2. The Securities Exchange Commission of Pakistan
• Responsible for overseeing the corporate
sector and the capital markets in Pakistan.
Established in 1997.
• Aims to promote and regulate the securities
market, protect investors, and ensure the
orderly functioning of the capital markets.
3. The Federal Board of Revenue (FBR)
• The Federal Board of Revenue (FBR) of Pakistan is the
principal tax collection agency responsible for
administering federal taxes and enforcing tax laws
• The FBR oversees the collection of income tax, sales tax,
customs duties, and other federal levies.
• Its functions include formulating tax policies, ensuring
compliance, and providing taxpayer services to enhance
revenue collection and promote voluntary compliance.
4. 1. Roles and Responsibilities
a. Tax Collection
– Direct Taxes
– Indirect Taxes
– Other Levies
6. 2. Structure of the FBR
• Chairman:
• Members:
• Field Offices:
7. 3. Functions of the FBR
a. Assessment and Audit
b. Enforcement
c. Customs Administration
8. The Partnership Registrar
• The Partnership Registrar in Pakistan plays a
crucial role in the registration and regulation
of partnership firms under the Partnership
Act, 1932.
9. 2. Role of the Partnership Registrar
a. Registration of Partnership Firms
b. Maintaining the Register of Firms
c. Issuing Certificates
11. Formation of Businesses
1. Sole Proprietorship
2. Partnership
3. Limited Liability Partnership
4. Private Limited Company
5. Single Member Company
6. Public Limited Company
Listed
Non-listed
12. Contract Act, 1872
Contract Act, 1872 is a comprehensive statute
that governs contracts in Pakistan. It provides a
legal framework for the formation, performance,
and enforcement of contracts.
The Act is divided into two main parts:
• the general principles of contracts (Sections 1-75)
• The contracts of indemnity; guarantee, bailment,
pledge and agency (Sections 124-238)
13. Initially, Sections 76-123 relating to the
sale of goods and Sections 239- 266
relating to the partnership were part of the
Contract Act, 1872, but were subsequently
excluded and separate Sale of Goods Act,
1930 and Partnership Act, 1932 came into
force.
14. Definition of Contract
• Pollack: "Any agreement or promise
enforceable at law is a contract."
• Salmond: "A contract is an agreement creating
and defining obligations between the parties."
• Section 2(h): An agreement enforceable by
law is a contract."
• The definition shows that for a contract, there
must be an agreement between the parties
and the agreement must be enforceable by
law.
15. 1. Agreement
• Section 2(e) defines an agreement as, "Every
promise and every set of promises forming
the consideration for each other is an
agreement."
• It means that every promise is an agreement
if it forms a consideration for both parties. If
a promise forms no consideration for both
parties, it cannot become an agreement.
16. A) Promise
• Section 2(b) defines a promise as, "When the
person to whom the proposal is made signifies
his assent thereto, the proposal is said to be
accepted. A proposal, when accepted,
becomes a promise."
• It means that when one person makes a
proposal (offer) to another person and when it
is accepted by the other person, it becomes a
promise.
17. B) Proposal
• Section 2(a) defines a proposal as, "When one
person signifies to another his willingness to
do or to abstain from doing anything, with a
view to obtaining the assent of that other to
such act or abstinence, he is said to make a
proposal."
• It means that when one person shows his
willingness to do or not to do anything to get
the consent of another person, it is called a
proposal. A proposal is also called an offer.
18. Example
• C offers to sell his car to B for Rs. 8 Lac. B
accepts the offer. It becomes a promise.
19. 2. Enforceable by Law
• An agreement is enforceable by law if it
creates legal obligations between the parties
Thus, an agreement is wider than a contract
All contracts are agreements but all
agreements are not contracts.
• There are two types of agreements:
a) Social Agreement
b) Legal Agreement
20. a. Social Agreement
• A social agreement is not enforceable by law
because it does not create legal obligations
between the parties, In a social agreement,
the parties do not want to create legal
relations.
• Example:
– C invites B to a dinner. B accepts the invitation but
does not attend. C cannot sue B for damages. It is
a social agreement.
21. b. Legal Agreement
• A legal agreement is enforceable by law
because it creates legal obligations between
the parties In a legal agreement, the parties
want to create legal relations. In business
agreements, it is presumed that the parties
want to create legal obligations.
• Example:
– C promises to sell his car to B for Rs. 2 Lac. It is a legal
agreement because it creates legal obligations. This
agreement is a contract.
22. Essentials off Valid Contract
• A valid contract is enforceable by law. In a
valid contract, all parties are legally bound to
perform the contract.
• Section 10 states, "All agreements are
contracts if they are made by the free consent
of parties, competent to contract, for a lawful
consideration and with a lawful object, and
are not hereby expressly declared to be void.
23. 1. Offer and Acceptance
• An offer is the starting point of a contract. In
order to form, an agreement, there must be
an offer by one party and an acceptance of
that offer by the other party.
• EXAMPLE
– C offers to sell his cycle to B for Rs. 4,000. It is an
offer. If B accepts the offer, there is an acceptance.
24. 2. Legal Obligations
• The parties to an agreement must create legal
obligations. It means that if one party does
not fulfill his promise, he shall be liable for
breach of contract. It is presumed in business
agreements that the parties want to create
legal obligations.
25. EXAMPLES
– C offers to sell his watch to B for Rs. 800. B agrees
to buy. It is a contract as it creates a legal
obligation.
– A husband promised to pay his wife an allowance
of $30 every month. Later, they separated and the
husband refused to pay. The wife sued. Held, that
the wife could not recover the amount as the
parties did not want to create legal obligations.
(Belfour vs. Belfour)
26. 3. Lawful Consideration
Consideration means something in return. The
agreement must be supported by a lawful
consideration on both sides. The consideration is
the price paid by one party for the promise of
the other party. An agreement is enforceable
when both parties give and receive something.
The something given or received is called
consideration.
27. • EXAMPLES
• C agrees to sell his house to B for Rs.80 Lac. Rs.80
Lac is the consideration for C, and the house is
the consideration for B.
• C promises to give a government job to B and B
promises to pay a bribe of Rs.1 Lac to C. The
agreement is void as the consideration is
unlawful.
• B promises to teach C without charging a fee. It is
not a contract because there is no consideration
for B.
28. 4. Capacity of Parties
An agreement is enforceable if it is made
by parties who are competent to contract.
In order to be competent to contract, the
parties must be of the age of majority, of
sound mind, and not disqualified from
contracting by law. An agreement with an
incompetent person is not a valid contract.
29. • EXAMPLES
• M, a person of unsound mind, agrees to sell his
house to N for Rs. 20 Lac. It is not a valid
contract because M is not competent to
contract.
• C, aged 20, promises to sell his car to B for Rs. 3
Lac. It is a valid contract because C is
competent to contract.
• A, a minor, borrows Rs. 10,000 from B and
promises to return it after 6 months. It is not a
valid contract as A is not competent to contract.
30. 5. Free Consent
• The consent of parties must be free in
order to form a valid contract. The
consent is free when it is not obtained
by coercion, undue influence, fraud,
misrepresentation or mistake. If the
consent of any party is not free, the
agreement cannot become a contract
(sec. 14)
31. EXAMPLES
• A) C forces B to enter into a contract at
gunpoint It is not a valid contract as B’s
consent is not free.
• B) M, with free consent, promised to sell his
cycle to N for Rs. 5000. It is a valid contract.
32. 6. Lawful Object
• An agreement must be made for a lawful
object. The object of an agreement is lawful if
it is not fraudulent, illegal, immoral, opposed
to public policy or involves injury to the
person or property of another. Every
agreement with an unlawful object or
consideration is illegal and void. [Sec. 23]
33. Examples:
a) C promises to pay Rs. 5,000 to B, if B beats
D. The agreement is illegal as its object is
unlawful.
b) B rents a house for gambling. The object
of the agreement is unlawful so the
agreement is illegal and void.
34. 7. Writing and Registration
• A contract may be oral or in writing. However,
if the contract is in writing, it is easy to prove
in court. Where it is necessary that a
particular contract must be in writing, signed,
stamped, attested by witnesses and
registered, it must fulfill all the requirements
to become a valid contract.
35. Examples:
a) X orally promises to sell his book to Y for
Rs. 200. It is a valid contract because the
law does not require it to be in writing.
b) A written agreement was made for the
sale of immovable property but it was not
signed by the two parties. The court held
that there was no contract. (Farzand Ali vs.
Khuda Bakhsh)
36. 8. Certainty of Terms
• Section 29 states, "agreements, the meaning
of which is not certain or capable of being
made certain, are void." The terms of an
agreement must be clear, complete and
certain. If the terms are uncertain, the
agreement is void
37. Examples:
a) C promises .to sell 20 books to B without
specifying their titles. The agreement is
void because the terms are not clear.
b) O agreed to purchase a van from S. The
price was to be paid within 2 years. The
terms of the agreement were not certain
about the rate of interest and mode of
payment. Held, there was no contract.
(Scammel vs. Ouston)
38. 9. Possibility of Performance
• A valid contract must be capable of being
performed. An agreement to perform an
impossible act is void. If the act is legally or
physically impossible to perform, the
agreement cannot be enforced by law.
[Sec. 56]
39. Examples:
a) C agrees with B to discover a treasure by
magic. The agreement is void.
b) C agrees with B to put life into B's dead
dog. The agreement is void as it is
impossible to perform.
40. 10. Expressly Declared Void
• An agreement must not be one of those
agreements which have been expressly
declared void by the law. Sections 24-30
explain certain agreements which have been
expressly declared void, e.g. agreement in
restraint of marriage, agreement in restraint
of trade, agreement in restraint of legal
proceedings, uncertain agreement, wagering
agreement.
41. EXAMPLES:
C promises to close his business if B pays him Rs.
2 Lac. It is a void agreement because it is in
restraint of trade.
C promises to pay Rs. 2,000 to B if Pakistan wins
the final of the cricket world cup. The agreement
is void because it is a wagering agreement.
![6. Lawful Object
• An agreement must be made for a lawful
object. The object of an agreement is lawful if
it is not fraudulent, illegal, immoral, opposed
to public policy or involves injury to the
person or property of another. Every
agreement with an unlawful object or
consideration is illegal and void. [Sec. 23]](https://image.slidesharecdn.com/04lecture04-250408175552-ea2d7e08/85/04-Lecture-04-pptxgegergergergewgergergergerg-32-320.jpg)
![9. Possibility of Performance
• A valid contract must be capable of being
performed. An agreement to perform an
impossible act is void. If the act is legally or
physically impossible to perform, the
agreement cannot be enforced by law.
[Sec. 56]](https://image.slidesharecdn.com/04lecture04-250408175552-ea2d7e08/85/04-Lecture-04-pptxgegergergergewgergergergerg-38-320.jpg)
