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Contract Act

Company Background

Unilever Limited, a leading multinational company, is a fast moving consumer goods (FMCG) company that operates in different locations all across Pakistan. Initially it produced soaps and margarine produced from oil and fats. Its operations in the country continued to expand further into the food industry and also increased investment in research and development for further growth. Although, It is now one of the world's top companies, but continues to focus its portfolio, and rationalize its businesses to focus on core products and brands.

The Case

Unilever sold its oil business to M/s Dalda Foods (Pvt) Limited for Rs 250 million in 2012. Later on both the companies made an agreement of non-competition. According to the agreement, Dalda Foods restricted Unilever to compete with it in oil businesses for the period of five years. Monopoly Control Authority of Pakistan issued a show-cause notice to the Unilever Pakistan Limited and termed this agreement as a violation of monopoly laws but Unilever Pakistan ignored this order and filed an appeal in the High Court.

You are required to discuss:

  • The kind of contract took place between the Unilever Pakistan and M/s Dalda Foods (Pvt) Limited. (10)
  • The act committed by the Unilever Pakistan in reference to the Monopoly laws. (10)

please Provide Solution...


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Views: 2217

Replies to This Discussion

plzz discuss it with ur ideas

Please Discuss here about this GDB.Thanks

Our main purpose here discussion not just Solution

We are here with you hands in hands to facilitate your learning and do not appreciate the idea of copying or replicating solutions.

The Monopoly Laws ,as confusing every 1 ,are just the role of the Monopoly Control Authority of Pakistan .And the material for answer is available in lessons 4  through 8  "The Contract Act" its scope etc

there is no mention of monopoly law what so ever in handouts

read it carefully and then u will be able to solve the gdb


kindly someone share the sollutioni

its confusing that which kind of contract took place among them it is a valid contract.

plzzz share solution .... !!!!

read the lesson 12 Void agreements; Agreements in restraint of trade (sec. 27)

contract viod hoga kion ke monoply act 4(d) k against hay. unlawful agreement void hota hay. dosra swal k Unilever nay monoply act 11 aur 12 ke khilaf warzee ke. yani es ko apna business sale karny say pehly ejazat laina the. jo es nay nahin lee aur show cause milnay per bhi court main appeal kar dee.

sorry! main nay pehla reply delete kia th awuh nahin hoa. I was wrong and you were right.

the contract is valid and not void due to violation of monopoly law, because the Unilever has stopped the business of vanaspati oil and sold and not want to continue it in all over the world. the restriction about not to do business in oil field is only a guaranty that if the Unilever came again into oil business. but they have cleared that they have ceased all their oil business and sold this business and factories to Dalda banaspati.

Well it is clearly a Valid Contract fulfilling all its essentials


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