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Special contract act 1872


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Special contract act 1872

  1. 1. PGDM1/19/2011 ( BUSINESS LAW ) 1Astt.Prof.VIPIN KUMAR
  3. 3.  Sec 124 Indemnity Sec 125 Indemnity holder Sec 126 Guarantee Sec 127 Consideration for Guarantee Sec 128 Surety’s Liability Sec 129 Continuing Guarantee Sec 130 Guarantee revoked by notice1/19/2011 ( BUSINESS LAW ) 3Astt.Prof.VIPIN KUMAR
  4. 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- sureties1/19/2011 ( BUSINESS LAW ) 4Astt.Prof.VIPIN KUMAR
  5. 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 obligation1/19/2011 ( BUSINESS LAW ) 5Astt.Prof.VIPIN KUMAR
  6. 6.  Contract of Indemnity“A contract by which one party promises tosave the other from loss caused to him by theconduct of promisor himself, or by the conductof any other person”.Example: P contracts to indemnify Q against theconsequences of any proceedings which S maytake against Q in respect of a certain sum of Rs200.1/19/2011 ( BUSINESS LAW ) 6Astt.Prof.VIPIN KUMAR
  7. 7.  All damages which he may be compelled topay in any suit in respect of any matter towhich the promise to indemnify applies. All costs which he may be compelled to pay inbringing or defending such suits. All sums which he may have paid under theterms of any compromise of any such suits.1/19/2011 ( BUSINESS LAW ) 7Astt.Prof.VIPIN KUMAR
  8. 8.  The Indian Contract Act is silent regarding therights of the indemnifier in a contract ofindemnity.1/19/2011 ( BUSINESS LAW ) 8Astt.Prof.VIPIN KUMAR
  9. 9.  The contract of indemnity must contain allthe essentials of a valid contract - competency of the parties free consent consideration legality of the object1/19/2011 ( BUSINESS LAW ) 9Astt.Prof.VIPIN KUMAR
  10. 10.  It is a contract between two parties – onepromises to save another from any loss hemay suffer. The loss may be caused by the conduct ofpromisor himself or any other person. The contract of indemnity may be express orimplied.1/19/2011 ( BUSINESS LAW ) 10Astt.Prof.VIPIN KUMAR
  11. 11.  Example :Policy of insurance is a good exampleof express indemnity.An implied promise is one where theconduct of the promisor shows that he promisedto indemnify the other party against the losssuffered by him.1/19/2011 ( BUSINESS LAW ) 11Astt.Prof.VIPIN KUMAR
  12. 12. What is Contract of Guarantee1/19/2011 ( BUSINESS LAW ) 12Astt.Prof.VIPIN KUMAR
  13. 13.  Surety : The person who gives the guarantee. Creditor : The person to whom the guaranteeis given. Principal Debtor : The person for whom theguarantee is given.1/19/2011 ( BUSINESS LAW ) 13Astt.Prof.VIPIN KUMAR
  14. 14.  A contract of guarantee must have: lawful consideration free consent legal object1/19/2011 ( BUSINESS LAW ) 14Astt.Prof.VIPIN KUMAR
  16. 16. THANKS1/19/2011 ( BUSINESS LAW ) 16Astt.Prof.VIPIN KUMAR