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ESS & LABOR LAWS (MGT611)
ASSIGNMENT # 01
Due Date: 14th December, 2020 Marks: 20
Read the following cases and answer the questions given at end. (5 Marks
each)
a) Asim agreed to construct a bungalow for Ali at Rs. 50 million. However, it was
agreed that payment would only be made upon completion of the project.
State with reasons whether this contract can be treated as a contingent contract under
the Contract Act, 1872. Also, list down characteristics of a contingent contract.
b) Sohail and Afaq lent Rs. 20 million to Mohsin, Laila, and Faizan jointly for their
business firm for 1 year. On the due date, the firm becomes insolvent. Without
sharing this fact with Sohail and discussing the recovery issues, Afaq contacts Mohsin
to repay the full amount to him only. Under the provisions of Contract Act, 1872:
(a) Whether Mohsin can be compelled to pay the full amount to Afaq; and
(b) What rights are available to Mohsin, if he repays the full amount?
c) Maimar promised to manufacture and deliver unspecified remote-controlled toy
helicopters to Nasir in the first week of November, 2020. Nasir, in turn, promised to
pay for them by the second week of the same month. However, Maimar could not
deliver the toys at all. Should Nasir keep his promise and what remedy, if any, is
available to him?
d) Bader, the city’s famous businessman had lost his expensive pet horse three days ago.
He had also sent Aftab, one of his employees to search the horse. Now, Bader has
also advertised a reward of Rs. 20,000 in a local newspaper for anyone who finds his
missing horse. Aftab, unaware of the advertisement, traced the horse and handed it
over to Badar. Later, on knowing about the reward, Aftab claimed it from Bader.
Under the related provisions of the Contract Act, 1872, identify the type of offer
made by Bader. Also, state whether Aftab would be able to claim the amount of
reward

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Replies to This Discussion

a)     Asim agreed to construct a bungalow for Ali at Rs. 50 million. However, it was agreed that payment would only be made upon completion of the project.

State with reasons whether this contract can be treated as a contingent contract under the Contract Act, 1872. Also, list down characteristics of a contingent contract.

 

b)     Sohail and Afaq lent Rs. 20 million to Mohsin, Laila, and Faizan jointly for their business firm for 1 year. On the due date, the firm becomes insolvent. Without sharing this fact with Sohail and discussing the recovery issues, Afaq contacts Mohsin to repay the full amount to him only. Under the provisions of Contract Act, 1872:

(a)   Whether Mohsin can be compelled to pay the full amount to Afaq; and

(b)   What rights are available to Mohsin, if he repays the full amount?

c)      Maimar promised to manufacture and deliver unspecified remote-controlled toy helicopters to Nasir in the first week of November, 2020. Nasir, in turn, promised to pay for them by the second week of the same month. However, Maimar could not deliver the toys at all. Should Nasir keep his promise and what remedy, if any, is available to him?

 

d)     Bader, the city’s famous businessman had lost his expensive pet horse three days ago. He had also sent Aftab, one of his employees to search the horse. Now, Bader has also advertised a reward of Rs. 20,000 in a local newspaper for anyone who finds his missing horse. Aftab, unaware of the advertisement, traced the horse and handed it over to Badar. Later, on knowing about the reward, Aftab claimed it from Bader. Under the related provisions of the Contract Act, 1872, identify the type of offer made by Bader. Also, state whether Aftab would be able to claim the amount of reward.

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MGT611 Assignment No.1 2020 Solution

 

Question No.1

  • Asim agreed to construct a bungalow for Ali at a cost of Rs. 50 million. However, it was agreed that payment would only be made on completion of the project. Is this a contingent contract under the Contract Act, 1872? Give reasons. Also list the requisite characteristics of a contingent contract.

 

Solution:

Section 31 of the Contract Act


No, this is not a contingent contract as the condition i.e. construction of a bungalow

is not collateral to the contract; but in itself forms a consideration and is thus an
integral part of the contract.


Essentials of a contingent contract


The following are the essential characteristics of a contingent contract:

 

  • The performance of such a contract depends upon the happening or non-happening of some future event;
  • The event must be uncertain;
  • The event must be collateral i.e, incidental to the contract.

 

 

  • Sohail and Afaq lent Rs. 20 million to Mohsin, Laila, and Faizan jointly for their business firm for 1 year. On the due date, the firm becomes insolvent. Without sharing this fact with Sohail and discussing the recovery issues, Afaq contacts Mohsin to repay the full amount to him only. Under the provisions of Contract Act, 1872:


(a) Whether Mohsin can be compelled to pay the full amount to Afaq; and
(b) What rights are available to Mohsin, if he repays the full amount?

 

 

 

 

 

Solution:

Section 43 and 44 of the Contract Act


(a) Afaq alone cannot compel Mohsin to make payment unless a contrary

intention appears from the contract. The right to claim performance rests with
all the promises jointly and a single promise cannot demand performance.


(b) Mohsin may compel every other joint promisor to contribute equally with
himself to the performance of the promise, unless a contrary intention appears
from the contract.
Therefore, Faizan must share the loss arising from default of Laila equally with
Mohsin.

 

 

 

 

 

  • Maimar promised to manufacture and deliver unspecified remote-controlled toy helicopters to Nasir in the first week of November, 2020. Nasir, in turn, promised to pay for them by the second week of the same month. However, Maimar could not deliver the toys at all. Should Nasir keep his promise and what remedy, if any, is available to him?

 

Solution:

       Section 54 of the Contract Act

No, Nasir need not perform his promise to pay and Maimar must compensate Nasir for any loss which Nasir may sustain due to Maimar’s non-performance.

 

 

 

 

 

  • Bader, the city’s famous businessman had lost his expensive pet horse three days ago. He had also sent Aftab, one of his employees to search the horse. Now, Bader has also advertised a reward of Rs. 20,000 in a local newspaper for anyone who finds his missing horse. Aftab, unaware of the advertisement, traced the horse and handed it over to Badar. Later, on knowing about the reward, Aftab claimed it from Bader. Under the related provisions of the Contract Act, 1872, identify the type of offer made by Bader. Also, state whether Aftab would be able to claim the amount of

 

Solution:

Under the provisions of the Contract Act, 1872

This is a valid contract. Because according to the Scope of Contract under sec. 2(h) and the Proposal or Offer base on the following. The offer must be communicated to the other party.

According to section 4 of the Act, the communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.

  1. The terms of the offer must be definite and clear.
  2. The offer must be capable of creating legal relationships.
  3. The offer must be made to obtain acceptance. An invitation to receive an offer is not an offer.

 

Yes, Aftab would be able to claim the amount of reward under the circumstances because he has evidence in the newspapers form and he can easily claim about Bader so this contract imposed by enforceable by law.

 

 

 

MGT611 assignment no 01 solution fall 2020

Click on the below link to download the file

MGT611_Assignment_No_01_Solution_Fall_2020_

MGT611 Assignment No.1 2020

 

Question No.1

  • Asim agreed to construct a bungalow for Ali at a cost of Rs. 50 million. However, it was agreed that payment would only be made on completion of the project. Is this a contingent contract under the Contract Act, 1872? Give reasons. Also list the requisite characteristics of a contingent contract.

 

Solution:

Section 31 of the Contract Act


No, this is not a contingent contract as the condition i.e. construction of a bungalow

is not collateral to the contract; but in itself forms a consideration and is thus an
integral part of the contract.


Essentials of a contingent contract


The following are the essential characteristics of a contingent contract:

 

  • The performance of such a contract depends upon the happening or non-happening of some future event;
  • The event must be uncertain;
  • The event must be collateral i.e, incidental to the contract.

 

 

  • Sohail and Afaq lent Rs. 20 million to Mohsin, Laila, and Faizan jointly for their business firm for 1 year. On the due date, the firm becomes insolvent. Without sharing this fact with Sohail and discussing the recovery issues, Afaq contacts Mohsin to repay the full amount to him only. Under the provisions of Contract Act, 1872:


(a) Whether Mohsin can be compelled to pay the full amount to Afaq; and
(b) What rights are available to Mohsin, if he repays the full amount?

 

 

 

 

 

Solution:

Section 43 and 44 of the Contract Act


(a) Afaq alone cannot compel Mohsin to make payment unless a contrary

intention appears from the contract. The right to claim performance rests with
all the promises jointly and a single promise cannot demand performance.


(b) Mohsin may compel every other joint promisor to contribute equally with
himself to the performance of the promise, unless a contrary intention appears
from the contract.
Therefore, Faizan must share the loss arising from default of Laila equally with
Mohsin.

 

 

 

 

 

  • Maimar promised to manufacture and deliver unspecified remote-controlled toy helicopters to Nasir in the first week of November, 2020. Nasir, in turn, promised to pay for them by the second week of the same month. However, Maimar could not deliver the toys at all. Should Nasir keep his promise and what remedy, if any, is available to him?

 

Solution:

       Section 54 of the Contract Act

No, Nasir need not perform his promise to pay and Maimar must compensate Nasir for any loss which Nasir may sustain due to Maimar’s non-performance.

 

 

 

 

 

  • Bader, the city’s famous businessman had lost his expensive pet horse three days ago. He had also sent Aftab, one of his employees to search the horse. Now, Bader has also advertised a reward of Rs. 20,000 in a local newspaper for anyone who finds his missing horse. Aftab, unaware of the advertisement, traced the horse and handed it over to Badar. Later, on knowing about the reward, Aftab claimed it from Bader. Under the related provisions of the Contract Act, 1872, identify the type of offer made by Bader. Also, state whether Aftab would be able to claim the amount of

 

Solution:

Under the provisions of the Contract Act, 1872

This is a valid contract. Because according to the Scope of Contract under sec. 2(h) and the Proposal or Offer base on the following. The offer must be communicated to the other party.

According to section 4 of the Act, the communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.

  1. The terms of the offer must be definite and clear.
  2. The offer must be capable of creating legal relationships.
  3. The offer must be made to obtain acceptance. An invitation to receive an offer is not an offer.

 

Yes, Aftab would be able to claim the amount of reward under the circumstances because he has evidence in the newspapers form and he can easily claim about Bader so this contract imposed by enforceable by law.

 

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