MGT611 GDB No. 1 Solution Spring 2022

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Topic: “Legal Capacity of Parties to a Contract” Submission date is June 09, 2022.

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How to Submit MGT611 GDB Solution?

Requirement 1:

Murtaza enters into an agreement with a music label to split royalties from his new album as 50/50. However, at the time of this agreement, Murtaza’s been drinking at the bar for several hours and is heavily drunk. Is this a valid contract? Justify your answer with reason in either case.

SOL:

There are eight kinds of contract:

• Valid Contract
• Voidable Contract
• Void Contract
• Unenforceable Contract
• Express Contract
• Implied Contract
• Executed Contract
• Executory Contract

Valid Contract: Free consent of parties is essential in valid contract. This agreement is enforceable by law. In case of breach contract by one party, the other party has a right to file a suit for this breach.

Requirement 2:

Abdullah, with intent to deceive Hamza, falsely represented that twenty thousand motorcycles are manufactured annually at his factory and induced him to buy the factory. What is the legal status of this contract?

SOL:

Void Contract:
Its topic is void & explain the scope of contract. If considerations and objects unlawful is unlawful the agreement is void.

Requirement 3:

Adnan rented his house to Qurban for a period of one year at an agreed sum of Rs. 10,000 per month. After the first two months, Qurban defaulted in making payment of the rent. Baqir, a neighbour, being concerned with the strained relationship between Adnan and Qurban, paid the rent with good intention. Subsequently, on Qurban’s refusal to reimburse the amount, Baqir filed a suit against him on the grounds that he made the payment to Adnan which Qurban was legally bound to make and being a quasi-contract Baqir is entitled to the reimbursement. Explain whether Baqir is justified in his suit.

SOL:

Quasi-contract: A quasi contract is a contract that is created by the court when no such official contract exists between the parties, and there is a dispute with regard to payment for goods or services provided.

Instruction Checked Solution:

1. The contract was not valid because Murtaza was heavily drunk and not in his full consciousness.
2. The contract is valid at the time of signing, however, can be claimed legally as the data related to factory is misrepresented upon learning the fact.
3. Since nothing is was legally documented Baqir is not entitled for the reimbursement. Since the payment is done by Adnan via quasi-contract.

MGT611 GDB Solution 2022 PDF

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