Due Date: 10 May 2017 Total Marks: 10
Topic to be tested:
Essentials of a valid contract
• To extract certain examples/situations from your observation or reading that fits best in the given essentials of a valid contract as per Contract Act 1872.
The essentials of a valid contract are mentioned below:
1) Offer and acceptance
2) Legal relationship
3) Legal consideration
4) Competent parties
5) Free consent of the parties
6) Lawful Object
7) Terms of agreement to be complete and certain
8) Possibility of performance
9) Contract to be got registered & in writing, wherever required
10) Contract not declared void under the Act.
You are required to describe an example related to each essential of the contract. The example should be from daily life out of your observation or general knowledge or from any other source (other than the video lectures and PPTs of this course). Each example should be described in such a way that the meaning of essential is understood even if it is presented to a layman.
Note that you need to describe ten examples, one for each essential.
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MGT611 Assignment # 1 Idea Solution
Mansoor are bound to carry on the business of the firm to the greatest advantage, to the just and faithful to aslam and to render true accounts and full information of all things affecting the firm to any partner or his legal representative.
MAnsoor shall indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm.
They convert their agency relationship into partnership by sharing their profits and losses and also by investments.
A relationship becomes a partnership when both parties begin to seek solution that serve the long-term interests of each other; not just their own.
Necessary for a partnership:
assets by mansoor =25.75
assets by aslam=25.50
total assets= 25.75+25.50 = 51.25
See this paragraph and get answer your question
RELATIONS OF PARTNERS TO ONE ANOTHER 9. General duties of partners.— Partners are bound to carry on the business of the firm to the greatest common advantage, to be just and faithful to each other, and to render true accounts and full information of all things affecting the firm to any partner or his legal representative. 10. Duty to indemnify for loss caused by fraud.— Every partner shall indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm. 11. Determination of rights and duties of partners by contract between the partners.— (1) Subject to the provisions of this Act, the mutual rights and duties of the partners of a firm may be determined by contract between the partners, and such contract may be expressed or may be implied by a course of dealing. Such contract may be varied by consent of all the partners, and such consent may be express or may be implied by a course of dealing. (2) Agreements in restraint of trade. Notwithstanding anything contained in section 27 of the Contract Act, 1872 such contracts may provide that a partner shall not carry on any business other than that of the firm while he is a partner. 12. The conduct of the business.— Subject to contract between the partners - (a) every partner has a right to take part in the conduct of the business;
Find the attached Solution file.
1) Offer and acceptance example:
A tells B that he wants to sell his citizen watch for him for Rs 1000. This is an offer. If B accepts it, there is an acceptance.