Topic Name

Topic Name:
Examples of Essentials of Valid Contract
1979295130175
By
NidaNazBS Commerce 3rd Semester
Section A
Assignment No.
One (01)
Roll No.
F17_Bs 01
Submitted to.

Atif Mir
Department of Commerce
Government College of Management Sciences Haripur
Date: 6September 2o18
Assignment:
Examples of Essentials of Valid Contract
Offer and Acceptance:
Examples: Ahmed offers Ali to sell his bike to him for Rs.45000. This is anoffer. Ali accepts this offer, there is an acceptance. So, this is an agreement between two parties.

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Legal relationship:
Example: A brother promise to pay his sister pocket money of Rs.1000 every month. In time, he refuses to pay. The sister can’t recover money as it is a social agreement and does not create legal relations.

Example of legal relation: Sana offer to sell her pen to Sara for Rs.100 and Sara agrees to buy. There is a contract because it creates legal relationship between them.

Lawful consideration:
Example of lawful consideration: Saad promise to delivers 15kg of wheat to Mahad andMahad give assurance to pay Rs.7000 upon delivery. In this contract, Mahad promise to Pay Rs.7000 upon delivery is the consideration for Saad’s promise. Similarly, promise of Saad to delivery 15kgs of wheat is the consideration for the promise Mahad made.

Example of unlawful consideration: Asad promises Hassan to drop a prosecution which he has instituted against Hassan for theft, and Hassan promises to restore value of things taken. The agreement is void, as the consideration is unlawful.

Competent to contract:
Example of not competent to contract: Mehmood that was disqualified by law want to start partnership business with Nabeel for the capital of Rs.20000 each. It is not valid contract because Mehmood is not competent to contract as he was disqualified by law.

Example of competent to contract: Hamid of sound mind want to purchase the shop from Saeed for Rs.3 lacs. It is valid contract because Hamid is competent to contract.

Free consent:
Example of not free consent: Kamal threatens to shoot if Jamal does not agree to sell his property to Kamal at a stated price. It is notvalid contract as the consent of Jamal is not free.

Example of contract with free consent: Ahsan want to sell his watch to umer for Rs.1000. Umer took this decision freely. So, it is a valid contract as both parties make contract with free consent.

Lawful object:
Example of unlawful object: Ali, Ahmed and Shoaib enter into an agreement fir the du vision of gain which they acquired or to be acquired by them by fraud. The agreement is void as it’s object is unlawful.

Example of contract with lawful object: Sajid and Rashid enter into am agreement. In agreement they decided that Rashid will sold raw material for furniture shop to Sajid. So, the agreement is valid, as it’s object is lawful.

Possibility of performance:
Example: Abdullah agrees with Ibrahim to discover gold by magic. The agreement is not enforceable as it is impossible of performance.

Not expressly declared void:
Example of Agreement in restraint of marriage:
Talha’s mother force him for good consideration that she will not give permission to him to marry samina. It is void agreement.

Ahmed agrees with Sara that he will marry her only. It is a valid contract of marriage.

Example of agreement in restraint of trade:
Iqbal is owner of Tv channel and Imran is an actor. According to their contract Imran has to conduct his acting at Iqbal’s Tv channel throughout life. Thereafter, Imran breaches the contract and Iqbal sue’s. Court decided that it is agreement in restraint of trade and therefore Iqbal can’t take any legal action.

Example of Agreement in restraint of legal proceedings:
Wholesaler sold 1000 soaps to retailer for Rs.100 each. He has right to receive the payment from retailer, otherwise he has right to file a sue in court and of get the payment.

Example of Agreement by law of wager:
There is an agreement between Sana and Sara which provide that if England cricket team beat Pakistan cricket team, Sana will pay Rs.1500 and if Pakistan cricket team beats England cricket team, sara will pay Rs.1500. This kind of agreements are wager.

Example of agreement to do impossible act:
Hamza and Ifracontract to marry each other. Before the time fixed for marriage, Hamza goes mad. The contract become void.