Contract of Agency and diferent types of contractsPresentation Transcript
Contract of Indemnity To indemnify means to compensate or make the good losses. A contract of indemnity refers to promise made by one person to make good any losses or damages another has incurred. According to section 124 of contract Act “ A contract of indemnity is a contract by which one party promise to save the other from losses caused to him by the conduct of the promisor or the conduct of any other person”
The person who promise to save other is called indemnifier and the person to whom the promise is made is called indemnity holder. The object of contract of indemnity is to protect the indemnity holder from future (anticipated )losses. Right of indemnity Holders Collect the damages Collect the full cost Collect all sum Suit for specific performance.
Contract of Guarantee According to section 126 of contract Act “ a contract of guarantee is a contract to perform the promise or discharge the liability of a third person in case of his default” The contract of guarantee involve three parties, the principal debtor, creditor and surety. The person how give the guarantee is called surety, the person in respect of whose default the guarantee is given is called the principal debtor and the person to whom the guarantee is given is called the creditor.
Essential features of indemnity contract Three parties Identity of mind Liability in existence Primary and secondary liability Written or oral Essential elements of contract No misrepresentations or concealment of fact
Consideration in Contract of Guarantee Like every contract of guarantee also should support with considerations. It may be any or some considerations but it should not be totally absent. Any thing done or any promise by surety for the benefit of principal debtor can be a consideration. But past consideration is not a consideration for contract of guarantee. The person who enter in to contract of guarantee should have all legal capacity to enter in to contract. He should not be a minor, person with unsound mind or person disqualified from contracting .
Contract of Bailment Sec 148 of contract Act “ Bailment is the delivery of goods to another for some purpose, upon a contract that they shall, when the purpose is accomplished be return or dispose of according to the perosn delivering them” The person who deliver the goods are called bailer the person to whom the goods are delivered are called bailee.
Duties of Bailee To take reasonable care of the goods bailed. Not to mix the bailed goods with his goods. Not to make any unauthorized use Not to set up adverse title To return the goods Retain addition or profit
Right of Bailee Right to enforce the duties of bailor Right to reimbursement Right to remuneration Right to compensation right to sue
Duties of bailer Duties to disclose known fact Duty to bear extra ordinary expenses of bailment Duty to indemnify the bailee Duty to bear the risk Right of bailor Entailed to get back the goods Right to claim any increase in the value of goods Right 0f termination Right to enforce the duties of bailee Right to file a suit against third person
Contract of Lien Lien means a right by which a person is entitled to retain the possession of goods of another until the sum due to him is paid. The right to possess the goods is called right of lien. Particular or special lien : Where the bailee has in accordance with purpose the bailment rendered any services involving the exercise of labour or skill on respect of goods bailed he has in the absence of contract to the contrary a right to retain such goods until he receive due remuneration for the service he has rendered in respect of them.
General Lien: Is a right to retain any goods belongs to other as a security for general balance of account. For person have general lien power Banker Wharfingers Attorney of high court Policy brokers
Pledge Contract Pledge is a special kind of bailment where a thing is delivered as security for the repayment of debt. Bailment of goods as a security for repayment of debt of performance of a promise is called pledge.
Law of Agency Agent is a person employed to do any act for another or represent another in dealing with third person. Legal rule of agency Whatever a person can do can be done through agent The principal should be competent person Any person can be agent No consideration is required for agency.
Creation of agency Agency by agreement Agency by implication Agency by estoppel (prevent a person from denying a fact ) Agency by holding out Agency by necessity. Agency by rectification.
Termination of agency By the act of parties By agreement By revocation by principal By renunciation of agency. 2) By operation of Law On the completion of business of agency By expiry of time By destruction of subject matter Insolvency of the principal Death or insanity of principal or agent Dissolution of company The principal become alien anemy.
Types of agents General agent Special agent Universal agent Commercial agent Auctioneers Brokers Del credere agent Banker Commission agent 5) Non mercantile agent
Right of Agents Right to remuneration Right to retain Right to lien Right to compensation
Duties of agent Duty to follow directions given Duty to reasonable skill and care Duty to render accounts Duty to communicate in case of difficulties Duty to pay overall money Duty not to setup adverse title Duty to [ass information to principal Duty not to disclose confidential information Duty not make secret profit from agency