Student Name: Qaisar Iqbal Student I.D.

FA18-MBAR-0021

Mohammad Ali Jinnah University

Course Name: Business & Corporate Law

Assignment 1 (Version 1) - Fall 2019
Morning Program

Instructor Name: Mosab Imam Total Marks: 60

Assignment instructions:

1. There are 6 Questions in total; each question is worth 10 marks.

2. NO HARD COPY SUBMISSION.

SUBMISSION IN SOFT COPY FORMAT WILL BE ACCEPTED ONLY.

3. Submit the version of the assignment, which is assigned to you. Non-compliance to this
requirement will get you a mark of zero.

4. Strictly avoid copying your colleague’s assignment word-to-word. That would amount to
plagiarism.

Plagiarism penalty: 60 Marks will be cut for both OR all parties whose assignment would
be considered as plagiarised OR copies of each other.

Do not try to make it seem like your assignment is different from your classmates by using
MS Word’s dictionary & thesaurus. Wrong use of synonyms will make your assignment
illegible & non-understandable. Make your assignment look different from your classmates
by writing the answer in your own words, from the start, instead of first copying your
friend’s assignment & then merely changing the words.

5. You are certainly allowed to discuss the questions with your classmates & write the answer
in your own words.

6. Assume nothing more in the case than what information is being provided in the
question.

7. DUE DATE: October 31st, 2019

Late Submission Penalty: 30 Marks per day
 BUSINESS & CORPORATE LAW (FN 2130, CM)
ASSIGNMENT 1 (Version 1)

1.
Since, you wanted to attend an ODI (One Day International) match between Pakistani Cricket Team
and Sri Lankan Cricket Team, taking place in Karachi, you bought a match ticket for yourself and one
for your friend.

Analyze and discuss whether a contract has been formed between you and PCB (Pakistan Cricket
Board). If yes, then explain it with the help of ALL essentials of a valid contract. What kind of
contract is it (written, verbal or implied)?

ANSWER:
It is a written contract.
Essentials of Valid Contract:

 Free Consent: There is free consent between me (as an audience) and the PCB (as a seller).
We both have same understanding of the subject matters of the contract. There is no
coercion, undue influence, fraud, misrepresentation, & mistake between us in
understanding the transaction.

 Legal Relationship: There is a legal relationship between me (as an audience) and the PCB,
regardless of whether we have any social (family or friend) ties.

 Legal Object / Purpose: purchasing of tickets is completely valid & legal in Pakistan.

 In Writing (Legal Formalities): This agreement between me and the PCB does not need to be
in writing. Even if it is a verbal contract between us, it can still be a valid & legal contract.

 Possibility of Performance: Since, the facts in the question don’t say anything about
unavailability of match tickets, then it is assumed that these match tickets were available for
purchase. The PCB could perform his obligation (i.e. selling the specific tickets) and I could
perform my obligation (i.e. pay him for those specific tickets)

 Certainty: Customer tells the PCB the quality of paper should be visible he / she wants, who
would be paying for those tickets, when the customer would be paying for those tickets, and
PCB tells the customer how much he / she would be paying for those tickets. So, there is
certainty in this agreement.

 Consideration: I am paying the PCB in legal tender money and the PCB is giving me tickets,
which are legally allowed to be purchased. The tickets are being purchased at my (i.e.
promisor’s) desire, and it is legally sufficient and adequate consideration for both parties.

 Competency of Parties: Both parties of this agreement, me and the PCB, are competent
parties. I am not a minor, of unsound mind, or disqualified by law from making this
agreement. The PCB is not a minor, of unsound mind, or disqualified by law from making this
contract. Even if we assume that the seller was a minor or disqualified by law (e.g. legally
bankrupt), then that minor or that bankrupt person was working as an agent of the PCB,
who is the principal, & hence, will bear the losses / liability.

 Acceptance & Offer: there is offer and acceptance between me and the PCB, in regards
to tickets to be purchased, price, delivery time, payment time etc.
 BUSINESS & CORPORATE LAW (FN 2130, CM)
ASSIGNMENT 1 (Version 1)
 Not declared as void: Purchasing tickets is not declared as void by law, & hence, this
agreement will not be void-ab-initio.

So, as we can see, that this agreement completes all essentials of a valid contract, this agreement of
purchasing tickets is a contract. If the tickets are not stated as PCB, or the payment was not made as
wanted PCB, then either party can legally enforce their rights under this contract & sue the other
party for either performance of the contract or fulfill the damages under the contract or both.

2. Spacious Office Developers v Hasan Contractors Ltd.

Hasan Contractors Ltd. begins construction on a seven-story office building for Spacious Office
Developers and after three months demanded an extra Rs. 7,500,000 on its contract. If the extra Rs.
7,500,000 would not be paid, then the defendants would stop working. The plaintiff, finding no one
else to complete the construction, agreed to pay the extra Rs. 7,500,000. After the construction was
completed, the plaintiff brought a petition to the court to make the agreement, for the extra
payment, void.

Explain the likely judgement.

ANSWER:
The plaintiff must pay extra payment because he promises to pay and there is void of consideration.
plaintiff is a liable to pay the debt. It is a valid contract.

3. Junaid v. Fahad

Junaid, a marketing genius, opened a marketing agency about 2 years ago, but it has recently lost
some big clients, causing the agency to lose substantial revenue. One day, while Junaid was under
the effects of anti-depressive & anti-insomniac drugs (these drugs used to make Junaid very sleepy &
help him sleep), his friend, Fahad stopped by his house, and after inquiring about his health & life, he
proposed to buy Junaid’s distressed company for 2% of total assets of the company. Junaid agrees &
signs over his company to Fahad. Next morning, when Junaid realizes what he has done with his
company, he reneges on the deal. Fahad, in turn, sues Junaid for breach of the contract.

Discuss the likely outcome of the case.

ANSWER:
Junaid can breach of the contract because, at the time of contract he is a drug-induced intoxicated
person (temporarily incapacitated). Contract is a void ab initio.

4. Rabia vs Hira

Hira owed Rabia Rs. 50,000, but Rabia did not initiate a lawsuit to collect the debt within the time
prescribed by the statute of limitations. Nevertheless, Hira verbally promises Rabia that she will pay
the debt. Thereafter, Hira refuses to pay. Rabia brings lawsuit against Hira to collect on this new
promise.

Explain the likely outcome.

 BUSINESS & CORPORATE LAW (FN 2130, CM)
ASSIGNMENT 1 (Version 1)
ANSWER:
Rabia can bring lawsuit against Hira because Hira must be liable for the debt. It is a valid contract.

5. Aisha, an accountant, certifies several audit reports for Flint Corporation, her client, knowing
that Flint intends to use the reports to obtain loans from Karachi Bank. Aisha believes that the
reports are true and does not intend to deceive the bank, but she does not check the reports before
certifying them. Can Aisha be held liable to the Karachi Bank? Why or why not?

ANSWER:
Aisha is a liable to the Karachi bank because she is an accountant, certifies several audit reports for
Flint corporation she must check the reports before certifying them.

6. Alpha Corporation v Beta Company

Alpha Rolling Mill Corporation, by letter dated June 8, offered to sell Beta Railroad Company 2,000 to
5,000 tons of fifty-pound iron rails upon certain specified terms, adding that, if the offer was
accepted, Alpha Corporation would expect to be notified prior to June 19. Beta Company, on June
16, by telegram, referring to Alpha Corporation’s offer of June 8, directed Alpha Corporation to enter
an order for 1,200 tons of fifty-pound iron rails on the terms specified. The same day, June 16, Beta
Company, by letter to Alpha Corporation, confirmed the telegram. On June 18, Alpha Corporation,
by telegram, declined to fill the order.

Beta Company, on June 20, telegraphed Alpha Corporation: “Please enter an order for 2,000 tons
rails as per your letter of the eighth. Please forward written contract. Reply.” In reply to Beta
Company’s repeated inquiries regarding whether the order for 2,000 tons of rails had been entered,
Alpha denied the existence of any contract between Beta Company and itself. Thereafter, Beta
Company sued Alpha Corporation for breach of contract.

Discuss, in your own words, what should be the judgement in this case.

ANSWER:

The offer was for a quantity of a between 2000 to 5000 tons of fifty-pound iron rails. When beta
company order 1200 tons of fifty-pound iron rails it was not accepting the offer. But he makes a
counter offer, the Beta company attempted to accept 2000 tons under the original offer, but Alpha
corporation refusal to accept the counter offer. However, the original offer was no longer in
existence, having been terminated by the rejection. There was no offer open to Beta company after
the rejection and no contract was found.