Law: Contract Act, 1872

Section: 23,73,187,237

Contract Act (IX of 1872)--Ss. 23, 73, 187 & 237---Law Reforms Ordinance (XII of 1972), S.3---Intra-court appeal---Compensation and damages, recovery of---Transaction by agent---Indoor management, doctrine of---Plaintiff claimed compensation and damages on the ground that despite valid agreement between both the parties, defendant company failed to supply goods---Defendant company denied execution of any contract and contended that letters relied upon by plaintiff were signed by its employee not authorized to do so---Plea raised by plaintiff was that principle of indoor management was applicable---Validity---Doctrine of indoor management was not applicable to transaction entered into between a registered company and a third party in good faith on the basis of any statutory provisions in Companies Ordinance, 1984---Doctrine of indoor management was applicable to such transactions on the principle of public policy, equity and good conscience to protect innocent persons dealing in good faith with corporate entity---If agent had apparent authority to enter into a particular contract on behalf of principal, the contract was valid even though in fact he had no such authority---Written consent of principal was not essential before contract was entered into by agent on behalf of principal---No evidence was available on record to prove market rate of goods on the day of breach, therefore, no damages could be awarded to plaintiff---High Court declined to interfere in the and decree passed by Single Judge---Intra-court appeal was dismissed in circumstances. Pakistan Industrial Development Corporation v. Aziz Qureshi PLD 1965 (W.P) Kar. 202; 1968 SCMR 539; Pakistan Employees Cooperative Housing Society Ltd. Karachi v. Mst. Anwar Sultana and others PLD 1969 Kar. 474; MLD 1990 878; PLD 1964 Kar. 290; PLD 1981 Kar. 504; Panorama Developments (Guildford) Ltd. v. Fidelis Furnishing Fabrics Ltd. (1971) 3 All England Reporter; Sarshar Ali v. Roberts Cotton Association Ltd. and another PLD 1963 SC 244; Islamic Republic of Pakistan through Ministry of Finance v. Pioneer Trading Company Karachi 1982 CLC Kar. 495; Bismillah Begum v. Messrs Pak Construction Company Ltd. 1987 MLD…

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