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Mercantile law case

Business Law (University of Dhaka)

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A Report
On
ShabbirvsRakibul:CaseStudy
and Ultimate Judgement
Course Name: Legal Environment of Business (F-205)

Team Optimus
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A Report
On

Shabbir vs Rakibul: Case Study and Ultimate

Judgement
Course Name: Legal Environment of Business (F-205)

Prepared for:

Ms. Pallabi Siddiqua

Associate Professor
Department of Finance
Faculty of Business Studies
University of Dhaka

Prepared by:

Team Optimus
Section: B
Batch: 23rd
Department of Finance
Faculty of Business Studies
University of Dhaka

July 7, 2018

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Group Profile

Name: Team Optimus

Section: B
Batch: 23rd
Department of Finance
Faculty of Business Studies
University of Dhaka

A Cohesive Effort of

Sl. No Name Id No Remarks

01 Sajeeb Dutta 23-002

02 Sayed Muntasir 23-029

03 Shuvo Roy 23-036

04 Rakibul Hasan 23-054

05 Imjamul Hasan 23-093

06 Nusrat Jahan 23-117

07 Md. Asfakul Islam 23-126

08 Aklima Akter 23-136

09 Abdul Kaiyum Tushar 23-154

10 Shaikh Saifullah Khalid 23-160

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Letter of Transmittal
July 7, 2018

Ms. Pallabi Siddiqua

Associate Professor
Department of Finance
Faculty of Business Studies
University of Dhaka

Subject: Submission of report.

Dear Madam,

Here is the in depth qualitative analysis of the ‘A Short Case Study on a Minor’ that you
assigned on us. We analyzed some law related books and websites and prepared this
hypothetical case. This report basically represented our learning outcomes of this course. We
tried to correlate the case study with our classroomlearning.
Thank you for giving this kind of interesting assignment.

Sincerelyyours,

…………………
Shaikh Saifullah Khalid
On behalf of Team Optimus
Section: B
Batch: 23rd
Roll: 23-160
Department of Finance
University of Dhaka

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Table of Contents
ExecutiveSummary ..................................................................................................................................... i
Chapter1:Introduction ................................................................................................................................ 2
Background ofthe Report ...................................................................................................................... 2
Objectives oftheReport .......................................................................................................................... 2
Methodology............................................................................................................................................ 2
Scope oftheReport ................................................................................................................................. 2
Limitations oftheReport ......................................................................................................................... 3
Chapter 2:CaseOverview .......................................................................................................................... 3
Chapter 3: Relevant Factsand Logics ..................................................................................................... 3
Chapter 4: Reference ofRelevantLaws ................................................................................................... 4
Chapter5:Conclusion ................................................................................................................................. 4
Bibliography ............................................................................................................................................ 5

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Executive Summary
Law refers to the rules and principles imposed by authority or self imposed to regulate and
control people’s behaviors to ensure peaceful living and social security. However, in this report,
we represented a case study of a minor. We can classify our report into these sections.
Case overview: Here, we showed the detailed case study and the characters.
Relevant facts and logics: Here all relevant issues under the purview of laws are given below.
Moreover, we showed the relevant logics related to the case.
Reference of relevant laws: All related laws and sections of laws are given below in this
chapter.
Bibliography: Here, we attached our references such as supplementary law books or websites
from which we took our data.

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Chapter 1: Introduction
Mercantile law is the branch of law which comprises laws concerning trade, industry and
commerce. However, in case of any transactions, the age of the relevant parties plays an
important role. Because, an agreement done by a minor is absolutely void. In this report, we
showed a case of a minor and analyzed the laws related to the case.

Background of the Report

This report has been prepared as a requirement of the course F-205, Legal Environment of
Business under the academic supervision of the respective course instructor Ms. Pallabi
Siddiqua, Associate Professor, Department of Finance, University of Dhaka. We were assigned
to prepare a report on “Capacity of Parties.” We have been given adequate instructions for this
report and we were asked to prepare and submit this report by the July 7, 2017.

Objectives of the Report

 To gather practical knowledge about the laws ofminors
 To know about minor’sagreement
 To know about the acts of “Sales ofGoods”
 To fulfill the requirement of thecourse
 To know mercantilelaw

Methodolgy
The source of our information was the book named- “Mercantile Law’ written by M C Kucchal &
Vivek Kucchal. And various information was collection from various sources from the internet.
The analyzing and sorting process of the collected data was done in some phases. The phases
are given below:
 At first, we took a plan how and where to usedata
 Then, the important and relevant data were separated andresearched
 Then, the data were used appropriately where touse
 Through these the report wasprepared

Scope of the Report

The report attempts to give an overview of rules regarding Discharge By Contract. For the
reporting purpose various aspects and information were studied. And from the study we prepare
the report. The report includes:
 Definition oflaws
 Examples
 Cases

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Limitations of the Report

There is nothing perfect in the world. Everything has limitations. A report is not an exceptional
case. While we were preparing report we faced several limitations. These are: 1. As we are
inexperienced, we faced confusion about the information. This confusion killed a lot of time. So,
we could not utilize much time. 2. Mercantile law is a field of massive information. The
information of the topic is out of limitation. So, we may not find or provide much information
related to the topic. Despite these limitations, we tried our level best to make a standard report
on Discharge by Contract with our little time, information and experience.

Chapter 2: CaseOverview
Mr. Shabbir is a student of Dhaka Golden College He is 17 years old. However, his parents live
outside from Dhaka. His parents sent enough money to him. Shabbir was spending that money
very freely and sometimes he spent unnecessarily. However, a tailor, Mr Rakib, heard about
Shabbir that he was spending money unnecessarily. Mr. Rakib sent his agent Mr. Muntasir to
sell some exclusive shirts to Shabbir. Shabbir bought some shirts from that agent. He had run
up a bill of BDT 25,000. But, Shabbir could not pay the bill. However, important point is Shabbir
was already adequately supplied with clothing by his parents. The plaintiff, the tailor sues for the
price and defendant pleads infancy.

Chapter 3: Relevant Facts and Logics

Fact 1: What is the nature of liability of a minor's to pay the liability furnished him?
Liability for Necessaries: A minor who enters into a contract to purchase food, shelter, clothing,
medical attention, and/or other goods or services necessary to maintain the minor's well-being
will generally be liable for the reasonable value of those goods and services even if the minor
disaffirms the contract.
Parents Liability: As a general rule, parents are not liable for the contracts made by their minor
children unless:
(I) one or more parent(s) co-sign the contract, and thereby assume personal liability for its
performance, even if their minor child disaffirms the contract; and/or
(ii) the minor child committed some wrongful act associated with the contract at the direction of
one or both parent(s).

Fact 2: What are necessaries?

Necessaries are essentials required for subsistence or survival. It includes all that is reasonably
needed for maintaining a certain lifestyle. Necessaries depend on one's age, status, and the
norms of a particular society. It includes medical attention and education.

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The term 'necessaries' is not confined to merely such things as are required for a bare
subsistence. It also includes those things without which the individual cannot reasonably exist,
and which are useful and suitable, and necessary for his/her support, use, and comfort. The
articles furnished must be actually necessary to the particular case, for use and substantial
good, not mere ornament orpleasure.

Fact 3: Is the test solely the nature of goods sold or must the minor's actual present needs in
respect to such goods also be considered?
An infant, like a lunatic is incapable of making a contract of purchase in the strict sense of the
words; but if a man satisfies the needs of the infant or lunatic by supplying to him necessaries
the law will imply an obligation to repay him for the services to rendered and will enforce that
obligation against the estate of the minor or lunatic.
If an action is brought by one who claims to enforce against an infant such an obligation it is
obvious, the plaintiff, in order to prove this case, must show that first, the goods were suitable
to the condition in life of the infant and secondly, they were suitable to his actual requirements
at the time or that- at that time the infant had not at the time an adequate supply from other
sources. But in this case, the defendant, minor, was adequately supplied with clothing by his
father. And there is no proper evidence that the goods were actually necessary for the infant at
the time ofdelivery.

Chapter 4: Reference of Relevant Laws

According to Section 3 of Majority Act, a person becomes a major on completion of 18 years of
age. Hence a person who has not completed his or her 18 years of age is known as a minor.
All the rules related to minor’s agreement are based on the fundamental that ‘Law always
protects the minors’.
A minor’s property is liable for necessaries: Under Section 68 of the Indian Contract Act, if a
person incapable of entering into a contract, or anyone whom he is bound to support, is
supplied by another person, with necessaries suited to his condition in life, the person, who has
furnished such supplies is entitled to be reimbursed from the property of such person. It is to be
noted that only minor’s property is liable, minor is not personally liable for necessaries supplied
tohim.

Chapter 5: Conclusion
According to Section 3 of the Majority Act, 1875, a person, domiciled in Bangladesh, who is
under 18 years of age is a minor. The court of Law used to decide the age of majority by the law
of domicile and not by the law of the place where the contract is entered into. However, in this
report, we tried to represent all the necessary laws and relevant factors.

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Bibliography
David Kelly, R. H. (2005). Business Law. London: Cavendish Publishing.
M C Kucchal, V. K. (1978). Mercantile Law. Delhi: Vikas Publishing House Pvt Ltd.

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