Wednesday, September 25, 2013
Tuesday, September 10, 2013
Registration of Small Scale Industries(SSIs)
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Registration of an existing or proposed small scale enterprise
is voluntary and not compulsory. It has no statutory basis. But, registration
is beneficial for the enterprise itself because it makes the unit eligible
for availing the benefits given by the Central or State Governments for
the promotion of SSIs. Some of the incentives so obtained by them relate
to credit guarantee scheme; priority sector lending; capital subsidy;
reduced customs duty; ISO-9000 certification reimbursement; power tariff
subsidies; exemptions under tax laws; etc.
The State
Directorate or Commissioner of Industries or District Industries Centres
(DIC's) are the concerned authorities for registration of small scale
units. This registration is both location specific and product specific.
Like in certain State capitals and metropolitan cities, it is granted
to only those units which are located in the designated industrial areas/estates.
A small scale unit is generally subjected to two types of registration. Initially, a provisional registration is granted for the proposed enterprise. It is termed provisional because the enterprise is yet to come into existence. It is granted for a specified period of time during which the unit is expected to be setup. A 'Provisional Registration Certificate (PRC)' enables the unit to obtain :- (i) term loans and working capital from financial institutions, banks under priority sector lending; (ii) facilities for accommodation, land and other approvals; (iii) no objection certificates (NOCs) and clearances from regulatory bodies such as pollution control board, labour regulations, etc. Once the unit has commenced commercial production, it is granted permanent registration. It is a life time registration given after physical inspection of the enterprise and scrutiny of certain documents. Some of the formalities required to be completed for seeking permanent registration are :-
Such a registration procedures is generally uniform across the States. However, there may be some modifications done by individual States. For example, certain States may have a 'SIDO registration scheme' and a 'State registration scheme'. But, whatever be the registration scheme, the main purpose is to maintain statistics and a roll of such units for providing incentives as well as to create nodal centres at the Centre, State and District levels to promote SSIs. It gives recognition to the industrial unit and helps in generating a database for policy planning. A small scale unit may also become liable for de-registration, if it crosses the investment limits; starts manufacturing any new item or items that require an industrial license or other kind of statutory license; or does not satisfy the condition of being owned, controlled or being a subsidiary of any other industrial undertaking. |
Steps to Starting a Small Business
Steps to Starting a Small Business
Prepare a business plan and materials
1. An important first step is preparing a business plan to define your business, products and services, and outline your goals, operating procedures and competition. If your company needs funding from a traditional loan or venture capitalists, a business plan will be required. Make sure your plan includes a marketing approach, so people are aware of what you're selling and how to find you.2. Create a business logo, cards and stationery. These items establish your company’s identity and help potential customers find and remember you.
Meet legal requirements
3. Of course, incorporating your business or forming an LLC with the state is important because it protects your personal assets from business debts and liabilities. Other benefits of forming a corporation or LLC include tax advantages and greater credibility with customers, vendors and business partners.4. Select an accountant and attorney. Many small business owners seek advice from accountants and attorneys. As you search for an accountant and attorney, get referrals from friends or family, and look for professionals who have worked with other small business owners or companies in your specific industry.
5. Get necessary tax identification numbers, licenses and permits. A federal tax identification number, or employer identification number (EIN), acts like a social security number and is required for corporations and LLCs that will have employees. Contact your state's taxation department to learn if a state tax identification number is required in your state. Also keep in mind that most businesses need licenses and/or permits to operate—in your city, municipality, county and/or state.
6. Insure your business and investigate other requirements. Some industries have specific insurance requirements. Discuss your needs with your insurance agent to get the right type and amount of insurance. Remember to look into any other government tax and insurance requirements that might apply to your business, particularly if you have employees. For example:
- Unemployment insurance
- Workers' compensation
- OSHA requirements
- Federal tax
- State and local tax
- Self-employment tax
- Payroll tax requirements (such as FICA, federal unemployment tax, and state unemployment tax)
- Sales and use tax
Prepare yourself financially
7. It is crucial to separate business finances from personal ones, so open a business bank account. Most banks require company details, such as formation date, business type, and owner names and addresses. If your business is not incorporated, most banks will require a DBA (doing business as or fictitious business name). Contact your bank about requirements prior to opening an account.8. Arrange your business accounting and apply for loans. You may want to use an accountant, or handle finances yourself with a small business accounting solution. Either way, properly account for all business disbursements, payments received, invoices, accounts receivable/accounts payable, etc. And if you don’t have enough capital to start a business, this is also the time to seek funding from banks or through Small Business Administration (SBA) loan programs.
9. Establish a business line of credit. This will help reduce the number of times your company prepays for purchased products and services. It also helps establish a strong credit history, which is helpful for vendor and supplier relationships. Getting a Dun & Bradstreet (D&B) DUNS (or D-U-N-S) number for your business is advisable, as it is often used to check business creditworthiness.
10. Ready your workspace. For home-based businesses, ensure you are meeting city zoning requirements for your area. For non home-based businesses, you'll likely need to lease office space. Don't forget to purchase or lease furniture and office equipment to get your business up and running.
Sunday, September 1, 2013
Purpose of Project Management
The Purpose of Project Management and Setting Objectives
Project Management has developed in order to plan, co-ordinate and
control the complex and diverse activities of modern industrial and
commercial projects. All projects share one common characteristic - the
projection of ideas and activities into new endeavours.The purpose of project management is to foresee or predict as many dangers and problems as possible; and to plan, organise and control activities so that the project is completed as successfully as possible in spite of all the risks. The ever-present element of risk and uncertainty means that events and tasks leading to completion can never be foretold with absolute accuracy. For some complex or advanced projects, even the possibility of successful completion might be of serious doubt.
Project management can involve the following activities: planning - deciding what is to be done; organising - making arrangements; staffing - selecting the right people for the job; directing - giving instructions; monitoring - checking on progress; controlling - taking action to remedy hold ups; innovation - coming up with new solutions; representing - liaising with users.
Setting Objectives
Effective objectives in project management are specific. A specific objective increases the chances of leading to a specific outcome. Therefore objectives shouldn't be vague, such as "to improve customer relations," because they are not measurable. Objectives should show how successful a project has been, for example "to reduce customer complaints by 50%" would be a good objective. The measure can be, in some cases, a simple yes or no answer, for example, "did we reduce the number of customer complaints by 50%?"While there may be one major project objective, in pursuing it there may be interim project objectives. In lots of instances, project teams are tasked with achieving a series of objectives in pursuit of the final objective. In many cases, teams can only proceed in a stair step fashion to achieve the desired outcome. If they were to proceed in any other manner, they may not be able to develop the skills or insights along the way that will enable them to progress in a productive manner.
Objectives can often be set under three headings:
Performance and Quality
The end result of a project must fit the purpose for which it was intended. At one time, quality was seen as the responsibility of the quality control department. In more recent years the concept of total quality management has come to the fore, with the responsibility for quality shared by all staff from top management downwards.Budget
The project must be completed without exceeding the authorised expenditure. Financial sources are not always inexhaustible and a project might be abandoned altogether if funds run out before completion. If that was to happen, the money and effort invested in the project would be forfeited and written off. In extreme cases the project contractor could face ruin. There are many projects where there is no direct profit motive, however it is still important to pay proper attention to the cost budgets, and financial management remains essential.Time to Completion
Actual progress has to match or beat planned progress. All significant stages of the project must take place no later than their specified dates, to result in total completion on or before the planned finish date. The timescale objective is extremely important because late completion of a project is not very likely to please the project purchaser or the sponsor.Conclusion
Project management has developed over the years, and involves various activities before a project is completed. Objectives should be specific so they are measurable, and although there may be one major project objective, there may be minor objectives throughout the project.What is the difference between Consent and Free Consent and also discuss the position of agreements made without free consent
What is the difference between Consent and Free Consent and also discuss the position of agreements made without free consent
CONSENT :-Without the consent of the parties contract cannot take place. Where the parties have different things in mind or understand the same thing in different ways is not real consent. It defines in the following words :
"When two or more person agree upon the same thing in the same sense, they are said to be consent."
In above definition two words are more important, same thing and same sense. In some cases the consent may have been given under the mistake which prevents the formation of real agreement. Mistakes may relate to :
i. The subject matter of the agreement.
ii. The nature of transaction.
iii. The identity.
FREE CONSENT :-
Free consent is the consent which has been obtained by the free will of the parties. No pressure in the form of coercion fraud undue influence, mistake and misrepresentation in obtaining the consent. Contract section defines free consent in the following words :
"Consent is said to be free when it is not caused by (a) coercion, (b) undue influence, (c) fraud, (d) misrepresentation (e) mistakes."
Effects on Agreement :-
When both the parties consent is caused by mistake, contract is not enforceable by law at the option of any of the contracting party. Because it is a void contract. In any contract if the consent is not free it is a voidable contract at the option of the party whose consent was caused.
Example :- If one person enters into an agreement by fraud. Later he comes to know about the real story, then he may reject it or he may confirm it. If he confirms it then it becomes a such contract whose consent was not free. Free consent of both parties is necessary for the validity of the contract. The contract will be void or voidable when the consent of any contracting party is not free.
Void Contract Example :- Mr. Ram agrees to buy a cow from Mr. Raju. It turned out that the cow was dead at the time of contract. Now it is void contract.
Voidable Contract Example :- Mr. Tariq causes Miss. Pinky to enter into an agreement by threatening to kill her son. If Miss. Pinky signs the agreement, the contract is voidable at the option of Miss. Pinky. No doubt Miss. Pinky has given consent to the agreement but it is not a free consent. It is a voidable agreement and it can be cancelled at the option of Miss. Pinky.
Distinguish or Difference between lawful and unlawful consideration or Explain the courses of unlawful consideration
Distinguish or Difference between lawful and unlawful consideration or Explain the courses of unlawful consideration
LAWFUL CONSIDERATION :-"An agreement is a contract enforceable only if it is made for a lawful consideration and with a lawful object."
For the valid agreement it is essential that the object and consideration of agreement must be lawful. If contract is unlawful due to any reason the agreement is illegal.
Example :- Mr. James takes the car from Miss. Nishi on rent. There is nothing unlawful in this case. If he uses the car for smuggling. This object is unlawful and agreement is void.
UNLAWFUL CONSIDERATION :-
Contract act explains the causes of unlawful consideration. In this situation object of an agreement is unlawful.
CAUSES OF UNLAWFUL CONSIDERATION
1. Prohibited By Law :-
If it is forbidden by law then it will be unlawful consideration.
Example :- Business of smuggling is prohibited in law. If any person makes an agreement with other in this regard. The agreement is void as the consideration is forbidden by law.
2. Case of Fraudulent :-
If the object of agreement is unlawful and based on fraud then consideration is also unlawful.
Example :- Mr. Zain and Mr. Arjun enter into an agreement that they will divide money acquired by fraud equally among themselves. This object is unlawful so agreement is void.
3. Immoral :-
In case of immoral object agreement is void and cannot be enforced.
Example :- Mr. James agrees to let his daughter to hire to Mr. Shah for concubinage. The agreement is void because it is immoral.
4. Injury To Other Person or Property :-
If an agreement involves an injury to the person or property of another it is void.
Example :- Mr. Ali asks Mr. Noor to beat Mr. Khan and promises to pay Rs. 10,000 for this work. The agreement between Mr. Ali and Mr. Noor is void at it involves injury to the other person Mr. Khan. Therefore suit cannot be filed by Mr. Noor to recover Rs. 10,000.
5. Against the Public Policy :-
In this case also the object or consideration of an agreement is said to be unlawful. There are certain classes of acts which are said to be against the public policy.
Example :- Mr. Nasir promises to obtain for Mr. Agah an employment in public service and Mr. Agha promises to pay Rs. 10, 000 to Mr. Nisar.
This act of Mr. Nisar is against the public policy. A private man cannot give a public service to any person. So agreement is void.
6. Nature of Agreement :-
The consideration or object of an agreement is unlawful if it is of such nature that if permitted it would defeat the provisions of law.
Note :- If the consideration is unlawful the contract shall be void.
Discuss the position of minor in business contract or Describe the law relating to the minors act
Discuss the position of minor in business contract or Describe the law relating to the minors act
Minor's Position In The Contract Act or Effects Of Law On Minor Agreement :-Any person who has not attained the age of eighteen tears, is minor in the eye of law.
A minor has no capacity to enter into contract. His agreement is absolutely void. The contract act very clearly says that the parties to a contract must be competent to contract. A person is a competent who is of the age of majority. An agreement entered into by a minor is not enforceable at law.
REASON :-
Law is a guardian and it protects the minor against his own in-experience and improper acts made in the early years of life. A minor is supposed to be incapable of judging what is good and what is bad for him.
1. Minor and Equitable Consideration :-
A minor is not liable to perform what he has promised to do under the agreement not to repay the money that he has received under it. According to the law a minor can not be compelled to compensate for any benefit received by him under his agreement which is void.
2. Estoppel Case :-
Estoppel means when someone makes an other person to believe that a particular thing or fact is true. Then later on he can not be allowed to deny the truth of that thing.
Example :- Mr. Kashif a minor induces Miss. Sheela to enter into a contract with him by a fraudulent misrepresentation that he is of full age. Now after attaining the age of majority, he says that he was minor at the time of entering into contract. No doubt Mr. Kashif deceived Miss. Sheela but a minor cannot be stopped from setting up defence of his infancy.
3. Rules About Partnership :-
A minor cannot become a partner, but with the consent of all other partners, he can be admitted in the benefits of the partnership. He is not liable only upto his shares in the firm.
4. Rules About Favourable Agreement :-
A minor can take benefit of that agreement which is made for his benefit.
Example 1 :- Mr Karmu borrows the money from Mr. Nutwar a minor and executes a mortgage of a house in favour of Mr. Nutwar (a minor) then Mr. Nutwar can enforce the mortgage as it is in favour of the minor.
Example 2 :- If Mr. Nutwar a minor borrows the money from Mr. Karmu and executes a mortgage of a house in a favour of Mr. Karmu then Mr. Kermu cannot enforce the mortgage as it was executed by the minor.
Example 3 :- In case of promissory notes bonds and bill of exchange executed by a minor are not enforceable by law, if these are against the benefit of the minor. On the other hand minor may enforce a promissory note or bond executed in his favour.
Note : If a guardian purchases an immoveable property on behalf of the minor the contract is valid.
5. Rules About Agent :-
A minor can be an agent. On behalf of the principal he may enter into contract with the third party. He can make his principal responsible by his acts. But he himself is not liable to his principal.
Note : No doubt a minor cannot enter into a valid contract but minority does not affect adoption, marriage dower and divorce.
6. Minors Surety :-
In case of contract guarantee an adult stands surely for minor. In this case minor is not awarded but adults is liable under the contract.
Example :- Mr. Nadir a minor makes a contract with Mr. Riaz. Mr. Noor stands surety for Mr. Nadir. The contract is valid.
7. Parents Position :-
The parents of minor are not liable for agreements made by their minor. The parents can be held responsible of the minor acts as their agent.
Example :- Mr. Agha send his son to Mr. Noor a minor to buy goods from Mr. Habib. Mr. Noor buys goods but Mr. Agha who is father is responsible for payment.
8. Minor & Negotiable Instruments :-
A minor can draw and deliver the negotiable instruments. He is not liable but all the other parties to the instruments are liable.
Example :- A minor draws a bill on Y. Y accept the bill. S endorses it to K. The bill is valid.
9. Case Of Insolvency :-
In this case minor cannot be declared insolvent. If he has no property then payment cannot be recovered.
10. Adult and Minor Agreement :-
If the above two enter in to the agreement with the third party, the adult will be liable but minor will be not responsible.
Example :- The Mr. Jacky minor and Mr. Arif adult make an agreement with Mr. Nash to purchase a factory. The contract is valid.
11. Company Shares :-
A minor cannot become the share holder of the company. But in case of fully paid up shares a minor can become a shareholder of the company.
Example :- Jacky has fully paid up shares in a company. He dies and leaves Mr. Anderson a minor as a legal representative. The company is bound to transfer the shares to Mr. Anderson.
12. Necessaries of Minor :-
A person who provides the necessaries to the minor is entitled to recover from the property of the minor. If the minor s not liable personally.
Example :- Mr. Vitory supplies necessaries to Mr. Kim a minor for his life. Mr. Vitory can recover the amount from Mr. Kim's property. If property is not available then Mr. Kim is personally not liable.
Write a comprehensive note on the contingent or conditional contracts and in which circumstances these are enforceable?
Write a comprehensive note on the contingent or conditional contracts and in which circumstances these are enforceable?
Contingent or Conditional Contracts :-
If any contract performance depends upon the happening or not happening of the some uncertain event of future is called contingent contract.
Example :- Mr. Anwar contracts to Miss. Razia to pay Rs. one thousand if her father dies next month. Same is the situation with the insurance contract.
Essential of Contingent Contract :-
1. The basic essential for the contingent contract is that its performance depends upon the happening or non-happening of uncertain future.
2. Contingency depends upon the act of the party and not on the wish of the party.
3. Contingency condition is also necessary. The happening or non-happening of the event must collateral to the subject matter of the contract.
PARTICULARS OF CONTINGENT CONTRACTS
1. Happening of Uncertain Events :-
It is defined in the following words, "Contingent contract to do or not to do anything if an uncertain future event happens can not be enforced by law unless and until that event has happened. If the event becomes impossible such contract becomes void."
Example :- Mr. Hashim contracts to give his all property to Mr. Smith when he marries with his daughter Miss. Sonia. Miss. Sonia dies before marriage. The contract becomes void.
2. Unhappening of Uncertain Events :-
Its defined in this regard, "Contingent contract to do or not to do anything if an uncertain events does not happen can be enforced when the happening of that event becomes impossible and not before."
Example :- Mr. Kallis agrees to pay Mr. Peter Rs. ten thousand if samjhota express train does not return from India. The train is destroyed. The contract can be enforced when the train is destroyed.
3. Impossible Event :-
It is defined in these words, "Contingent agreements to do or not to do anything if an impossible event happens are void where the impossibility of the event is known or not to the parties to the agreement at the time when it is made."
Example :- Mr. Ricky says to Mr. Symonds to pay Rs. 5 thousand it two straight lines are enclosed a space. This agreement is void.
4. Time Not Specified :-
It is defined in the following words, "If the future event on which the contract is contingent is the way in which the person will act at an unspecified time, the event shall be considered to become impossible when such person does anything which renders it impossible ." It will be a void contract.
Example :- Mr. Micheal agrees to pay Miss. Kiran a sum of money if she marries to Mr. Daniel. Mr. Daniel marries to Miss. Neha. Now the marriage between Miss. Kiran and Mr. Daniel is not possible. Although it is possible if Miss. Neha dies and Miss Kiran afterwards marry with Mr. Daniel.
5. Time Specified or Fixed :-
It is defined as, "Contingent contracts do or not to do anything if a specified uncertain event happens within a fixed time becomes void, If at the expiration of the fixed time such event has not happened or if, before the time fixed."
Example :- Mr. Shapered promises to pay Miss. Tina sum of Rs. 10 thousand if Super express returns to Lahore within 24 hours. The contract is enforceable if train returns within a fixed period. On the other hand if train destroys during the fixed period the contract will be void.
6. Fixed Time Expired :-
It is defined as, " Contingent contracts to do or not to do anything if a specified uncertain event does not happen within a fixed time may be enforced by law when time fixed has expired and such event has not happened or before the time fixed has expired, it becomes certain that such event will not happen."
Example :- Mr. Rose promised to pay Miss. Pinky one thousand dollar if Air Bus 707 does not return from Bombay to Goa within four hours, contract will be enforceable. On the other hand if it is destroyed within four hours contract will be void.
Write a comprehensive note on the Quasi Contract or Implied Contract and also discuss the various conditions of Quasi Contracts?
Write a comprehensive note on the Quasi Contract or Implied Contract and also discuss the various conditions of Quasi Contracts?
Quasi Contract or Implied Contracts Implies in Law :-Sometimes on the basis of equity and justice legal sanction is given to some contracts. In fact these contracts are not between the parties and mutual consent of the parties is also not required. Rights and duties between the parties are created by law. So quasi contract or implied contract is a contract which is constituted by law. Quasi contract is applicable on the following cases :
1. Supply of Necessaries To a Minor or Lunatic :-
Necessaries means goods suitable to the condition in life of minor or lunatic person. If a person is incapable to enter into a contract. Any one person who is legally bound t support, provides the "Necessaries" according the life conditions of the minor or lunatic. He is also entitled to recover the value from the property for such incapable person.
Example :- Mr. Jonny supplies Mr. Honny (a minor) with necessaries suitable to its condition of life. Mr. Jonny is entitled to reimbursed the value of necessaries from the property of Mr. Honny.
2. Finder of Goods :-
Sometimes a person finds the goods on the roads or on any place which belong to any other person. He takes them into his own custody. He is also entitled to recover compensation for the trouble in taking the case of goods and finding the owner of the good.
3. Liability of One Person But Paid By Other Can Be Recovered :-
Sometimes one person pays the money for the other person but not as a free gift. Any person on whose behalf money is paid enjoys benefits. So he is also bound to make compensation to his benefactor.
Example :- Suppose Mr. Akram holds the factory of Mr. Nisar on lease. The tax payable by Mr. Nisar to the government being in arrears, the factory is advertised for sale by the government. Under the law it will also effect the benefits of Mr. Nisar's lease. Mr. Nisar to prevent the sale pays tax to the government, the sum due from Mr. Akram. Mr. Akram is bound to compensate to Mr. Nisar by paying the such amount.
4. Mistake and Coercion :-
If money or any other thing delivered by mistake or coercion to another person can be recovered. It is the liability of that person to repay who has taken.
Example :- Suppose Mr. Nawab a salesman leaves a packet of Soap at the shop of Mr. Riaz by mistake. Now it is the liability of Mr. Riaz that he should repay it.
5. Non Gratuitous Act :-
Contract section is says, " That when one person lawfully does any thing for another or delivers any thing to him, not intending to give as a free gift, other person also enjoys benefits, the later is bound to make compensation to the former.
What do you mean by performance of contract and who can demand performance? also discuss the rules regarding the order of performance of reciprocal
What do you mean by performance of contract and who can demand performance? also discuss the rules regarding the order of performance of reciprocal
Performance of Contract :-It means the fulfillment of legal obligations created under contract by the promisor and promisee. Contract comes to an end when both the parties performed the contract properly.
Demand For Performance :-
Performance is always demanded by the promisee. A third party has no right to demand performance of the contract. If promisee dies then his legal representative can demand.
Example :- Mr. Fahad promises Mr. Wahid to pay Rs. 1 lac to Mr. Jhon. In this case Mr. Wahid is a promisee and he can demand performance. If Mr. Fahad does not pay to Mr. Jhon then jhon can not take any action, because he is a third party. It is Mr. Wahid who can take action. Even at the death of Mr. Wahid his legal representative can take action.
Who May Perform :-
A promisor personally or through his agent, legal representative or third person can fulfill the promise.
In case of joint promises all the promisors jointly fulfill the promise or any one may be compelled to perform or each promisor may compel for contribution.
RULES REGARDING THE ORDER OF PERFORMANCE OF RECIPROCAL PROMISES :-
When one party makes a promise in consideration of the similar promise made by the other party is called reciprocal promise.
1. Rules Regarding The Order of Performance :-
When performance of the promise of one party depends on the prior performance of the promise by the other party, the promises are called mutual and dependent. If first party promisor fails to perform its promise according the contract, then it cannot claim the performance of the reciprocal promise and will also compensate the other party.
Example :- Mr. Naveed contracts with Mr. Aslam to construct the house for a fixed price. According to contract Mr. Aslam had to supply the construction material. Such construction is being dependent on the supply of material, the work cannot be started. The loss caused to Mr. Naveed will be compensated by Mr. Aslam.
2. Mutual & Independent :-
In this case each party performs his promise independently without waiting the performance of other party.
Example :- Mr. Candy and Mr. Shafi contract that Mr. Candy will construct a house for a fixed price. It was also agreed by both the parties that payment will be made by Mr. Candy after the construction of a house.
3. Mutual and Concurrent :-
In this case of two promises performed at the same time. The promisor may not perform his promise unless the promisee is ready to perform his reciprocal promise.
Example :- Mr. Snak contracts with Mr. Alex that he will deliver the car to him only if he will make the payment. Mr. Snak needs not to deliver unless Mr. Alex is ready and willing to pay for it. Mr. Alex also no need to make the payment unless car is delivered to him.
4. Consequence To Prevent The Performance :-
In case of reciprocal promises if one party to the contract prevents the other party the contract becomes voidable at the option of the prevented party. Prevented party is also entitled to compensation for any loss, which he causes due to non-performing of contract.
5. Time and Place :-
It relates with the rules regarding the determination of time and place.
6. Specified Time :-
If the time and place is prescribed in the contract then it should be performed at the specified time and place.
7. Reasonable Time :-
In this case reasonable time depends on the circumstances of each case.
8. Proper Place :-
In this regard promisor must ask the promisee where he would like the contract to be performed.
Write a note on the following 1. Continuing Guarantee 2. Wagering Contract 3. Promise and Reciprocal Promises
Write a note on the following 1. Continuing Guarantee 2. Wagering Contract 3. Promise and Reciprocal Promises
Continuing Guarantee :-Its define in the following words, " A guarantee which extends to a series of transaction is called continuing guarantee."
Guarantee is not only limited for a single credit or transaction.
This guarantee is revoked when the surety's liability is discharged. It may also at any time be revoked by the surety as to future transactions by notice to the creditor.
Wagering Contract :-
"Wager" and "Bet" both words are used in the same sense. The word wager is defined in the following words, "A promise to give money or money's worth upon the determination or ascertainment of an uncertain event."
A wager depends upon uncertain event. It is a game of chance. One can suffer a loss earn a money. All the wagering contracts are void. No body can file a suit for the recovery of anything won by wager. For the wagering contract it is necessary that each party may win or loss.
Note : An agreement to subscribe a sum of Rs. 5000/- or upwards to be awarded to the winner of any horse race is not unlawful.
Example :- Suppose there is a match between the Indian and Pakistan Cricket team. Mr. Danial promises to pay Mr. Amir Rs. 10,000 if Indian cricket team wins the match. Now this contract is void in the eyes of law and no body can file a suit for the recovery of winning amount.
Promise :-
The word promise is defined in the following words, "A proposal when accepted, becomes a promise."
Generally two parties are involved in the promise. The person who makes the offer is called promisor. While a person who accepts the offer is called promisee.
Example :- Suppose Mr. Tariq offer to sell his car for Rs. 700,000 to Mr. Jhony. Mr. Jhony accepts the offer. Now it will become a promise.
Reciprocal Promises :-
Reciprocal means mutual. Those promises which form consideration for each other are called reciprocal promises. Following are the important kinds of reciprocal promises :
1. Mutual and Independent :- It is the important kind of reciprocal promises. In these contracts each party has to perform his part without waiting the readiness of the other party.
2. Simultaneous Performance :- In this case reciprocal promises are performed simultaneously. If one party is ready to perform a promise other party should also perform the same time. If one party is ready to pay the amount demanded and other party is not ready to deliver the particular good. The performance of the contract will be not possible.
3. Order of Performance :- In this case first of all order is performed and then its reciprocal is received.
Example :- Mr. Jmaes contracts with Mr. Kane to build his bath room for Rs. 40,000. As promise to build the bath room must be performed before payment.
4. Legal and Illegal :- In these cases first set of promises is legal and other set is illegal. So first part is a valid and second is void agreement.
Example :- Mr. Cena agrees to sell his gun to Mr. Nehra for Rs. 25,000 but Mr. Nehra uses it in killing the animals, pay Rs. 10,000 for it. The first set of promises is legal and other is illegal.
5. Conditional Contracts :- In these cases if the prior condition is not performed by one party, the other party can not be called upon to perform his promise.
Define bailment and explain the important features and essentials of bailment or Define contract of bailment
Define bailment and explain the important features and essentials of bailment or Define contract of bailment
Bailment :-A bailment is a delivery of goods one person to another for some purpose upon a contract that they shall be returned or otherwise disposed of according to the directions of the person delivering. The person delivering the goods is called the "Bailor". The person to whom they are delivered is called "Bailee".
Example :- Mr. Jhon enters into agreement with Miss. Sony to deliver her laptop to him on this condition that it shall be returned to her after one month. In this example Mr. Jhon is a Bailee and Miss. Sony is a Bailor. Laptop is good bailed. It is a contract of Bailment.
Essentials or Features of Bailment :-
Following are the important essential of bailment :
1. Contract :-
It is the basic essential for the bailment. For the delivery of goods contract between the two parties is necessary. Contract may be oral or written, implied or expressed.
2. Moveable Property :-
It is the main feature of bailment that it is only for the moveable property and not for the immoveable property.
3. Delivery of Goods :-
It is also necessary that goods should be delivered by one person to another.
4. Change of Possession :-
Bailment contract also brings change in the possessions of the goods. Only b without possession is not sufficient for this contract.
5. Purpose of Bailment :-
The object of bailment may be for the safety of goods or for hire or for the use.
6. Temporary Delivery :-
The delivery of the goods may not be for the permanent purpose. it is essential that delivery must be made for the temporary purpose.
7. Ownership :-
right of ownership remains with bailor and it does not change by the delivery of goods to other person.
8. Change In Shape :-
If bailed goods shape changes in the mean time even then it remains a contract of bailment.
9. Parties of the Contract :-
In the contract of bailment there are two parties, the bailor and the bailee.
10. Returnable :-
It is very important feature of the bailment. The bailee should return the goods to the bailor or disposed according the directions of the bailor.
Discuss the important rights and duties of the bailor
Discuss the important rights and duties of the bailor
DUTIES or RESPONSIBILITIES or LIABILITIES of the BAILOR :-Following are the important duties and liabilities of the bailor :
1. Explain the Defect :-
It is the basic duty of the bailor that he should disclose all the defects of the goods before delivering to bailee. If the bailor does not disclose then he himself will be responsible for loss.
Example :- Mr. Wands hires a car from Mr. Zane. Car is defective. Mr. Zane does not disclose facts that car is defective. Mr. Wands drives a car and he is injured. Mr. Zane is responsible to Mr. Wands for damage.
2. Warning to the Bailee :-
If a bailor feels that bailee is showing carelessness and goods are in danger. He should give warning to the bailee.
3. Payment of Necessary Expenses :-
It is the duty of the bailor that he should also pay necessary expenses sustained by the bailee connection with the bailment.
4. To Indemnify The Bailee :-
It is the duty of the bailor that he should compensate the loss of bailed which he has suffered due any one of the following reasons :
a. The bailor was not entitled to make the bailment.
b. The bailor was not entitled to give direction in this respect.
c. The bailor was not entitled to receive back the goods.
IMPORTANT RIGHTS OF BAILOR :-
Following are the important rights of bailor :
1. Right of Return :-
As the purpose of bailment completes bailor has a right to take back the goods bailed. If bailee fails to return then bailor has a right to claim for compensation.
2. Return Before Time :-
With the consent of the bailee the bailor may return his goods before the specified period.
3. Right of Termination :-
The contract of the bailment can be terminated by the bailor if the goods bailed are misused or against the conditions of the contract.
4. Right of Profit :-
The bailor has right to get profit from the goods bailed according the conditions of the contract.
5. Gratuitous Good Right Of Return :-
In case of gratuitous bailment the bailor has a right to terminate the contract at any time. If bailee cause a loss it may be compensated to the bailor.
Types or Kinds of Bailment
Types or Kinds of Bailment
Types or Kinds of Bailment :-
Bailment has the following important kinds :
1. Bailment For Safe Custody :-
Sometimes an owner of the precious goods like ornaments delivers them to the bailee for the safe custody.
2. Bailment For Reward :-
If the bailor charges some reward for the services it is called bailment for reward.
Example :- Mr. Sean delivers the car on rent to Mr. Burg Rs. 25,00 per day.
3. Gratuitous Bailment :-
It is gratuitous bailment when bailor does not charge any reward for the bailment.
4. Bailment For Use :-
If any person delivers any article for the use to bailee it is called bailment for use.
Example :- Mr. Carlos delivers a pen in the examination room to Miss. Rehana for three hours, it is a bailment for use.
5. Bailment For Lost Goods :-
If any person finds the goods of the other person, he will also be considered bailee. It will be called a bailment of lost goods. Real owner will be called bailor.
6. Bailment For Pledge :-
Sometimes an article is deposited with a lender as a security for the performance of a promise or the repayment of debt.
7. Bailment For Repair :-
Sometimes a bailor delivers an article like Car, T.V, Laptop for the repair to another person. It is known as bailment for repair.
8. Bailment For Carrier :-
Sometimes we deliver the goods to the transport companies for carriage. It is known as bailment of carrier.
9. Termination :-
A contract of bailment is being dissolved with the completion of purpose, expiry of time, death of the party or at the option of the bailor.
Discuss the important rights and duties of the bailee
Discuss the important rights and duties of the bailee
DUTIES or RESPONSIBILITIES or LIABILITIES of the BAILEE :-Following are the liabilities of the bailee :
1. Care of Goods :-
It is the duty of the bailee that he should take as much care of the goods as a man of ordinary prudence takes care about his own goods.
2. Act According The Bailment :-
Any act of the bailee should not be against the conditions of the contract. Otherwise contract will be voidable at the option of the bailor.
3. Mixing is Not Allowed :-
It is the duty of the bailee that he should keep the bailor goods separate from his own goods. If he mixed without the consent of the bailor then he himself will bear the expenses of separation and loss.
4. Should Not Deny The Title :-
It is the duty of the bailee that he should not deny or change the title of the bailor about the ownership of goods.
5. Default of Responsibility :-
It is the duty of the bailee that he should not deny or change the title of the bailor about the ownership of goods.
6. Return of Goods :-
It is the duty of the bailee to return or deliver the goods bailed according to the bailors conditions.
7. return at Proper Time :-
It is the duty of the bailee that he should return the goods bailed as the time or purpose of bailment completes without the demand of the bailor.
8. Return of Profit :-
It is also the duty of the bailee that he should deliver the profit or any increase occurred in the bailed goods to the bailor.
9. Proper Use of Goods :-
It is the duty of the bailee that he should use the goods according the conditions of the contract. If he misuses the goods then he will compensate the loss to the bailor.
IMPORTANT RIGHT OF BAILEE :-
Following are the important right of bailee :
1. Recovery of Losses :-
If the bailee suffers a loss or damage due to the defects of the bailed goods he has a right to recover it from the bailor.
2. Compensation Right :-
It is the right of the bailee that he should received compensation from the bailor for any loss which he has suffered due to defects in the title of the bailor.
3. Right of Retain :-
Sometimes bailee performs some services for the purpose of bailment. In such cases bailee has a right to detain such bailed goods until he receives the reward of his services.
4. Recovery Of Expenses :-
All the expenses incurred for the bailment may be recovered by the bailee from the bailor.
5. Right of Indemnity :-
Any loss which bailee has sustained may recover from the bailor on the following grounds, "The bailor was not entitled to make the bailment, or receive back the goods, or to give directions in this respect.
Define Pledge? Discuss the main essentials of pledge
Define Pledge? Discuss the main essentials of pledge
PLEDGE :-It is defined in the following words, "Bailment of goods as a security for the payment of a debt or performance of a promise is called pledge."
Bailor is called pledgor or "Pawnor" and Bailee is called "Pawnee" or pledgee.
Example :- Mr. Shukla borrows Rs. Ten thousands from Mr. Pritam and keeps his motor cycle as security for payment of the debt. The bailment of motor cycle is called pledge.
Note : In this example Mr. Shukla is a Pawnor and Mr. Pritam is a Pawnee.
BASIC ESSENTIALS OF PLEDGE :-
Following are the important essentials of pledge :
1. Moveable Property :-
The pledge is concerned with the moveable property. All types of goods and valuable documents are included in it.
2. Transfer of Possession :-
In case of pledge only possession of goods transferred by the pawnor to the pawnee.
Example :- Mr. Nelson ledges car with Mr. Mcculan and gets Rs. 100,000. He gives the possession of car to Mr Mcculan.
3. Ownership Right :-
In case of pledge, the ownership of the goods remains with the pawnor. It is not transfered to pawnee.
Example :- Mr. Wali pledges the plot with Mr. Raffel and gets 10 lac. The ownership of the plot remains with Mr. Wali.
4. Case of Mere Custody :-
Those people who have only mere custody of the goods cannot pledge them.
Example :- A custodian cannot pledge his masters banglow. It will be invalid pledge.
5. Limited Interest :-
Pledge property cannot be used for unlimited interest. When a person pledges goods in which he has only limited interest, the pledge is valid to the extent of that interest only.
Example :- Mr. Nelson gives car to Mr. Andre for repair, but does not pay Rs. 20,000 repair charges. Mr Andre pledges the car with Mr. Smith and borrows Rs. fifty thousands. This pledge is valid only up to ten thousands.
What are the rights and duties of pawnor and pawn
What are the rights and duties of pawnor and pawnee
RIGHTS OF PAWNOR :-
Following are the rights of pawnor :
1. Right of Redemption :-
A pawnor has a right of redemption after depositing the dues.
2. Right of Suit :-
If pawnee makes unauthorized sale the pawnor has the right to file a suit against the pawnee.
3. Right of Proper Care :-
The pawnor can enforce the pawnee to do proper care and maintain the pledged goods.
DUTIES OF THE PAWNOR :-
Following are the duties of Pawnor :
1. Meet the Obligations :-
Pawnor must meet the obligations regarding the contract with in specified time.
2. Pay Extra Expenditure :-
He should also pay the extra ordinary charges.
RIGHTS OF PAWNEE :-
Following are the rights of Pawnee :
1. Receipt of Payment :
Pawnee can retain the goods pledged until his dues are paid.
2. Retain for Other Debts :-
He has also right to retain the pledged goods for other debts taken.
3. Recover Other Charges :-
He has also right to recover the other charges like preservation of the pledged goods.
4. Sell the Goods :-
If pawnor fails to make payment then pawnee can sell the pledged goods after issuing the reasonable notice.
DUTIES OF PAWNEE :-
Following are the duties of pawnee :
1. Return of Goods :-
On the receipt of his dues he should return the goods.
2. Reasonable Care :-
He must do the reasonable care of the pledges goods.
3. Comply Terms :-
He should abide by the terms.
4. No Misuse :-
He should not make unauthorized use the pledged goods.
5. No Mixation :-
He should not mix the pledged goods with his own goods beard by the pawnee.
Define the sales of goods act and discuss the essential characteristics of a contract of sales of goods
Define the sales of goods act and discuss the essential characteristics of a contract of sales of goods
Sales of Goods Act :-It is defined in these words, "A contract where by the seller transfers or agrees to transfer the property or the goods to the buyer for price."
A contract to transfer the ownership of goods from seller to the buyer is known as contract of sale.
Main Features or Essentials
1. Buyer and Seller :-
One person cannot become buyer and also the seller, there are always two parties to a contract of sale, buyer and seller.
Example :- Mr. Kashif sells the shop to Mr. Zahir. Mr. Kashif is a seller and Mr. Zahir is a buyer in this case.
2. Goods :-
Every kind of movable property except actionable claims (which can be enforced by legal action) and money is regarded as goods.
Example :- Mr. Yuva sells his car to Mr. Larson for Rs. 7 lac. In this case car is a moveable property, so it is a contract of sale.
3. Price :-
Price must be the consideration in the contract of sale. If goods are exchanged with goods it is barter and not a contract of sale.
Example :- "X" sells a book to "Y" for Rs. 300. It is a contract of sale.
4. Transfer of Ownership :-
To constitute the sale contract the seller must transfer or agree to transfer the property ownership to the buyers. So possession and ownership both will be transferred to buyer.
Example :- "X" sells the car to "Y" for 6 lac. The possession and ownership both will transfer to "Y".
5. Sale :-
When ownership and possession of the good is immediately transferred from seller to buyer it is called contract of sale.
Example :- "X" buys a pen from the "Y" and pays the whole price on his hand. It is a sale.
6. Agreement to Sell :-
When the transfer of ownership in the goods is to take place at a future date the contract is called agreement to sell.
Example :- Mr. Bazooka agrees to purchase Mr. Titoo bus for Rs. 25 lac. But the transfer of bus will take place after one year. It is agreement to sell.
Define the term goods and explain the various types of goods
Define the term goods and explain the various types of goods
GOODS :-It is defined in the following words, "Goods mean every kind of moveable property other then actionable claims on money and includes stocks, shares, growing crops."
KINDS OF GOODS :-
Following are the important kinds of goods :
1. Existing Goods :-
The seller possessing the goods at the time of entering into contract are called existing goods. The goods must be in actual existence. It has two kinds :
i. Specific Goods :- When goods are identified and agreed upon at the time of contract of sale are called specific goods. In this case contract completes by delivering two goods agreed upon.
Example :- "X" agrees to sell "Y" a Honda motor cycle which bears number, it is a contract so specified goods.
ii. Unascertained Goods :- If the goods cannot be identified separately at the time of contract, it is called unascertained good. Such type of gods are described by sample or description. In this case seller is not bound to supply any particular good.
Example :- If "A" agrees to sell "B" one hen out of 100 living in shed. It is a contract of unascertained goods.
2. Future Goods :-
Such type of goods are not in the possession of the seller and not available at the time of contract. Future goods are produced or acquired by the seller after making the contract. So there may be agreement to sell for future goods.
Example :- Mr. Zain agrees to sell Mr. Jack a computer which he will import after a month. It is contract of sale.
3. Contingent Goods :-
Such goods are not available at the time of contract like future goods. The acquisition of the such goods by the seller depends upon contingency which may happen or not.
Example :- Mr. Dane agrees to sell Mr. George the diamond provided he is able to import. It is a contract for the sale of contingent goods.
Explain implied conditions and warranties in a contract of sale of goods
Explain implied conditions and warranties in a contract of sale of goods
Express Conditions & Warranties :-Conditions and warranties are those which are included in clear words and all parties are agree at the time of contract.
IMPLIED CONDITIONS :-
Those conditions are not included in the contract but the law presumes their existence in the contract are called implied conditions.
Following conditions are included by law in to a contract of sale of goods.
1. Right To Sell :-
This right is considered as an implied conditions in every sale contract. It is presumed that he can sell the goods and he can enter in sale agreement.
2. Sale By Description :-
In this case implied condition is that goods shall the correspond with the description. A buyer can reject if the goods if these are not according the description.
3. Sale By Sample :-
In this case goods must be supplied according the sample agreed upon condition.
i. The buyer may be able to compare the sample with the bulk.
ii. The goods should be free from any defect.
iii. The bulk should match with the quality of the sample.
4. Sale By Sample & Description :-
In this case goods supplied must correspond with sample and description both. So there is implied condition in it that if bulk does not match with one even then buyer may reject the goods.
5. Condition of Merchantable Quality :-
Merchantable quality means that the goods must be sale able in the market as goods of that description are sold. In case of any defect a seller must inform the buyer. It is implied condition.
6. Conditions As Quality To Fitness :-
Sometimes buyer informs the seller that he wants to purchase the goods for particular purpose. It is implied condition that goods shall serve the purpose of buyer. As the buyer relays on the sellers skill then seller should provide the goods according the description.
7. Wholesomeness Condition :-
It means conductive to health. When someone makes a sale of contract about the eatable goods this condition is applied. If some one supply the goods and it damages to health then supplier will be liable for damages.
Example :- Sams Food Company supplied food on the marriage party of Mr. Vicky. After eating the food people were infected and died. The company was held liable in damages.
IMPLIED WARRANTIES
1. Possession Of Goods :-
It is an implied warranty on the part of the seller that buyer shall enjoy the quiet possession of goods sold to him without any disturbance. In case of any disturbance a buyer can claim the damages from the seller.
2. Dangerous Nature Must Be Disclosed :-
It is necessary that seller should disclose the dangerous nature of the good sold to the buyer. If he does not disclose then any type of loss suffered by the buyer will be compensated by the seller.
Example :- Mr. Noor sold the camel to Mr. naveed which is very dangerous. But he did not told about the nature of the camel. The camel killed to Mr. Baqir son of Mr. Naveed due to the ignorance of the nature of camel Mr. Noor will be liable to compensate Mr. Naveed.
3. Burden on Property :-
Before selling the goods, it is necessary that these should be free from any charge or encumbrance from any third party. If a sellers does not tell about such burden on the goods to the buyer and later on the buyer suffers a loss. The buyer can claim such damages from seller.
Example :- Mr. Khaliq the owner of a horse, pledges it with Mr. Karim. After a month, Mr. Khaliq obtains possession of the horse from Mr. Karim for some purpose and sells it to the Mr. Jawad. Mr. Karim goes to Jwad and tells him the pledge story. Mr. Jawad has to make the payment of pledged amount to Mr. Karim. In this case of breach of warranty and Mr. Jawad is entitled to claim compensation from Mr. Khaliq.
Define and distinguish or Difference between warranty and conditions with reference to the contract of the sale of the goods Act
Define and distinguish or Difference between warranty and conditions with reference to the contract of the sale of the goods Act
CONDITION :-It is defined in the following words, "A condition is stipulation essential breach to the main purpose of the contract, the breach of which give rise to a right to treat the contract as repudiated."
So according the above definition it is clear that condition is very essential for the performance of a contract. The breach of condition will be regarded as the breach of the whole contract.
WARRANTY :-
Sales act defines the warranty in the following words, "A warranty is a stipulation collateral to the main purpose of the contract the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated."
The above definition shows that for the implementation of a contract warranty is not essential. For the breach of warranty only damages can be claimed.
Difference or Distinction Between Condition and Warranty
1. Difference In Importance :-
Condition : A condition is essential to the main purpose of a contract.
Warranty : Breach of warranty gives right to the party to claim the damage only.
2. Difference in Rights :-
Condition : Breach of condition gives right to the party to reject the contract.
Warranty : Breach of warranty gives right to the party to claim the damages only.
3. Superiority of Condition :-
Condition : A breach of condition may be treated as a breach of warranty.
Warranty : A breach of warranty may not be treated as a breach of condition.
4. Link With Contract :-
Condition : A condition has a direct link with the essential party of the contract.
Warranty : A warranty has no direct link with the essential part of the contract.
A seller cannot convey a better title to the buyer then he has himself or Discuss the rule of law owned point out the exception
A seller cannot convey a better title to the buyer then he has himself or Discuss the rule of law owned point out the exception
Transfer of Title By The Owner :-"A seller cannot convey a better title to the buyer then he himself has."
Only the owner of the goods or his authorized person can sell the goods. If the seller is not the owner of the good then a buyer can not become the owner of the good even he has paid the value of good.
Example :- Mr. Nonee steal a car and sells to Mr. Rao for sale. Mr. Rao cannot become the owner of a car because Mr. Nonee seller was not the owner of car.
1. Agent Exceptions of Rules :-
If goods are in a possession of a mercantile agent, he can pass a good title even he had no authority or his authority was restricted.
2. Sale By Unpaid Seller :-
An unpaid seller can sell the goods to the subsequent buyer if first buyer fails to make the full payment.
Example :- Mr. Fiji sells a horse to Miss. Fauzi for ten thousand and receives Rs. 3 thousand advance. Miss. Fauzi promises to pay the balance on next Sunday at the time of delivery. Miss. Fauzi does not pay the balance on Sunday. Mr. Fiji retains the horse and sells it to Mr. Maddy.
3. Sale By Pledgee :-
Under some special circumstances a pledgee can also sell the goods and buyer also gets a good title.
Example :- Mr. Nelson borrows Rs. 10 lac from commercial bank and pledges his 10 acre land. Mr. Nelson fails to return the loan and Commercial bank sells the land to Mr. Rishi the buyer gets the good title.
4. Sale of Lost Goods :-
If a person finds some lost good. Finder can sell the goods under some circumstances. The buyer gets the good title.
Example :- Mr. Zaib finds a lost cow in the well. He hires the services of some people and draws the cow out of well. He spends Rs. 5 thousand on this event. Mr. Rana owner of the cow comes to know about the refuses to pay Rs. 5 thousand to Mr. Zaib. Mr. Zaib sells the cow Mr. Kumar. Mr. Kumar gets a good title.
5. Mercantile Agent :-
If the goods or documents of title are in the possession of a mercantile agent, he can pass a good title. He can convey a better title to the buyer without having any authority to do so.
6. Second Sale Due To Possession :-
A person has sold the goods but the goods or documents continuously remains in his possession. He may sell them to the third party. If third party obtains the delivery of the goods and he has no knowledge about the previous sale he will get a good title.
Example :- Mr. Kohli sells a horse to Miss. Jolly has no place to keep it in her house. She leaves the horse in the house of Mr. Kohli. Mr. kohli sells horse Miss. Preety fraudulently who buys in god faith. Miss. Preety will get a good title to the horse.
7. Sale By One of the Joint Owner :-
If there are many partners in business and one of them has the sole possession of goods with the permission of the other partners. If he sells the goods, the buyer will get a good title of goods, if he buys in good faith.
Example :- There are three parties "X", "Y" and "Z". They own a shop in common. Shop is in the possession of "X" and he looks after the shop. "X" sells the shop to "M". "M" gets a good title.
8. Sale Under Implied Authority :-
In some cases the conduct or any act of owner of goods leads the buyer to believe that seller id the owner of the goods. It is presumed that seller has the authority to sell the goods. In such cases buyer can get a better title of goods than the seller.
Example :- Mr. Nazir a factory owner gives his employee. Mr. Rashid a quarter for living and also allows to repair. Mr. Rashid writes his name on the quarter and also do some repair to induce the public to believe that quarter belongs to him. Miss Sonny purchased the house from Mr. Nazir in good faith. So Sonny acquires a good title than a seller.
9. Sale Under Voidable Contract :-
If a person obtains the goods under voidable contract and sells before the revocation of contract to other person. The buyer who obtains such goods has better title of goods if he acts in good faith.
Example :- Mr. Shan by misrepresentation induced Mr. Hafiz to sell and deliver his car to him. After obtaining the car he sells the car to Miss. Nida before the revocation of contract. Miss Nadia purchases the car in good faith and she does not know that title is defective. She acquires a good title.
10. Solvency Case :-
In case of companies and individuals the official receiver can convey better title to the buyer.
Example :- Mr. Sher becomes insolvent. Mr. Naveed is the official receiver of Mr. Sher, and he can sell some goods of Mr. Sher to Mr. Ali. Mr. Ali gets a good title.
11. Sale Before the Agreement To Buy :-
A buyer obtains possession of the goods with the consent of the seller, he may sell or pledge before the agreement completes.
Example :- Mr. Shuka agrees to buy a bus a pay for it, if his lawyer approves it. Mr. Shuka obtained the possession of the bus and sells to Miss. Neelum. After his lawyer disapproves. In this case Miss. Neelum gets a good title.
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