types of contract and its nature partnership deed Pakistan law

2.  Nature And Kind
of Contract
 Partnership

3.  Farrukh
 Urwa
 Armish
 Kainat

5. • Mutual agreement or assent the parties
create enforceable duties or obligations
that are legally binding.
Elements of Contract:-
 An agreement

6.  Between competent parties
 Based upon the genuine assent of the
parties
 Supported by consideration
 Made for lawful objective

8.  Contracts based on formation
 Contracts based on nature of
consideration
 Contracts based on execution
 Contracts based on validity

10. Contracts based on formation can be
categorized into two groups:
 Express Contract:
An express contract refers to a contract
resulting from an expression or
conversation

11.  Implied contracts:
 Implied contract occurs without an
expression.
 Implied contract can be implied in fact
or implied in law
 A true implied contract arises from a
mutual agreement that has not been
expressed in words.

12. There are two types of contracts based
on the nature of consideration:
 Unilateral contract:-
Only one party makes a promise. Such a
contract can be established with just
an acceptance of an offer.

13.  Bilateral contract:-
Participating parties promise each other
they will perform or refrain from
performing an act. This type of contract
is also known as a two-sided contract.

14.  Contracts based on execution can
either be executed contracts or
executory contracts.
 Executed contract is a contract in
which performance is already
completed.

15. Contracts based on validity can come in
five different forms valid contracts.
 Valid contract is one that is legally
enforceable
 Void contract is unenforceable and
imposes no obligations on the parties
involved.

16.  If a contract is established under
certain physical or mental pressure, it is
called a voidable contract. Such a
contract may become a valid or void
contract in the future.
 Illegal contract refers to a contract
with unlawful object, whereas an
 Unenforceable contract is a contract
that has not fulfilled certain legal
formalities.

18.  There are different types of
partnerships, but partnerships are all
designed to balance the risks and
returns of the relationship.
 Negatives of partnerships include
some loss of control and potential
returns.

19.  Trust:
Don’t partner with someone you
wouldn’t trust with your personal bank
account.
 Friendship:
If you’re partnering with a friend,
evaluate that person’s goals, values,
responsibilities and personal life.
If you have doubts, don’t do it.

20.  Trial Run:
Do a trial run for a certain amount of
time before finalizing the partnership.
 Partner, Employee or Consultant:
Don’t partner with someone because you
can’t afford to hire him or her.

21.  Varied Strengths:
Bring in someone who complements
your strengths.
 Balanced Responsibilities:
Identify what responsibilities each party
has and stick to them.

22.  Money:
Money is always a major problem in a
business partnership. Agree in the
beginning how funding will be used and
how profits will be distributed.
 Valuation/Contracts:
A formula for how much the company is
worth will be important should a partner
decide to leave.

24.  A general partnership is the default
Version of a partnership.
 Each partner represents the
organization and has equal right to
participate in the management, decision
making and control of the business.

25.  In terms of risks and returns, the
assumption is that profits are distributed
equally and liability is shared equally.
 Debts or Liabilities that impact the
organization can be distributed equally.

26.  A limited partnership involves one
general partner with unlimited liability
and all other partners having limited
liability.

27.  Small Business Administration notes,
but this should be documented in the
partnership agreement.
 Limited partners are not usually
involved in day-to-day operations of
the business.

28.  A limited liability partnership gives
limited liability to every owner. This
means that each partner is protected
from financial and legal mistakes of the
other partners.
 As a result, a limited liability
partnership has some elements of both
partnerships and corporations.