special contracts
TRANSCRIPT
Special Contracts
Indemnity &Guarantee
Bailment &Pledge
Agency
Sec - 124 Sec - 148 Sec - 182
Indemnity & GuaranteeIndemnity Sec - 124• One person• Makes a Promise• To another person• To save from loss• By doing something• E.G. Insurance Agreement
Parties of indemnity
Indemnifier: Person giving promiseIndemnified: Person receiving promise
Nature of IndemnityIt is a type of contingent contract.
Right of Indemnity holder Sec - 125
Indemnity Holder Is Entitled To Recover :All damages All sums paid as compromise to such suit.
Guarantee Sec - 126• One person• Makes a Promise• To another person• To pay some money• If some other person• Makes default in payment of money• Payable by him• E.G. Surety in loan agreements
Types Of Guarantee
Specific Guarantee: For a single transaction.
Continuing Guarantee: For many transactions• It may be for a fixed time• It may be revoked• After revocation it will not apply to future
transactions• It remains applicable for past transactions
Parties
The person to whom guarantee is given sec - 126Creditor
person for whose default guarantee is given sec 126.
Debtor
“is person who gives the guarantee” [section 126].Surety
Rights Of Sureties
AgainstDebtor
Subrogation – sec 140Indemnity – sec 145.
Againstcreditor
Claim securitySetoff
Againstco-sureties
Equal contribution Sec 146
Discharge of Surety• Revocation -- notice to the creditor Sec -130 • Specific guarantee cannot be revoked.• Continuing guarantee -- revoked by death of surety, sec 131• Substituting new contract Sec 62.• Conduct of the creditor• Variation -- without the surety’s consent Sec 133. • Creditor makes a composition with debtor Sec 135.• Creditors losses security given to him. Sec 141.• By invalidation of contract of guarantee Sec 142.
Bailment
Bailment is • Delivery of goods • By one person to another • For some purpose, • They shall be returned • According to the directions of the person delivering
them
MEANING: Sec 148
Same goods to be returned but form of goods may be changed. E.g. when cloth is stitched by tailor.
Characteristics of bailment
Person delivering goods is called the “bailor” Person to whom they are delivered is called the “bailee”. Sec 148
Parties
Placing an ornament in a bank locker is not bailment. Deposit of money in a bank is not bailment.
Examples :