CAF-04 Mind Maps of Complete Book by Sir Asif For March 2022
CAF-04 Mind Maps of Complete Book by Sir Asif For March 2022
National Assembly is in session National Assembly NOT in session Money Bill Dissolution of National Assembly Definition: Control over Delegated Legislation:
Power given by Parliament to an executive to Parliamentary Control:
Origination of Bill: President can pass an Ordinance. Passed by National Assembly. Approval All bills pending in National Assembly shall lapse. make bye-laws for specified purposes. Restriction
By either House. Effective without approval of Parliament of Senate NOT required. Approval
Sent to President for approval. Bills pending in Senate: Advantages:
Validity: 120 days (National Assembly can
Passing of Bill by Other House: --> shall lapse if passed by National Assembly. 1. Time Saving Judicial Control:
extend period, or disapprove early by resolution)
1. Without amendment --> President --> shall not lapse if not yet passed by National Assembly. 2. Use of Expert Knowledge Challenge in Court if ultra-vires.
3. Flexibility
4. Speed
2. With amendment --> Originating House:
if amendments approved --> sent to President Disadvantages:
if amendments not approved -->sent in Joint-sitting. 1. Unconstitutional.
Regards@Awais Ali 2. Bulk.
3. Rejection or not passing within 90 days --> sent in Joint-sitting. 3. Loss of Accountability and Control.
Approval by President:
Within 10 days:
Approve, or
Sent to joint-sitting for reconsideration. Approve if passed by
joint-sitting.
CAF 04: Business Laws Overview:
Chapter 02: Introduction to Law of Contract Offer and Acceptance are two most important elements of a Valid Contract.
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(For students of Muhammad Asif, FCA) Offer: Essentials, Communication, Revocation (For Spring 2022)
Acceptance: Essentials, Communication, Revocation
Part 3: Acceptance
1. Absolute and Unconditional. Against Offeror (when it is transmitted by offeree) Before it comes to knowledge of Offeror
2. Within stipulated or reasonable time. Against Offeree (when it reaches offeror)
3. According to stipulated or reasonable mode/manner.
(If deviated, offeror may either accept or shall communicate non-acceptance)
4. By person to whom it is made. (or his Agent)
5. Communicated to Offeror.
6. Not before offer.
7. Not implied from silence. Important Concepts for Case Studies:
1. Revocation of Offer
8. Rejected offer cannot be accepted.
9. Performance of condition, or acceptance of consideration = Acceptance
Regards@Awais Ali 2. Communication and Revocation of Acceptance.
Overview:
CAF 04: Business Laws This chapter discusses:
Chapter 03: Consideration and Capacity of Parties
Validity of Contracts: Types, Essentials
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Capacity to Contract: Minor, Unsound Mind, Disqualified
(For students of Muhammad Asif, FCA) (For Spring 2022)
Consideration: Essentials, Exceptions
Illegal Agreements: Exammples, Effect, Partial Illegality
Regards@Awais Ali
Part 1: Validity of Contracts Part 3: Consideration
LO 1: Types of Contracts LO2: Essentials of a Valid Contract LO 6: Essentials of Consideration LO 7: Exceptions to "Non Consideration, No
Contract"
Valid Contract: (Enforceable by Law) Void Agreement Vs. Void Contract: 1. Offer and Acceptance 1. Consideration must be given at the desire of promisee.
Void Contract: (Not Enforceable by Void agreement: Void from start. 2. Intention to create legal relationship 2. Consideration may be given by promisor or any other 1. Agreement made on account of natural love and affection.
Law) Void Contract: Valid from start but 3. Capacity/Competence of Parties person. Near Relation.
Voidable Contract: (Enforceable at the became void subsequently. 4. Free Consent 3. Consideration may be past, present or future. Natural love and affection.
option of aggrieved party) 5. Consideration 4. Consideration must be something in value. Written.
6. Legal Consideration/Object 5. Consideration must be real. Registered.
7. Possibility of Performance 6. Consideration must be something which promisor is not 2. Agreement to pay a time barred debt.
8. Certainty already bound to do. Not recoverable under Law of Limitation
9. Not expressely declared Void 7. Consideration must be legal. Written.
10. Writing and Registered (Natural love and Signed.
affection, Time-barred debt, Arbitration) 3. Completed Gift.(i.e.Transferred).
4. Contribution to Charity. (If promisee incurred liability)
5. Agreement to compensate for past voluntary services.
6. Other contracts (Bailment, Guarantee, Agency)
LO 3: Agreement with Minor LO 4: Agreement with Person of LO 5: Agreement with Disqualified Persons
Unsound Mind
Minor means a person of 1. Agreement by a minor is void against him Necessities Supplied to Minor: 1. Alien Enemy (agreements suspended
18 years (or 21 years if (restoration possible, if in hands) Can be recovered from property if: Unsound means a person who is unable Agreement is Valid if made when person Necessities Supplied to Minor: during war)
Guardian is appointed). 2. Rule of Estoppel does not apply to minor. Necessities of life to understand terms of contract. is of sound mind. Can be recovered from property if: 2. Foreign Sovereigns and Ambassadors
3. No ratification of agreement by minor. Provided to minor/dependents Agreement is Void if made when person Necessities of life (cannot be sued)
Examples:
4. Minor in a partnership (cannot be partner, Price is reasonable. is of unsound mind. Provided to minor/dependents 3. Convicts (cannot contract during
1. Specific Person
can be admitted into benefits) Price is reasonable. imprisonment)
2. Lunatic Person
5. Minor in an agency (not personally liable) 4. Insolvent
3. Drunken/Delirous Person
6. Agreement by Guardian (valid for benefits If person is usually of sound If person is usually of
of minor) mind, burden of proof is on unsound mind, burden of
7. Contract by minor and adjult jointly. person rescinding the proof is on person
8. Minor and insolvency. contract. enforcing the contract.
9. Filing suit.
Regards@Awais Ali
Part 4: Illegal Agreements
Definition: Definition of Undue Influence: Examples of Relations/Positions in which Undue Definition: Mistake of Fact:
Doing act forbidden by law to make contract A dominating party uses his position/ Influence is assumed: 1. A false statement, or breach of duty, or mistake 1. Unilateral Mistake --> Contract remains valid.
with others. relation to make agreement and obtain 1. Employer and Employee, Police officer and Accused, 2. Without intention to deceive. 2. Bilateral Mistake --> Contract becomes void.
unfair advantage. Tax officer and Tax payer.
Effects of Coercion: 2. Parent and Child, Guardian and Minor, Advocate and Essentials of Misrepresentation: Mistake of Law:
Contract voidable. Effect of Undue Influence: Client, Trustee and Beneficiary, Fiance’ and fiancee’. 1. By Party to the contract: (not by stranger) 1. Mistake of Pakistani Law --> Contract remains valid.
If rescinded, restore benefits. Contract voidable. 3. Doctor and Patient, Medical Attendant and Patient, a 2. False representation: (not intention to deceive) 2. Mistake of Foreign Law --> Effect is same as mistake of Fact.
Court may set-aside contract absolutely Family Member and Enfeebled Old Man 3. Representation as to fact: (not opinions or intentions)
Burden of Proof: or conditionally. 4. Acted upon it: (not on other information)
On Party rescinding the contract. Burden of Proof:
Coercion Vs. Undue Influence (Main Points): Party in dominating position will prove “no undue Effect of Misrepresentation:
1. Relationship influence”. Contract voidable, except:
2. Consent (obtained by) 1. Party had means of discovery of truth.
3. Nature of Pressure Examples of Relations/Positions in which Undue 2. Party did not act on the basis of misrepresentation;
4. By whom Influence is NOT assumed: 3. Party received benefit after discovery.
5. On whom Husband and Wife 4. A third party acquired interest;
Regards@Awais Ali 6. Burden/Onus of Proof
7. Criminal liability
Creditor and Debtor 5. Restoration not possible.
Landlord and Tenant
8. Reason Principal and Agent
9. Restoration of benefit
Burden of Proof:
Party rescinding the contract will prove “undue
influence”.
Definition of Fraud: Remaining Silent: LO 7: List of Void Agreements LO 8: Agreements in Restraint of Trade LO 9: Agreements in Restraint of Legal
1. False Representation (intentionally) Not a fraud, unless: Proceedings
2. Active Concealment. 1. silence is equivalent to speech, or
3. Empty Promise. 2. there is obligation to disclose Examples of void agreement: Sale of Goodwill:
4. Fitted or Declared Act 1. Uncertain agreements. Restriction valid if: Restriction valid to:
Misrepresentation Vs. Fraud (Main Points): 2. Illegal Agreement. similar business. 1. Refer dispute to Arbitration.
Essentials of Fraud: 1. Intention 3. Impossible Agreements. for period till buyer runs same business. 2. Not to appeal in upper court of law.
1. By Party to the contract (not by stranger) 2. Remedies 4. Agreements with incompetent persons. for specified local limits. 3. Choose a specific court of law.
2. False representation (intentional) 5. Agreement made without consideration. local limits must be reasonable.
3. Representation as to fact (not opinions or intentions). 6. Agreements in restraint of marriage.
4. Acted upon it (not on other information) 7. Wagering Agreements Agreements between partners:
5. Suffered loss Regards@Awais Ali 8. Agreements in restraint of trade. Restriction valid for:
9. Agreements in restraint of legal 1. Existing partners.
Effect of Fraud: proceedings. 2. Outgoing partner (if similar business,
Contract voidable (exceptions same as of for specified period, for specified
Misrepresentation) Effect on Collateral Agreements: local limits, local limits must be
Damages for loss. Agreements collateral/contingent on void reasonable).
agreements, also become void.
CAF 04: Business Laws
Overview:
Chapter 05: Contingent Contracts
This chapter discusses:
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Contingent Contracts: Definition, and Essentials.
(For students of Muhammad Asif, FCA) (For Spring 2022)
Rules of Performance of Contingent Contracts: e.g. Happening/Non-happening, If Time specified.
Regards@Awais Ali
LO 1: Contingent Contract LO 2: Rules regarding Performance of Contingent Contracts
Definition Contracts contingent on happening. Contracts contingent on non-happening. Contingent on impossible event.
Contract to do something if some collateral Contract enforceable if event happens. Contract not enforceable if event happens. Void.
event happens e.g. Insurance Contract. Contract not enforceable if event does not Contract enforceable if event does not
happen within time (if time fixed) or happen within time (if time fixed) or Contingent on future conduct of a person.
Essentials: becomes impossible. becomes impossible. Void if conduct makes it impossible to
1. Dependence on a Future Event: perform contract within definite time.
2. Collateral Event:
3. Uncertain Event:
Part 1: Types of Performance Regards@Awais Ali Part 3: Time, Place and Order of Performance
LO 1: Types of Performance LO 2 & 5: Essentials of Valid Tender LO 6: Rules of Time, Place and Order of LO 7: Consequences of Non-Performance
Reciprocal Promises
Two Types: 1. Unconditional If time is essence:
1. Actual Performance 2. At specified or reasonable time (on a 1. Mutual and Concurrent Promises: Contract is voidable.
2. Attempted/Tendered Performance working day within usual hours)
Perform simultaneously. Damages if notice is given.
(promisor offered, but promisee refused 3. At specified place. If place not specified,
Don’t perform if other party is not ready to perform.
to accept) Promisor asks and Promisee specifies a
If time is NOT essence:
reasonable place.
2. Mutual and Dependent Promises. Damages if notice is given.
Effect of refusal to accept: 4. To Proper Person (promisee or his agent)
Perform in specified order.
Tender of goods/services: 5. As per Terms and Conditions
Don’t perform if other party did not perform.
Contract is voidable. 6. Opportunity to Inspect
Damages. 7. Whole Obligation
3. Mutual and Independent Promises.
8. Exact Amount in Legal Tender
Perform in the order as nature of transaction required.
Tender of money:
Liable to pay money, but not interest.
4. Illegal promise:
Only legal party to be enforced (if separable)
If alternative promises, perform legal only.
If different agreements (first legal and then illegal), perform legal only.
If different agreements (first illegal and then legal), don’t perform any.
Regards@Awais Ali
Necessaries Supplied to Minor/Unsound mind Obligation Paid by Interested Party Non-Gratuitous Act
Amount can be recovered if: Amount can be recovered if: Amount can be recovered if:
If necessities of life Interested party paid. Act (goods/services) is Non-gratuitous.
Supplied to minor/unsound mind, or dependent. Legal obligation of other party. Act is lawful.
Reasonable Price can be recovered. To protect interested party’s own interest. Other party enjoyed the benefit.
From Property of minor/unsound mind.
Rights:
retain goods.
sell goods (if perishable nature, or expenses Regards@Awais Ali
equal 2/3rd of value).
CAF 04: Business Laws Overview:
Chapter 08: Discharge of a Contract, and Remedies This chapter discusses:
Secret Sheet for Quick Revision Modes of Discharge of a Contract Premium Content
(For students of Muhammad Asif, FCA) Remedies for Breach of a Contract (For Spring 2022)
How to Calculate Damages on Breach of Contract
LO 1: Modes of Discharge
LO 2: Remedies for Breach of Contract Regards@Awais Ali Case Study Tips: How to Calculate Damages
Suit for specific performance Restitution Damages Goods/Services not Delivered Money not Paid
or Injunction (i.e. restoration of (i.e. monetary
(allowed only in some cases) benefits already received) compensation of loss)
Ordinary Damages Special Damages (if communicated) Reasonable Interest.
For Goods --> Market Price – Contract Price. Cancellation of Other contracts --> Loss of Profit +
Ordinary Damages: Special Damages: For Services --> Reasonable Loss. Compensation Paid.
Definition: Definition: Stop of Production --> Loss of Normal Profit
which arise naturally in usual course Arise due to breach of contract, and parties knew Cancellation of future contracts --> No Damages.
[e.g. good/service bought at higher price] it [e.g. loss on other contracts due to breach of this
contract].
Rules:
Actual Damage allowed [e.g. market Rules:
price– contract price] Allowed only if communicated at time of contract.
Actual Damage allowed. Common Rules of Damages:
Allowed, whether communicated or not
Remote and indirect losses are not allowed [e.g. 1. Aggrieved party cannot claim a loss which could have been avoided reasonably.
in contract.
loss of future projects not yet made] 2. Court allows reasonable damages or fixed amount whichever is lower.
CAF 04: Business Laws
Chapter 08: Agency
Overview:
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This chapter discusses Intorduction and Authority of Agent.
(For students of Muhammad Asif, FCA) (For Spring 2022)
Agent
Regards@Awais Ali
LO 1: Essentials of Partnership LO 2: Difference between Partnership and LO 3: Types of Partnership LO 4: Types of Partners
Co-Ownership
1. There must be an agreement: (stating Capital, P&L Particular Partnership: Actual Partner:
ratio, Duration, Rights and Duties) 1. Formation For a particular project or period. who actively manages business and is
2. There must be association of two or more persons (2 2. Business Dissolved on expiry. known to others.
– 20, except in bank, professional firms) 3. Number of persons If continued after expiry, it becomes ‘partnership at will’. Public notice is required if he retires.
3. Parties must agree to carry on business: (charity, or 4. Sharing of profit
rental income is not business) 5. Agency Partnership at Will: Silent Partner:
4. There must be sharing of profits among partners 6. Transfer of interest Duration not specified. Does not manage business.
5. There must be mutual agency among partners Dissolved when a partner gives notice (wef specified date).
6. No separate legal status: If dissolution with consent of all, it will not be ‘partnership Sleeping or dormant partner:
7. Unlimited Liability at will’. Not known to others.
Public notice is NOT required if he retires .
Rights of Partners: Absolute/General/Mandatory duties of Partners: Qualified duties of Partners: Property of the firm includes:
1. Right to take part in the conduct of the business: 1. Joint and Several Liability: (i.e. Each partner has unlimited 1. Duty to use firm’s property exclusively for 1. Property (OR rights or interest in property) originally
2. Right to be consulted: (decision on majority basis) liability) the firm: (return if benefit obtained) brought into common stock;
3. Right of access to books of accounts: (+ copy) 2. Duty to act within authority: (compensate firm if exceeded 2. Duty not to engage in competing business: 2. Property (OR rights or interest in property) acquired by
4. Right to share profits equally: (unless different agreed) authority) A partner can do any other business but the firm or for the firm;
5. Right to receive interest on capital: (if agreed and firm 3. Duty in case of emergency: (can do acts to save firm from loss) cannot do similar/competing business. 3. Goodwill of firm;
earns profit) 4. Duty to carry on business to the greatest common advantage: 3. Duty not to assign/transfer his interest:
6. Right to receive interest on advance: (@6% or as (no personal gain) 4. Duty to contribute to the losses: Any property purchased with partnership money will be
agreed) 5. Duty to be just and faithful: 5. Duty to indemnify for willful neglect: deemed to be partnership property, unless any contrary
7. Right to be indemnified: 6. Duty to provide true accounts: 6. Duty to perform diligently his duties: intention appears.
8. Right to retire: (+ public notice) 7. Duty to provide full information: (disclose all interests in 7. Duty to work without remuneration:
9. Right of outgoing partner: (6% Interest or Share of transactions)
Profit until settled) 8. Duty to indemnify for fraud:
10. Variation in Partnership: (with consent of all partners)
11. Rights of partners after a change in firm: (mutual Regards@Awais Ali
rights same as before)
Overview:
CAF 04: Business Laws This chapter discusses:
Chapter 10: Partnership
Part 1: Essentials of Partnership and Basic Terms
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Part 2: Mutual Rights and Duties of Partners
(For students of Muhammad Asif, FCA) (For Spring 2022)
Part 3: Authority and Liability of Partners + Other Concepts (Estoppel, Transferee, Minor)
Regards@Awais Ali
Part 3: Authority, Liability
Implied Authority of a partner: Restrictions on Implied Authority: Case Study Tip: Legal Position if Partner Liability of a partner for acts of the firm: Effect of notice received by a partner:
1. To buy and sell goods (of business). 1. Submit a dispute of the firm to arbitration. exceeds its Authority: Each partner has unlimited liability. Notice is served to whole firm if:
2. To borrow money (in trading business). 2. Open a bank account on behalf of the firm in his own If a Partner exceeds his authority, Firm is If paid more than share, reimbursement from 1. given to active partner.
3. To receive and pay cash. name. liable for his acts if: other partners. 2. relates to affairs of firm.
4. To settle accounts. 3. Compromise or relinquish any claim or portion of a claim 1. Firm ratifies it, or 3. Does not relate to fraud by partner receiving notice.
5. To employ servants by the firm. 2. It is a case of emergency, or Liability of firm for wrongful acts of a partner:
6. To pledge movable property of firm 4. Withdraw a suit or proceeding filed on behalf of the firm. 3. Third party did not know actual authority. With respect to Third Parties: Effect of representation/statement by a partner:
7. To draw cheques or negotiable instruments. 5. Accept any liability in a suit or proceeding against the Firm liable to third parties (if ordinary Representation can be used as evidence if:
8. To sue or defend suits. firm. course, third party acted in good faith) 1. relates to affairs of the firm.
6. Acquisition of immovable property on behalf of the firm. 2. made in the ordinary course of business.
Firm shall be liable to third parties if a third party 7. Transfer immovable property belonging to the firm. With respect to Partners:
makes such agreements with a partner. 8. Enter into partnership on behalf of the firm. Guilty partner bears whole loss, and
indemnifies firm.
Firm shall not be responsible if a third party makes such
Exceptions: Parties who share profit, but are not agreements with a partner. Liability of firm for misapplication of money or
partner: property by partners:
1. Lender. The firm is liable to third parties.
2. Employee/Agent.
3. Retired/Deceased Partner.
4. Previous owner of business.
5. Minor admitted into benefits.
Regards@Awais Ali
6. Transferee of interest.
LO 9: Principle of Estoppel or Holding out LO 10: Transferee of a Partner’s Interest LO 11: Minor in a Partnership
Partner
Rights of Transferee: Legal Status of a minor admitted to benefits Legal Status of a minor on attaining age of majority:
Principle of Holding out partner: 1. To receive share of profits. of a partnership: Make Decision and Public Notice whether to become
If a person is represented as a partner 2. On dissolution: Rights of minor admitted to partnership: Partner:
and third parties gave credit to firm on such (a) share of the assets, and 1. to share profits and property of firm. Within 06 months of attaining majority (or becoming
representation, person is liable for debt. (b) Accounts of firm from dissolution. 2. to access accounts. aware of partnership whichever is later)
3. cannot be declared insolvent.
Examples/Application: (when a non-partner Restrictions/Disabilities/Limitations If elected to become a partner:
is liable) of Transferee: Liabilities of minor admitted to partnership: 1. his share as minor will be share as partner.
1. Minor attaining age of majority (if no Transferee shall NOT: 1. No personal/unlimited liability. 2. Personal/unlimited liability, since admission as minor.
public notice given for 6 months) 1. interfere in business. 2. Only share in firm is liable.
2. inspect books. If elected NOT to become a partner:
2. Retirement of Active Partner (if no public 3. require accounts. Restrictions/Disabilities of minor admitted 1. Continues as minor till public notice.
notice given) 4. challenge Accounts. to partnership: 2. No liability for acts of firm after public notice.
5. sue for dissolution 1. Not a partner. 3. Can sue for recovery of his share of profits and property.
Exceptions: (when a partner is not liable) 2. Cannot file suit for profit and property,
1. Death of a partner: unless he disconnects.
2. Insolvency of a partner: 3. No access to books.
CAF 04: Business Laws
Overview:
Chapter 11: Negotiable Instrument
This chapter discusses:
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Part 1: Characteristics and Types of Negotiable Instruments
(For students of Muhammad Asif, FCA) (For Spring 2022)
Part 2 - 4 : Discussion on each type of Instrument i.e. Promissory Note, Bill of Exchange, Cheque.
Regards@Awais Ali
Part 2 - 4: Mutual Rights and Duties of
Partners
LO 6: Promissory Note & its Essential LO 7: Bill of Exchange & its Essential LO 12: Difference between Promissory Note,
Elements Elements Bill, and Cheque
Definition of Promissory Note: Definition of Bill of Exchange: Difference between promissory note and bill Difference between cheque and bill of
It is a written, unconditional promise signed by maker to It is a written, unconditional order signed by drawer and drawee of exchange: exchange:
pay certain sum of money to a specified person or his order. to pay certain sum of money to certain party. 1. Number of Parties 1. Acceptance by drawee
2. Nature 2. Drawee
Essential Elements of a Promissory Note: Essential Elements of a Bill of Exchange: 3. Acceptance 3. Payable on demand or time
1. It must be in Writing. 1. It must be in Writing. 4. Nature of liability 4. Payable to Bearer
2. Promise to Pay (Not just acknowledgement of debt). 2. Order to pay. 5. Payable to 5. Stamp
3. Definite and Unconditional (payable on/after death is 3. Definite and Unconditional (payable on/after death is valid). 6. Maker as payee 6. Crossing
valid). 4. Signed by drawer and drawee. 7. Notice of dishonor 7. Stopping of payment by drawer
4. Signed by the maker. 5. Certain Sum of Money. 8. Noting or Protesting
5. Certain Sum of Money (No contingent addition or 6. Certain Parties.
contingent subtraction). 7. Order to pay money only. (no shares, furniture etc.)
6. Certain Parties. 8. Not Payable to bearer on demand.
7. Promise to pay money only (no shares, furniture etc).
8. Not payable to bearer. Liabilities of Parties:
Liabilities of maker:
Liabilities of Drawer: Liable until drawee accepts.
Liabilities of Drawee: Liable after acceptance.
Regards@Awais Ali
To pay the amount.
If default, he will also pay damages.
Cheque
LO 8: Cheque and its Essential Elements LO 9: Crossing of Cheque LO 10: Rules Relating to Payment of Cheque LO 11: Bank Draft
Definition of Cheque: Types of Crossing: Protection to Paying Bank: What is a Bank Draft:
A "cheque" is a bill of exchange drawn on a specified General Crossing: Not liable if payment made in due course. Order issued by one bank to another bank, to
banker and payable only on demand. How: Two parallel lines on top left corner. pay specified money to a specified person.
Effect: credited in a bank account only Protection to a Collecting Banker:
Essential characteristics of a cheque: Not liable to true owner if it collected on behalf of a person with Difference between Cheque and Bank Draft:
1. It must be in writing. Restrictive Crossing: defective title, provided: Issuer.
2. It is an order, not request to pay (please Vs. please + How: “A/C Payee” or “A/C Payee only” written. Bank acted in good faith and without negligence. Payable to bearer.
oblige + convenient). Effect: Payable to payee only + Not-Negotiable Bank received payment on behalf of customer. Dishonored due to insufficient funds.
3. It must be definite and unconditional. Cheque was already crossed. Stop of payment.
4. It must be signed by drawer.
5. Parties must be certain. Special Crossing: If bank credited customer account provisionally, protection is still
6. Amount should be certain. How: Name of a Bank written. available.
7. Money only. (no shares, furniture etc.) Effect: Only named Bank (or his agent) can collect
8. It is always drawn on a specified banker. Protection to a Collecting Banker in case of Account Payee cheque:
9. It is always payable on demand only. Bank not liable if “account payee” cheque is:
Adding words “Not Negotiable”: altered cleverly, and
Cheque is still transferable/negotiable. bank paid in good faith without negligence.
Holder of defective title cannot transfer a good title.
Crossing of a cheque after issue: Payment of cheque crossed specially more than once:
Regards@Awais Ali
Crossing by Holder: If a cheque is specially crossed twice (except to agent), its payment
If uncrossed --> General Crossing. will be refused.
If generally crossed --> Special Crossing
If generally/specially crossed --> Add words “not negotiable”. Revocation of Banker’s Authority:
1. Countermand of payment.
Crossing by Banker: 2. Notice of customer’s death.
Special Crossing. 3. Notice of customer’s insolvency.
Special Crossing again (to agent for collection).
Overview:
CAF 04: Business Laws This chapter discusses :
Chapter 12: Anti-Money Laundering & Electronic Payments Money Laundering: Offence and Punishment Premium Content
Secret Sheet for Quick Revision Designated Payment System (DPS): Arrangements and Revocation (For Spring 2022)
(For students of Muhammad Asif, FCA) Definition of Electronic Money and Electronic Fund Transfer.
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Part 1: Anti-Money Laundering
Financial Institutions: Role of Financial Institutions: When is a person guilty of offence of money laundering: Evidence of offence of money laundering: For Individuals: (i.e. natural person) For Legal Persons: (i.e. company)
Persons doing activities of: To monitor customers’ transactions If he knows that a property is proceeds of crime and still: Knowledge inferred from factual circumstances. Imprisonment 1 to 10 Years Fine upto Rs. 100 million.
1. Deposits, and Lending. To report large transactions. 1. Acquire, converts, possess, use or transfer such property. Fine upto Rs. 25 million. Individual liability for director,
2. Leasing. 2. Conceals the true nature, origin, location, ownership, movement of such property. Forfeiture of property officer or employees involved.
3. Insurance. 3. Holds or possess such property on behalf of any other person.
4. Money Transfers. 4. Aids, or counsels to commit above acts.
5. Managing means of payments.
6. Business trading in Forex, Mutual
funds, Money market instruments etc.
Regards@Awais Ali
Prevention of Electronic Crimes Act, 2016
(Protection For Organizations)
Regards@Awais Ali
Competition Act
(to ensure free competition in markets)
Relevant Market: Abuse of dominant position Prohibited Agreements No Deceptive Marketing Practices
Relevant market includes:
q Geographic Market: Area in which undertakings are
involved in supply of goods or services and in which Following practices are not allowed: Following agreements are not allowed: Deceptive marketing practices include:
conditions of competition are similar. 1. Limiting quantity of production or sale. 1. Dividing markets. 1. False or misleading information harming other undertakings.
q Product Market: It means all those products and/or 2. Unreasonable increase in prices. 2. Fixing quantity of production or sale. 2. False or misleading information regarding own good/service.
services which are regarded as interchangeable or 3. Price discrimination. 3. Collusive tendering. 3. False or misleading comparison of goods in advertisement.
substitutable by consumer. 4. Predatory pricing. 4. Fixing the purchase or sale price. 4. Fraudulent use of another’s firm name, trademark, labelling
5. Boycotting other undertaking. 5. Limiting technical development or investment. or packaging.
6. Refusing to deal. 6. Applying dissimilar conditions to similar
7. Tie-ins. transactions.
Regards@Awais Ali 8. Applying dissimilar conditions to similar 7. Making contract dependent on supplementary
transactions. unrelated obligations.
9. Making contract dependent on
supplementary unrelated obligations.
Regards@Awais Ali
Regards@Awais Ali
Arbitration Act
(to resolve disputes out of Court)
Provisions applied in Arbitration Agreement Powers of Arbitrator Appointment by a third party or during a suit
(unless agreed otherwise)
1. To take oath. Parties can:
1. Sole-arbitrator. If even, Arbitrators shall appoint Umpire within 1 month of appointment. 2. To interrogate. q Agree that a third party (named or office holder)
2. Authority shall be irrevocable (cancellable by Court). 3. To make award conditional, or in alternative. will appoint arbitrator.
3. Decision by Arbitrators within 4 months of reference (extendable by Court). 4. To receive opinion of the Court. q Apply for arbitration during a suit.
4. Umpire shall enter if Arbitrators unable to make decision, or time is passed. 5. To correct clerical mistakes in the award.
5. Decision by Umpire within 2 months of entry (extendable by Court).
6. Parties shall produce record and other evidence to Arbitrator/Umpire.
7. Award shall be final and binding on parties. Arbitrators/Umpire may direct about cost of
the case. Regards@Awais Ali