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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

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mera b

assignment main kitny marks aye.

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.

meri samj ma to yehi aya pta ni ab thk h k ni

Rebel,,,,you post is perfect

Lekin us mein tou ye bhi hai k agar consent is not free tou voidable hoga kiu k agar comp nai fraud kiya hai tou const is not free valid kesa hoga valid mein tou const free hona cahhaeye haina

Consent is free...both parties made the contract by free is similar example like mentioned on page 34, in my opinion

Wo tou theek hai lekin phir frraud bhi tou horaha hai na or jaha fraud hota hai waha consent free nahi hoti or phir wo contract valid nahi rehta

Na he is mein contract breach huwa hai ab tak jesai pehlay assigment mein clear the k wo banda chor k chala jata hai tou breach ker diya hai us nai or valid mein breach hota hai tou phi r cheez bas ye confuse karhi hai k ye tou pakka hai k fraud horha hai ab jaha fraud hota hai waha consent tou free nahi hoti na bcz valid mein tou free c onsent hoti hai ap samjh rhay mera point ?

Ya phir ye bhi hosakta hai k initially valid ho kiu k initially wo quality se satisfy thay after six months quality khrab denay lugay wo loag tou six months k baad ye contract voidable ho jae ga bcz wo fraud karhay what do u think

now the question is which act is commited by the garment company ?

Its simple fraud


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