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MGT611 - Business & Labor Law GDB No. 01 Solution and Discussion Spring 2013 Due Date: 15-05-2013

Starting Date Monday, May 13, 2013
Closing Date Wednesday, May 15, 2013
Status Open



ABC a company dealing in Garments business and has large market share among the metropolitans all across Pakistan. Mr. XYZ is a local cloth supplier to different cities. He got into a contract with the company ABC for purchasing a variety of clothes. The company agreed to provide Mr. XYZ the best quality clothes on prices as per the terms of the contract. Both these parties made a contract for two years with each other.


Mr.XYZ found the clothes inline with the terms and conditions of the contract upon the receipt, stood satisfied and decided to extend the contract for a long term for being in profits. After a span of 6 months, Mr XYZ suddenly observed that the quality of the clothes has broken down and are defective as well. He found that the variety of the clothes have fallen down. The reason behind this was that the company sent a poor variety of clothes to the cloth merchant on the same prices.





You are required to discuss:


  • The kind of contract that took place between the two parties.
  • The act committed by the Garments Company.

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Replies to This Discussion

Dear Fellows

Yahan pe wo zara saamnay aaye jiskay assignment men kam az kam 80% marks aaye hun

good app idea do....

mairay 50% :-)

Agreed with rabel Khan... initially it was a valid contract as it is enfoceable by law... later on after extension it got voidable as fraud is done by the company by providing poor variety and poor quality clothes.  Fraud act is done by the company.. Case can be filed against the company and compensation can be claimed by Mr. XYZ

Humaira you said well, last line is not necessary because tutor only want to know the act performed by Garment company...not what Mr.XYZ will do

guys time up now, have fun

Valid Contract:

Valid contract is an agreement enforceable by law. In such contract all essentials of a contract as mentioned in section 10 are required to fulfill. In case breach of contract by one party, the other party can has right to file a suit for this breach.



A contract is taken place between company XYZ and ABC for two years. The company is willing to provide XYZ best quality clothes on prices as per term of the contract. It is valid contract, enforced by law. Both parties are willing to perform and free to act upon the contract. So it fulfills all the requirements of the valid contract.

Secondly company ABC fallen down the variety of cloths, company sent a poor variety of cloths to cloth merchant at the same price, it is a fraud. Because it is against the terms and conditions of the contract and contract become a voidable contract. So, company XYZ can leaves the contract. Or according to above mentioned definition can go to court against the company. Company has right to ask the company ABC to payback his money. 


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