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MGT611 - Business & Labor Law Assignment # 1 Spring 2013, due Date May 02, 2013, Solution and Discussion

“Kinds of Contract:”
Learning Objective:
• To help the students in understanding the laws of "Contract".
• To help the students in understanding the practical application of the laws of
contract in businesses.
Learning Outcomes:
• After attempting the assignment, students will be able to know about the
implementation of the law of "Contract".
• Students will be able to handle the situation caused by Coercion, undue influence,
fraud, misrepresentation, or mistake.
Mr. Yasir is an MBA graduate and is interested in establishing his own business, but as
he is a fresh graduate so he does not have some good ideas of what and how to start a
business for himself. To achieve his goal and meet his aim, he finally joined the company
of Mr. Khalid and Mr. Jamal, who deals in the computer accessories at famous center for
such a business. They had an agreement of 2 years, in which Mr. Yasir agreed with the
other partners that he will not carry on similar businesses at the business center until their
current business comes to an end.
After six months of the agreement, Mr. Yasir starts the same computer accessory
business in the same business center.
(a) Being a student of Business and labour law what kind of agreement took place
between the three parties? Justify your answer. (Marks 10)
(b) What would be the consequences of Mr. Yasir decisions to have another business
in the given scenario. Support your answer with solid arguments? (Marks 10)
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Replies to This Discussion

when we analyze the consequences then we first look at the worst case. However first you have to find the are Mr. Khalid and Mr. Jamal have the right to file a sue. If YES then court may order any penalty and if they have no right the nothing will happen.


In assignment its clearly written that Mr.yasir agreed with the contract and am sure you are pretty much aware of what a contract is  well a small def of contract is Every agreement and promise enforceable at law is a contract and agreement = offer + acceptance . Since every contract is enforceable at law so whether the issue is small or big any one of the party can sue the other party in the court and Mr.yasir already went against the contract or agreement so Mr jamal and Mr.khalid can sue him in the court. This is what i think  . Good Luck with your assignment  :)

If acceptance is done by under pressure ( Coercion in Contract ) then it is void and not enforceable by law. Do you think Yasir's acceptance is under pressure. Like he can't get the job  until ho do that or this?

They had an agreement of 2 years, in which Mr. Yasir agreed with the
other partners that he will not carry on similar businesses at the business center until their
current business comes to an end.

Kindly don't make the question so complicated for the students who are already confused. its simple Mr. Yasir agreed with the contract and He also went against the agreement so Mr.jamal and MR khalid can sue him. Keeping this in mind you an see what kind of contract they signed. Thank you

Yep, you are right. :)

This can not be void contract. Void contract is a formal agreement that is illegitimate and unenforceable from the moment it is created. A void contract could be considered void for a number of reasons. Common causes of a void contract are contract terms that are illegal or become illegal due to changes in law; one party to the contract lacks the capacity to enter into a contract because he is a minor or mentally incapacitated; and it is legal but declared null by the courts because it violates a fundamental principle.

i think this is unforceable contract....

Which Principle?

y this is not void agreement??? a void agreement which is not enforced by law. In void agreement both parties are agreed mutually not any term in written form. in the give situation Mr. yasir agreed to with mr. khalid and jamal agreement. After six month he breach this agreement because he know there is nothing in written and this agreement is void. if the other party want to go  court, the court reject their appeal against Mr. Yasir because this agreement is void and void agreement is not aceptable in court due to not enforced by law. 

Listen 12  lecture this is on void and conditions in the agreement. 

correct me if i am wrong. Thanks.....................

The consequences might be as per following:

  • Perform the contract by order of court of law
  • Remedies / injunction in the form of court order.

In sec.2 (h) contract is defined as:

      “Every agreement and promise enforceable at law is a contract”

In simple words “An agreement enforceable at law is a contract”.


 Agreements are defined in sec 2 (e):

        “Every promise or every set of promises forming the

            consideration for each other is an agreement”.


As Mr.Yasir is an  MBA graduate so he is a major person of sound mind and can enter in a valid contract.

As it is defined in sec11:

“Every person is competent to contract who is of the age of majority according to law to which je is subject, and who is of sound mind, and is not disqualified from contracting by any law to which he is subject”.

For a valid agreement there must be an offer from one party the acceptance of that offer by the other party.

As Mr.Yasir offer to Mr. Khalid and Mr. Jamal to joined their company and they accept his offer to join the company on a condition that he cannot start his own business until their current business comes to an end. As Mr. Yasir is agree with their conditions they had a contract of two years.

According to the above mentioned definitions it is an valid agreement as it fulfills all the conditions of a valid contract.

In the eye of all the valid contracts and agreements are enforceable by law and no one can breach them, it does not matter that they are written contracts or verbal. If any party breach the contract, other party can take legal actions against that party.

As Mr. Yasir start a new business after six months of the agreement, he breach his contract so Mr. Khalid and Mr. Jamal has right to take an legal action against him

agr iss ma koi mistake h to kindly correct kr dain


Tariq bhai bht jaldi copy kia apne kia bat h


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