Mercantile Law

Mercantile Law

I. Law of Contract, 1872
 Definitions of Mercantile Law
 Essentials of a valid contract (Proposal, Acceptance, Consideration, Free
consent, Capacity of Parties, Not hereby declared to be Void)
 Kinds of Contracts (Valid, Void, Voidable, Not Voidable)
 Variety of Contracts (Contingent, Quasi, Bailment, Pledge, Indemnity, Agency)
 Performance of Contract, contracts that need not to be performed.
 Breach of contract, consequences of breach, damages for breach of contract.

II. Sales of Goods Act, 1930
 Definitions
 Differences: Sale & agreement to sell, conditions and warranties, express &
implied conditions.
 Doctrines: Caveat emptor, Nemo dat
 Right and duties of seller & buyer, rights of unpaid seller.

III. Partnership Act, 1932
 Definitions
 Essentials of partnership
 Kinds of partnership (partnership at will, particular partnership, limited
partnership)
 Rights and duties of Partners
 Relation of partners to third persons (implied authority of partner, doctrine of
holding out)
 Incoming and outgoing partners (minor)
 Dissolution of firms (compulsory, by agreement, by court, by notice on happening
of contingencies)

IV. Negotiable Instrument Act, 1881
 Definitions
 Types of negotiable instruments (Cheque, bill of exchange, promissory note)
 Parties to instruments, holder & holder in due course
 Rules (as to negotiation, presentment, payment & interest, discharge, noting and
protest, compensation, acceptance, payment for honour)
 Special rules of evidence
 Special provisions relating to cheques & bills of exchange (dishonor, duties of
banker)
 Provisions as to foreign instruments

V. Competition Act, 2010
 Definitions
 Prohibition and abuse of (dominant position, certain agreements, discipline,
marketing practices)
 Approval of mergers
 Competition commission of Pakistan (established, composition, term)
 Functions and powers of commission
 Provisions as to penalty and appeals.

VII. The Arbitration Law in Pakistan
 Definitions
 Appointment, number and removal of arbitrator
 Award by arbitrator
 Powers of court upon award (remittance, modification and setting aside of award)
 Types of arbitration (with or without intervention of court)
 Stay of legal proceedings in presence of arbitration agreement

VIII. Consumer’s Protection Act, 2006
 Definitions
 Consumer Commission (establishment, powers and functions, complaints before
commission and disposal)
 Provisions as to compulsory recall of goods
 Duties and liabilities of provider of goods (return and refund of goods)
 Offences and penalties
 Contract between consumer and provider

Mercantile Law

IX. Companies Ordinance, 1984
 Definitions
 Types of Companies
 Fundamental papers of company (Memorandum of association, articles of
association, prospectus)
 Transfer of shares and debentures
 Management and administration (promoters, share holders, directors, chief
executive, auditors)
 Meeting’s and proceedings (statutory, general, annual general meeting)
 Winding up (voluntary, by court)

X. Electronic Fund Transfer Act, 2007
 Definitions
 Payment system and their operation (designation of payment system &
revocation, real time gross settlement system, governance & operation
arrangement)
 Payment instruments (designation, issuing and prohibition of instruments)
 Clearing and other obligations
 Supervisory Control of state bank
 Documentation of transfers
 Notification of error and liabilities of parties
 Law relating to action before court.

SUGGESTED READINGS For Mercantile Law

S. No.	Title	Author
1.	Law of Contract	Agarwala, M. Mehmood
2.	Sales of Goods Act	Pollock & Mulla
3.	Bare Acts: Mercantile Law	Government of Pakistan
i)	Contract Act, 1872
ii)	Negotiable Instrument Act, 1881
iii)	Sale of Goods Act, 1930
iv)	Companies Ordinance, 1984
v)	Arbitration Act, 1940
vi)	Competition Act, 2010 Mercantile Law
vii)	Electronic Transactions Ordinance, 2002
viii)	Consumers’ Protection Act, 2006
ix)	Electronic Fund Transfer Act, 2007

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