Presentation on: Void Agreement, Contract of Agency, Contract of sale of goods, Performance of the contract of sale and Nature of negotiable instrument

1. CHAPTERS’ OVERVIEW
(BUSINESS LAW)

2. CONTENT
• Void Agreement
• Contract of Agency
• Contract of sale of goods
• Performance of contract of sale
• Nature of negotiable instrument

3. CH#6: “VOID AGREEMENT”
An agreement not enforceable by law is a void agreement. For a
valid contract, it is necessary that agreement must not one of
those which have been expressly declared void by the law.
Agreements Declared void
• Agreement in restrain of marriage
• Agreement in restrain of trade
• Agreement in restrain of legal proceedings
• Uncertain Agreement
• Wagering Agreement
• Agreement contingent on impossible events

4. CH#13: “CONTRACT OF AGENCY”
 An agent is a person employed to do
any act for another or to represent
another in dealings with third persons.
 The person for whom such acts are
done or who is represented is called the
principal.
 The contract which creates relationship
of principal & agent is called an agency.
Essential of Agency:
 Agreement
 Competent to contract
 Consideration
KINDS OF AN AGENT:
• General Agent
• Special Agent
• Universal Agent
• Mercantile Agent
• Commission Agent
• Del credere Agent
• Broker
• Auctioneer
• Intender
• Banker
• Advocate

5. DUTIES OF AN AGENT
 Direction & customs
 Skill and care
 Submission of Account
 Contact with principal
 Protection of interest
 Disclosure of facts
 Return of benefits
 Payment of amount
 Delegation of authority
RIGHTS OF AN AGENT
 Retention o money
 Remuneration
 Lien
 Indemnity for lawful acts
 Indemnity for acts in good
faith
 Compensation for injury
 Stoppage of goods
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6. DUTIES OF PRINCIPAL
 Remuneration
 Indemnity for lawful acts
 Indemnity for acts in
good faith
 Compensation for injury
RIGHTS OF PRINCIPAL
 Recovery of loss
 Recovery o benefit
 Refusal to
indemnify
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7. CH#14: “CONTRACT OF SALE OF GOODS”
Contract of sale of goods is a contract by which the
ownership of moveable goods is transferred from
seller to a buyer.
Essentials:
 Contract
 Seller & buyer
 Transfer o property
 Goods
 Price
 Sale & agreement to sell

8. Fixation of price
 Parties
 Agreed method
 Course of dealings
 Reasonable price
 Third party
TYPES OF GOODS
 Existing goods
 Specific goods
 Ascertained goods
 Unascertained goods
 Future and contingent goods
Perishing goods
 Pershing before contract
 Perishing after agreement to sell
CONTRACT OF SALE OF GOOD

9. CH#14: “CONTRACT OF SALE OF GOODS”
A contract of sale of goods is contact by
which the ownership of moveable good is
transferred from a seller to a seller to
buyer.
Section 4(1) defines a contract of sale of
goods as, “a contract whereby the seller
transfer the property the property in
goods to the buyer for a price”
ESSENTIALS
• Contract
• Seller and Buyer
• Transfer of property
• Goods
• Price
• Sale and Agreement to Sell

10. DIFFERENCE BETWEEN SALE AND AGREEMENT TO SELL
• Transfer of property
• Type of goods
• Recovery of goods
• Risk of loss
• Consequences of breach
• Right of resale
• Insolvency of buyer
• Insolvency of seller nature of contract
TYPES OF GOODS
CONTRACT OF SALE OF GOODS
1. Existing Goods
• Specific goods
• Ascertained goods
• Unascertained goods
2. Future and Contingent Goods

11. CONTRACT OF SALE OF GOODS
PERISHING OF GOODS
• Perishing before Contract
• Perishing after Agreement to
Sell
FIXATION OF PRICE
• Parties
• Agreed method
• Course of dealings
• Reasonable price
• Third party

12. CH#17: “PERFORMANCE OF CONTRACT OF SALE”
Performance of contract sale means the performance of duties by the seller and buyer
according to the term of contract.
RULES:
• Seller and buyer • Delivery at distant place
• Delivery and payment • Examining the goods
• Mode o delivery • Acceptance of delivery
• Part delivery • Rejection of goods
• Apply for delivery • Refusal to take delivery
• Place of delivery
• Time of delivery
• Possession of third party
• Expenses of delivery
• Wrong delivery
• Delivery by instalment
• Delivery to carrier

13. RIGHTS OF BUYER
 Take delivery
 Rejection of goods
 Notice of insurance
 Examining goods
 Sue for damages
 Sue for price
 Sue for performance
 Sue for breech of warranty
 Cancel the contract
 Sue for interest
DUTIES OF BUYER
 Apply for delivery
 Risk of deterioration
 Inform seller
 Take delivery
 Payment o price
 Payment of damages

14. CH#19: “NATURE OF NEGOTIABLE INSTRUMENTS”
The word negotiable means transferable by delivery and the
word instruments means a written document which creates a
right in favour of a person. Negotiable instrument is a
document which contains a promise to pay a certain amount
of money to a person.
Section 13(1) states, “Negotiable instrument means a
promissory note, bill of exchange or cheque payable either,
to order or to bearer.”
CHARACTERISTICS
• Freely transferable
• Rights of holder
• Better title
• Promise or order
• Certain amount
• Presumptions
• Writing

15. PROMISSORY NOTE
Section 4 defines as: “A promissory note is an instrument in writing (not being a bank note or a
currency note) containing an unconditional undertaking, signed by the maker, to pay on demand
or at a fixed or determinable future time a certain person sum of money only to, or to the order
of a certain person or to the bearer of the instrument.”
ESSENTIALS
• Writing
• Promise to pay
• Unconditional promise
• Signed by marker
• Certain marker
• Certain payee
• Certain sum
• Pakistani Currency
• Other formalities

16. BILL OF EXCHANGE
Section 5 defines as, “ A bill of exchange is an instrument in writing containing an
unconditional order, signed by the marker, directing a certain person to pay on
demand or at a fixed or determinable future time a certain person to pay on demand
or at a fixed or determinable future time a certain sum of money only to, or to the
order of, a certain person or to the bearer of the instrument.”
ESSENTIALS
• Writing
• Unconditional order
• Signed by drawer
• Certain drawee
• Certain payee
• Certain sum
• Pakistani currency
• Other formalities

17. CHEQUE
Section 6 defines cheque as, “A cheque is a bill or exchange drawn on a
specified banker and account and not expressed to be payable otherwise than
on demand.”
ESSENTIALS
• Writing
• Unconditional order
• Signed by drawer
• Payable on demand
• Certain payee
• Certain sum

18. CHEQUE
TYPES OF CHEQUE
• Bearer cheque
• Order cheque
• Crossed cheque
CROSSING OF CHEQUE
• General crossing
• Special crossing
• Account payee crossing
• Not negotiable crossing