(CONTRACT AND ITS KINDS)

Q. WHAT IS CONTRACT?
CONTRACT:Any agreement enforceable by law is called contract. the contract act
2(h)1872 .
(An agreement which enables a man to compell another to due some thing or not to
due something it is called Contract.)
(section 1-75 )General principle goerning
(section 124-238) Contract of Indemnity-Guarantee-Bailent-Pledge-and Agency
(section 76-123) Sale of good
(section239-266) Partnership
pollack: Every agreement and promise enforceableat law is a contract.
salmond: A contract is an agreement creating and defining obligations b/w the
parties.
sir william anson: An agreement enforceable by law made b/w two or more persons
by which rights are acquiryby one or more to acts or forbearance on the part of other
or others.
EXAMPLE: Suppose there is an agreement b/w MR. Nawaz & Ms.Anam . THn Mr.
Nawaz purchSE a car fro Karachi for ms Anam & Ms Anam will pay rupee 10 Lac. to
MR Nawaz .

CONTRACT WHICH HAVE BE DECLAIRED VOID

(AGREEMENT RESTRAIGHT OF MARRIAGE VOID)
(AGREEMENT RESTRAIGHT FOR LEGAL PROCEEDINGS VOID)

void contract are those which are not enforceable by law ,following contracts have
been declaired void.
1/Agreement of restraight of marriage:An agreement in which adults person is
prevented from marriage is decleared void by law .The law regards marriage as the
right of every person but law does not fever the minor.
e.g: Mr Ashraf agrees with Ms Nadia that she will not marry with Arsalan so this
contract decleared void.
2/Agreement in restraint of business: section 27 Any lawful proffision trade or
business of any kinds , restraint by any agreement is decleared void.
e.g: Mr.Adil a publisher offered Rs 1Lac.to Mr A not to deal in a business .A accepted
the agreement is void.
3/Mistake by both parties: If both the party of agreement are undermistake as to
matter of effect , essential to agreement is void.
4/Agreement by way of wages: Acording to section 30: the agreement by way of
wages is oid with certain assumption .The wagering contract wager is game of
chance .In which loss or gane depends on uncertain events.
e.g: Mr Shah bets with r hasan & losses agreement b/w .So the contract is void.
5/Uncertainty in agreement : For the valid agreement it is necessary that it should
be certain of all aspect if the meanings of the agreement is not cleared . it is not
capable being certain.
6/Unlawfull object: (TARGET) if the object & consideration of the agreement is
against the law will decleared void any target / object of the agreement which is
forbitten by law of its defeats the law .
7/Immoral: If any agreement is against the moral values of the society is decleared
void.
8/Fradulent: if the object or consideration of an agreement is to demolishthe other
is also void agreement ,
9/The agreement with out object: section 23 :The agreement may not existeswith
out object is void.
10/Agreement to due impossible acts: section 56:if the target of agreement is not
possible such types of agreement is void.
" An agreement to due in act impossible in its self is void.
e.g: Suupose Mr A agrees to pay Mr Q Rs 1000 if he out the moon on his hand .
11/Agreement is restraint of legal proceedings: section 28: Every is allowed by law
to obtain is legal writes through the legal proceedings.

DISCUSS THOSE GROUNDS ON WHICH CONTRACT IS DECLEARED VOIDABLE

(DISTINGUISHED BETWEEN VOID & VOIDABLE)

1 Contract by fraud: In the contract if the consent of any party is taken by fraud to
an agreement it becomes a voidable at the option of injuired party.
2 Contract by coercion: If the consent of the party of the other party is obtained by
coercion in the contract it is oidable contract.
3 Contract by undue influence: In the contract if the consent of any party is taken by
undue influence in the contract it becomes voidable contract at the option of that
party whose consent was obtained by undue influence.
4 Contract by misrepresentation: The agreement becomes voidable at the option of
that party whose consent was taken by misrepresentation.
5 Contract by minor: A contract with a minor about sale & partnership is voidable
during minority or before attaining age of maturity .
6 Contract by unsoundmind: A man who is senseless or drunk or mad he can't
enters to the agreement.

ESSENTIALS OF VALID CONTRACT

Section 2(h) .A valid contract is an agreement which is binding and enforceable .In
valid contrac all the parties legally bound to performed the contract. (page no.3)
1.PROPOSAL: For valid contract proposal is necessary . There are two parties in
proposal.
e.g: A says to z that he will sell his cycle to him for Rs. 2500. This is an proposal.
2.ACCEPTANCE: When the promisee significe the willingness then proposal is said
to be acceptance.
e.g: A says to z that he will sell his cycle to him for Rs. 2500. This is an proposal. If z
accepts this offer there is an acceptance.
3. AGREEMENT: After the acceptance or offer it will be only promise . For the valid
contract there must be an agreement enforceable by law.
4. WRITTING AND REGISTRATION( AGREEMENT IN MUST BE IN WRITTING):
(PAGE NO.5 WITH EXAMPLE)
5. LAWFUL CONSIDERATION( LAWFUL AGREEMENT): (PAGE NO.4 WITH
EXAMPLE)
6. LEGAL RELATIONSHIP: Agreement must create legal relationship b/w the
parties of the contract each party should no the rights & duties.
e.g: If A offered to sell his house to B Rs 80Lac. & B agree o buy . It is legal
relationshipin both the party.(PAGE NO.3 WITH EXAMPLE is also best diffination)
7. lawful object: The object of the contract is not lawful . Then it is in
validcontract ,Illegal or immoral object makes the contract in valid.
e.g: MR Arshad promises to pay 1 Lac. to Mr Adil in condition , he killed Mr Ahmad .
The agreeent is legal but object is illegal.
8. FREE CONCENT:(PAGE NO.5 WITH EXAMPLE)
9. PARTIES CONSIDERATION: It is also essentilas of valid contract when at the
wish of the promiser . THe promisery does or steps fro doing any act or promise .
10. lawFUL CONSIDERATION:(PAGE NO.4 WITH EXAMPLE)
11. COMPETENCY OF THE PARTY : Only competent parties can into the
contract ,According to contract act following persons are competent.
a)Any one the age of majurity.
b)Who is soundmind.
c)Who is not disqualified to enter into the contract.
12. POSSIBLITY OF PERFORANCE:(PAGE NO.6 WITH EXAMPLE)
13. CERTAINTY OF TERMS & DEFINITE: It must be clear if the performance of
the contract is not possible when it will not be a void ontract.(PAGE NO.6 WITH
EXAMPLE)
14. DICLEARED VOID: It is also essentials the agreements must happened
decleared void by any law of country.
a)Agreement of immoral acts.
b)Agreement will both parties are under-mistake.
c)Agreement to stop the trade.
d)Agreement to stop legally proceedings.
e)Agreement to due an act which is possible.
f)Agreement to stop the marriage of any person .
g)Agreement by way of bet.

DISCUSS THE VARIOUS KINDS OF CONTRACT DISTINGUISHED b/W VALID,

VOID, VOIDABLE, UNFORCEABLE, CONTRACT?

1) VALID CONTRACT: According to the contract act "A valid contract is that which
is enforceable at law , it creates legal responsible/ obligations b/w the parties .It
enable one party to compell another party to due something or not to due
something.
Partyies obligation: In a case of valid contract all the party to the contract are legally
responsible for the performance of contract. if one party bracks the contract other as
rights to enforce to the court.
e.g: Ali purpose sell his one land to Naeem for 1Lac. .The party of capable to do the
contract by law. so, his contract is Valid. If Ali fails to delivered the land Naeem can
cliam hi in the court for the delivery of land, on the other hand Naeem fails to makes
payments so Ali can sue hi o recovery of payment.
2) VOID CONTRACT: An agreement not enforceable a law is void contract.:"
Originally it is valid contract but due to certain reason it become void. After its
formation a void contract. can not be enforce by either party . The basic features of
void contract.are ,
1) It is not enforceable by law.
2)Its create not legal obligation /rights.
3)its create no responsibility any party.
4) An agreement which is against the public policy or against to law.
5)under this contract no compensation can be paid to any party.
6) an agreement is restraint of mange & trade arecommon examples of void
contract.
e.g: Wasim & Nadia contracts to marriage on next sunday.Wasim die before the
Sunday the contract becomes void.
Rights & duties: In this case the parties are not legally responsible to fulfill the
contract . If any party hae received any benefits his bound to return. this contract
takes place when the consent of one of the party is not free.
3) VOIDABLE CONTRACT: According to contract act," An agreement which is
enforceable by law at the option of one or more of the parties. Their to but not act
the option of but not act the opton of the other &othersis voidable contract.
The important features of voidable contract.
1)It is enforceable by lawat the option of one or more party .
2)Avoidable contract can only be objected by the party who has been subject to
fraud, coercion ,misrepresentation, & undue influence.
3) If the conteract is revoked bya person rightfully .Then he can also received the
compensation .
4)The contract is voidable at the option of the party whoes consent is caused.
5) Contract caused by fraud ,coercion ,misrepresentation, & undue influence ,are
voidable contract.
e.g: Mr. Qadir threatens to shoot Mr Nasir to purchase a car of 50 lac. Mr nasir
agrees the contract wa made by coercion so itis voidable contract.
Rights & duties: The aggreived party can cancelled such contract with in a reasnable
time, it is also & entitled to be copellsented by the other party.
Proof: It is the responsibilty of aggreived party to proof that her consent was
obtained by fraud if it is failed to proof in the court than contract will remained if
contract is not wriitten or registrated. it can not be enforce.
e.g: Suppose Mr Rashid borrows the money from Mr Kashif & writtens a pro-note but
proper amount stamps are not posted on the peo-notes. now in this case the
contract is valid but not enforceable.
4) UNFORCEABLE CONTRACT: When due to soe technical deficulties or lack of any
formality required by the special provision of law a valid contract but not enforceable
incourt.