Life Policy

Loans are given up to 90% of the surrender value on the life policy of the borrower. Merits of life policies as collateral are:

• It is easy to find out their correct price.
• Banks has a lien on the amount of policy can be ascertained from the insolvent.
• The Tittle of the policy can be ascertained from the Insurance Company.

The Demerits are:

• If life policy is can celled due to some wrong information supplied to the Company, then the bank will not get any payment.
• Surrender value of the policy is uncertain.

A banker, therefore, must take care to ascertain whether or not the age of the assured is admitted. The policy should be properly assigned. Endowment policies should be preferred to whole life policies.

Goods And Documents of Tittle

Banks can give loans on the security of goods or documents of tittle viz.. Railway Receipt, Bill of Lading, Dock Warrant etc. Merits of such collateral's are quite easy to sell, loan being short-termed, risk of loss is not great, and there is no danger of money being drowned. Demerits are:

• Difficulty in getting suitable accommodation for warehousing of the goods.
• Risk of damage to good.
• Goods in the category of comfort and luxury are subject to violent fluctuations.
• Difficulty for bank to release goods in installment.
• Documents may be forged.

It is, therefore, essential that banks should keep a proper margin between the amount of loan and the price of goods.Only such goods as can be sold quickly should be accepted as security.

Stock Exchange Securities

Under these collaterals we include securities issued by a Government, semi-government and local authorities. Shares of industrial and commercial companies also come in this category. The merits of such collaterals are quick sale. No difficult in transfer of ownership, stability in prices, loans can be secured from other banks, and prices thereof can be ascertained from stock exchanges.

Demerits of such collaterals may by such as responsibility of party paid-up shares may by on bank and certain securities may not be marketable. Hence, while accepting stock exchange securities as security, banks should always keep in view that they should be free from all defects of ownership, fluctuations in their prices should be limited, and that they should be fully paid. 

Securities Demanded by a Banker

The loans which a banker grants to his customers may be classified in to secured and unsecured loans. Unsecured loans are so called because they are secured only by the promissory notes signed by the customers and not secured by any other additional security. In granting personal loans, therefore, a banker first satisfy himself with regard to the financial stability and integrity of the borrower by examining his balance sheet.

Where the personal security of the borrower is considered inadequate, a banker may require him to furnish some additional security. This may take the form of a guarantee by a third person or a deposit of tangible securities. Such securities as are deposited by way of security for the loan are known as Collaterals. The most common collaterals are discussed above. 

Market Ability of Securities

Securities which are easily sold in the open market, are good for investments. First class securities are considered safe from the point of view of investment. Government securities, shares and debentures of sound companies, first class bills of financially sound parties, are good enough for investment. The securities for which there is a demand in the open market, are to be discarded for investment.

P Versification of Risks

" All eggs should not be in one basket" if the advances are made to different persons instead of one-party, or to many factories, the risk is divided, and at least we can count upon some advances to give good returns and to be repaid in due time.

Security of Funds

The banks creates invest able funds by accepting deposits from the individual. That is, it invests such money as is not its own. Because the funds are not its own, the security of these funds is the prime important factor to be considered while investing the funds. To ensure security, the banker must see

• Investment or Advances are not made to any one individual or business or one factory.
• The Funds are not advanced for long term.
• The advances are made after procuring adequate security.
• The advances are not made against immovable properties.

Productivity of Investment

The investment are for profit. Some return, reasonable enough, should be received on the investments. A commercial bank carries transaction to earn profit. The profit should be sufficient to meet the the necessary and to satisfy the shareholders who have invested their money keeping an eye on the profits. There should be a reasonable coordination between the liquidity and profitability of the investments.

Liquidity

A banker must see whatever amount he is investing and wherever investing the liquidity of funds is necessary to be maintained. Liquidity means the amount invested must be always available on demand by the bank. In case of emergency of cash demand the banks should be able to count upon the investment to be turned into cash to meet the immediate and urgent need of cash. If the investment is not liquid enough the bank may find itself in difficult conditions which may lead to the end of the bank itself. A banker must not invest its money to immovable assets. According to M.I Tannan, a banker must understand the differences between investment and mortgages.

Investment By A Banker

No Two persons, institution can think and action a particular subject in the same direction. They differ on some points though they may agree on other points. The same thing is applicable about the principles of safety of invested funds by a banker. Different banks have their own ways to safeguard their funds. But there are certain fundamentals over which majority of bankers do agree as to the safety of their funds to be invested the main things that one keep in mind.

Central Bank

Almost every country in the world has a Central Bank. In Pakistan. State Bank of Pakistan is the Central Bank of the country. A Central Bank performs special work. It occupies a central position in monetary and banking structure of a country. It issues notes, it controls currency and credit in a country. A Central Bank acts a Government Bank. It also acts as the banker's bank. All the banks of a country keep a certain amount of their balances with the Central Bank. It lends money to the scheduled banks. It also regulates the exchange rate. It establishes the value of money.

Exchange Banks

These are banks which are generally found on the port towns. They finance the import and export trade of a country. In Pakistan, they finance the export trade against D/A bills and the import trade against D/P bills. Beside this, such banks also finance some internal trade in the country. They receive a letter of hypothecation from the persons wanting a loan so that their loans may be safe. They also purchase and sell foreign securities.

Savings Banks

Saving Banks are established to encourage thrift and to discourage hoarding. They mobilizing the savings of men of small means. They collect their savings. They pay interest on the deposits of the people. These banks also provide them (depositors) the necessary facilities to withdraw money according to their needs. They allow drawls of small amounts only. Post Offices in Pakistan also provide this facility. People generally keep their savings in the Post Office Savings Banks. Commercial Banks also render this service.

Industrial Banks

These are special types of banks. They lend money to the industries for purchasing machinery land, building, furniture etc. They advance credit for long periods, 10,15 or 20 years. They receive deposits for long periods. They generally raise fund by issuing debentures. These banks also keep an expert staff to judge the value of land, building, machinery etc. Of the industries. There are hardly such banks in Pakistan. In foreign countries like Japan and Germany, these banks have helped a great deal in the development of these countries. Industries Development Bank of Pakistan (IDBP) and Pakistan Industrial Credit and Investment Corporation (PICIC) are playing very important role for financing and promoting industries in Pakistan.

Land Mortgage Banks

These banks advance loans to cultivators for long term needs such as the paying off old debts, purchasing of land, purchasing costly machinery and effecting permanent improvement of land. They keep expert evaluators of land and on receipt of an application for loan.they get the land valued and find out that the land is not ready pledged or encumbered.They do not advance money for more than 50% value of the land mortgaged with them. Hardly there is a bank of such a nature in Pakistan, although the need for them is very great.

Cooperative Banks

These banks grant loan to agriculturist for financing current agriculture needs such as for purchasing seeds, manure, implements, ploughs, bullocks and even fir digging wells and purchasing land. These banks mostly raise their funds from loans, reserve fund and sometimes from share capital. They do not generally receive deposits. They generally lend money on personal security. The underlying principle of these banks is generally self-help.

Commercial Banks

There banks deal with businessmen and traders. They receive money on fixed, current, saving and home safe account. They lend money for short periods of three months against easily marketable securities such as bills of exchange, agricultural produce like jute, rice, wheat etc and government securities. There are schedule banks in Pakistan, They grant loans for financing trade and industry where money is required for financing temporary contingency.

Kinds Of Banks

In the present world of specialization we come across different types of banks. All of them are called banks, because they borrow money from the public and later on lend it to the public in need. But they differ from one another in the following respects

W.T.O

There was once a time when countries concentrated on increasing exports and reducing imports. Countries did not believe imports to be a very good things. They imposed restrictions on the imports of goods from different countries. This phenomenon was called mercantilism. But in recent years, efforts have been made to encourage free trade between countries.

W.T.O was established on 15th April 1994. It stands for World Trade Organization. It replaced an earlier organization GATT. It was established with a primary objective to promote free trade between countries. At the time of establishment, 117 countries joined the organization. Later many more countries entered the bracket of W.T.O. In 2004, the deadline for removing unnecessary restrictions on imports passed away. Now, the joining countries are obliged to allow everyone who wants to exports goods to the joining countries. W.T.O also recognize intellectual property rights and its rules and regulations cover traditional goods and services as well as intellectual properties.  

Source of Foreign Exchange

Agricultural sector supplies raw materials and semi-finished items to the different countries of the world through which foreign exchange is earned. The earned foreign exchange is consumed on the purchase of the goods and services which do not produce but they are indispensable for the development of the economy like minerals, machines, heavy chemicals, tools etc. In other words agricultural sector is not only the source of foreign exchange earning but is also plays the important role in making the industrial base sound and stable.

Province-wise Distribution

In terms of population, Punjab is the most populated province of Pakistan. Approximately half of the population resides in Punjab. Sindh comes second in the most populate provinces. Population of Baluchistan despite its big size is not very high. One of the reasons is that most of the area in Baluchistan is covered by mountains areas and plains.

Robert Malthus argued that population growth not in proportion with the growth in resources is detrimental to the economy and the society.In the following lines, it is discussed how a population growth can still be accommodated if various macro economic indicators can be improved.

Importance of Motorways

Road Transportation is a necessary element of organized civic life. Moreover, it is one major means of transporting goods from one place to another. Road transportation facilitates easy commuting of goods and it links various cities, towns and villages with each other.

Major Exports of Pakistan

The Major export oriented industries of Pakistan are as follows:

• Textile Industry: Textile industry enjoys 60% share in overall exports of Pakistan. The garments produced in Pakistan are very famous abroad. The towels used in Wimbledon are produced in Pakistan.
• Sports Goods: Pakistan is very famous in making sports goods. The cricket bats made in Sialkot are used by many great batsmen of Pakistan and other countries. The footballs made in Pakistan have repeatedly been used in major football events including world cups.
• Surgical Instruments: Pakistan produces high quality surgical products. The demand for surgical goods of Pakistan is increasing and Pakistan can earn huge foreign exchange from this industry.
• Rice: Basmati Rice produced in Pakistan is famous all over the world. Pakistan exports "Basmati" "Irri" rice to many countries and it is also an important source of foreign exchange for the country.

Transport in Pakistan

The Different means of transport used in Pakistan are as follows:

• Road Transport: In Pakistan, trucks, trailers etc are used in road transport. Goods are usually transported through trucks in places where there is sufficient road network. Road transport is a very convenient means of transportation  but due to the lack of road networks all over the country, it is unusable at few places.
• Railway: Railway system is also used for transporting huge quantities of goods. There are separate dedicated trains for transportation. In places where there is no or insufficient road network, railway system is used.
• Ships and Ports: Ships are used for transport of goods between countries. For sea transport to exist, ports are necessary where ships can land and the goods can be unloaded. In Pakistan, there is a port in "Kemari" (Karachi). Government of Pakistan has also made another port in "Gawadar" ( Baluchistan)
• Airplanes: Air transport is also used in few rare cases for the transport of goods.Usually, it is used by companies to ship goods to customers which are not very much in quantity and when goods are of the perishable nature. Air transport is most expensive.
 

Charter Party

It is an agreement by which the ship owner agrees to place the entire ship or part of it at the disposal of merchant for the purpose of carrying goods from one port to another. Thus under a charter party the entire ship is hired.

A charter party usually contains the following terms:

• Names, addresses and the other particulars of the shipowner.
• The name of the ship.
• The nationality of the ship.
• The measurement of the ship as indicated by the Registered tonnage.
• The location of the ship at the date of the charter party.
• The sea worthiness of the ship for the intended voyage.
• The shipowner's duty to bring the ship to the agreed port of loading.
• The charter's liability to pay right.
• The charter's right to the other goods on board under bills of lading.
• Nature and duties of the master and crew of ship towards charter.
• Conditions of cancellation or contract of charter party.

Exemptions of Private Company

The legal concessions that are enjoyed by a private company as against a public company are as follows:

1. In order to form a private company only two signatories to the memorandum of association are required;
2. A private company is not required ti have more than 2 directors;
3. A private company is not required to hold a statutory meeting or prepare and file a statutory report;
4. There is no restriction on the appointment and advertisement of the first directors of a private company;
5. A private company is not required to file with registrar a statement in lieu of prospectus;
6. There is no restrictions on allotment of shares.
7. A private Company starts business with borrowing
8. Not bound to send annual account to Stock Exchange and report to members.

Collective Bargaining

According to Section 2 of the Industrial Relations Ordinance, 1969, in relation to an establishment or industry, "Collective Bargaining Agent" means the trade union or workmen in which, under Section 22, is the agent of the workmen in the establishment, or as the case may be, industry, in the matter of Collective Bargaining.

The declaration of the Collective Bargaining Agent in an establishment or industry was added by Ordinance XIX of 1970. Once a trade union or a federation has been e declared such Agent through a secret ballot by the Registrar, no other claim to such status by a rival union or federation is to be entertained for a period of two years from the date of such declaration.

Management Committee

No matter how well established  it is, each institution needs a good management in all respect. All concerns of various nature therefore, form a Management Committee which is constituted after the necessary approval of the upper level. The functions of such committees are according to the nature of the institution concerned. Member of such committees in various institution also vary. Management Committee as such plays a significant role in growth of some institution.

Accident

The word accident is used in the ACT in the popular and ordinary sense as denoting an unlocked for mishap or and outward event which is not expected or designed. The word is employed in contradistinction to the expression "willful misconduct" or "willful disobedience". Therefore am injury by accident includes any injury not expected or designed by the injured workmen himself irrespective of weather or not it was brought about by the willful act of someone else. The statue contemplates injuries not expected or designed by the workmen himself. It should be noted that the language of the ACT is not personal injury by an accident but personal injury by accident. This means "Personal Injury" not by design, but accident, be some mishap unexpected: Accidental Personal Injury.

Board of Trustees

It is the Board responsible for general directions and superintendence of the affairs of the institute. It however, requires the assistance of the Chairman of the Institute and exercise or done by the Institute.

How a Board Of Trustees is Appointed:

The Board shall consist of following members to be appointed by the Federal Government by notification namely:

• Secretary or Additional Secretary in the labor division who shall be the President of the Board.
• Four persons to represent the Federal Government, one each from the Ministries of Finance, Commerce, Industries and Labor.
• Four persons to represent Provincial Government are to be nominated by each of the Provincial Governments.
• Four persons to represent employers.
• Four persons to represent in institution.

Price

In respect of sales, the first rule is that no sale can take place without price. If there be no valuable consideration to support of a voluntary surrender of goods by real owner to another person, the transaction is gift and is not governed by the rules relating to sale.It may be money actually paid or promised to be paid according to the agreement is for a cash on a certain sale but in other consideration than money must be given is not a sale. Moreover the money must be given as the price i.e as quid prologue on a transfer of property on sale.

Sources of Foreign Financial Assistance

I.M.F: I.M.F provides relatively short to medium term loans for government to finance their trade deficit etc. The amount of loan depends on the amount of international trade which a country does.

World Bank: World Bank provides long term loans. These loans are provided for financing the long term development projects. These loans are very helpful as they mature in a long time and granted for development as it is very difficult to get finance development for a longer period.

ADB: ADB stands for Asian Development Bank. As the name suggests, it provides loans for development as well as for industries to the developing Asian countries.

Direct Lending from Rich Countries: Apart from financial institutions, many countries provide loans to the developing countries. America and Japan provide loans to many countries and Pakistan has repeatedly borrowed from America.

Political Obstacles

Feudalism: In rural areas, feudal not only have huge wealth but also have unlimited power. Their area power is another state in a bigger state. Their rein continues in perpetuity from one generation to another.

Law and Order Situation: Law and order situation in Pakistan has been very poor especially in a large metropolitan and hub of trading city like Karachi. Law and Order is essential for the Foreign Direct Investment. Deteriorated law and order situation not only affects trading and business activities but also creates a lot of fear and disappointment on the part of investors and businessmen.

Political Instability: Political instability has been Pakistan's worst political problem. Governments change every 2nd year. There is no consistency of policies. The projects of former government are abandoned by the later government and the money and time involved in that project goes wasted.

Corruption: Corruption in political circles is one very common thing in Pakistan. Pakistan one ranked second on corruption. Financial resources both from foreign aid and loans and from domestic loans go into the hands of corrupt leaders and the whole nation has to suffer.

Social Security

Social Security Ordinance was promulgated in 1965 which renders great help to the worker in difficult times. This Ordinance made it possible for the worker to maintain himself in time when there is no income due his disability to do any job which may procure wages in the form of money to him and the disability is caused by some dis care, or a female worker and the days of her nearing delivery of a child.
Social Security Institution has been set up by the Government for the implementation of this Ordinance. This Institution is a corporate body having a perpetual succession and a common seal.
Power of direction and superintendence of the Institution of vested in a Governing Body which is assisted by a Commissioner. In discharging its functions, the Institution will consist of a Chairman, four persons to represent the Government, one each for the department of Labor, Industries, Trade and Finance. Three persons will represent the employees, three persons will represent the secured persons and the medical adviser who will be an ex-official member.

Assignment

The transfer of right and liabilities under a contract is technically "assignment of contract". Prima facie, there cannot be an assignment of a contractual liability, and where the promise consents to accept performance from a third party, there is a substitution of a new contract and the old contract disappear and all rights and liabilities under it are extinguished. This is technically called "N ovation".
There is no section in the Contract Act which deals generally with the assign ability of contracts. A contract cannot effect any one but the parties may, under certain circumstances drop out and bring others in their place.

Contract Between the Parties

Sale of goods under Islamic provision is a Contract between a seller and buyer. For valid Contract it must be an offer and acceptable. The Contract also follows with lawful consideration. There must be a law object and free consent of the parties.
Sales could either be on cash or credit base, but time of credit paid should be fixed. At the time of sale the seller must have the ownership of the goods.

Rights of Buyer

To have delivery as per contract: To get delivery of goods of actual quantity contracted for. If the goods offered are in quantity more or less than that contracted for, or if, want is offered is mixed with goods of different description, the buyer, has a right, subject to the usage of trade:

1. To reject the goods, if less is delivered.
2. To reject the excess or even the whole, if more is offered.
3. If the good are mixed with other not ordered, to reject the whole or those not according to the contract.

If the contract is an installment contract, and the terms of the contract permit, the buyer has a right to repudiate the whole contract, for any defect or non-delivery of any installment and where he has accepted goods to claim compensation.

The buyer has a right to sue for damages for breach or warranty or for non-delivery of the goods or interest. He may also sue for specific performance.

Duties of Buyer

To take delivery of the goods and pay for them. Also to pay any incidental charges for the care and custody by the seller if the goods are kept by him on behalf of the buyer.

Rights of Seller

When the buyer wrongfully neglects or refuses to accept and pay for the goods, the seller has to sue for damages for non-acceptance of the goods.

Where property in goods has passed to the buyer, the seller has a right to sue for the price of the goods whether the possession is with the buyer or seller. Even where ownership has not passed but the buyer has agreed to pay the price on a certain day fixed irrespective of his obtaining delivery of goods the seller may claim the price.

Duties of Seller

The first duty of the seller is to deliver the goods. Delivery may be, symbolic or constructive. He must deliver the goods according to the Contract and where there is a condition precedent to the performance of the Contract the seller need not deliver unless the condition is satisfied.

Unless otherwise agreed, delivery of the goods and payment of the price are concurrent conditions. The seller must be ready and willing to pay the price to the seller.

It is not the duty of the seller to send or carry goods to the buyer unless the contract so proves. His only duty is to place the goods at the buyer's disposal. It is the buyer's duty to demand the delivery and accept it when tendered. But the goods must be in a deliverable state at the time of delivery or tender thereof.

Where the goods are delivered to a carrier the seller is bound to enter into a reasonable contract on behalf of the buyer with the carrier for safe transmission of goods. In a transit by sea the seller must inform the buyer in time so that he may insure the goods.

Lien

Lien means a right exercised by one over some one else property.
Liens are of two kinds : Particular Lien, and General Lien. A particular lien is one which is available only against that property in respect of which the skill and labor are used. A general lien, on the other hand, is a right to detain any property belonging to the exercise the lien in respect of any possession of the person trying to exercise the lien in respect of any payment lawfully due to him. A general lien is the right to retain the property of another for a general balance of accounts, but a particular lien is a right to retain it only for a charge on account of labor employed or expenses bestowed upon the identical property detained.

Doctrine of ULTRA VIRES

A Company can not do anything beyond its powers, and any act beyond such powers is '" Ultra Vires" and void an can not be verified even by the assent of the whole body of shareholders. An ultra vires act is improper because it is violation of the law and diversion of the assests of the Company to a purpose not contemplated by the members and creditors of the Company. An ultra vires act is not binding upon the Company and can not be ratified. The Company can be restrained from employing its funds for purpose other than those stand in the Memorandum. Thus a Company formed to carry on one trade can not carry on another trade.

Memorandum of Association

The memorandum of Association of a Company is its charter, prescribing the Company's name, registered offices, objects and capital also defining limitations and powers. Its sets forth the fundamental condition upon which alone the Company is allowed to be incorporated. Conditions which are also introduced alike for the benefit of creditors and the outsider public as well as for shareholders.
A company can not exercise any powers which are not either expressly stated in the Memorandum or as may be implied therefrom. A company must act within and not outside the scope of Memorandum. The Memorandum of Association is thus one of the most important documents which form the very foundation of the company.

Every Memorandum has the following clauses.

1. Name Clause.
2. Situation Clause.
3. Object Clause.
4. Liability Clause.
5. Capital Clause.
6. Association Clause.
   

Total Disablement

Total disablement means which disablement whether of a temporary or permanent nature, as incapacitates a workman from all work which he was capable of performance at the time of accident resulting a such disablement provided that permanent total disablement shall be deemed to result from the permanent total loss of sight of both eyes or form any combination of injuries specified in Schedule I to this Act.

Partial Disablement

Partial Disablement means where the disablement is of a temporary nature, such disablement as reduces the earning capacity of a workmen in any employment in which he was engaged at the time of accident resulting in the disablement and where the disablement is of a permanent nature, such disablement as reduces his earning capacity in every employment which he was capable of undertaking at the time provided that in every specified in schedule of the Act shall be deemed to result in paramount partial disablement.

Void Agreement

A contract is said to be void under what us alleged to be the contract does not confer and right or impose any obligation on either party. It is therefore a little illogical to take of void contracts, for what is supposed to be take of void contracts at all. It is, however, conveniently used to describe where there is an apparent agreement but it will not have any legal effect, either because some essential ingredient is lacking or because it is contrary to some law or opposed to public policy.
A contract may be void due to mistake, illegality of its object or such object being contrary to the public policy and incapacity of the parties.

Revocation of an Offer

Revocation means "Cancellation ". It may be revocation of Offer or Acceptance.
An offer may come to an end by revocation, Lapse or Rejection.
Section 6 deals with various modes of revocation of an offer. In all cases offer comes to an end:

1. Revocation of offer by communication of notice.
2. Revocation by Lapse of time.
3. Revocation by failure to fulfill a condition precedent to acceptance.
4. Revocation by death or insanity of the offeree.
5. Revocation by cross offer.
6. Revocation by failure of accept according to the mode prescribed.
   

Offer

When a person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such an act or abstinence, he said to make an offer. An offer becomes complete when it is communicated to the offeree. In the absence of such communication, the offer is of no effect so far as the offeree is concerned.

Essential Ingredients of an Offer:

1. The offer must disclose an intention to create legal relations and must be capable of creating legal relation.
2. The terms of an offer must be certain.
3. The offer may be general or specific.
4. There can be no valid offer unless it is communicated to the offeree.
5. The offer must contain terms in which proposer is willing to act.
6. The offer must be made with a view to obtain the consent of the other party to the act or abstinence which the proposer is willing to do or not to do.
7. An offer may be either express or implied.
8. A proposal is something different from an answer to a question, an invitation to an offer and a statement of intention.
   

Pledge , Pledgor, Pledgee

Pledge is not a variety of B ailment. Section 172 of the Contract Act defines a pledge as follows: The b ailment of goods as security for payment of a debt or performance of a promise is called Pledge, The bailor in this case is called the pawn er or the pledger and the bailey is called the Pawnee or the pledgee. The bailee under a contract or pledge does not become an owner but acquires a special property over the goods pledged by virtue of his possession of the goods. Any kind of documents, or valuable, things of a personal nature, may be actual or constructive, and it is pledge, it may be actual or constructive, and it is sufficient if the thing pledged is delivered under the contract without a reasonable time of the lender's advance being made.

Sale and Agreement to Sell

A contract of sale of goods includes both,

1. Sale
2. An Agreement to Sell

A contract of sale is defined as " a contract whereby the seller transfer or agrees to transfer the property in the goods to the buyer for a price.

Sale: "Where under a contract of sale, the property in the goods is transferred from the seller to the buyer"

Agreement to Sell: "Where under a construct of sale, the transfer of property in the goods is to take place at a future time or subject to some condition there after to be fulfilled the contract is called an "Agreement to Sale"

An agreement to sell becomes a sale where no time elapses or the conditions are fulfilled subject to which the property in the goods was to be transferred.

Principal and Agent

Agents is a person employed to do an act for another or to represent another in dealing with third parties".

The Person for whom such act is done or who is so represented is called "Principal"

Any one who is of the age of majority, according to the law to which he is subject, and who is of a sound mind may employ an agent, where minor appoints an agent the latter is personally liable.

Any person may be an agent, because it is the principle who is bound by agent's acts. It is for the principal to see his interest and to appoint those person as agent who have contractual capacity.

Offer And Acceptance

Offer: When one person signifies to another his willingness to do or to obtains from doing any thing with a view to abstaining the assent of that other to such act or abstinence, he is said to make a proposal.
A Proposal means an offer. Person making the offer is called Offerer.
Person to whom the offer is made is called offeree.

Acceptance: "When the person to whom the proposal is made signifies his assent thereto, the proposal is said ti be accepted". A proposal when accepted becomes a promise."

Eradication of Poverty

Pakistan Poverty Alleviation Fund has been created to overcome the problem of poverty suffering part of the population. A financial air of Rs. 2590 million has been provided in 75 districts benefiting 739,416 per sons.

Invalidity Pension

An insured person who suffers invalidity shall be entitled to get invalidity pension rates provided he fulfills the following conditions:

• Contributions in respect of him were payable for not less than 15 years.
  
• Contributions in respect of him were payable for not less than five year since his entry into insurable employment and for not less than 3 years during the period of fives preceding the month in which he sustains invalidity.
• In either case he is under (60) years of age or 55 years of age in the case of women.
  

Clean Bill Of Lading

It will be noted that the bill of lading begins with the words "Shipped in good order and condition" and the last words are" wright, value and contents are un-known". Either of these statements are retained by the matter according to the circumstances of each case, where the master states that the goods are shipped in good order and condition" he is bound to deliver the goods in the same good condition as they were at the time of loading, ordinary depreciation on the voyage being excepted.
The document in this case is called Bill of Lading. In the case of clean Bill of Lading the shipowner will be e stopped from proving that the goods were not in good area and conditions are at time they delivered on board. The retention of the liability of the shipowner, as there is no admission that hte goods have been delivered in good order and condition.

Public Co-operation

Successful planning and public co-operation are complementary. The people co-operate with a plan when they realize that the plan is in their own interest. Public co-operation , makes planning easy and certain. The symptoms of public cooperation are more labor readiness and productivity, availability of more labor power, increase in investment and will to work. If the people do not accept a plan willingly, the success of such plan becomes doubtful. For gaining public cooperation and public opinion, the planners should use the method of interviews and surveys and planning decisions should be on the basis if majority will. The people cooperate in planning when they realize that the benefits of plan would equality be distributed amongst them. There are various economic and social bottlenecks which make the implementation of the plan difficult but if the people, accepting the plan, cooperate then these bottlenecks are automatically eliminated. It should be remembered at this stage that the people would not cooperate just on the glamorous commitments. For achieving real cooperation, the planners should take measures which are visible to the people,
As Lewis says :
"Public cooperation, in the planning machinery, works not only as a lubricant but also petrol".

Sufficient Required Information

Determination of objectives and targets is the basic important aspect of planning but for determining objectives target necessary information are indispensable. There is no relationship between lack of knowledge and planning. Planning may prove to be successful only when the available information are properly analyzed and synchronized regarding the sector for which plan is prepared but information should also be possessed concerning other allied sectors. No country can survive in the modern age isolating it from the rest of the world therefore, information pertaining to the nature of other countries are also equality important. The facts and figures, for complete information, should be collected on regular basis and they should be correct and trustworthy. These conditions can be fulfilled only when a central body is made responsible for collecting the statistical information. Collection and selection of required information is a complex exercise therefore, a special training of the people working in this central body is a must.

Ability and Capability of Planners

After paper work, the stage of implementation of plan comes therefore, the experts who are held responsible for implementation should be capable enough to instruct their subordinate clearly and effectively regarding the plan. Not only this but the subordinates should also be capable to make their own subordinates clear about the plan so that they accept the plan. Lack of acceptance can also make a perfect plan a failure. One of the conditions for the successful planning is also the entire planning machinery should transfer the facts and figures in a manner that they could easily work on them.

Policies

The objectives of a plan can be achieved through policies and tools. There are many policies and tools to achieve the objective of plan but all the policies becomes necessary. It is necessary for successful plan that the right policies and tools of policies should be selected in combination of the demands and circumstances of the country. The economic and social institutions, at the time of selecting the policies, should be kept in view.

Full Employment

Full or Maximum level of employment depends on effective and aggregate demand. Unemployment in the developing countries is a serious problem therefore,not only achieving the high level of employment is necessary in these countries but to main the same is also less important. For this purpose the government, using its income and expenditure policy, could increase the aggregate demand.

Level of Consumption

According to Keynes, required level of consumption (effective demand) is a necessary condition for full employment because if this required level of consumption is not maintained, unemployment would be the result. One of the objectives of the financial policy, in this manner, is also to maintain this required level of consumption. Similarly, during depression, by decreasing taxes and during inflation by increasing taxes, this required level could be maintained.

Price Stability

The fiscal policy could also be used to keep the price level stable if the prices fall sharply, the production activities go down due to fall in the profits due to which unemployment flourishes. Similarly, if the prices are increasing sharply, the economic hardship of the people are increased. Both these situations culminated into one common result, economic chaos is created financial policy can be used to redress this situation.

Equitable Distribution of Wealth

If the distribution of wealth is inequitable, the economic gulf between the rich and poor widens persistently. Effective and aggregate demand in the country falls due to which savings are not converted into investments and consequently, economic backwardness is created. Fiscal policy could curtail this economic disparity. In this situation the government, levying the high taxes on the rich and consuming on the welfare and aid to the poor, could curtail this difference between rich and poor to a grater extent.

Control on Business Cycles

Business cycles create economic oscillations; sometimes the economic activities get fast momentum but next time they slow down. Consequently, the economy becomes the victim of uncertainly and instability. Uncertainly leads towards unemployment due to which economic instability is bound to be created in a planned economy, through control on these oscillations, economic stability could be achieved.

Social Justice

A capitalistic society is a competitive society where stronger become more strong and the weaker more weak. Minority becomes the master of the fate of majority. Industrial power is concentrated in few leaving the majority empty handed. Class conflicts become the rule of the day. For establishing the social justice, fiscal policy could effectively be used. The government, levying the heavy taxes on the rich class, could aid the deprived class by consuming the acquired income on the welfare of the poverty suffering people.

Elimination of Regional Disparity

In the developing country including Pakistan, regional economic disparity is a serious problem due to which economic development becomes imbalance. If the fiscal policy is designed regional feelings, eliminating inequalities, the damaging social and economic effects could be avoided because Pakistan was dismantled due to regional feelings.

Pace of Economic Growth

In a developing country like Pakistan, not only achieving the rapid pace of growth is needed but maintaining the same pace is also quality important. For increasing the rate of economic growth, required proportion is necessary to maintain between the savings and investments. The fiscal policy could be used effectively for achieving this objective. For encouraging savings and investments, various measure could be taken through required changes incorporated in public expenditure and taxes.

Internet

The usage of Internet has also increased in Pakistan Businesses use e-mail for correspondence. They make websites which serves as an electronic shop which remains opens 24 hours a day and transactions can be done online with the click of a mouse.

Lack of Trained Manpower

It is the human resource of a country which brings about change in the socioeconomic condition of the country. Resources themselves can not help in economic development until they are optimally utilized. But, to utilize the resources optimally and adequately, we must process trained manpower which is adapt at using latest technology in production. Unfortunately, we lack in trained manpower.

Illiteracy

According to government's statistics, literacy rate in Pakistan is 40%. Even if we take it as right, this figure shows a very dismal picture of the state of education in Pakistan. Even Sri Lanka maintains a 90% literacy rate. Pakistan allocates only 5% of its budget on health and education.s

Technical and Vocational Training

The significance of technical and vocational training for boosting the capability of the working population for getting employment, can't be denied. Presently 68024 training centers for gents and 54638 training centers are working for women. The present technical curriculum at every stage is under review so that the nature of labor market could be changed accordingly at local as well as international level. Women training centers are specially being assigned attention.

Unemployment and its Remedies

Unemployment is the common problem of all the countries which are thickly populated because when the population crosses the reasonable limit, it becomes burden on the country's resources. The available employment opportunities lags behind their demand. If population is in excess, the supply of labor would also be higher due to which general wage rates fall down and so the libing standard of the people deteriorates. Apart from it, if the density of population is lesser that requirements, the resources of the countries remain idle which is nothing but the waste of resources.

I.M.F (International Monetary Fund)

The I.M.F was conceived in July 1944, when representatives of 45 governments meeting in the town of Bretton Woods, New Hampshire, in the Northeastern United States, agreed on a framework for international economic cooperation. They believed that such a framework was necessary to avoid a repetition of the disastrous economic policies that had contributed to the Great Depression of the 1930s.

The IMF performs three Main Activities:

• Monitoring national, global and regional economic and financial developments and advising member countries on their economic policies (Surveillance)
• Lending members hard currencies to support policy programs designed to correct balance of payments problems.
• Offering technical assistance in its areas of expertise, as well as training for government and central bank officials.
  

Human Capital

There are four factors of production i.e land, labor, capital, and entrepreneur. Capital and land can be classified as non-human resources, whereas; labor and entrepreneur can be classified into human resources. Out of all the resources, human resource is the most important resource.
It is a human resource which utilizes all the resources in an effective way to produce goods and services. Laborers working in industry are crucial for running industries. They make into use machines for production. Similarly, people working in fields make use of land to grow various crops. Moreover, it is the entrepreneur which manages the entire business by efficiency utilizing all the resources.
There has been debate on the population growth as to whether it is useful or not, but the fact remains that it is human beings who make use of resources and not the resources which should determines human fate.

Controlling Rapid Population Growth

The rapid population growth is not very good to the economy. Malthus argued that our resources do not increase with the increase in population with the same ratio. Therefore, time after time, wars and natural calamities bring disorder into order.
Although Malthus's argument was denied by all major economists, but it remains a fact that rapid population growth which is not in line with the increase in resources increases a lot of problem.

Utilizing Comparative Advantage

It is often a case that many countries can produce a particular good or commodity, but one country can produce it cheaper than anyone else, it is said to have comparative advantage in producing that good or commodity. Similarly, almost every country has comparative advantage over a particular product. This results in best utilization of resources of countries concentrate on producing goods in which they have comparative advantage.

Balance of Payment

"The net difference between exports and imports (or receipt and payments) of a country during financial year".
The balance of payment can be represented in following forms:

1. Current Account: Transaction of tangible (visible) and intangible (invisible) goods. It shows transaction of goods and services.
2. Capital Account: It shows the changes in the monetary assets and liabilities of a country. Changes in assets arise due to foreign exchange in possession, capital invested by Pakistan abroad, loan extended by Pakistanis etc. Changes in liabilities arise due to investment by the foreigners in the country, loan advanced by foreign residents. etc.
   

Balance of Trade

"The net difference between exports and imports (or receipts and payments) of visible of tangible goods".
The International trade consists of exchange in value of goods as well as services. While balance of payments shows the difference between receipts and payments, it incorporates both the visible goods and invisible goods. Whereas, balance of trade only shows the difference between receipts and payments of the visible goods. Therefore, for comprehensive analysis, balance of payment is more referred to than balance of trade.

Unbalanced Theories

Unbalanced theories are based on the principal that it is not possible especially in a developing country that all sectors can grow simultaneously at the same rate. Therefore, developing nations must look to invest more heavily in strategic sectors. The growth  in specialized sectors will transfer to other sectors of the economy later. Since developing countries face deficiency of capital, they can not simultaneously invest in all sectors of the economy. Therefore, it is necessary that they choose few strategic sectors in which they can specialize.

These theories also suggest strong relationship between private sector and government. They have been criticized for giving way to inflation in the economy.

Balanced Theories

Balanced theories are based on the principal that growth should be sought in all sectors ofthe economy at the same level. Therefore, economic growth should be based on growth in all sector of the economy. These theories are thus termed as "Balanced Theories", which propose balanced growth achieved through growth in all sectors of the economy.

These theories suggest that size of the market is very small in developing economics. Moreover, these economies face dearth of entrepreneurs. Therefore, the role of the government is very crucial in countries where balanced theories are practiced.

Soil and Salinity Problems

When the upper layer of the soil leaves its place by wind or water, this creates the problem of "Soil Erosion". When the soil erosion is caused by wind, it is termed as "Wind Erosion". When the soil erosion is caused by excessive flood water damaging the upper surface of land, it is termed as Water Erosion". Soil Erosion decreases the fertility of land. In the worst case, it makes the land completely barren. Lands which have a grass cover are better protected against soil erosion than lands without grass. Each year, approximately 8000 hectares of land is damaged due to soil erosion.

When mineral salts dilute in the water, this creates the problem of "Water of Salinity". Lands where the composition of soil contains chemicals like sodium sulphate, magnesium chloride, magnesium sulphate etc, are more prone to salinity problems. Each year, a large part of agricultural land becomes victims to his problem.

Consumer Goods Industries

"Consumer goods industries comprise of goods which are used for consumption by final consumers".
Consumer goods are finished products. The buyers of these goods are final consumer. These goods are brought to the consumers through wholesalers and retailer. They are essential for the economy because they complement capital goods industries by consuming the industrial production.
Usually buyers of consumer goods are in much more quantity than for capital goods industries. The amount of substitutes is higher in consumer goods industries than in capital goods industries. The level of competition is much higher in consumer industries than in capital goods industries.

Major Consumer Good Industries of Pakistan are as follows:

• Cement Industry
• Confectionery Industry
• Fast Moving Consumer Goods Industry
• Hotel Industry
  

Increase In Employment

Developing countries usually suffer from unemployment. Many people are engaged with agriculture whereas; the supply of land is not enough to compensate every one for employment. Moreover, farmers growing seasonal crops remains unemployed off -season. The growth in industrial sector can provide employment opportunities to many people. Natural lands and fields are fixed but unlimited industries can be established provided there is enough investment available.

Reducing Cost of Doing Business

Investor all over the world are interested to find out cost of doing business in a particular country before investing in any country. They look for wages and utilities expenses to make an estimate of cost of doing business. Labor wage in Pakistan are low but utilities are much too expensive. In china, electricity is free. In Pakistan, electricity charges are exorbitant for commercial purpose and the recent increase in prices for gas will not make improve.Cost if doing business must decrease to attract foreign investment.

Critical Analysis of Quantity Theory of Money

In the following lines, Quantity theory of money is critically analyzed:

Analysis of Assumption in the theory:

Following are the assumptions upon which this theory is based:

• Quantity of money changes, but not the velocity of money, whereas; velocity of money also changes and brings the same result as if quantity of money changed.
• Quantity of money influences prices but the reverse is not true. In other words, quantity of money determines the level of prices. But, prices are affected by many other factors than just the quantity of money.
• Full employment prevails in the economy. This does not happen in the real world.
• Velocity of money remains constant which is not possible.
  

Financing the Savings and Investment Gap

For increasing production, one needs investment. This investment comes from saving surplus units. If the savings equal investment, then there is no need of foreign aid. But, if required investment is greater than savings, then the gap has to be financed through foreign aid. Therefore, foreign aid helps to continue production if investment requirements can not be financed with savings.

Inefficient Supply Chain

In the Supply chain of marketing agricultural products, there are a lot of people involved like weigh er, accountant, collector, commission agent etc. The goods have to pass from each one of them. It takes more time for the goods to transfer from the farmers to the consumers. This results in waste of yield as well as increase in price which consumers have to pay when the goods finally reach to them.

Importance of Capital Formation

Following points illustrate the importance of capital formation in the economic development:

• Capital formation is vital for economic growth.
• Capital resources of a country increase investment and needed finance for the industries.
• Capital formation helps in eradicating the vicious circle of poverty.
• Capital formation increase investment and production activities which results in more employment opportunities for the masses.
• Capital formation helps a country becoming self sufficient and independent all foreign pressures.
• Expenditure on Human Resource Development increases productivity and efficiency of work which later translates into better and more production.
  

Modifying Monetary Policy and Fiscal Policy

It is the need of the time that Government must modify its monetary and discal policy. Rapid increase in money supply has increased inflation to unlimited proportions. Increasing consumer credit has encouraged people to spend more on maintaining a lavish lifestyle rather than making a productive use of wealth. Moreover, the taxation system should be progressive. Indirect taxes which affect common people should be reduced and direct taxes which affect rich people should be increased.

Economic Growth

"The Increase in production that results from capital accumulation and technological change."

Economic development and economic growth are different things. Economic growth in merely the increase in the goods and services that a country produces; whereas,economic development encompasses both the increase in production and the mechanism and structures that bring about it.
In other words, economic development is not only concerned with the increase in production but it is also concerned with making it permanent by a radical change in structure, institution or technology etc.

Boost up Economic Growth

Privatization would pave the way for a private-sector led economic growth. Recent examples of growing economies prove that private sector is the engine of growth. If private sector is strong in an economy and regulatory mechanism are functioning property, the economy is likely to prosper.

Reducing Tax Evasion

Tax evasion is a tendency not to pay taxes. People try to escape from taxes because they think the government is charging more taxes and that the tax revenue will go into the pockets of Government officials. Government has to take measures to reduce tax evasion especially from highly rich industrialists and feudal lords.

Improve Taxation Structure

The present taxation structure is very complex. People try to hide away from tax authorities because they think that Government will take a large part of their income. They give bribes to the auditors and income tax officers and pay less taxes. Government has to simplify procedure for tax calculation and collection so that the trust of people can be achieved and tax base can be increased.

Increasing the Tax Revenue

Taxes are the government's primary source of revenue. Government earns 70% to 80% of its revenue through taxes. But, it is a fact that only 10% to 15% of the population pays taxes. If Government can increase its tax base, it will generate more revenue through which it can match expenditure.

Financing Priority Sectors

The government has provided specific guidelines to banks and financial institutions to finance the priority segments and industries. This policy makes sure that the allocation of resources is directed and concentrated on areas which are more important to the progress of the country.

Other than above mentioned measures, the government has also taken following steps to promote these industries over a period of time.

• Providing loans from foreign institutions.
• Providing technical training.
• Establishing development and regulatory authorities.
• Establishing Pakistan Industrial Development corporation.
  

Relaxation of Taxes

The following relaxation in taxes has been provided by the government in the above mentioned industries.

1. Allowances to charge high rate of depreciation on plant, machinery and building.
2. Provided rebates on different occasions.
3. The relaxation in taxes for expenditure on scientific research.
4. The reduction in duty on the import of various raw materials, plants and machinery etc.
5. Income Tax incentives and tax relaxations to start a factory in a less privileged area or locality.
   

Improving Productivity through better Technology

It is not the resources but the productive use of them which increases the level of production. The technology or methods of production used in the agricultural sector are outdated and unprodcutive. By using the latest technology, the level of productivity can be increased in all sectors of the economy especially the agricultural sector. The increase in the cost of production due to the intoduction of technology will be offset by the increase in the productivity.

Deficiency of Capital

It is the capital which mutiplies and produces more wealth. If the capital is insufficient, the dream of economic development can not be realized. One essential condition of capital formation is saving. But, since ther per capital income in Pakistan is so low that majority of the people are hardly able to save anything from their income. Low savings retard investment. With low investment, the level of production decrease which creates enumployment and decrease in GDP.

Disallowing Import of Luxuries

Government can for the time being put restriction on import of luxuries goods like expensive cars etc, or it can at least levy heavy duty on it to discourage such lavishness for a developing country like Pakistan.

Increasing Import Duty:
Government must levy high import duty on consumer products which are no productive and contribute very little to the economy. An economy is not improved there are more foreign cars on the roads.

Increase in Exports

Instead of concentrating on decreasing imports, we must also not forget the importance of increasing exports. Imports in the productive areas can not be reduced and rise in the value of imports due to the rise in oil prices can also not be avoided. Therefore, we must increase exports by identifying new markets, arranging foreign and local exhibitions for Pakistani Products, providing low export refinancing rate and by exempting taxes related to exports oriented industries. Decrease In Export Duty: To increase exports, the Government must reduce export duty or in the best care remove any export duty for the time being to encourage people to produce more and export it.

Reasons of Agricultural Backwardness in Pakistan

In the following lines, few important problems in the agricultural sector of Pakistan will be discussed:

Lack of Productivity:
In is not the resources itself but the productive use of them which increases the level of production. The technology or methods of the production used in the agriculture sector are outdated and unproductive. The old method of suing carts and manually putting the pesticides in crops by traveling through the field on foot is a very slow mechanism and thus the level of productivity is very low in agriculture sector.

Natural Calamities:
Natural calamities like food, heavy rainfall and no rainfall when required are other important problems in the agriculture sector. With no artificial system in place, we rely heavily on the natural conditions and when they are not favorable, our yield for all crops is affected.

Underutillization of Resources:
The resources in agriculture sector are underutilized. A large part of agricultural land remains underutilized due to lack of water. People engaged in producing seasonal crops remains unemployed and their fields remains underutilized for that period.

Lack of Agricultural Credit:
In the recent time s, the banks have provided huge consumer credit in the area of car financing and home financing. These loans have only increased consumption. These loans have been used productively. If these loans have been granted to the poor farmers, they would utilized it for production and it would have been far better to have more agricultural production than more cards on the road.

Energy Resources of Pakistan

The major energy resources of Pakistan are as follows:

Petroleum:
Pakistan is not self sufficient in producing the required amount of petroleum for its needs. Pakistan only produces petroleum up to 15% of its requirement and the rest of the requirements are fulfilled with imports. The demand for petrol has sharply increased whereas; the production has not increased to match the needs. One of the major reasons why Pakistan is unable to extract more petroleum resources is lack of technology and its application.

Following is a list of places where surveys are conducted for the possibility of petroleum extracts:

• Tharparkar
• Hyderabad
• Waris Shah
• Districts of Mirpur
• Kohat
• Dera Ismail Khan etc

Coal:
Pakistan is not self sufficient in coal. Although coal mines exist in Pakistan but the quality of coal found in Pakistan is of very poor quality. Moreover, its only fulfills 7% of our coal requirements.

Coal Mines are found in the following places in Pakistan

• Mine of "Makarwal" which extends of Kalabagh. it approximately possesses 20 millions ton of coal.
• Lakhra
• Coal mines in Quetta , Surdag and Harnai. The coal extracted from there is used in Pakistan Steel Mills.

Natural Gas:
Pakistan is rich in possessing a substantial amount of natural gas. Natural gas as an alternative for fuel is a blessing. Since Pakistan is quite rich in natural gas, Its able to use it as an alternative for fuel in industries.

The Lip Muscles

The orbicular is orris closes the lips and, when contracting, its lateral insertions into the modioli are fixed by the contraction of the quadratus labii superioris and inferioris, zygomaticus, triangular is, and buccinator muscles. The incisal muscles also fix it to the sulci of the alveolar ridge.
During such function there is considerable inward pressure on the labial surfaces of the teeth and the labial sulci are reduced in depth. The upper denture, due to its better stability, can usually withstand such pressure provided its labial flanges have been designed correctly. The lower denture , however, particularly in cases presenting poorly formed alveolar ridges, is likely to be raised from the ridge in front and pushed backwards. Experienced denture wearers counteract this pressure of the lip by a forward pressure of the tongue but assistance can often be given to the tongue by carrying the heels of the lower denture up the ascending ramie of the mandible on such cases. The distal extension of the lower denture are often referred to as posterior stops.

Function of Tongue

Excluding taste, these are twofold. It controls the food during mastication and swallowing. It controls and directs, with the aid of the lips, teeth and palate the vibrating airstream from the larynx to form the sounds of articulate speech.
During mastication the tongue performs as follows. As the piece of food is being incised the tip of the tongue controls and steadies it. In the case of food which does not require incising the tongue is protruded slightly and its center depressed to form a shallow concavity into which the food is placed.

The Tongue

Rest Position of the Tongue

The dorsum rests against the roof of the mouth and the tip of the tongue rests in contact with the lingual surfaces of the lower incisor teeth.
The lateral borders lie against the lingual borders of the posterior teeth and protrude slightly into the free-way space between the occlusal surfaces of the upper and lower teeth.
Posteriority the soft palate rests on the dorsum of the tongue during normal nasal breathing.
When the teeth are extracted the tongue spreads laterally and the lips and cheeks fall in to meet it so filling between them the space left by the teeth, sometimes termed the neutral zone or zone of minimal conflict.

The Upper Denture

The periphery of the upper denture commencing with the posterior border is as follows.
The posterior edge should sink slightly into the non-movable tissues of the soft palate following line from the hamular notch of one side to that of the other close to the fovea palati. The posterior border then traverses the hamular notch and rises up into the sulcus on the buccal side of the tuberosity. The height to which it rises is determined by the attachment of the buccinator in this region as that muscles sweeps backwards to its attachment to the hamulus. The space is also defined distally by the mandibular coronoid process and buccally by the contracting masseter muscles.

The Lower Denture

Tracing the periphery of the lower denture, commencing with the distobuccal aspect, the outlone necessary to conferm to the associated muscles is as follows.
The periphery runs downwards and outwards from the retro molar pad to the first molar region following the attachment of the buccinator muscle as it sweeps outwards from its region along the pterygo-mandibular raphe. The periphery forms an almost straight edge because the buccinator is flattened by the contracting masseter muscle. For this reason, this part of the periphery is sometimes known as the masseteric plane.

Sulcus

The depth of the sulcus is dependent on the height of the alveolar ridge, the mobility and tension of the surrounding muscles and the alveolar mucosa lining the area. Over extension of the denture, in height or width, in the sulcus will cause instability or soreness, as will any roughness of the denture periphery. The mucogingival line forms the junction between the attached and reflected mucosa.

Frena

These move with the muscles of the lips, cheeks and tongue during speech, mastication and all activity. The peripheries of the dentures must be designed to allow for these movements, but such allowance must not be excessive otherwise the peripheral seal will be broken. The correct and incorrect method of allowing for Frena developed frena, or those which are attached too high on the alveolar ridge, may be removed surgically. In mouths exhibiting very poor retention, the removal of all the frena increases the peripheral seal.

Soft Palate

Attention has already been drawn to the correct placing of the posterior edge of the upper denture on to the non-movable tissue of the soft palate. Patients may be broadly divided into two classes with regard to this non-mobile area:

1. Those whose exhibit movement at the junction of the hard and soft palates.
2. Those whose soft palates move some distance behind the junction.
   

Palatal Vessels and Nerves

Dentures made when using certain compression impression techniques may bring pressure to bear on the foramina through which the blood vessels pass. Relief of the anterior and posterior palatine foramina should be ensured in such cases either by using the correct impression technique or by foiling the cast surface in the area of the foramina.

Rugae

These are said ti be associated with the sense of taste and the function of speech. They assist the tongue to absorb, via its papillae, the fluids containing the four primary flavors. They also enable the tongue to form a perfect seal when it is pressed against the palate in making the linguopalatal consonant stops of speech.
When a smooth, thick, artificial denture palate covers these elevations of the mucosa, difficulty is sometimes experienced with both taste and speech. The high degree if adaptability of the normal individual usually results in rapid adjustment to these problems, but the copying of rugae on the palatal surface of a denture, or especially by using the corrugation of a thin metal palate, may help to reduce the disability. In some cases ,however, these artificial rugae cause interference with speech, particularly if they are made too prominent.

Hamular Notch

The tissues in the hamular notch (pterygomaxillary notch) are easily compressed and the postdam line of the upper denture should be carried into this region to ensure an adequate peripheral.
In case showing gross alveolar resorption, the hamular notch flattens and the buccinator fibers in the region may become very prominent. Care should be taken in such cases that the posterior edge of the upper denture is not carried too far back on to the pterygo-mandibular.

Tuberosities

Large maxillary tuberosities bounded by deep sulci offer vary satisfactory resistance to the lateral movement of the denture.
tuberosities sometimes exhibit buccal undercut areas. If only one tuberosity is undercut this can sometimes be utilized to retain the denture on that side by slipping the distobuccal flange up over the bulge first and then rising the other side of the denture. Tuberosities exhibiting gross undercuts may require surgical treatment.

Alveolar Ridges

It must be remembered that edentulous alveolar ridges are not natural structures. They are what is left of a bone after diseases and surgery have affected it. The alveolar ridges vary greatly in size and shape and their ultimate form is dependent on the following factors.

1. Development structure:the individual variation in bone size and its degree of calcification is great.
2. The size of the natural teeth: the teeth, like the bones, show wide individual variation in size. Large teeth are usually supported by bulky ridges, small teeth by narrow ones.
3. The amount of bone lost prior to the extraction of the teeth: periodontal disease is a chronic inflammation of the supporting structures of the teeth and results in destruction of the alveolar process. If the natural teeth are retained until gross alveolar loss has occurred the resultant alveolar ridges will be narrow and shallow.