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Contract law is a body of law which encompasses an agreement between private parties creating mutual obligations enforceable by law, basic elements required for the legally enforceable contract are mutual assent, expressed by a valid offer and acceptance, adequate consideration, capacity and legality, an agreement naturally involves the exchange of goods, services, money, or promises of any of those.
In the sophisticated and competitive world of contracts, businesses turn to Kakakhel Law Associates as legal advisers who do more than structure bids, negotiate agreements, ensure compliance with rules and regulations and resolve disputes. Our government, commercial and international contracts practice consists of attorneys who pair deep experience in contract law with in-depth, firsthand knowledge of the way business works.
Pakistan, having been a former British-colony, derives much of its legal principles from the British legal system. The contract law in Pakistan is also derived from the English common law principles. In Pakistan, the Contract Act 1872 is the primary statute dealing with the formation, termination and regulation of contracts. Some of the salient features of contract law shall be explored here.
The law of contract defines the circumstances when a promise or promises are enforceable at law. However, not all promises are enforced by courts. For a promise to be legally enforceable, it must meet four essential and cumulative requirements:
If a promise has the above-mentioned features, it would be classed a legally enforceable contract. Each of these elements of contractual formation shall be looked at in turn referring to the Contract Act, 1872.
An agreement between parties is reached when one party makes an offer that is irrevocably accepted by the other party. Therefore, for acceptance, two elements have to established:
Prof. Treitel defines an offer as an expression of willingness to contract on specified terms, made with the intention that it is to become binding as soon as it is accepted by the person to whom it is addressed. The person making the offer is called the offeror. An offer exists whenever the objective inference from the offeror’s words or conduct is such that they intend to commit themselves legally to the terms they propose. For a communication to be an offer, it must be clear, precise and must not require further clarifications, negotiations or discussions. For a statement to be a valid offer, it must be communicated to the offeree clearly. Thereafter, a party cannot be bound by an offer of which they were unaware. If a communication is not in fact clear, precise and one that requires further clarifications and negotiations, it will be considered an invitation to treat, but not an offer. An invitation to treat is an indication of a willingness of a party to make an offer or to commence negotiations that may eventually lead to an offer.
An acceptance is a final and unqualified expression of assent to the terms of an offer (G.H. Treitel). An acceptance must correspond exactly to the offer made. For this reason, it is often said that the acceptance must ‘mirror’ the offer in order to be valid. If however, an acceptance does not correspond exactly to the offer made and instead introduces a new set of terms, it will be classed a counter offer, not an acceptance. This new ‘counter-offer’ can then be accepted or rejected by the other party. An acceptance must be clearly communicated to the offeror, and silence may not amount to acceptance. When communicating acceptance, the offeree must use the method prescribed by the offeror.
As per the Contract Act 1872, consideration is when: “at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise” ~ Sec.2(d).
It is essential that the contracting parties have an intention to create legal relations. this means that the parties intend that legal consequences are attached to their agreement. These legal consequences mean that the agreement will be binding with recourse to a court or arbitrator for its enforceability.
When a party breaches a term the contract (the breaching party), it is obliged by law to compensate the aggrieved party who has suffered from such breach. Under contract law, a range of remedies are available to the aggrieved party to choose from:
Damages are a financial remedy that aims to compensate the injured party for the consequences of the breach of contract. in general, the principle that guides the award of damages is that the injured party should be put into the position, as far as is possible, that they would have been in if the contract had been carried out. All losses that are reasonably foreseeable by both parties and are a direct result of the breach contract can be recovered.
Equity offers the possibility of an injunction by the court prohibiting some form of conduct. Kakakhel Law Associates provides a professional contract drafting, negotiation and advisory service for business. Whether you are looking for a standard form commercial contract for everyday use in your business, or a bespoke contract to cover a particular transaction or relationship, we will be able to provide you with quality documentation at reasonable rates. Each contract we prepare for you will have been carefully drafted to reflect your commercial requirements. We are also skilled contract negotiators, and we are able to get the best for our clients from any contractual negotiation.
We have substantial experience of advising both suppliers and customers on a broad range of commercial contracts across many different sectors and jurisdictions. Our experience includes commercial contracts for services, licensing, development, distribution, marketing, manufacturing, outsourcing, maintenance and support and on-line terms and conditions. Our commercial practice incorporates specialist tax, intellectual property and regulatory expertise to ensure that clients benefit from appropriate structuring advice and are able to protect and exploit their valuable proprietary rights.
A commercial contract refers to a legally binding agreement between parties in which they are obligated to do or not do certain things. Contracts may be written or verbal and drawn up in a formal or informal way. Most businesses create contracts in writing to make the terms of agreement clear, often seeking legal counsel when drawing important contracts. Contracts may encompass all aspects of a business, including hiring, salaries, employees rights protection, leasing and loans. A breach of contract occurs when one of the parties fails to live up to the agreements. In such a case, the law is required to provide a remedy, which in many cases involves the court system enforcing the contract or asking the party to compensate for any damage done by the breach.
Our government, commercial and international contracts practice is in its third decade of successfully representing companies and organizations that contract with federal, provincial, local and international governments and with other private firms. We focus on helping clients maintain their current and long-term competitive positions, by advising them at every step in the bidding and contracting process, in a manner that maximizes their bottom line and industry reputation.
We represent clients in a broad range of industries, from aerospace to munitions, electronics to services, and information technology to manufacturing. Our attorneys have particular experience in the procurement of complex, high-technology supplies and services, as well as commercial sales to government customers. We represent companies in commercial contract transactions with large and small private domestic and international infrastructure projects. Clients include owners, prime and sub-contractors, designer-builders, architects, engineers, and construction managers.
Kakakhel Law Associates has developed a special program to leverage our unparalleled experience, reputation and stability to create a comprehensive single-source solution for businesses like those from our clients. It is a comprehensive, integrated solution providing maximum market access through only one contact, a perfect mix of quality, control, and cost efficiency and a customized package of services, sectors and geographical coverage. Thus our main features are:
One Contract
Single Point of Contract
Dedicated Account Team
Standardised Service
Standardised Pricing
One Invoice
Saving Model
Given its business mix, Kakakhel Law Associates are very well placed to provide services to an increasing number of employers requiring staff across multiple countries. For international contracts have a dedicated team of specialists in place. The team's role is to specifically enhance the service we provide to our multinational clients, and, if required, act as a single point of contact coordinating fulfillment across multiple Kakakhel Law Associates brands.