MGT611 Assignment 1 Solution and Discussion


  • Cyberian's Gold

    Semester Fall 2019
    MGT611-Business & Labor Law
    Assignment No. 01
    DUE DATE: 14th November, 2019
    Read the examples given below and answer the questions. (4 marks each)

    1. Bader, the owner of Mashoor Farms, sent one of his employees Aftab in search of his pet horse which had been missing for 5 days. Bader advertised a reward of Rs. 20,000 in a newspaper for anyone who finds his missing horse. Aftab, unaware of the newspaper advertisement, traced the horse. Subsequently, on knowing about the reward Aftab claimed it from Bader.
      Under the provisions of the Contract Act, 1872 identify the type of offer which was made by Bader. Also state whether Aftab would be able to claim the amount of reward under the circumstances.
    2. Mohsin promised Ahsan that he will pay his university fee. Later Mohsin suffered losses in his business and refused to pay the fee. Mohisn is of the view that since the agreement was without consideration, it does not constitute a valid contract. However, Ahsan believes that the agreement is enforceable under law as it meets certain other conditions.
      You are required to narrate the conditions which Ahsan may be referring to.
    3. Mr. A promises Mr. B to sell his horse after one month to Mr. B for Rs. 50,000. Before the completion of one month, the horse died. State whether the contract can be performed or not. Also mention the legal status of this contract.
    4. Mr. X threatens Mr. Y with dire consequences unless Mr. Y enters into a contract to sell a piece of land to Mr. X at Rs. 1 lac. Is this a valid contract? Justify your answer with reason.
    5. Asif stole cash and merchandise from the ABC Store. Basit, the owner of store, initiated legal proceedings against him. Asif contacted Basit with an offer to return the stolen cash and merchandise if Basit withdraws the suit. Basit accepted the offer. Is it a valid agreement? Discuss.
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  • Cyberian's Gold

    PART 1: 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 Badar so this contract imposed by enforceable by law.
    PART 2: SOLUTION
    As we know that according to the contract act of 1872 a promise and Consideration section 2 (g), All of the agreements are not contracts, meaning thereby that all agreements are not enforceable at law. Such agreements are called void agreements. So this is Void Agreement and this agreement not enforceable by law is said to be void agreement.Yes, it is possible and enforceable by law in this situation if this agreement with a written form or registered so than Aftab can claim and imposed this agreement by law if Mohsin breach this contract or Promise.
    PART 3: SOLUTION
    The contract should not be performed because the horse died through a natural death so the contract should over. If this contract in written and register from so according to act 1872 B can claim about Mr. A and then this contract would enforceable by law and called to be Valid contract. So an agreement made by the parties which are not legally competent to enter into the contract is not enforceable at law that is void. Here are a Scope of Promise –Sec. 2 (b)
    • Promise under the Act stands for an accepted proposal • Acceptance of a conditional offer leads to acceptance of the proposal. • Communication of offer is necessarily leading to acceptance or otherwise. • If the accepted offer requires that terms of the contract are to be reduced into writing, in such circumstances writing of a contract would only constitute the completion of the formalities and shall not have any effect on the validity of acceptance.
    PART 4: SOLUTION
    No this is not a valid contract because for the contract both parties must be agreed, the promisee and promisor and that contract did without forcefully. If Y doesn’t want to sell his house and X threaten him forcefully to sold his house so in this situation the second party is not agreed so the proposal not be accepted by 2nd party and without acceptable proposal and consideration promises and the contract could not be made.
    PART 5: SOLUTION
    Yes, this contract is valid because one party Asif is giving offers or proposals to second party Basit and Basit accept this proposal without forcefully and as we know that without proposal and consideration promise or contract could not be made.
    Here are the following essentials of Valid Contract:1. These are outlined below:2. Offer and acceptance3. Legal relationship4. Legal consideration5. Competent parties6. Free consent of the parties7. Lawful Object8. Terms of an agreement to be complete and certain9. Possibility of performance10. Contract to be got registered & in writing, wherever required



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