Lecture 11

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Lecture 11

  1. 1. Indemnity <br />and <br />Guarantee<br />
  2. 2. Contract of Indemnity<br /><ul><li>Meaning
  3. 3. Rights of Indemnity holder</li></ul>Recover costs paid in bringing a suit<br />Recover damages suffered<br /><ul><li>Rights of Indemnifier:</li></ul>Similar to those of surety<br />
  4. 4. Contract of Guarantee<br />Meaning<br />Features<br /><ul><li>Primary liability in some person
  5. 5. Essentials of valid contract
  6. 6. Writing not necessary</li></li></ul><li>Kinds of Guarantee<br />Specific guarantee<br />Continuing guarantee<br />Revocation of continuing guarantee<br /><ul><li>By notice
  7. 7. By death of surety</li></li></ul><li>By other modes<br /><ul><li>Variance in the term of contract
  8. 8. Release or discharge of principal debtor
  9. 9. Agreement b/w Creditor & Debtor </li></li></ul><li>Rights of Surety<br />Against creditors<br />Against principal debtor<br /> Against Co-sureties<br />
  10. 10. Rights against Creditors <br />Right of set off<br />2. Right to securities<br />
  11. 11. Rights against principal debtor<br />Right of Subrogation<br />Right to indemnity<br />Rights against Co- sureties<br />Right to claim contribution<br />Right to share security<br />
  12. 12. Discharge of Surety<br />Discharge by Revocation<br />By Notice<br />By Death of Surety<br />By Novation<br />
  13. 13. B. By the Conduct of creditor<br />(i) Variance in the term of contract<br />(ii) Release or discharge of principal debtor or any ommision of creditor<br />(iii) Compounding with debtor<br />(iv)Creditor’s act or ommision impairing surety’s eventual remedy<br />(v) Loss of security<br />
  14. 14. C. Discharge by invalidation of Contract<br />Guarantee obtained by misrepresentation<br />Guarantee obtained by concealment<br /> Guarantee on contract that creditor shall not act on it untill a co-surety joins. <br />
  15. 15. THANK YOU<br />11<br />

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