Name: Roll Number: Class: Submitted To:: Riphah International College

Name:
Muhammad Usman Yousaf

Roll Number:
AF18LHB0114
Class:
ADP (Accounting and
Finance)
Submitted To:
Izhar Akram
RIPHAH
INTERNATIONAL
COLLEGE
Jehangir Road, Fateh Garh, Main
Canal Road, Near MCB Bank,
Lahore.
+92 (42) 36526889-90
Question 1:
Define Agreement and Contract?
Ans:
Agreement: Contract
1. When a person offers something to 1. To be precise, a legally enforceable

someone else, and the concerned agreement for doing or not doing an
person accepts the proposal with act.
equivalent consideration, this 2. Every contract is an agreement.
commitment. 3. Contract is defined in section 2 (h)
2. Every agreement is not a contract of the Indian Contract Act, 1872.
3. The agreement is defined in section 2
(e)
Question 2:
Define Express and Implied Contract?
Ans:
Express contract:
It is one in which the terms and conditions are spelled out in the contract,
either verbally or in writing.
Once an express contract has been established and agreed upon, an identical implied contract
cannot exist. Express contracts are probably the ones we most commonly think of.
Example:
May be if you hire a website designer to design your business’s website. The terms and
conditions are spelled out, including details such as deadlines and payment dates, both parties
agree and sign the contract, and the work on building your new website begins.
Implied contract:
It is one in which the terms and conditions are inferred by the actions of the
parties involved.
While an implied contract can be entered into without the intent of one of the parties to
complete a particular task or even enter into a contract, the law basically does not care about the
party’s intent if the actions implied the existence of a contract. Thus, the obligation to perform
the job still exists.
Example:
May be if you loan some clothes to your friend Jill. Accidentally, however, some of the
clothes you lent her actually belong to your other friend Anne. It is now going to be Jill’s
responsibility to return Anne’s clothes to her.
Question 3:
Define Execute and Executory Contract?
Ans:
Execute Contract:
A contract in which both the parties performed their respective promises. When a contract has
been completely performed, it is termed as executed contract, i.e., it is a contract where, under
the terms of a contract, nothing remains to be done by either party.
Example:
John has been looking at a car he wants at a car lot, debating whether to buy it. Finally
deciding to make the purchase, John walks into the dealership, signs a purchase contract, pays
for the car in cash, and walks out with the keys to the car.
Executory contract:
A contract in which the promises of both the parties have yet to be performed. Thus, executory
contract is that where under the terms of a contract something remains to be done by the parties.
Example:
John has been looking at a car he wants at a car lot, debating whether to buy it. Finally
deciding to make the purchase, John walks into the dealership, signs a lease contract agreeing to
pay a specified amount each month until the car is paid off, or he returns the car at the end of
the lease. Until the car is either paid off or returned, the terms of the contract have not been
fulfilled.
Question 4:
Define Offer?
Ans:
Offer:
An offer is a conditional proposal made by a buyer or seller to buy or sell an asset, which
becomes legally binding if accepted.
OR
An offer is also defined as the act of offering something for sale, or the submission of a bid to
buy something.
Question 5:
Define Acceptance?
Ans:
Acceptance:
The action of consenting to receive or undertake something offered.
Question 6:
What Are the Legal Requirements for Contract?
Ans:
The Legal Requirements are following:
 Consideration
 Offer
 Acceptance
 Legal purpose
 Capable parties
 Mutual assent
OR (According to Professor)
 In Writing
 Attested by Witness
 Registered required by any provision of law enforce in our country.
Question 7:
Define Enforcement by Law?
Ans:
To be enforceable agreement must create legal obligations between the parties. If legal
obligations are not created through the agreement, then it is not a contract.
We may also say that an agreement is enforceable by law if it is recognized by the court of law.
Question 8:
Define Lawful Consideration?
Ans:
Lawful consideration:
It is anything of value, tangible or intangible, that may be transferred in
exchange for something else of value. Thus, there must be mutual consideration between the
parties to a contract.
Example:
In exchange for your promise to cut my lawn, I promise to pay you $25.
Question 9:
Define Void Contract?
Ans:
Void agreement:
It is one which cannot be enforced by law. Sometimes an agreement which is
enforceable by law, i.e., a contract, can become void.
Void agreements are different from voidable contracts, which are contracts that may be
nullified. However, when a contract is being written and signed, there is no automatic
mechanism available in every situation that can be utilized to detect the validity or
enforceability of that contract. Practically, a contract can be declared to be void by a court of
law
Question 10:
Define Illegal Contract?
Ans:
Illegal agreement:
Under the common law of contract, is one that the court will not enforce
because the purpose of the agreement is to achieve an illegal end. The illegal end must result
from performance of the contract itself.
Example:
The classic example of such an agreement is a contract for murder.
The illegality of a contract depends on
(1) the law of the country governing the contract, and
(2) the law of the place of performance.
Different rules will apply depending on the law of the relevant country.

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1. When a person offers something to 1. To be precise, a legally enforceable

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