BUSINESS LAW/,CHAPTER NO.1 (CONTRACT AND ITS KINDS)

BUSINESS LAW
(KHALID MAHMOOD CHEEMA)

CHAPTER NO.1 (CONTRACT AND ITS KINDS)


DISCUSS THE VARIOUS KINDS OF CONTRACT DISTINGUISHED b/W VALID, VOID, VOIDABLE, UNFORCEABLE, CONTRACT?

1) VALID CONTRACT: According to the contract act "A valid contract is that which is enforceable at law , it creates legal responsible/ obligations b/w the parties .It enable one party to compell another party to due something or not to due something.
Partyies obligation: In a case of valid contract all the party to the contract are legally responsible for the performance of contract. if one party bracks the contract other as rights to enforce to the court.
e.g: Ali purpose sell his one land to Naeem for 1Lac. .The party of capable to do the contract by law. so, his contract is Valid. If Ali fails to delivered the land Naeem can cliam hi in the court for the delivery of land, on the other hand Naeem fails to makes payments so Ali can sue hi o recovery of payment.
2) VOID CONTRACT: An agreement not enforceable a law is void contract.:" Originally it is valid contract but due to certain reason it become void. After its formation a void contract. can not be enforce by either party . The basic features of void contract.are ,
1) It is not enforceable by law.
2)Its create not legal obligation /rights.
3)its create no responsibility any party.
4) An agreement which is against the public policy or against to law.
5)under this contract no compensation can be paid to any party.
6) an agreement is restraint of mange & trade arecommon examples of void contract.
e.g: Wasim & Nadia contracts to marriage on next sunday.Wasim die before the Sunday the contract becomes void.
Rights & duties: In this case the parties are not legally responsible to fulfill the contract . If any party hae received any benefits his bound to return. this contract takes place when the consent of one of the party is not free.
3) VOIDABLE CONTRACT: According to contract act," An agreement which is enforceable by law at the option of one or more of the parties. Their to but not act the option of but not act the opton of the other &othersis voidable contract.
The important features of voidable contract.
1)It is enforceable by lawat the option of one or more party .
2)Avoidable contract can only be objected by the party who has been subject to fraud, coercion ,misrepresentation, & undue influence.
3) If the conteract is revoked bya person rightfully .Then he can also received the compensation .
4)The contract is voidable at the option of the party whoes consent is caused.
5) Contract caused by fraud ,coercion ,misrepresentation, & undue influence ,are voidable contract.
e.g: Mr. Qadir threatens to shoot Mr Nasir to purchase a car of 50 lac. Mr nasir agrees the contract wa made by coercion so itis voidable contract.
Rights & duties: The aggreived party can cancelled such contract with in a reasnable time, it is also & entitled to be copellsented by the other party.
Proof: It is the responsibilty of aggreived party to proof that her consent was obtained by fraud if it is failed to proof in the court than contract will remained if contract is not wriitten or registrated. it can not be enforce.
e.g: Suppose Mr Rashid borrows the money from Mr Kashif & writtens a pro-note but proper amount stamps are not posted on the peo-notes. now in this case the contract is valid but not enforceable.
4) UNFORCEABLE CONTRACT: When due to soe technical deficulties or lack of any formality required by the special provision of law a valid contract but not enforceable incourt.
(FOR MORE INFORMATION SEE PAGE NO. 7-11)