This document discusses various legal concepts including indemnity, guarantee, bailment, and agency. It defines indemnity as when one person promises to save another from loss by doing something, such as in an insurance agreement. Guarantee is defined as when one person promises to pay money owed by another if that person defaults. The key parties in a guarantee are the creditor, debtor, and surety. Bailment is the delivery of goods by one person to another for some purpose, to be returned according to the delivery instructions, with the deliverer called the bailor and receiver the bailee.

1. Special Contracts Indemnity & Guarantee Bailment & Pledge Agency Sec - 124 Sec - 148 Sec - 182

2. Indemnity & Guarantee Indemnity Sec - 124 One person Makes a Promise To another person To save from loss By doing something E.G. Insurance Agreement

3. Parties of indemnity Indemnifier: Person giving promise Indemnified: Person receiving promise Nature of Indemnity It is a type of contingent contract. Right of Indemnity holder Sec - 125 Indemnity Holder Is Entitled To Recover : All damages All sums paid as compromise to such suit.

4. Guarantee Sec - 126 One person Makes a Promise To another person To pay some money If some other person Makes default in payment of money Payable by him E.G. Surety in loan agreements

5. Types Of Guarantee Specific Guarantee: For a single transaction. Continuing Guarantee: For many transactions It may be for a fixed time It may be revoked After revocation it will not apply to future transactions It remains applicable for past transactions

6. Parties The person to whom guarantee is given sec - 126 Creditor person for whose default guarantee is given sec 126 . Debtor “ is person who gives the guarantee” [section 126] . Surety

7. Rights Of Sureties Against Debtor Subrogation – sec 140 Indemnity – sec 145. Against creditor Claim security Setoff Against co-sureties Equal contribution Sec 146

8. Discharge of Surety Revocation -- notice to the creditor Sec -130 Specific guarantee cannot be revoked. Continuing guarantee -- revoked by death of surety, sec 131 Substituting new contract Sec 62. Conduct of the creditor Variation -- without the surety’s consent Sec 133. Creditor makes a composition with debtor Sec 135. Creditors losses security given to him. Sec 141. By invalidation of contract of guarantee Sec 142.

9. Bailment Bailment is Delivery of goods By one person to another For some purpose , They shall be returned According to the directions of the person delivering them MEANING : Sec 148

10. Same goods to be returned but form of goods may be changed. E.g. when cloth is stitched by tailor. Characteristics of bailment Person delivering goods is called the “ bailor ” Person to whom they are delivered is called the “ bailee ”. Sec 148 Parties

11. Placing an ornament in a bank locker is not bailment. Deposit of money in a bank is not bailment. Examples :