Mgt611 Business & Labor Law Assignment No. 1 solution
Monday, October 24, 2011 Posted In MGT Edit ThisSemester “Fall 2011”
“Business & Labor Law (MGT 611)”
Assignment No. 01 Marks: 15
“Kinds of Contract”
Mr. Munir Ahmad, a famous author of literature, has written many books including one book titled “Tales of Change and Desperation”. Originally, though, this book was published in 1990 with the title “Thirteen Tales”. This book was containing only twelve stories as one story were missed by mistake but the title of the book was remain the same and written as “Thirteen Tales”, Later on the title was changed as “Tales of Change and Desperation” and the entire first edition were withdrawn from the market. However still two copies of the same title (“Thirteen Tales”) were exist in the market which were already been delivered to the customers and could not be withdrawn. As the time goes on, these two copies of the old edition (“Thirteen Tales”) gained the
immense value. Mr. Shehzad, one of a famous book dealer, happens to find one of these copies in a small bookshop which is owned by Mr. Imran. Mr. Imran was totally unaware about the history of the book and its real value; he sells the book to Mr. Shehzad at Rs. 100.
Additional Information:
1. One week later, Mr. Imran comes to know the true value of that book.
2. Mr. Shehzad had provided information to Mr. Imran that he does not resell these books to other book sellers because he is only acquiring these books for his personal interest as he introduced himself as a university professor while buying the book.
Question:
1. Identify the kind of contract from the given scenario. Justify your answer by providing logical reasons.
2. After knowing the true value of the book, what options does Mr. Imran have?
Important Tips
1. This Assignment can be best attempted from the knowledge acquired after watching video lecture no. 01 to lecture no 09 and reading handouts as well as recommended text book).
Schedule
Opening Date and Time October 24 , 2011 At 12:01 A.M. (Mid-Night)
Due Date and Time October 28 , 2011 At 11:59 P.M. (Mid-Night)
Solution:
Mr Imran has no option left coz he has sold the book to Mr Shahzad . And by law Mr. Shahzad is the owner of this book and they both are under a Contract (contingent contract). But as the provided information by Mr Shahzad to Mr. Imran to get the books were bogus, Mr Imran can claim the books back and secondly Mr. Shahzad committed that he will not sale the book and will keep it as for personal use if he breaches the agreement Mr. Imran can also claim the books back.
Solution:
Mr Imran has no option left coz he has sold the book to Mr Shahzad . And by law Mr. Shahzad is the owner of this book and they both are under a Contract (contingent contract). But as the provided information by Mr Shahzad to Mr. Imran to get the books were bogus, Mr Imran can claim the books back and secondly Mr. Shahzad committed that he will not sale the book and will keep it as for personal use if he breaches the agreement Mr. Imran can also claim the books back.
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Another Solution:
1. Identify the kind of contract from the given scenario. Justify your answer by providing logical reasons.
Contract Type: Contingent Contract
Description: A contingent is one in which a promise is conditional and the contract shall be performed only on the happening of some future uncertain event.
Reason: As Mr Shahzad make a conditional Promise to Mr Imran that he will not sale these books as he is a college professor. And Mr imran is totally unaware of the values of the books as well as that Mr. Shahzad is a famous book dealer.
2. After knowing the true value of the book, what options does Mr. Imran have?
Answer: Mr Imran has no option left coz he has sold the book to Mr Shahzad . And by law Mr. Shahzad is the owner of this book and they both are under a Contract (contingent contract). But as the provided information by Mr Shahzad to Mr. Imran to get the books were bogus, Mr Imran can claim the books back and secondly Mr. Shahzad committed that he will not sale the book and will keep it as for personal use if he breaches the agreement Mr. Imran can also claim the books back.
