Business Law Pakistan Essay

3621 WordsMay 7, 201215 Pages
SPECIAL TYPES OF CONTRACT Submitted By: Sonya Arif 12622 Submitted to: Mr.Z.M.Kiyani Nabiha usama 10674 Queenie Sheikh 11399 INDEX 1. Guarantee ………………………………………………………………………………3 2. Liability of Surety ……………….……………………………………………………..4 3. Termination ……………………………………………………………………………6 4. Lien……………………………………………………………………………………..8 5. What is Indemnity?............................................................................................10 6. Pledge…………………………………………………………………………………..12 Guarantee What is a guarantee, what defenses do you as a guarantor have and what are your rights? If you must pay under the guarantee, can you recover the money and how? Before you sign a guarantee , whether to support your business, or to help a relative or friend, you should know the answers to these questions. You should also consult a qualified lawyer to make sure the guarantee is not any broader than absolutely necessary. In law a guarantee is considered to be "an agreement to provide some benefit for a set period of time in the event of the goods or services being defective" A guarantee is a contract between the guarantor (the person that gives the guarantee) and the creditor (typically the creditor that makes the loan). As a contract, it must meet the essential conditions required to form a valid and enforceable contract. There must be certainty of the terms of the guarantee: what is the extent of the guarantee, when can the creditor call for performance under the guarantee, and how can it be revoked. Just like the other contracts there must be some consideration for a guarantee. Usually this is the loan made to the business. It could also be an agreement to hold off taking some action that the creditor is otherwise entitled to take, or allowing more time for the business to meet its obligations to the

More about Business Law Pakistan Essay

Open Document