introduction to cop-law: lec-01 Flashcards
introduction to the basic concepts of cooperate law
What is law?
Law is a set of rules and regulations set by courts/states that are enforceable by courts/designated authorities.
Sources of law?
Constitutions, regulatory bodies/institutes, sharia, and writings of legal scholars.
What is a constitution?
basic and legal framework of the state’s fundamental principles, rules, and regulations.
History: Constitution of Pakistan?
indian act 1935
constitution of 1956
constitution of 1962
constitution of 1973
What is cop/business law?
It encompasses all rules that govern the formation, management, and dissolution of companies. It defines the legal rights and duties of stakeholders like shareholders, directors, and employees.
myth about business ethics?
Business ethics is more about religion than business.
Our staff is already ethical, so we don’t need to focus on ethics.
You can’t control or manage ethics.
Ethics and social responsibility are the same thing.
If we’re not breaking the law, then we’re being ethical.
Ethics has no real use in day-to-day business
Define Sole Proprietorship?
Owned by one person
Owner keeps all profits
Owner has unlimited liability (they are personally responsible for business debts)
Business and owner are legally the same
Define partnership?
Owned by two or more people
Partners share profits and losses
Each partner may have unlimited liability (in general partnerships)
Decisions are made together (unless agreed otherwise)
Define company?
Has a legal identity separate from its owners
Owned by shareholders, managed by directors
Offers limited liability (owners aren’t personally responsible for company debts)
Must be registered with the government
Can raise money by selling shares
What is a contract?
a legally binding agreement, a promise (or set of promises) that the law will enforce.
History of contract?
The Act was passed on 25th April, 1872, by British India and is based on
the principles of English common law.
Difference between contract and agreement?
An agreement is just a mutual understanding between two or more people about something.
A contract is an agreement that is legally enforceable.
THREE MAJOR COMPONENTS OF A CONTRACT?
- AGREEMENT
- OBLIGATION
- ENFORCEABILITY
Essentials of a contract?
1) Two or more parties (Offer and Acceptance)
2) Intention to create a Legal Relationship
3) Lawful Object
4) Capacity of parties (Major, Sound mind)
5) Free Consent (understanding of terms and conditions)
6) Writing and Registration and Duly stamped (not Oral Contract)
7) Certainty (proper terms and conditions)
8) Possibility of the Performance (it should not be impossible)
9) Must not have been disqualified by any law
Classification of contract on the basis of formation?
- EXPRESS
-IMPLIED - QUASI
Classification of contract on the basis of execution/performance?
-EXECUTED
-EXECUTORY
-PARTLY
Classification of contract on the basis of validity/enforceability?
-VALID
- VOID
- VOIDABLE
- ILLEGAL
Express Contract
written or spoken
Implied Contract
Formed by actions or conduct, not written or spoken.
Quasi-Contract
Not a real contract, but enforced by law to prevent unfair gain.
Executed Contract
Both parties have fulfilled their promises.
Executory Contract
One or both parties still have obligations to perform.
Partly Executed and Partly Executory
One party has performed; the other has not yet.
Valid Contract
Legally enforceable and has all required elements.
