CORPORATE & BUSINESS LAW - Web viewThe group fellows can’t file a suit against Tullat in the court of law as the contract is of social nature ... (Cement Supplier) and ABC Construction

SUPERIOR UNIVERSITY

MID TERM PROJECT

SUBMITTED BY: SUBMITTED TO:

LEADER 11338 SIR UMAR ZAKA

11321 PROGRAM:

11315 M.com 3-A

11353

11316

CORPORATE & BUSINESS LAW

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TABLE OF CONTENTSTABLE OF CONTENTS

1. Social Agreement

a. Social Agreement no 1 3

b. Social Agreement no 2 3

c. Social Agreement no 3 3

d. Social Agreement no 4 3

2. Valid Contract

a. Valid Contract no 1(Supply of Cement) 4-6

b. Valid Contract no 2(Property Tax) 7-9

c. Valid Contract no 3 (Sale of Property) 10-13

d. Valid Contract no 4 (Bundle of Cloths) 13-15

3. Contract of Guarantee

a. Contract of Guarantee (Landlord, Tenant and Guarantor) 16-18

b. Contract of Guarantee (A & B Electronics, Buyer and Guarantor) 18-20

c. Contract of Guarantee (Honda Company, Buyer and Guarantor) 21-23

d. Contract of Guarantee (Whole Seller of Sugar, Buyer and Guarantor) 23-25

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Social Agreement:

Social agreement is a type of agreement that is not enforceable by law. No intention to create legal relationship and no one can sue for non performance.

Some of social agreements are given below:

Social contract no.1:

Mr. Dastgeer khan was sitting in the café with his group fellows. Suddenly a girl of his group reminded him of giving treat of fanta bottle which he promised yesterday for securing highest marks in the test of a subject. He thought for a while and then refused to fulfill his promise. The group fellows can’t file a suit against him in the court of law as it does not create legal obligations.


Miss Barsha Javed is studying in the superior university. She is the group member of 5-Musketeers group. She is Christian and she promised with her group fellows that at Christmas she will bring cake (death by chocolate) from Bon Vivant Gourmet bakery. But when the day came, she didn’t bring the cake. The group fellows can’t file a suit against Barsha in the court of law as this contract does not create legal obligations.


The superior university announced an industrial trip in the Coca-Cola Company for the class of M.com 3. The Friday was the day of the trip. Miss Anna who is the group member of 5-Musketeers group promised to bring “Aaloo wale prathay” at the decided day. But when the day came, Anna couldn’t bring prathay with her. The group fellows can’t file a suit against Miss Anna as the contract is of social nature and does not create legal obligations. So it is not enforceable by law.


Mr. Tullat Rasool is the group member of 5-Musketeers group. He promised with his group fellows that if he will take 3GPA in semester 2 then he will give treat in the pizza hut of M.M.Alam Road. When result came, he couldn’t secure the promised GPA. The group fellows asked him for the treat but he showed cold shoulder and refused to fulfill his promise. The group fellows can’t file a suit against Tullat in the court of law as the contract is of social nature and is not enforceable by law.

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Valid Contract:

Agreements which are enforceable by law are known as valid contract. Fundamentals of a valid contract must be there. If any missing then it is void.

Fundamentals of a valid contract:

1. Offer and acceptance.2. Oral or written.3. Capacity of Parties.4. Lawful consideration.5. Legal relationship.6. Free consent.7. Clarity of terms.8. Object should be lawful.9. Possibility of performance.10. Not expressly declared void.

Some of Valid Contracts are given below:

VALID CONTRACT NO: 1

S.no: 40705

This Contract is between Waqas Traders (Cement Supplier) and ABC Construction Co. (Buyer) named below:

Vendor: Buyer:

Waqas Traders ABC Construction Co.

Muhammad Illas Khan Muhammad Saif Ullah

Model Town Exchange Regions H # 34 St 6 Wapda Town

Lahore. Lahore.

Sale Consideration: Rs 100000 (Rupees One hundred thousand only)

Advance Amount: Rs 50000 (Rupees Fifty thousand only)

Details & Mode of Payment: By bank draft

Last date of submission: 28.07.11

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Conditions:

The Vendor declares:

1. We are offering you 200 sacks of Rs 500 each.2. Warranty is being given regarding our quality.3. You hereby can file the objection if any, to the proposed issue within 14 days of

receiving.4. In case if you fail to file an objection within the period specified above the proposed

Contract will be considered as final.

Signature M. Ilyas KhanVendor

The buyer confirms:

1. We hereby accept the offer and ready to pay the sum of Rs 100000/-2. We hereby declare that we are major and of sound mind and not disqualified by Law.3. We hereby declare that no one has threatened us to enter into a contract.4. We hereby follow the conditions given by supplier to us regarding the matter.

Signature Muhammad SaifUllahDated 03.06.2009 Buyer

Explanation:

The above Contract fulfills all the essentialities given by Valid Contract:

1. Offer and acceptance.

As per above contract the offer is being made by Waqas Traders (Cement Supplier) to ABC Construction Co. (Buyer) regarding sale of cement sacks and signature of Buyer shows that he has accepted the offer by signing on the contract.

2. Oral or written. The above contract is in written form and is best because it provides the proof that both entered into the contract.

3. Capacity of Parties.

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Here capacity of partners means that they are competent to enter into a contract. As the above contract states the declaration and signature of both Vendor and Buyer that they are of sound mind, Major and not disqualified by Law.

4. Lawful consideration. The above contract shows that cement sacks are being sold by Waqas Traders (Vendor) to ABC Construction Co. (Buyer) and ABC Construction Co. (Buyer) will pay sum of Rs 100000/- means both parties are getting something in return. And is a lawful consideration as it involves no unlawful activity.

5. Legal relationship. The above contract creates legal relationship because if ABC Construction Co. (Buyer) or Waqas Traders (Vendor) will not perform their task both have right to sue in the court as they has a written evidence of contract.

6. Free consent. The above contract states the statement that “I hereby declare that no one has threatened me to enter into a contract”. And then signed by offeree shows that no threat was made to them to enter into a contract and their consent was free.

7. Clarity of terms. Contract shows that every term is clear regarding items, cost of the item, quality of item acceptance of offeree, their competency etc.

8. Object should be lawful.

Contract states clearly that their object was lawful not to kill or committing illegal activity which is enforceable by law.

9. Possibility of performance. The above contract is possible to perform because it neither states to put breath in dead body nor says to pluck out stars etc etc. It just offers sack to offeree.

10. Not expressly declared void. This contract is not expressly void as it doesn’t say any one to close his business or something else. It’s just a contract between Cement Supplier and Purchaser.

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This Contract is entered into between Property Tax Authority (Muhammad Ilyas Khan) and Tax Payer (Muhammad Saif Ullah) named below:

S.no: 4375

Issue Date 30.05.11

Submission Date 01.12.11

Tax Payer Tax Authority/ Assessing Authority

Muhammad Saif Ullah Inspector-Muhammad Ilyas Khan

H # 34 St 6 Wapda Town Model Town Exchange Regions

Lahore. Lahore.

Conditions:

Tax Authority/ Assessing Authority declares:

1. In view of information received by us regarding to the under mention property owned/occupied by you, it is necessary to pay the yearly Tax related to your property.

2. After conducting a survey of your property it was decided that you will pay tax amounting Rs 16670/- yearly as it is above 5 Marla.

3. You hereby can file the objection if any, to the proposed issue within 14 days of the notice.

4. In case if you fail to file an objection within the period specified above the proposed Tax will be considered as final tax amount being paid by you.

5. Paying Tax after due date have to submit the amount with extra charges.

Signature M. Ilyas Khan

Assessing Authority

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Tax Payer confirms:

1. I hereby accept and ready to pay the sum of Rs 16670/- per annum2. I hereby declare that I am major and of sound mind and not disqualified by Law.3. I hereby declare that no one has threatened me to enter into a contract.4. I hereby follow the conditions given by Tax Authority/ Assessing Authority to us

regarding the matter.

Signature Muhammad SaifUllahTax Payer

Dated 03.06.2009

Description of Property

1. Rating Area LHR IV.2. Sub Division / Mohallah / Street Wapda Town.3. Type of Property Residential.4. Land covering area 300 SQ.Yard

Explanation:


1. Offer and acceptance. As per above contract the offer is being made by Tax Authority/ Assessing Authority (Inspector-Muhammad Illas Khan) to Tax Payer (Muhammad Saif Ullah) regarding payment of property tax and signature of Tax Payer shows that he has accepted the offer.


3. Capacity of Parties. Here capacity of partners means that they are competent to enter into a contract. As the above contract states the declaration and signature of both Tax Authority and Tax payer that they are of sound mind, Major and not disqualified by Law.

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4. Lawful consideration. The above contract shows that property tax is being imposed by Tax Authority/ Assessing Authority and Muhammad Saif Ullah (Tax Payer) will pay sum of Rs 16670/- means both parties are getting something in return. Because if Muhammad Saif Ullah (Tax Payer) will not pay tax his property will be sealed by Govt. And shows a lawful consideration as it involves no unlawful activity.

5. Legal relationship. The above contract creates legal relationship because Muhammad Ilyas Khan (Tax Authority/ Assessing Authority) have right to sue in the court as they has a written evidence of contract if Muhammad Saif Ullah (Tax Payer) will not perform his duty.

6. Free consent. The above contract states the statement that “Tax Payer (Muhammad Saif Ullah) is entering into the contract without any threat”. And then signed by him shows that no threat was made to him to enter into a contract and his consent was free.

7. Clarity of terms. Contract shows that every term is clear regarding amount of the Property tax, land covering area their offer and acceptance, their competency etc.

8. Object should be lawful. Contract states clearly that their object was lawful not to kill or committing illegal activity which is enforceable by law.

9. Possibility of performance. The above contract is possible to perform because it neither states to put breath in dead body nor says to pluck out stars etc etc.

10. Not expressly declared void. This contract is not expressly void as it doesn’t say any one to close his business or something else.

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This Contract (Sale of Property) is entered into between the Vendor and Buyer named below:

REG NO: 31991008

1. Date of Execution: 29.11.112. Place of execution : Wapda Town3. Name of the vendor: Muhammad Raza

Age: 45Father/Husband Name: Muhammad HussainAddress: H # 34 St 6 Wapda Town Lahore

Note: (if there is more than one vendor the particulars in column may be repeated)

4. Name of the agent (If any) Chaudhry Sana UllahAge: 55Father/Husband Name: Hafiz Muhammad AdnanAddress: H no 54 St no 8 Model Town Lahore.

5. Name of the buyer: Muhammad Saif UllahAge: 57Father/Husband Name: Bashir AhmedAddress: DHA phase I Lahore.

Note :( If there is more than one buyer, the details in column 4 may be repeated).

6. (i) Sale Consideration: Rs 3000000 (Rupees Three Million only)(ii) Advance Amount: Rs 500000 (Rupees Five hundred thousand only)(iii) Details & Mode of Payment: By bank draft(iv) Period of agreement: 2 weeks after signing the contract.

7. Conditions of Sale :


i. That he/she/they is/are the only owners of the property and none else have got right, title or power on the property.

ii. That he/she/they is/are agree to indemnify the buyer against all damages, losses, liabilities or expenses which the buyer may suffer by reasons of defects.

iii. that the Vendor further undertakes to register the above said property and execute allsuch documents.

iv. that the Vendor hereby undertakes to execute and sign and get the sale deed or deedsregistered in respect of the mentioned property either in the name of the vendee or his nominee or nominees any time when called upon to do so.

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v. that the Vendor herein undertakes to deliver empty, peaceful and legal free mentioned property to the Vendee.

vi. Vendor assures that he will not enter into any sale agreement regarding the said property without the knowledge and consent of the Vendee.

vii. That in the case of full payment of the said consideration on or before the period of this agreement agrees to complete the registration in the presence of vendee.

viii. that out of the sale considerations mentioned above the advance amount ofRs 500000 have been fully paid and acknowledge the receipt of the same.

The buyer confirms:

i. That the buyer is entering into the contract with any threat.ii. That he/she is of sound mind and not disqualified by law.

iii. That he/she is agreed will all the term and conditions stated by vendor.iv. That he/she have attained the age of maturity.

8. Description of Property:

Total Extent 300 Hec. / Sq.M.Land agreed to be conveyed: 150 Hec / Sq.M.H no 37 St no 3 Town Gulberg City Lahore.

9. Market Value of the property: Rs 3500000

Signature of the Vendor Signature of the Buyer.

Muhammad Raza Muhammad SaifUllah

Signed this day of 29 in the month of November 2011

Before the witnesses:

Witnesses: Witnesses:Name: Rashid Khan Name: Muhammad AkramSignature: Rashid Khan Signature: Muhammad Akram

Drafted By:

Name: Chaudhry Sana Ullah.Signature: Chaudhry Sana Ullah

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Explanation:


1. Offer and acceptance. As per above contract the offer is being made by Vendor (Muhammad Raza) to Buyer (Muhammad Saif Ullah) regarding sale of property and signature of Buyer shows that he has accepted the offer.


3. Capacity of Parties. Here capacity of partners means that they are competent to enter into a contract. As the above contract states the declaration and signature of both Vendor and Buyer that they are of sound mind, Major and not disqualified by Law.

4. Lawful consideration. The above contract shows that property is being sold by Muhammad Raza (Vendor) to Muhammad Saif Ullah (buyer) and Muhammad Saif Ullah (buyer) will pay sum of Rs 3000000/- means both parties are getting something in return. And is a lawful consideration as it involves no unlawful activity.

5. Legal relationship. The above contract creates legal relationship because if Muhammad Saif Ullah (buyer) or Muhammad Raza (Vendor) will not perform their task both have right to sue in the court as they has a written evidence of contract and 2 witnesses.

6. Free consent. The above contract states the statement that “That the buyer is entering into the contract without any threat”. And then signed by him shows that no threat was made to him to enter into a contract and his consent was free.

7. Clarity of terms. Contract shows that every term is clear regarding cost of the Property, land covering area their offer and acceptance, their competency etc.


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9. Possibility of performance. The above contract is possible to perform because it neither states to put breath in dead body nor says to pluck out stars etc etc.

10. Not expressly declared void. This contract is not expressly void as it doesn’t say any one to close his business or something else. It’s just a contract between Vendor and Buyer.


S.no: 405

This Contract is entered into between the Whole seller (Vendor) and Mariam Cloth House (Buyer) and named below:

Vendor: Buyer:

Whole Seller Mariam Cloth House

Rana Majeed Muhammad Umer

Kamahan Road 20 km off H # 34 St 6 Wapda Town

Lahore. Lahore.

Sale Consideration: Rs 200000 (Rupees Two hundred thousand only)Advance Amount: Rs 55000 (Rupees Fifty five thousand only)Details & Mode of Payment: By bank draftLast Date of payment: 30.07.11

Conditions:


1. We are offering you 400 bundles of Rs 500 each.2. Warranty is being given regarding our quality.3. To indemnify the buyer against all damages, losses, liabilities or expenses which the

buyer may suffer by reasons of defects or during shipment.4. If buyer will pay the amount before due date, will be given special offer.

Signature Rana Majeed

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Vendor

The buyer confirms:

1. We hereby accept the offer and ready to pay the sum of Rs 200000/-2. We hereby declare that we are major and of sound mind and not disqualified by Law.3. We hereby declare that no one has threatened us to enter into a contract.4. We hereby follow the conditions given by supplier to us regarding the matter.

Signature

Muhammad UmerDated 03.06.2009 Buyer

Explanation:


1. Offer and acceptance. As per above contract the offer is being made by the Whole seller (Vendor) and Mariam Cloth House (Buyer) regarding bundle of cloths and signature of Buyer shows that he has accepted the offer by signing on the contract.


3. Capacity of Parties. Here capacity of partners means that they are competent to enter into a contract. As the above contract states the declaration and signature of both Vendor and Buyer that they are of sound mind, Major and not disqualified by Law.

4. Lawful consideration. The above contract shows that bundle of cloths are being sold by Whole Seller (Rana Majeed) to Mariam Cloth House (Buyer) and Mariam Cloth House will pay sum of Rs 200000/- means both parties are getting something in return. And is a lawful consideration as it involves no unlawful activity.

5. Legal relationship. The above contract creates legal relationship because if Whole Seller (Rana Majeed) to Mariam Cloth House (Buyer) will not perform their task both have right to sue in the court as they has a written evidence of contract.

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6. Free consent. The above contract states the statement that “We hereby declare that no one has threatened me to enter into a contract”. And then signed by offeree shows that no threat was made to them to enter into a contract and their consent was free.

7. Clarity of terms. Contract shows that every term is clear regarding items, cost of the item, quality of item acceptance of offeree, their competency etc.


9. Possibility of performance. The above contract is possible to perform because it neither states to put breath in dead body nor says to pluck out stars etc etc. It just offers the bundle of cloths to offeree.

10. Not expressly declared void. This contract is not expressly void as it doesn’t say any one to close his business or something else.

________________________

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Contract of Guarantee:

It is a contract made to fulfill the promise or discharge the liability of a third person in case of default.

Essential of Contract of Guarantee:

1. Not necessary to be in writing.2. No Misrepresentation. 3. Secondary Contract.4. Consideration.

Contract of Guarantee no: 1

Date: 02.12.11Contract of guarantee between Landlord, Tenant and Guarantor named below:

1. The Landlord 2. The TenantMuhammad Rafique Ahmed AliKamahan Road H # 34 St 6 Wapda TownLahore Lahore

3. The GuarantorMuhammad ImranH # 45 St # 2 Wapda TownLahore.

Proof of Employment:

Please submit proof of employment. A copy of your salary slip or if self employed a copy of the most recent set of Company Accounts or a letter from your Accountant is required.

Please Tick

Salary slip.Company Accounts/or letter from your Accountant enclosed

Evidence of Identity:

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Evidence of your identity is required. Two proofs of identity are needed. One must have a photograph i.e. Passport or Photo Card Driving License. The other must be proof of your permanent home address i.e. a most recent utility bill or Council Tax demand. Photocopies are acceptable.

Please Tick

Copy of Passport or Photo Card Driving License.

And

Copy of Utility Bill or Council Tax Demand.

TERMS & CONDITIONS:

1. The Landlord (Muhammad Rafique) has granted or agreed to grant the Tenant (Ahmed Ali) an individual tenancy of the property situated at Township.

2. The Guarantor (Muhammad Imran) has agreed to act as Guarantor for the Tenant (Ahmed Ali) if he fails to meet the financial and other commitments arising from the Tenancy Agreement and which are unpaid for a period of 21 days from the date the financial and other commitments became due. Any delay by the Landlord (Muhammad Rafique) in demanding the sums due from the Tenant (Ahmed Ali) will not affect the ongoing liability of the Guarantor.

3. That the Tenant (Ahmed Ali) will pay the sum of Rs 10000/- monthly and advance of Rs 20000/- in the manner required by the Tenancy Agreement within 10 days of receipt of a written demand from the Landlord (Muhammad Rafique).

4. But if Tenant (Ahmed Ali) has not paid the amount being demanded of the Tenancy Agreement has been lawfully terminated and now guarantor (Muhammad Imran) will be liable for payment.

TENANT’S PROMISE TO GUARANTOR

In consideration of the Guarantor giving this Guarantee the Tenant undertakes to the Guarantorto re-pay to the Guarantor within a reasonable time of demand any sums which the GuarantorPays to the Landlord.

Landlord Guarantor

Signature: Muhammad Rafique Signature: Muhammad Imran

Tenant

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Signature: Ahmed Ali

Explanation:

The above Contract fulfills all the essentialities given by Contract of Guarantee:

1. Not necessary to be in writing.It is not necessary that contract should be in writing it can be oral or implied.

2. No Misrepresentation. The above contract doesn’t states anything which shows that Landlord (Muhammad Rafique) is misrepresenting e.g. that tenant (Ahmed Ali) has done already fraud or something. It states clearly the terms of contract executing between them.

3. Secondary Contract.The above contract shows in terms and condition that there is a secondary contract between Guarantor (Muhammad Imran) and Landlord (Muhammad Rafique) that if Tenant (Ahmed Ali) fails to pay the liability then Guarantor (Muhammad Imran) will pay.

4. Consideration.The above contract shows that Guarantor (Muhammad Imran) has given the guarantee for Tenant (Ahmed Ali) so that guarantee is the consideration for Landlord’s (Muhammad Rafique) promise.


Date: 06.12.11

Contract of guarantee between A & B Electronics, Buyer and Guarantor named below:

1. Vendor: 2. BuyerA & B Electronics (Muhammad Rafi) Ali RazaHafeez Centre H # 54 St 6 Asif TownLahore Lahore

3 GuarantorMuhammad YounasH # 45 St # 2 Nishtar ColonyLahore.

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Item: 5 Computers of Rs 20000/- eachModel: P4Brand: HP

Used Un-used

Amount to be paid: Rs 100000/-



Please Tick

Salary slip.

Company Accounts/or letter from your Accountant enclosed



Please Tick


And


TERM & CONDITIONS:

1 The Vendor A & B Electronics (Muhammad Rafi) has granted or agreed to grant the Buyer (Ali Raza) 5 Computers.

2 The Guarantor (Muhammad Younas) has agreed to act as Guarantor for the Buyer (Ali Raza) if he fails to meet the financial and which are unpaid for a period of 14 days from the date the financial and other commitments became due. Any delay by the Vendor A & B Electronics (Muhammad Rafi) in demanding the sums due from the Buyer (Ali Raza) will not affect the ongoing liability of the Guarantor.

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3 That the Buyer (Ali Raza) will pay the sum of Rs 100000/- and advance of Rs 50000/- in the manner required by the Agreement within 10 days of receipt of a written demand from the Vendor A & B Electronics (Muhammad Rafi).

4 But if Buyer (Ali Raza) has not paid the amount being demanded according to the Agreement has been lawfully terminated and now guarantor (Muhammad Younas) will be liable for payment.

BUYER’S PROMISE TO GUARANTOR

In consideration of the Guarantor giving this Guarantee the Buyer undertakes to re-pay to the Guarantor within a reasonable time of demand which the Guarantor pays to the Vendor.

Vendor Guarantor

Signature: Muhammad Rafi Signature: Muhammad Younas

Buyer

Signature: Ali Raza

Explanation:



2. No Misrepresentation. The above contract doesn’t states anything which shows that Vendor A & B Electronics (Muhammad Rafi) is misrepresenting e.g. that Buyer (Ali Raza) has done already fraud or something. It states clearly the terms of contract executing between them.

3. Secondary Contract.The above contract shows in terms and condition that there is a secondary contract between Guarantor (Muhammad Younas) and Vendor A & B Electronics (Muhammad Rafi) that if Buyer (Ali Raza) fails to pay the liability then Guarantor (Muhammad Younas) will pay.

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4. Consideration.The above contract shows that Guarantor (Muhammad Younas) has given the guarantee for Buyer (Ali Raza) so that guarantee is the consideration for Vendor’s A & B Electronics (Muhammad Rafi) promise.


Date: 06.12.11

Contract of guarantee between Honda Company, Buyer and Guarantor named below:

2. Vendor: 2. BuyerHonda Company (Muhammad Irshad) Ali RazaBank Stop Ferozpur road H # 54 St 6 Asif TownLahore Lahore

4 GuarantorMuhammad YousafH # 45 St # 2 Green TownLahore.

Item: 2 Honda Bike of Rs 120000/- eachModel: Honda 125

Used Un-used

Amount to be paid: Rs 240000/-



Please Tick

Salary slip.



Evidence of your identity is required. Two proofs of identity are needed. One must have a photograph i.e. Passport or Photo Card Driving License. The other must be proof of your

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permanent home address i.e. a most recent utility bill or Council Tax demand. Photocopies are acceptable.

Please Tick


And


TERM & CONDITIONS:

1 The Vendor Honda Company (Muhammad Irshad) has granted or agreed to grant the Buyer (Ali Raza) 2 Honda bikes.

2 The Guarantor (Muhammad Yousaf) has agreed to act as Guarantor for the Buyer (Ali Raza) if he fails to meet the financial and which are unpaid for a period of 15 days from the date the financial and other commitments became due. Any delay by the Vendor Honda Company (Muhammad Irshad) the sums due from the Buyer (Ali Raza) will not affect the ongoing liability of the Guarantor (Muhammad Yousaf).

3 That the Buyer (Ali Raza) will pay the sum of Rs 240000/- and advance of Rs 100000/- in the manner required by the Agreement within 10 days of receipt of a written demand from the Vendor Honda Company (Muhammad Irshad).

4 But if Buyer (Ali Raza) has not paid the amount being demanded according to the Agreement has been lawfully terminated and now guarantor (Muhammad Yousaf) will be liable for payment.



Vendor Guarantor

Signature: Muhammad Irshad Signature: Muhammad Yousaf

Buyer

Signature: Ali Raza

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Explanation:


1 Not necessary to be in writing.It is not necessary that contract should be in writing it can be oral or implied.

2 No Misrepresentation. The above contract doesn’t states anything which shows that Vendor Honda Company (Muhammad Irshad) is misrepresenting e.g. that Buyer (Ali Raza) has done already fraud or something. It states clearly the terms of contract executing between them.

3 Secondary Contract.The above contract shows in terms and condition that there is a secondary contract between Guarantor (Muhammad Yousaf) and Vendor Honda Company (Muhammad Irshad) that if Buyer (Ali Raza) fails to pay the liability then Guarantor (Muhammad Yousaf) will pay.

4 Consideration.The above contract shows that Guarantor (Muhammad Yousaf) has given the guarantee for Buyer (Ali Raza) so that guarantee is the consideration for Vendor’s Honda Company (Muhammad Irshad) promise.


Date: 10.12.11

Contract of guarantee between Whole Seller of Sugar, Buyer and Guarantor named below:

3. Vendor: 2. BuyerRashid & Sons (Muhammad Rashid) Muhammad FarhanAttari Bank Stop Ferozpur road H # 4 St 6 Asif TownLahore Lahore

5 GuarantorMuhammad AbbasH # 5 St # 2 Hamza TownLahore.

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Please Tick

Salary slip.




Please Tick


And


TERM & CONDITIONS:

1 The Vendor Rashid & Sons (Muhammad Rashid) has granted or agreed to grant the Buyer (Ali Raza) 200 sacks of sugar of Rs 500 each.

2 The Guarantor (Muhammad Abbas) has agreed to act as Guarantor for the Buyer (Muhammad Farhan) if he fails to meet the financial and which are unpaid for a period of 10 days from the date the financial and other commitments became due. Any delay by the Vendor Rashid & Sons (Muhammad Rashid) the sums due from the Buyer (Muhammad Farhan) will not affect the ongoing liability of the Guarantor (Muhammad Abbas).

3 That the Buyer (Muhammad Farhan) will pay the sum of Rs 100000/- and advance of Rs 50000/- in the manner required by the Agreement within 10 days of receipt of a written demand from the Vendor Rashid & Sons (Muhammad Rashid).

4 But if Buyer (Muhammad Farhan) has not paid the amount being demanded according to the Agreement has been lawfully terminated and now guarantor (Muhammad Abbas) will be liable for payment.


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Vendor Guarantor

Signature: Muhammad Rashid Signature: Muhammad Abbas

Buyer

Signature: Muhammad Farhan

Explanation:



2. No Misrepresentation. The above contract doesn’t states anything which shows that Vendor Rashid & Sons (Muhammad Rashid) is misrepresenting e.g. that Buyer (Muhammad Farhan) has done already fraud or something. It states clearly the terms of contract executing between them.

3. Secondary Contract.The above contract shows in terms and condition that there is a secondary contract between Guarantor (Muhammad Abbas) and Vendor Rashid & Sons (Muhammad Rashid) that if Buyer (Muhammad Farhan) fails to pay the liability then Guarantor (Muhammad Abbas) will pay.

4. Consideration.The above contract shows that Guarantor (Muhammad Abbas) has given the guarantee for Buyer (Muhammad Farhan) so that guarantee is the consideration for Vendor’s Rashid & Sons (Muhammad Rashid) promise.

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Documents

CORPORATE & BUSINESS LAW - Web viewThe group fellows can’t file a suit against Tullat in the court of law as the contract is of social nature ... (Cement Supplier) and ABC Construction