MGT611 Business & Labor Law Assignment No 01 Spring 2019 Solution & Discussion Due Date:
Read the examples given below and answer the questions. (4 marks each)
Mr. Y bought a horse from Mr. X for Rs. 200,000. Mr. X claims the horse can be used on the farm. It revealed that the horse is lame and Mr. Y cannot use him on his farm. Here Mr. X knowingly deceived Mr. Y. What is the legal status of this contract of sale?
Mr. A sold his gold watch for only Rs. 500/- to his teacher Mr. B who promised to give him good grades. Comment whether this contract met the conditions of free consent of contracting parties. Justify your answer (yes/no) with valid reason(s).
Mr. XYZ threatens to hurt Mr. ABC if he does not sell his house to Mr. XYZ for only 5 lakh rupees. Mr. ABC sells the house to Mr. XYZ. This is not a valid contract as it is not meeting the condition of free consent to the parties. Identify that condition and comment on it.
The prospectus of a company did not refer to the existence of a document
disclosing liabilities. This gave the impression that the company was prosperous. If the existence of the document had been disclosed the impression would have been quite different. Explain what would be the effect of this material misrepresentation on related parties. Was this act valid?
Arif told Bano, his wife, that he would divorce her, if she does not transfer her personal assets to him. She agreed to transfer her assets to him. Can Bano avoid the contract? Justify your answer (yes/no) with reason(s).