Question 1:

(A) Memorandum of Understanding (MOU) is not recognized as a contract but in business organizations this document (i.e. MOU) is widely used inspite of its limited statutes. Discuss critically, why this document is used in the business dealings in the presence of such status.

(B) New Line (Pvt.) Ltd filed a suit against Vista Limited for the breach of contract. Manager operations, Mr. Ali, of New Line (Pvt.) Ltd. is going to appear before the court of law due to a served notice to him to represent his company as a witness. Two days before the hearing in the court of law, CEO of Vista Ltd., Mr. Ahmad, made contact with Mr. Ali and offered him to give 2 million rupees if he changes his witness statement in support of Vista Ltd. Mr. Ali found this offer very lucrative and committed to do so in favour of Vista Ltd. After it, Mr. Ali fulfilled his part, but Mr. Ahmad refused to pay the offered amount. Now Mr. Ali wants to file a suit against Mr. Ahmad and his company (Vista Ltd.) for the payment of 2 million rupees. As an expert of business and corporate law advise Mr. Ali about the status of offered amount and enforceability of this agreement by using Contract Act 1872.