PAPER – IV
(Specific Contract And Law
of Partnership)
(Paper Code : K-2004)
The course shall comprise of
the following :
1.
Contract of Indemnity, Contract of
Guarantee, Bailment and Pledge.
2.
Contract of Agency.
3.
Definition of Sale, Essentials of
Contract of Sale and Agreement to Sale, Duties of Sellers and Buyers, Sale by
Sample, Sale by Description, Conditions and Warranties, Rule of Caveat Emptor.
4.
Transfer of Title, Passing of
Property in Goods, Delivery of Goods – Rules regarding Delivery of Goods,
Unpaid Seller and his Rights, Remedies for the Breach of Contract.
5. Network of Partnership, Difference between Partnership
and a Company, Mutual relationship between Partners, Authority of Partners,
Dissolution of Partnership, Minor as Partner, Effect of non-registration of
Firm.
BOOKS RECOMMENDED
Anson, Law of Contract.
Bangia R.K. (Dr.), Indian
Contract Act.
Desai S.T., The Indian
Contract Act.
Kapoor S.K., Contract.
Moitra A.C., (Dr.), Principles
and Digest of Indian Contract Act.
Narayena P.S., The Law of
Partnership.
Pollock and Mulla, Indian
Contract and Specific Relief Act.
Singh Avtar (Dr.), Introduction
to Law of Partnership.
Singh Avtar
(Dr.), Law of Contract.
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CHAPTER VIII
(Sec: 124) Contract of Indemnity
“Contract
of indemnity” defined.—A
contract by which one party promises to save the other from loss caused to him
by the contract of the promisor himself, or by the conduct of any other person,
is called a “contract of indemnity”.
“Indemnity” – to make good the loss
/ to compensate for the loss
Indemnifier (Promisor) who promise
to compensate or indemnify the loss of indemnity holder (Promisee)
INDEMNIFIER (Promisor) ------------à Contract ------------à INDEMNITY HOLDER (Promisee)
Example 1: (General Insurance Company & Customer)
Insurance company offering general insurance to its customer becomes an INDEMNIFIER and the customer whose losses are compensated by the Insurance Company become INDEMNITY- HOLDER
Example 2: (Share Holder & Company)
If in case a share holder losses his shares and approaches
the share issued company for issuing duplicate shares of the same which he
lost, then the company may ask for a indemnity bond from the share
holder against issuance of duplicate shares for the losses the company may face
if the share holder might have sold the shares before he demand the duplicate
shares, this contract for indemnity bond or receiving indemnity bond from the
share holder by the company is a contract of indemnity
Example 3: (Principle & Agent)
In an Agency contract, Agent is acting on behalf of
Principle and any loss incurred by the Agent during the legal act as per agency
contract will have to be compensated by principle there for Agency contract is
an example of implied contract of Indemnity
Indemnity &
Guarantee
Acknowledgement of debt by principal debtor binds the
guarantor in all respects as if he had given express consent;
CASE:
United Commercial Bank Vs. B.M. Mahadev Babu. AIR 1992 Kant 294
Example 4: (Partners from Partnership firm)
In case of Partnership firm, partners are considered as
agents to each other as well as principles, any partner acting on behalf of
other partners legally as per partnership agreement and if he faces any loss
then other partners should compensate of indemnify his losses, and this also
considered as a contract of indemnity
EXPRESSED &
IMPLIED Contract of Indemnity
General Insurance Contract & Indemnity Bond by Share
holders are examples of Expressed contract of Indemnity
Contract of Agency & Partnerships agreements are
examples of implied contract of indemnity
ILLEGAL CONTRACT
Compensation promise on Illegal activities cannot be
considered as a Contract of Indemnity
