SEMESTER - 2

COMMERCIAL LAWS AND PROFESSIONAL ETHICS [LA-203]

INTRODUCTION proposals, essentials of valid contract performance,
This course is designed to focus on the important topics of discharge, breach of contract and damages for breach of
Business Laws, governing the operational aspects of business. contract, contract of bailment, contract of indemnity
A thorough study of this course will develop students’ and guarantee,
knowledge about the legal system of Pakistan as well as role  understand the contract of agency and right and
of professional ethics in business. liabilities of agents and principal,
 explain the various laws and provisions contained in the
OBJECTIVE
sale of goods Act, 1930, partnership Act, 1932 &
To provide the students with a knowledge of business laws
Negotiable Instrument Act, 1881,
and professional ethics enabling them to:
 identify and explain the provisions enunciated in
 formulate various business plans helpful for operational
Workmen’s Compensation Act, 1923 and West Pakistan
and long-term decisions-making,
Industrial and Commercial Employment (Standing
 advise the management on the financial and non-
Order) Ordinance, 1968,
financial implications of business laws, for the effective
 get acquainted with Social Security Ordinance 1965,
operations of the business.
E O B I Ac t , 1 9 9 7 a n d P P R A R u l e s ,
 understand the importance of ethics to business
 understand the importance of personal and
generally and to professional accountants,
professional ethics in business environment,
OUTCOMES  explain the need for ICMAP members to adopt the
On completion of this course, students should be able to: highest standard of professional ethics,
 identify and describe the sources of business laws,  identify the situations where conflicts of interest occur
 identify and explain various aspects of contracts such as and explain how these conflicts are resolved.
communication, acceptance and revocation of
INDICATIVE GRID
PA R T SYLLABUS CONTENT AREA WEIGHTAGE
COMMERCIAL LAWS:
A 1. Introduction to Legal System of Pakistan 10%

2. T h e C o n t ra c t A c t , 1 8 7 2
3. S a l e s o f Go od A c t , 1 9 3 0
B 4. P a r t ne r s h i p A c t , 1 9 3 2 50%
5. N e g o t ia b l e I n s t r u m e n t A c t , 1 8 8 1
6. West Pakistan Industrial and Commercial Employment (Standing Order) Ordinance, 1968
C 7. Factories Act, 1934/Workman’s Compensation Act, 1923 15%
8 . S o c i a l S e c u ri t y O r d i n a n c e , 1 9 6 5
9. EOBI Act, 1976 (Employees old age benefit)
D 5%
10. PPRA Rules (Public Procurement Regulatory Authority)
P R O FE SSI O N A L E T H I C S:
11. Importance of Ethics
1 2 . P e r s on a l E t h i c s
E 20%
1 3 . P ro f e s s i o n a l E t h i c s
14. ICMAP’s Ethical Guidelines
1 5 . E t h i c a l C o nf l i c t
TOTAL 100%
Note: The weightage shown against each section indicates, study time required for the topics in that section. This weightage does
not necessarily specify the number of marks to be allocated to that section in the examination.

RECOMMENDED BOOKS
CORE READINGS
TITLE AUTHOR PUBLISHER
Bare Acts Govt. of Pakistan Publications Division, Govt. of Pakistan.
Business Law Khalid Mehmood Cheema Syed Mobin Mahmud & Co.
Ghanzanfar Academy Pakistan, 30, Urdu Bazar
Mercantile Law Luqman Baig
Karachi
PPRA Rules Government of Pakistan Government of Pakistan / www.ppra.org.pk
Handbook of the Code of ethics IFAC/SAFA IFAC/SAFA
Labour Code M. Shafi / P. Shafi PLD: Bureau of Labour Publications.
ADDITIONAL READING
R & R RESEARCH & PUBLISHING COMPANY.
“Pioneer in Publishing Self-Explanatory Books”
99 Lectures on Business Law Rehan Aziz Shervani, LLM
Office 01, M-Garden-Industrial Area, Ferozpur Road,
Lahore.
Business Ethics O. C. Ferrell, John Fraedrich, Linda Ferrell South – Western, CENGAGE Learning