industrial Law

Lecture-1

Presented by:
Muhammad Raghib Zafar
Course Facilitator
Muhammad Raghib Zafar
 MS in Management Sciences
(Finance and Economics)
 Ph.D in Progress
With majours in Finance.
You can find me at
 raghibzafar@hotmail.com
 What is Law
 The principles & regulations
established in a community by a certain
authority & applicable to its people,
whether in the form of legislation or of
customs & policies recognized and
enforced by judicial decision.

 Law is a system of rules, enforced

through a set of institutions used as an
instrument to underpin civil obedience,
politics, economics, and society.
Business Law
 Business Law is the part of civil law
which deals with the rights and
obligations of persons dealing with
each other.
 It includes laws relating to:
 contracts,
 partnership,
 sales of goods,
 negotiable instruments etc.
Sources of law in Pakistan
The legal system is derived from
English common law (Equity) and is
based on the constitution of
Pakistan 1973 as well as Islamic law
(sharia). Thus we can say that in
Pakistan the main sources of law
are following:
 1. Legislation
 2. Precedent
 3. Custom
 4. Agreement
 Two important Bodies

Law Making Law Implementing

(Legislating) (Judiciary)

President Supreme Court

Parliament High Court

Governor Lower Courts

Provincial Assembly
 Court/ Judiciary

Complete Half (Quasi) Judiciary

Judiciary Powers of Lower Court

Supreme Court Special Court/

Tribunals
High Court
Income
Tax Insurance Banking
Lower Court Tribunals Tribunals
Appellate
Tribunals
Labor
Courts
Example of Laws:
 Contract Act 1872
 Income Tax Ordinance 2001
 Companies Act-2017
 Law making body

Parliament and
President and Provincial
Governor assembly

ACT
Ordinance
 Ordinance is made by

President Governor

Jurisdiction Jurisdiction
Of Law Of Law

Whole
Country Whole
Province
 ACT is made by

Provincial
Parliament Assembly

Jurisdiction Jurisdiction
Of Law Of Law

Whole
Country Whole
Province
Chapter-1 Contract and Its Kinds
Definition of Contract

According to Contract Act 1872

section-2(h)

“An Agreement enforceable by law is

a contract.”
Elements of Contract
 1. Agreement

 2. Enforceability
Agreement
 Every promise and every set of
promises, forming the consideration for
each other, is an agreement.
 Promise, When the person to whom the
proposal is made signifies his assent
thereto, the proposal is said to be
accepted. A proposal when accepted
become promise.
 Proposal, When one person signifies to
another his willingnes to do or to abstain
from doing any thing, with a view of
obtaining the assent of that other to
such act or abstinence, he is said to
make a proposal.
Enforceability
 An agreement is said to be enforceable
if it is recognized by court. In order to be
enforceable by law, the agreement must
create legal relationship between the
parties.

 If an agreement does not create legal

relationship, it is not a contract

 Social Agreement
 Legal Agreement
 Relationship

Is Created by

Blood Contract

Brother & Sister Husband & Wife

Father & Son Sale / Purchase
Employer / Employee
Landlord / Tenant
Partnership Business
 “All Contracts are agreements but all
agreements are not Contracts”.

Agreement Contract
Formation An Offer and Acceptance An Agreement and
make an agreement. its enforceability

Legal It may or may not create It necessarily

any Legal Obligation creates legal
Obligation Obligation

Scope All agreements are not All contracts are

contract Agreement

Binding All agreements are not All contracts are

binding on the binding on the
concerned parties concerned parties
 Agreement enforceable by
Law/ Contract
Ali offers
to sell his
Hasnain
Laptop of
accepts Rs.45,000
this offer to Hasnain
 Agreement not enforceable by
Law/ Social Agreement

Mr.Y accepts Ms.x offers to

her offer Mr.y at dinner
 Contract

Division/Kinds

Formation Enforceability Performance Parties

Formation of Contract
 Contract

Formation

Constructive
Expressed Quasi

Oral By Conduct/
Implied Contract

Written
Express Contract

 Where the offer or acceptance is made in

words spoken or written, it is an express
contract.
 A) Oral
 B) Written
 Oral Contract of sale

Ali offers to
sell his
Hasnain
Laptop of
accepts Rs.45,000 to
this offer Hasnain
 Written Contract of Sale

Ali offers
to sell his
Hasnain House of
Rs.5500,00
accepts 0 to
this offer Hasnain
 Contract in written

Mandatory Optional

All contacts
may be made by
• Purchase of Immovable Property words of mouth
• Charter Party Contract except a few
• Agreement on the basis of love contracts
& affection
• Agreement for time barred debt
 Usefulness of Written Contract

Documentary Easily preserve No party can

Proof For a longer period Easily deny

Less disputes
As some disputes arises as one party forgets

Law considers Written evidence more powerful than Oral

Implied Contract/By Conduct:
 Where the offer or acceptance is
made ,otherwise than in words.

 By the act or conduct of parties.

 Implied Contract / By Conduct

Mean

Silently allow other

Body Language Person to enter into
A contract

Here words &

Written form are not
Shared b/w parties
 CONTRACT BY CONDUCT
Example: (PEPSI drinks/Telephone booth)

MR. Y gets PEPSI by MR. X makes a call by

inserting inserting coin in telephone
Coins/Money booth
Mr. Y is taking PEPSI
by inserting coins
Mr. X is making a call
by inserting coins

Contract is between
Mr. Y and PEPSI Contract is between
Mr. X and Tele com
Company
Quasi Contract
 Such a contract does not arise due to
express or implied agreement between
the parties but the law imposes a
contract under certain special
circumstances.
Enforceability of the
Contract
 Contract

Enforceability

Valid Void-able Void

Fully Aggrieved Can not be

Enforceable Party may Enforceable
By law/ court Make By Court
Contract as Or Law
Performance of the
Contract
 Contract

Performance

Executory Executed

Spot
Unilateral Bilateral Ready
Contract Contract Contract
 Executed Contract

Delivery Payment
100% on 100% on
Spot Spot
 Executory Contract

Unilateral

Case -1 Case-2

Delivery Delivery Payment

Payment Part now 100%
100% now Part now
Remaining Now Remaining
in future in future

Full Delivery Full Payment

in Future in Future
 Executory Contract

Bilateral

Delivery Payment in
In Future Future

Today just
Words are shared
Parties of a Contract
 Parties of a Contract

Parties

Unilateral Contract Bilateral Contract

One Sided Contract Two Sided Contract

Essentials of a Valid Contract
 Essentials of valid Contract

• Free Consent
• Legal Relationship
• Legal Object
• In writing if required by Law
• Possible to Perform
• Consideration
• Capacity of the parties
• Agreement (Offer and Acceptance)
• Not Expressly declared Void
• Subject Matter