Lms id: bc210400581

Name: Hafsah badar

MGT611-Business & Labor LawAssignment

Question:01
Solution:

a) ABC conceals the fact that a property has severe structural damage and sells itas being in excellent
condition to induce XYZ (buyer). The buyer relies on thisfalse information and purchases the
property, Later on, he discovers the deceit. This is not a valid contract as it is not meeting a condition
of free consent to theparties. Identify that condition and comment on it.

This is a fraudulent activity because the ABC company knew the actual condition of their property
and sold it to the purchaser without informing them

b) A teacher asked his student to sell his car for an unreasonably low price inexchange for promising
full marks in the final examination. Is this a legal contract? Explain with reason in either case.
This is not a valid contract
Due to the unlawfull offer of teacher, the contract is not enforceable by law

c) Mr. Y bought a horse from Mr. X for Rs. 200,000. Mr. X claims the horse can beused on the farm. It
revealed that the horse is lame and Mr. Y cannot use him on hisfarm. Here Mr. X knowingly
deceived Mr. Y. Is this a legal contract? Why or why not?

This is not a legal contract because it is essential feature of a contract that the consent of both
parties should be free

d) An employer exercises his influence over his employee so as to enter into acontract or agreement by
compelling him to accept the terms and conditionswhich are not otherwise in his favor would lead to
an agreement caused by use ofundue influence. What is the legal status of this contract?

This is not a valid contract because consent is not free

It will be voidable if consent of parties can be free at later stages.