Bussines_Law

Brief Notes on BUSINESS LAW for B.Com/B.S students Moughera Waqas 07-08-2008 Prelude [The abbreviations/terms/symbols used in this essay] P.P.C Pakistan Penal Code 2(a) section(sub-section) I.P.C Indian Penal Code - notes/comments { } explanation of a particular term [Note: In this essay the words offer and proposal are used in their actual interpretation as given above, not as the substitutes to each others. Disclaimer: The writer does not accept any liability for any damage caused by use of this essay professionally. It does not contain any professional information. It contains only brief student notes.] The contract law is a very important branch of MERCANTILE LAW. It determines the dealing strategy for the situations and circumstances in which the promises are made by the parties. The law governing the contract in Pakistan is contained in The Contract Act, 1871. The Contract Act, 1871 actually came into force on the 1st September, 1872 that was the reason that it stood “The Contract Act, 1872”. A brief and general over view of the Act is following. i. The General principles governing all types of contracts sec. 001-075 ii. Sales of goods sec. 076-123 iii. Indemnity and guarantee sec. 124-147 iv. Bailment sec. 148-181 v. Agency sec. 182-238 ------------------- CHAPTER I ------------------- The principle thing in business law is a “Contract”, but the foremost thing is the “Agreement”, which actually initializes the procedure which ends in the form of a legally binding “Contract”. Stated as: Agreement>Contract. When at least two or more persons agree upon a particular subject matter, having consensus ad idem (the identical thought about a particular subject matter), it is said to be an agreement. No matter how, where, when it came into being, and by what means used' Sec. 2(e) “Every promise or a set of promises forming the consideration for each other is an agreement.” There are two certain types of agreements, first ‘Social’ and the other is ‘Legal’. Social agreements do not create legal obligations, while the legal agreements do and are enforceable by law. Then first and very beginning step of an agreement/contract is an offer or a proposal. Sec. 2(a) “When one person signifies to another his willingness to do, or to abstain from doing anything with a view to attain the assent of that other to such act or abstinence, he is said to make a proposal.”