4. Sec 131 Death of Surety
Sec 133 Variance in terms of Contract
Sec 134 Revoked by release
Sec 135 Revoked by compounding
Sec 136 Surety is not discharged
Sec 137 Discharge the Surety
Sec 138 Co- sureties
1/19/2011 ( BUSINESS LAW ) 4Astt.Prof.VIPIN KUMAR
5. Sec 139 Revoked by Creditor’s
Sec 141 Loss of Security
Sec 142 Guarantee obtained by misrepresentation
Sec 143 Guarantee obtained by concealment
Sec 144 Until a co-surety joins
Sec 145 Promise to indemnify
Sec 146-147 Co-sureties to the maximum obligation
1/19/2011 ( BUSINESS LAW ) 5Astt.Prof.VIPIN KUMAR
6. Contract of Indemnity
“A contract by which one party promises to
save the other from loss caused to him by the
conduct of promisor himself, or by the conduct
of any other person”.
Example: P contracts to indemnify Q against the
consequences of any proceedings which S may
take against Q in respect of a certain sum of Rs
200.
1/19/2011 ( BUSINESS LAW ) 6Astt.Prof.VIPIN KUMAR
7. All damages which he may be compelled to
pay in any suit in respect of any matter to
which the promise to indemnify applies.
All costs which he may be compelled to pay in
bringing or defending such suits.
All sums which he may have paid under the
terms of any compromise of any such suits.
1/19/2011 ( BUSINESS LAW ) 7Astt.Prof.VIPIN KUMAR
8. The Indian Contract Act is silent regarding the
rights of the indemnifier in a contract of
indemnity.
1/19/2011 ( BUSINESS LAW ) 8Astt.Prof.VIPIN KUMAR
9. The contract of indemnity must contain all
the essentials of a valid contract -
competency of the parties
free consent
consideration
legality of the object
1/19/2011 ( BUSINESS LAW ) 9Astt.Prof.VIPIN KUMAR
10. It is a contract between two parties – one
promises to save another from any loss he
may suffer.
The loss may be caused by the conduct of
promisor himself or any other person.
The contract of indemnity may be express or
implied.
1/19/2011 ( BUSINESS LAW ) 10Astt.Prof.VIPIN KUMAR
11. Example :
Policy of insurance is a good example
of express indemnity.
An implied promise is one where the
conduct of the promisor shows that he promised
to indemnify the other party against the loss
suffered by him.
1/19/2011 ( BUSINESS LAW ) 11Astt.Prof.VIPIN KUMAR
12. What is Contract of Guarantee
1/19/2011 ( BUSINESS LAW ) 12Astt.Prof.VIPIN KUMAR
13. Surety : The person who gives the guarantee.
Creditor : The person to whom the guarantee
is given.
Principal Debtor : The person for whom the
guarantee is given.
1/19/2011 ( BUSINESS LAW ) 13Astt.Prof.VIPIN KUMAR
14. A contract of guarantee must have:
lawful consideration
free consent
legal object
1/19/2011 ( BUSINESS LAW ) 14Astt.Prof.VIPIN KUMAR
15. THANKSTO BE MENTALY PRESENT IN CLASS
1/19/2011 ( BUSINESS LAW ) 15Astt.Prof.VIPIN KUMAR
