JAGANNATH UNIVERSITY

Presentation on
Course Code: 2103
Presentation Topic is
Commercial Laws

Business & Labor Laws

Presented to

Mohammad Omar Faruk

Assistant Professor
Dept. of AIS
Jagannath University
Presented by

Tarek Hassan Sajib

Roll- 114596

Touhidul Alam
Roll- 114578

Md. Mazidul Islam

Roll- 114415

Prodip Roy
Roll- 114478

7th Batch Sec: B

Dept. of AIS
Jagannath University

Presentation Date : 20th June, 2013

Tarek Hassan Sajib

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114596

Q1: What is meant by undue influence? Give two

examples.

Q2: When is consent said to be free? Distinguish

between coercion and undue influence.

Q1: WHAT IS MEANT BY UNDUE INFLUENCE? GIVE TWO EXAMPLES.

Undue influence: A situation in which an individual is able to persuade

another's decisions due to the relationship between the two parties. In
exerting undue influence, the influencing individual is able to gain an
advantage. In contract law, a party claiming to be victim of undue influence
may be able to void the terms of the agreement.
Examples:
i.

F having advanced money to his son B during his minority, upon Bs

coming of age obtains by misuse of parental influence. A bond from B foe
a greater amount than the sum advanced F employs undue influence.

ii.

P, a man enfeebled by disease or age, is induced by Bs influence over

him as his medical attendant to agree to pay B an unreasonable sum for
his professional services. B employs undue influence.

Q2: WHEN IS CONSENT SAID TO BE FREE?

DISTINGUISH BETWEEN COERCION AND
UNDUE INFLUENCE.
First, for consent to be free, you must be old enough to
consent. The age of consent varies according to country,
state, and type of contract. Second, in order for consent
to be free, you must not be coerced, or forced. And you
must not be drunk or drugged or otherwise in a state of
body or mind which affects your decision-making ability.
Differences between coercion and undue influence are
given the next page.

Coercion

Undue Influence

1. Coercion means compelling a

person to enter into a contract by
committing or threatening to commit
an unlawful act.

1. Undue influence means inducing a

person to enter into an agreement by
moral or mental threat.

2. Coercion is a physical
threat.

2. Undue influence is a moral or

mental threat.

3. Coercion involves doing or

threating to do an illegal act.
4. In case of coercion not only
the agreement is voidable but
also that party may be
punished.

3. Undue influence is a moral or

mental threat.
4. In case of undue influence
ordinarily, there is no penal action
only the agreement will be voidable
at the option of the aggrieved party.

5. Coercion may be exercised against

party to the agreement or a third
party. It may also be exercised by a
party to the agreement or by a third
party.

5. Undue influence must be exercised by or

against the party to the contract.

Touhidul Alam

Roll-

114578

Q1: Define and distinguish between Fraud and

mispresentation.
Q2: Mere silence as to facts is not fraud.
Explain with two illustration.
Q3: A contract made by a mistake is voidExplain.

Q1: DEFINE AND DISTINGUISH BETWEEN FRAUD AND MISPRESENTATION.

Fraud: The term fraud means false representation of

fact with a view to deceive the other party. Section 17 of
the contract act states, fraud means and includes any
of the following acts committed by apart to the contract
or with his connivance or by his agent with intend to
deceive another party thereto or his agent or to induce
him to enter into a contract.
Mispresentation: mispresentation means a false
representation of fact made innocently or non-disclosure
of material fact without any intention to deceive the
other party.

Distinguish between fraud and mispresentation:

Fraud differs from mispresentation in the manner:
Intention:
The wrong representation is made willfully to deceive the other
party.
The wrong representation is made innocently without any
intention to deceive the other party.
Knowledge of falsehood:
The person making representation does not believe it to be
true.
The person making the representation believes it to be true.
Right to claim damage:
The aggrieved party can claim for damage.

Q2: MERE SILENCE AS TO FACTS IS NOT

FRAUD. EXPLAIN WITH TWO ILLUSTRATION.
Mere silence as to facts likely to affect the willingness of a person to
enter into a contract is not fraud, unless the circumstances of the case
are such that, regard being had to them, it is the duty of the person
keeping silence to speak, or unless his silence is, in itself equivalent to
speech- Explanation to Section 17.
For instance selling of a horse by auction knowing that horse is not sound
without disclosing fact of soundness is not fraud.
Rather, he sold some pigs to W which were suffering from swine fever
and that was known by the pigs were sold with all faults and H did not
disclose the fever to Weald, there was no fault.

Q3: A CONTRACT MADE BY A MISTAKE IS VOIDEXPLAIN.

A mistake is concerned where the parties intending to do one thing and do something else by
error. Mistake is an erroneous belief concerning something.
Mistake of law
A contract is void if there is any kind of mistake in law unless the mistake is in the law of local
law.
Mistake of fact: Bilateral Mistake (section 20)
Bilateral means when both parties to the agreement are under same mistake.
The following three conditions are necessary to declare a contract void under this
section:
Both the parties must be under a common mistake
Mistake must be of fact not be of law.
Mistake must be related to an essential fact.
Instances of bilateral mistakes are:
Mistake as to existence of subject matter
Mistake as to quantity of subject matter
Mistake as to quality of subject matter etc.

Md. Mazidul Islam

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114415

Q1: What are the consequence of breach of

contract?
Q2: State the remedies allowed to the
aggrieved person in case of breach of
contract.
Q3: Explain the terms penalty and
Liquidated Damages. Clearly indicating the
difference between the two.

Q1: WHAT ARE THE CONSEQUENCE OF

BREACH OF CONTRACT?
The Consequence of the breach of contract:The breach of contract is a legal cause of action in which a binding agreement or
bargained for exchange is not honored by one or more of the parties.
Minor breach:
In a minor breach a partial breach or immaterial breach or where there has been
substantial performance the non-breaching party cannot sue for specific
performance can only sue for actual damages.
Material breach:
A material breach is any failure to perform that permits the other party to the
contract to either compel performance or collect damages because of the breach.
Fundamental breach:
A fundamental breach is a branch so fundamental that it permits the aggrieved
party to terminate performance of the contract.
Anticipatory breach: A breach by anticipatory repudiation is an unequivocal
indication that the party will not perform when performance is due or a situation in
which future non-performance is inevitable.

Q2: STATE THE REMEDIES ALLOWED TO THE AGGRIEVED

PERSON IN CASE OF BREACH OF CONTRACT.
The remedies of a breach of contract: When a breach of contract occurs, the
aggrieved party or the injured party becomes entitled to the following reliefs.
Rescission of the contract: The aggrieved party is freed from all his
obligations under the contract.
Suit for damages: The aggrieved party is entitled to receive comparison for
any loss or damage caused to him by the breach of contract and can file a suit
for getting a decree for damages.
Suit upon quantum merit: When a contract has been party performed, the
aggrieve party can under certain circumstances, file a suit for the price of the
services performed before breach of contract.
Specific performance of the contract: In certain special cases, the court can
direct a party to perform the contract according to the agreed terms.
Injunction: Under certain circumstances the court can issue can order upon a
party whereby he is published from doing something which amounts to a breach
to contract.

Q3: EXPLAIN THE TERMS PENALTY AND LIQUIDATED DAMAGES. CLEARLY

INDICATING THE DIFFERENCE BETWEEN THE TWO.

Penalty: Penalty is an actual damages which is considerably loss and the

amount was fixed in order to threaten the contractor. Penalty clauses are treated
as invalid.
Liquidated damages: Liquidated damages are a variety of actual damages.
Most often, the term Liquidated damages appears in a contract, and often is
the title for a whole clause or section.
Liquidated Damages VS penalty:
It is the responsibility to the aggrieved party to prove the extent of damages
suffered by him to be able to get a penalty from the other party. In English law,
there is a distinction between penalty and liquidated damages. Which is
necessary to mention here.
On the other hand if the amount of money demanded as compensation is
extravagant and has no regard to the extent of damage to the victim, it is said to
be a penalty.

Prodip Roy

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114478

Q1: Define Bailment. State the degree of

care to be taken by a bailee. What are the
duties of the bailee?
Q2: What is pledge? What are the rights of
pawnee?
Q3: Can a person other than the true owner
make a valid pledge of goods?

Q1: DEFINE BAILMENT. STATE THE DEGREE OF CARE TO BE TAKEN

BY A BAILEE. WHAT ARE THE DUTIES OF THE BAILEE?
According to section 14,
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 persons
delivering them.
Duties of the bailee:
Duty of reasonable care
Bailees liability for negligence of servants
Mixture of bailors goods with the bailee
Duty of returning goods
Accretion to the goods bailed
Liabilities of Innkeeper and Hotelkeeper.

Q2: WHAT IS PLEDGE? WHAT ARE THE

RIGHTS OF PAWNEE?

Pledge is the particular kind of bailment. The bailment of goods as

security for payment of a debt or performance of a promise is called
pledge or pawn. The bailor in the case is called the pledger or the
pawner. The bailee is called the pledge or the pawnee.( section 172)
The rights of pawnee:
1. Rights of retainer
2. Retainer for subsequent advance
3. Extraordinary expenses
4. Pawnees right where pawner makes default.

Q3: CAN A PERSON OTHER THAN THE TRUE

OWNER MAKE A VALID PLEDGE OF GOODS?
The owner of goods can always make a valid pledge.
In the following cases, one who is not an owner can make a valid pledge.
Mercantile Agent
Possession under a voidable contract
Pawner with a limited interest
Possession with Co-owner

THANKS TO ALL