QUESTION BANK FOR THE FOLLOWING

CHAPTERS:
PAKISTAN LEGAL SYSTEM
DEFINITION AND ESSENTIALS OF CONTRACT
CLASSIFICATIONS OF CONTRACT
SPECIAL CONTRACTS
____________________________________________________
Q1.

What is a general offer?

Offer which is made to public in general and may be accepted by any person who
fulfills the conditions mentioned. Page 17
Q2.

How is an offer made?

When a person shows his willingness to do or not to do something to obtain consent

of the other person, it is considered a proposal/offer. Page 15
Q3.

Is invitation to an offer the same thing as an offer?

No the person making the invitation invites others to give an offer eg.
Advertisements and auctions. Page 16
Q4.

Who can accept offer?

Only those to whom the offer comes in knowledge and those to whom an offer is
being made can accept the offer. They should be majors, mentally sound and doing
so by their free will. Page 21
Q5.

Can an acceptance of an offer be implied from the silence of the

offer?
Yes as it becomes an implied offer. Page 22

Q6.

When is communication of offer complete?

When it comes to the knowledge of the person to whom it is made. Page 23

Q7.

When is communication of acceptance complete as against the

acceptor?
When it comes to the knowledge of the proposer. Page 24
Q8.

When is communication of revocation of offer complete?

As against the proposer, when it is put in course of transmission to him, so as to be

out of the power of the acceptor. As against the acceptor, when it comes to the
knowledge of the proposer. Page 24
Q9.

What happens if an offer is not accepted according to the mode

prescribed?
The offer may be rejected by the offeror. Page 22
Q10. What is the effect of delay of letter of acceptance in transit?
Offeror is bound to accept but the offeree may enforce or revoke before letter of
acceptance reaches offeror. Page 25
Q11. What is consideration?
What a promisor demands for his promise. Consideration is some right, interest,
profit, or benefit accruing to the one party, or some forbearance, detriment, loss or
responsibility, given, suffered, or undertaken by others. It is one of the essentials of
valid contract. Page 27
Q12. Is past consideration valid, mention one exception?
Past consideration is not a valid consideration, but if a promise is made to
compensate a person who has rendered some services, then past consideration is
valid consideration. Page 30
Q13. Consideration must be real not illusionary. What does it means?

It means that it should be real and competent and it should not be physically
impossible, illegal, uncertain or unreal. Page 30
Q14. Is consideration essential to support a contract?
Yes as it is one of the essentials of a valid contract. Page 27
Q15. Does nearness of relationship means natural love and affection?
Yes it does. Page 31
Q16. Is a promise to compensate a person who has voluntary done
something for the promisor enforceable?
Yes as it comes in the category for past consideration. Page 29
Q17. Is promise to pay a time-barred debt enforceable?
Yes it will be enforceable if it is a written promise signed by the debtor. Page 29
Q18. Does a consideration need to be sufficient / adequate?
Consideration should be sufficient/ adequate, but if there is free consent then
inadequate consideration is valid. Page 30
Q19. What is the status of an agreement made without consideration i.e.
is that valid, void or voidable?
An agreement without consideration is void. Page 27
Q20. Consideration is one of the ten essentials of a valid contract. Explain
one exception to the rule.
If agreement is made on account of natural love and affection between the parties
standing in a near relation to each other and the contract is written and registered
under the law then it is an exception. Page 31
Q21. When is a person competent to contract?
When a person is at age of majority, has sound mind and is not disqualified from
contracting by any law. Page 38

Q22. When does a minor attain age of majority?

At age 18. Page 38
Q23. Can a minor be declared an insolvent?
No he cannot as he is not liable even for necessaries supplied to him. Only minors
property is liable. The payment cannot be recovered if he has no property. Page 41
Q24. Can a minor act as an agent?
Yes as he can make his principal responsible to third parties for his acts. Page 41
Q25. Can one enter into a contract with an alien enemy?
No as it is illegal. Page 41
Q.26 What happens if a free consent is missing in a contract?
The contract becomes voidable Page 46
Q27. Can a contract be avoided if there is a mistake of law?
Contract is not avoided if there is a mistake in law of home country. Pakistani Law:
As everyone is supposed to know the law of the country, the contract is binding
Foreign Law: Contract becomes void. Page 63
Q28. Can a contract be avoided if there is a unilateral mistake of fact in
the following cases?
(i)

Mistake made despite due diligence

No it is a valid contract
(ii)

Mistake made due to negligence

No it is a valid contract
(iii)

Mistake made as to the identity of party

Void Agreement
(iv)

Mistake made as to the nature of contract

Void Agreement. Page 61-63

Q29. As a general rule, what is the status of a contract in case of
unilateral mistake, valid, void or voidable?

1- It is a valid contract if the person makes a wrong contract due to his own
negligence, and the contract cannot be avoided.
2- It is voidable contract if unilateral mistake is caused by fraud or
misrepresentation on part of the other party the contract, and can be avoided
by the aggrieved part.
3- It is void if a unilateral mistake is caused pertaining to identity of party and
nature of contract which makes the contract unenforceable.

It is not voidable under section 22. Page 61

Q30. Who bears the burden of disproof in case of undue influence, i.e.
aggrieved party or alleged party?
The aggrieved party bears the burden. Page 50
Q31. What is agreement in restraint of marriage?
Every agreement in restraint of marriage of any person other than minor is void.
Page 65
Q32. What is agreement in restraint of trade?
Every agreement which restrains one from exercising lawful profession, trade,
business of any kind is void. Page65
Q33. An agreement in restraint of trade is void? State one of its
exceptions.
Yes it is void as it restrains a person from doing lawful profession.

1. When he is under service contract i.e. while in service the person maybe
prevented from accepting jobs elsewhere during the period covered by the
agreement.
2. Sale of goodwill
3. Partners Agreement
4. Trade Combinations Page 66-67
Q34. Are service contracts included in agreement in restraint of trade?
No they are an exception. Page 67
Q35. What is the nature of wagering agreement?
They are void as a breach of such agreement nothing can be recovered through
court. Page 68
Q36. What is a contingent contract?
A contingent contract is a contract to do or not to do something if some event,
collateral to such contract, does or does not happen.

Page 71

Q37. Distinguish between a contingent contract and a wagering

agreement?
Contingent
1. Validity: Valid Contract
2. Interest: Parties have real interest
in occurrence or non-occurrence
of event.
3. Uncertain Event: Future uncertain
event is merely collateral.
Page 73

Wagering
Absolutely void
Parties are not interested except for
winning or losing bet.
Uncertain event is the amount of sole
determining factor.

Q38. What is a quasi contract? When does it arise?

It is an obligation imposed by law upon a person for the benefit of another even in
the absence of a contract. Based on equity and justice. It arises under special
circumstances. Page 73
Q39. Give three examples of quasi contract.
1. Supply of necessaries Sec 68

2.
3.
4.
5.

Payment by interested person sec 69

Compensation for non gratuitous acts sec 70
Finder of goods sec 71
Mistake or under coercion sec 72 Page 74

Q40. Discuss the role of finder of goods in law?

1.
2.
3.
4.

He
He
He
He

must
must
must
must

try to find out the true owner of the goods

not use the goods for his purpose
return the goods to the true owner
take reasonable care of the goods. Page 75

Q41. Mention three kinds of public law.

1. Constitutional Law
2. Administrative Law
3. Criminal Law
Q42. Mention three kinds of case law.
1. Law merchant
2. Common Law
3. Equity
Q43. Differentiate between civil law and criminal law.
Civil Law
1. Cases effect only the injured

Criminal
Result of a crime effects the whole

parties and not the entire society.

2. Proceedings are initiated by the

community or society.
Proceedings are started by the state and

injured party
3. Regulates disputes over the rights

victim does not have a say in the matter.

Punishes the guilty person or offendor.

and obligations of persons dealing

with each other.

Q44. Differentiate between public law and private law.

Public Law: Governs the relationship between the individual and the state.
Private Law: Governs the relationship of individuals between individuals
Q45. Differentiate between common law and equity.
Common Law

Equity

1. Inflexible, rigid based on rules of

Flexible and based on fairness,

bureaucracy
2. Emerged first in time

conscience and moral code.

Followed common law adding gloss by

3. Complete system

imposing fairness
Different remedies each suitable to a
given situation.

Q46. Which consideration is not valid according to English law, i.e. past
consideration, present consideration and future consideration?
Past consideration
Q47. When does an offer become valid?
When it is communicated to the offeree
Q48. When does an acceptance become valid?
When the offeror receives the letter of acceptance from offeree
Q49. When does a valid contract become void contract, mention two
situations?
1.
2.
3.
4.

Impossibility of performance
Subsequent Illegality
Impossibility of depending event
Rejection of voidable contract

Q50. When does a valid contract become voidable contract, mention five
situations?
1. A contract becomes voidable when the consent of one or more of the parties
to a contract is obtained by coercion, undue influence, misrepresentation or
fraud.( A compels b to sell his car at gunpoint, the contract is voidable since
the contract is made by coercion)
2. When one party promises to do something for the other party but the other
party prevent him from performing his promise, the contract becomes
voidable at his option.( d contracts to paint Bs house. D is ready to paint but
B prevents him from painting it)
3. When a party to the contract promises to do a certain thing within a given
time period, then the contract becomes voidable at the option of the promise,

if time is of the essence of the contract.( X contracts to pain Ys house within

one week. X does not paint the house within specified time, the contract is
voidable at the option of Y)
4. Obligation of Parties
5. Burden of Proof( The burden of proof is on the plantiff i.e the aggrieved party.
It means that a party who claims that his consent is unfree has to prove in
court of law. If he proves the contract becomes voidable from valid.