MGT611-MidTerm-By Rana Abubakar Khan
MGT611-MidTerm-By Rana Abubakar Khan
MGT611-MidTerm-By Rana Abubakar Khan
What is the legal status of agreements that are regarded as ‘contingent on impossible events’? Cite an
example that explains such agreements that are contingent on impossible events.
What role “consideration” plays in a “promise”? Elaborate with the help of an example.
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Consideration:
What is meant by a ‘single promise’? Who can demand performance in a Single Promise?
Discuss the rights and obligations of different parties in a Contract of Agency made as a result of
Ratification.
My Today's paper
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a contract to other party is your promise and whatever you get or take in return from the other party is
consideration for you. Without consideration, a contract is not a binding contract.
Essentials of valid Contract:
These are outlined below:
ƒ Offer and acceptance
ƒ Legal relationship
ƒ Legal consideration
ƒ Competent parties
ƒ Free consent of the parties
ƒ Lawful Object
ƒ Terms of agreement to be complete and certain
ƒ Possibility of performance
ƒ Contract to be got registered & in writing, wherever required
ƒ Contract not declared void under the Act.
Void agreements....reciprocal promises 3
Agreements void, if considerations and objects unlawful in part.
Reciprocal promise: When a contract consists of reciprocal promises to be simultaneously performed, no
Promisor need to perform his promise unless the Promisee is ready and willing to perform his reciprocal
promise.
Performance & discharge of contracts 5
Performance and discharge:
A contract, being an agreement enforceable by law (Section. 2) creates a legal obligation, which exist until
discharged. Performance of the promise or promises remaining to be performed is the principal and most
usual mode of discharge.
A contract is said to be a discharged contract when the contract by the both parties is performed. When
nothing is left to do in the contract everything is done then the contract is discharged or terminated.
Modes of discharge of a contract:
A contract get discharged by
1. Performance (a contract is completely performed, nothing is left to be done so contract gets discharged)
2. By mutual agreement of parties (both parties mutually agree to terminate the contract)
3. Impossibility of performance (a contract is discharged when there is something impossible to do such as
searching mine of gold with magic)
4. By operation of law (contract is terminated by law)
5. by breach of contract. (Contract is discharged due to breaking of contract between the parties as
contract promises are not fulfilled well)
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Contract of guarantee & indemnity 5
‘A contract of guarantee: is a contract to perform the promise or discharge the liability of a third person in
case of his default’. The person who gives the guarantee is called the “surety.
Contract of indemnity is a contract in which one party promises to save the other party from the loss caused to him.
Insurance contract is the example of contract of indemnity in which insurance companies promise the person who
makes the insurance contract with them to save him from the loss or damage caused. Example: Mr. Bashir signs a
contract with the insurance company for his car by paying a premium price to insurance company. The insurance
company promises Mr. Bashir to save him from any loss that will be caused such as theft or robbery of the car,
damage of the car or accident etc in such case of loss, the company will compensate the loss to Mr. Bashir
(company will save him from the caused car loss)
Breach of contract 5
A contract case usually comes before a judge because one or both parties claim that the contract was breached.
A breach of contract is a failure, without legal excuse, to perform any promise that forms all or part of
the contract.
Breach of contract means breaking a contract, a contract is breached when the contract is not performed. We know
that in any contract or agreement there are two parties who promise something to do. If any of the party does not
perform or fulfill his side of promise then the contract is said to be breached because the contract is not performed.
In simple words if the parties do not do what is required to do in the contract then we can say that the contract has
been breached. If a contract is breached or broken by one party then the other party has the right to take legal action
against the other party for this breach
A “bailment” is the delivery of goods by one person to another for some purpose, upon a contract that they
shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions
of the person delivering them.
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2: contingent nd wegring contract difrance 5 marks
Contingent contract is a contract to do something or not to do something and it depends upon happening
of an event. If the event happens then the contingent contract is enforced, if the event does not happen
then the contract is not enforced. Contingent contract is conditional contract. If the condition is uncertain
(something may or may not happen) in nature only then the contract is contingent contract otherwise not.
Example: Mr. Fahad contracts to pay 200000 Rs to Mr. Ahsan if the house is burnt. It is a contingent
contract because there is a condition to pay 200000 Rs, only if the house is burnt otherwise the contingent
contract will not be enforced. There exists uncertainty about the event of burning of house, it may or may
not burn so the contract is contingent contract.
Wagering Contract: As we know that wager means bet. Wager is something that is won or lost as a result of an
unknown/doubtful issue. So wagering contract is simply a betting agreement. It is a contract which is based on
mutual promise of parties on condition of happening or not happening of an unknown event. Wagering contract-
Example: Ali makes a contract with Bilal that if it rains today then Bilal will pay 100 Rs to Ali but if it does not
rain today then Ali will pay 100 Rs to Bilal so there is contract b/w both parties Ali and Bilal on mutual agreement
based on the condition of happening or not happening of unknown event of raining. They both have to pay on the
basis of happing or not happening of unknown event because it is a betting contract on mutual agreement of parties.
Wager- Example: The money won or lost as a result of happening or not happening of unknown or doubtful event
of rain is wager
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June 5, 2016 at 10:21am
MGT611-Midterm Exam Spring 2016 31 May 2016 First Session Timing 7.30 to 8. 30
MCQs were from the file that I have already uploaded here 10 MCQs were from the file other were
scenario based (easy one)
Subjective Questions
1. Discuss the condition in which contingent contract is impossible? (Marks-2)
(a)A agrees to pay B 1,000 rupees if two straight lines should enclose a space. The agreement is void.
(b) b) A agrees to pay B 1,000 rupees if B will marry A's daughter C. C was dead at the time of the agreement. The
agreement is void.
2. Differentiate b/w Executed contract and Executory contract with the help of example (Marks-3)
Executed contract Such contracts are those where interactive parties have completely performed their
respective obligations under the contract. Example: Mr. Ali entered into an agreement with Mr. Aslam to
sell his car for Rs 800,000. Mr. Ali delivers the car to Mr. Aslam and he paid the promised amount i.e. Rs
800,000 to Mr. Ali. Such a contract is called an executed contract since both parties have performed their
part of promises.
Executory contract: In such contracts both parties are yet to perform their obligations under the
contract.Example:We take the same example as quoted above but with some difference.
Mr. Ali entered into an agreement with Mr. Aslam to sell his car for Rs 800,000. Mr. Ali has not yet
delivered the car to Mr. Aslam and Mr. Aslam has not yet paid the promised price that is Rs 800,000 to Mr.
Ali. Such a contract is executory contract since both parties are yet to perform their part of promises.
2. Define contract of indeminty? (Marks-2)
3. Contract of indemnity:A contract, by which one party promises to save the other from loss caused to him
by the conduct of the Promisor himself
4. A scenario was given and we had to identify that if the scenario contained effect of coercion
(identify that coercion is present in the given senario or not with logical arguments) (Marks-5)
Coercion
Coercion" defined. "Coercion" is the committing, or threatening to commit, any act forbidden by the
Pakistan Penal Code, or the unlawful detaining,
5. What is contract breach ? Under what conditions a contract is breached? Enlist some remedies of
breaching contract? (Marks-5)
.A breach of contract is a failure, without legal excuse, to perform any promise that forms all or part of
the contract. Remedies for the breach of contract means the legal right that a party has to take action when
the contract is breached/broken or when the contract is not performed well (remedies for breach of contract is
what can the other party legally do if the contract is broken by one party) If the contract is breached then the
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other party has the legal right to
1. suit for damage
Suit for compensation
Suit for specific performance
Suit for injunction
(All the subjective questions are present in my uploaded file)
Good luck
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nominal damage 3 marks
Nominal damages refers to a damage award issued by a court when a legal wrong has occurred, but where
there was no actual financial loss as a result of that legal wrong. Typically, when a nominal damage award
is used, the plaintiff will be awarded $1 or $2.
section 12 of sound mind 5 marks
“A person is said to be of sound mind for the purpose of making a contract if, at the time when he makes it,
he is capable of understanding and of forming a rational judgment as to its effect upon his interests.” A
person, who is usually of unsound mind, but occasionally of sound mind, may make a contract when he is of
sound mind.
section 56 ka kuch tha 3 marks ka
An agreement to do an act impossible in itself is void.
Contract to do act afterwards becoming impossible or unlawful:
(a) A agrees with B to discover treasure by magic. The agreement is void.
(b) A and B contract to marry each other. Before the time fixed for the marriage, A goes mad. The contract
becomes void.
A agrees to pay B a sum of money if a certain ship does not return. The ship is sunk. The contract can be
enforced when the ship sinks.
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- If person dies who will obliged his liabilities
Promises bind the representatives of the Promisor in case of death of such promisors before performance,
unless a contrary intention appears from the contract.
Illustrations
(a) A promises to deliver goods to B, on a certain day on payment of Rs. 1,000. A dies before that day. A's
representatives are bound to deliver the goods to B, and B is bound to pity the Rs. 1,000 to A's
representatives.
- Wagering and contingent Contracts (repeated)
- Types of Contract of guarantee
A contract of guarantee is a contract to perform the promise or discharge the liability of a third person in
case of his default”
Specific Guarantee or (Ordinary Guarantee):
This guarantee is restricted to a specific transaction on engagement, for example, availing a loan from a
bank.
Continuing Guarantee:
Such guarantee covers a series of transactions. For example guarantee furnished to a supplier for making
supplies to a particular person/ business during a specified period, say one year.
- Can Minor plea for minority if misrepresented the age
Minor can plead minority : A minor can always plead minority. The rule of estoppel does not apply to a
minor, i.e., the minor may fraudulently make a representation to a person that he is of majority and
competent to enter into a contract. On the faith of such misrepresentation by minor, a person may enter
into an agreement with the minor. Afterwards, such other person cannot claim that the minor shall be
bound by his false representation, since the rule of estoppel does not apply to a minor. Thus, the other
person cannot enforce the agreement against the minor on the basis of false representation made by the
minor.
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Executed contract with example 3 Mark (repeated)
Duties of Principal under contract of agency 3 mark
Payment of remuneration to the agent
Not to prevent his agent from performing the duties under the contract
Any legitimate expenses which have been incurred by the agent in the course of performance of his
duties are to be indemnified by the principal.
In joint venture if one person die then who will be responsible to act upon the promise payment 3
Mark (repeated)
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Differ between fraud and Misrepresentation 5 Mark
‘Fraud‘ means a willful misrepresentation of a material fact while ‘Misrepresentation‘ means a bonafide
representation which is false.
The main difference between fraud and misrepresentation is that, fraud is done with an aim of deceiving
others, which is not in the case of misrepresentation. And, so misrepresentation does not entitles the
agrieved party cannot sue the other party for damages but can avoid the contract. conversely, fraud entitles
the aggrieved party to avoid the contract and also file a suit against other party for damages.
Give any illustration about the terms given below 5 Mark (repeated)
Bailer
Bailee
Some mcqs from contract act section 124, section 211, and section 212
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.
q no 27 total marks 5
define the wagering contract under the section 30 of the contract act 1872.(repeated)
5 marks question ,
one case study based and 1 from void contract
essentials of consideration
Consideration must be conducive to contract.
ƒ Consideration at the desire of third party
ƒ Consideration may proceed from third party.
ƒ Concept of inadequate consideration
ƒ Absence of consideration
ƒ Proof of consideration
ƒ Future promise as legal consideration
ƒ Past consideration
, trust act
trusts Act, 1882 is an Act related to private trusts and trustees. The act defines what would lawfully be
called as a trust and who can be legally its trustees and provides definition for them.
difference between promisor and promise
Promisor The person who has become obliged through a promise
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Consideration: C on s i d e ra t i on mu st be pr o vid e d by e a c h p ar t y t o a co nt r a ct , a nd it is a
t hing , a ct io n, o r pr o m is e t hat ha s va lu e t o t he p er so n r ec e iv i ng s a id t hi ng , a ct io n, o r
p r o m is e .
What is meant by a ‘single promise’? Who can demand performance in a Single Promise?
Promicee can demand the performance in the single promise.
Discuss the rights and obligations of different parties in a Contract of Agency made as a result of
Ratification.
1. Principal may sue the third party and third party can also sue the principal.
2. No liability shall be incurred by the agent to third party
3. Agent not liable for exceeding his authority
4. Principal is required under law to pay reasonable remuneration to the agent.
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Question No: 29 ( Marks: 3 )
A chartered
accountant is employed in a company. Can he be banned from private practice during the service? Why or
why not?
Repeated
Repeated
Can a Contingent
Contract about an uncertain future event be enforced? If yes, when can it be enforced; and if no, give
reasons why it cannot be enforced.
Repeated
Repeated
A type of contract which is inferred from the acts and conduct of the contracting parties is known as
Implied contract
Wager means bet so wager is simply a betting agreement or contract. Wagering contract is a contract which is
based on mutual promise of parties on condition of happening or not happening of an unknown event.
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Contingent contract: Contingent contract is a contract to do something or not to do something and it depends upon
happening of an event. If the event happens then the contingent contract is enforced, if the event does not happen
then the contract is not enforced. Contingent contract is conditional contract. If the condition is uncertain
(something may or may not happen) in nature only then the contract is contingent contract otherwise not.
Example: Mr. Fahad contracts to pay 200000 Rs to Mr. Ahsan if the house is burnt. It is a contingent contract
because there is a condition to pay 200000 Rs, only if the house is burnt otherwise the contingent contract will not
be enforced. There exists uncertainty about the event of burning of house, it may or may not burn so the contract is
contingent contract.
Answer: Fraud: Fraud is something which is done in order to deceive someone. It involves making false statement
with the intention to deceive someone. A person knows that a statement or belief is false but he makes a false
statement purposely in order to deceive other person.
Misrepresentation: Misrepresentation is making false statement without the intention of deception. A person
positively states that a fact is true but in reality the fact is not true. He makes a false statement but there is no
intention of deception because the person himself does not know about the fact that he stated is false.
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MGT611 MIDTERM SHARED BY S TUDENT
TODAY'S PAPER
18 MCQ'S
Discuss any three event when Special Performance not granted. (3)
A seller promise to sell goods on a fixed price, time and fixed place. But the seller die before delivering the
goods. Who should perform the contract? (3)
What is continuing Guarantee? Explain the difference through example between Ordinary Guarantee. (5)
A stranger can sue for consideration and can not sue a stranger for a contract? (5)
My paper:
Total 23 questions
18 MCQs
Three questions of 3 marks
Two questions of 5 marks
Company appoints Mr.A as general manger but after three months of his job company terminate him as they
said directors were not authorized to appoint Mr.A. Write the rights of Mr.A and what should he do. (Marks:
3)
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Instances where suit for specific performance can be filed before the court (Marks: 5) From lesson: 18
Mcqs was easy and mostly from void and voidable contract.
What is the contract of guarantee? Who is involved in this contract and define their roles? 5
In which situation where party has lawful excuse for not performing his contract? 5 marks, pg no 88
In joint venture if one person die then who will be responsible to act upon the promise payment 3
total questions 27
5 long question
3 questions (marks 3)
2 questions (marks 5)
5 marks question , one case study based and 1 from void contract
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essentials of consideration, trust act
Mgt611 VU Midterm Current Papers Spring 2012 of Virtual University of Pakistan [May 2012]
.
total question 27
23 mcqs
.
3 numbers ky questions 2 thay
5 numbers question 2 thay
.
yeh pattern hy paper ka
.
baray 5 no walay question my first tha
.
q no 26 total marks 5
define the therms and condition parties entering to a compentent contract.
.
q no 27 total marks 5
define the wagering contract under the section 30 of the contract act 1972.
.
yeh 2 baray question thy 5 5 numbers ky
Soundness of mind 5
Pledge characteristics 5
Wagering contract
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An accountant is employed by company?What if he practices some private sevices? Is it allowed or not.
- Essentials of endorsement (3)
- How presiding officer is selected of labor court how its selected (3)
- Difference between the analytical jurisprudence and ethical jurisprudence (3)
- Define unenforceable contract with example (3+2)
- Elaborate some essentials of lease (5)
- What are the negotiation on difference of disputes (Industrial disputes) (5)
- Factors of carriage by air (5)
Executed contract with example 3 Mark
Duties of Principal under contract of agency 3 mark
In joint venture if one person die then who will be responsible to act upon the promise payment 3 Mark
Differ between fraud and Misrepresentation 5 Mark
Give any illustration about the terms given below 5 Mark
Bailer
Bailee
Some mcqs from contract act section 124, section 211, and section 212
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what is bill of exchange explain specimen (5)
in which area discrimination by employer is considered to be unlawful as per section 63 IRO.(5)
difference between fraud and misrepresentation (5).
these are question i can write with me.
define the terms and condition parties entering to a competent contract.
q no 27 total marks 5
define the wagering contract under the section 30 of the contract act 1872.
5 marks question , one case study based and 1 from void contract
essentials of consideration, trust act
difference between promisor and promisee
Soundness of mind 5
Pledge characteristics 5
Wagering contract
18 mcqs
20
2 question 3 marks
3 questions 5 marks
total question 27
23 mcqs
q no 26 total marks 5
q no 27 total marks 5
define the wagering contract under the section 30 of the contract act 1972.
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yeh 2 baray question thy 5 5 numbers ky
best regards
total question 27
23 mcqs
q no 26 total marks 5
q no 27 total marks 5
define the wagering contract under the section 30 of the contract act 1972.
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