An Assignment

ON

“Business Law
Practical Problems”
 Assignment
LAW 2312: BL

 Business Law Practical Problems (1-16)

Topics Covered:

Submitted to
Ms. Nazwa Al Zannat
Lecturer
Faculty of Business Administration
Fareast International University

Submitted by
Md. Tamim Hossain (18201006)
Faculty of Business Administration
Fareast International University

Latest Date of Submission: December 20, 2018

December 20, 2018

Ms. Nazwa Al Zannat

Lecturer,
Department of Business Administration,
Fareast International University

Subject: Submission of assignment on “Business law practical problems”

Dear Madam,

Here is the assignment “Business law practical problems”, which I am assigned and has
been completed on the underpinned knowledge gained from the course “LAW 2312” and
your guidelines.

Throughout the completion of the assignment, I came to know about many things
concerning the existing laws of business and their practices especially in contingent
contract area. I do believe that my tiresome efforts will help you to get ahead with this
sort of venture. In this case it will be meaningful to me.

However, I would genuinely appreciate and keen enough to make further corrections
where you think it is necessary. Your kind advice will encourage me to do further
research in future.

Thanking you.

Yours obediently,

Md. Tamim Hossain

ID # 18201006
Department: FBA
Program: BBA
 Acknowledgement

Indeed all praises and salutations due to ALLAH Subhanahu Wa Ta’ala, The most glorified,
The most high.

My gratitude and thanks goes to my respected course supervisor Ms. Nazwa Al Zannat,
lecturer, Faculty of Business Administration, Fareast International University for
inspiring me to prepare a assignment on “Business Law Practical Problems” which has
obviously widen my know-how to a great extent.

Last but not the least I admit the perseverance of folks who enable me and my humble
exertion towards finalization of this assignment.

“Law is not a profession at all, but rather a business service station

and repair shop.”

( Adlai Stevenson I )
 Table of Contents.

PAGE

ABSTRACT I

Chapter 2: Contract 1
Chapter 3: Offer and Acceptance 1
Chapter 4: Consideration 2
Chapter 6: Contingent contract 3
Chapter 7: Remedies for Breach of Contract 4
Chapter 8: Contract of Sales of Goods 4
 I

ABSTRACT

Commercial law or business law is the body of law which governs business and commerce
and is often considered to be a branch of civil law and deals both with issues of private
law and public law. Commercial law regulates corporate contracts, hiring practices, and
the manufacture and sales of consumer goods. Many countries have adopted civil codes
which contain comprehensive statements of their commercial law. In business law
chapter it is possible to familiar with contracts, offer, acceptance, consideration,
contingent contract, remedies for breach of contract, contract for sales and goods,
warranties and conditions and also with partnership laws.

Key Words: Commercial law, Business law, Partnership law

 Business Law Practical Problems 1

Chapter 2: Contract

1. Akash invites Shuvo to a dinner at ‘Star Kabab’. Shuvo accepts the invitation. Akash
made elaborate arrangement, but Shuvo failed to attend the dinner. Can Akash sue for
the loss he has suffered?

Inference: As Shuvo entered into a domestic or a social agreement which don’t create
any legal relations, Akash cannot sue for the loss he suffered.

2. Sumon agrees to pay Shila Tk. 100 and in consideration Shila agrees to write for him
100 pages within 5 minutes. Is it a valid contract?

Inference: It is not a valid contract due to the fact of possibility of performance, any
act which cannot be done or is non-performable does not create legal obligation to the
parties, of Shila.

3. Ahmed threatens to shoot Babu if he does not sell his new scooter to Ahmed for Tk.
50000. Babu agrees. Is it a valid contract?

Inference: Usually a contract becomes voidable when the consent of one of the
parties to the contract is obtained by coercion, so did Ahmed to Babu. Thus this
contract isn’t valid.

Chapter 3: Offer and Acceptance

4. Dhiman says in conversation to Joyonto that he will give Tk. 10000 to a person
whoever marries his daughter. Alok marries Dhiman’s daughter and files a suit to
recover Tk. 10000. Will he succeed?

Inference: Alok won’t succeed in a suit to recover Tk. 10000 because a valid offer
must be in conformity with the communication to the offeree, applies to either
‘specific’ or ‘general’ offer, which is found vague in the above case.

Md. Tamim Hossain, a student of BBA program of Fareast International University.

 Business Law Practical Problems 2

5. Sakib offered to sell his motorcar to Taskin for Tk. 85,000. Taskin offered Tk. 80,000.
But Sakib refused to sell at his motorcar for Tk. 80,000. Then Taskin agrees to
purchase the motorcar for Tk. 85,000. Sakib refused to sell the motorcar. Taskin filed
a suit to obtain the specific performance of the supposed contract. Will he succeed?

Inference: It has been understood that Sakib and Taskin made cross offers, that don’t
constitute the acceptance of one’s offer by the other, and as such there is no completed
agreement. Hence Taskin’s sue will be void and unsuccessful.

6. Babul offered to sell his house to Ahmed for Tk. 50000. Ahmed accepted the offer by
post. On the next day, Ahmed sent a telegram revoking the acceptance which reached
Babul before the letter sent by post. Is the revocation of acceptance valid?

Inference: The revocation of acceptance is valid, as Ahmed sent revoking statement,

defines an offer lapses by revocation, as such no concluded contract made, before
acceptance letter of Babul.

Chapter 4: Consideration

7. Meraz, a social reformer, promised Bablu a reward of TK. 5,000 if he abstained from
smoking for two years. Bablu does so. Is Bablu entitled to the reward?

Inference: Following the above case the abstinence from smoking of Babu is
supported by the promise of Meraz, a social reformer, and the consideration is
executory on both sides which defines future consideration. Therefore, Babu entitled
to the reward of Tk. 5000.

8. Upon Kabir’s request, Sadid teaches the son of Kabir in the month of January. And
Kabir promises to pay Sadid a sum of Tk. 2,000 for his services. But in next month,
Kabir does not pay Sadid for his previous services in the month of January. That’s why,
Sadid sues Kabir for the money. Will Sadid succeed?

Inference: Sadid’s teaching to kabir’s son is supported by the promise of Kabir

because of past consideration and as such Kabir reached the obligation of debt which
enables Sadid’s sue to succeed for Tk. 2000.

Md. Tamim Hossain, a student of BBA program of Fareast International University.

 Business Law Practical Problems 3

9. Ripon offered a reward to anyone who would rescue his wife dead or alive from a
burning building. A fireman risking his life brought out the wife’s dead body. Is he
entitled to recovery of the reward?

Inference: The Fireman is entitled to recovery the reward as his activities or

consideration is done at the desire or request of Ripon, the promisor, which
constitutes legal consideration.

10. Ahmed saves Rocky’s house from the fire without being asked to do so. Can Ahmed
demand payment from Rocky for his voluntary services?

Inference: Ahmed saves Rocky’s house from the fire voluntarily but not at the desire
or request of Rocky. Thus, this voluntary service will not be regarded as a valid
consideration and as such Ahmed cannot demand payment from Rocky for his
voluntary services.

Chapter 6: Contingent Contract

11. Ahmed agrees to construct a building with Russell for Tk. 2 lakhs, on the terms that
no payment shall be made till the completion of the work. Is this a contingent
contract?

Inference: The payment or wages of Russell is conditional and dependent on

happening the future uncertain event, stated under section 32 of contract law 1872,
whether it happens or not, like the completion of the work of a building. Therefore,
based upon collateral future event to such contract, it is defined as a contingent, a
conditional, contract.

12. Russell contracts to pay Tk. 1 lakh to Pavel (a contractor) for constructing a building,
if the construction is approved by an architect. Is this a contingent contract?

Inference: The payment, approval of architect and relation among Russell, Pavel, a
contractor, and an architect is merely formal, non-contingent because of tracing no
collateral future events, either happen or don’t, so this contract cannot be treated as
a contingent contract.

Md. Tamim Hossain, a student of BBA program of Fareast International University.

 Business Law Practical Problems 4

Chapter 7: Remedies for Breach of Contract

13. Russell contracts to pay a sum of money to Rubel on a specified day. Russell does not
pay the amount on that day. As a result, Rubel is unable to pay his debts and is totally
ruined. Rubel claims special damages. Advise Russell.

Inference: It is advisable to Russell that he must have to pay the special damages
because he breach the contract and thus it makes Rubel to pay a penalty upon not
paying the debts.

14. Russell agreed to erect a plant for Babul by 31 st March, 2018. Russell further agreed
to pay Tk.500 per month as damages in case of delay beyond the agreed date. Russell
was late by 4 months. Babul sues Russell for Tk.4500, the actual loss caused to him
because of the delay. What damages will the court award and why?

Inference: The damage of Tk. 4500 will be awarded to Babul by the court due to the
suit for specific performance of the contract which guided the following reasons,
a. Russell’s lack of standard for ascertaining the damages
b. Russell’s compensation is not adequate for relief.

Chapter 8: Contract of Sale of Goods

15. Ahmed agrees to sell to Russell 10 bags of rice out of 100 bags lying in his go down for
Tk. 6500. The rice is completely destroyed by fire. Can Russell compel Ahmed to
supply the rice as per agreement?

Inference: Ahmed’s rice is completely destroyed by fire and thus Ahmed is unable to
sell 10 bags to Russell upon agreement. In this circumstance, the consequences of
breach of agreement to sell is, Russell cannot compel Ahmed but can only sue for
damages but he is entitled to have rateable dividend.

16. Ahmed sells a horse to Babu knowing fully well that the horse is vicious. Ahmed does
not disclose the nature of the horse to Babu. Is the sale valid?

Inference: The sale can be said as valid as it is not breaching any essential elements
of a contract of sale of goods, if any other contract or agreement has not made yet
between Ahmed and Babu.

Md. Tamim Hossain, a student of BBA program of Fareast International University.

 Business Law Practical Problems 5

Md. Tamim Hossain, a student of BBA program of Fareast International University.