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MGT611
GDB NO. 1
BUSINESS & LABOR LAW
FALL 2022
LAST
DATE: 16-12-2022
Question:
1.A man gives threat to
commit suicide induces his wife and son to execute a deed for the transfer of
their property in his name. This is not a valid contract as it is not meeting a condition
of free consent to the parties. Identify that condition and comment on it.
Answer:
In this scenario,
Coercion is present.
Not a valid contract.
It is voidable contract.
2.Umar says to Murtaza
that his coat is made of pure wool, though he knows that it is untrue/false.
Murtaza believing Umar statement to be true purchases the coat. Is this a valid
contract? Why/why not?
Answer:
1.In this scenario,
Fraud
is present.
2.Not a valid contract.
3.It is voidable contract.
3.The prospectus of a company did not refer to the existence of
a document disclosing liabilities. This gave the impression that the company
was prosperous. If the existence of the document had been disclosed the
impression would have been quite different. Explain what would be the effect of
this material misrepresentation on related parties. Was this act valid?
Answer:
1.In this scenario,
It is
not a valid contract.
2.Consent is not free.
The vendor of a piece of land told a
prospective purchaser that in his opinion the land would carry 2000 sheep. In
fact the land could carry only a number less than this. What would be the legal
status of this contract of sale?
Answer:
1.Misrepresentation
2.Consent is not free
3.Voidable contract
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