Law of Contract- II
Devi Ahilya Vishwavidyalaya · LL.B. Semester 2
Unit I — Indemnity
The Concept · Need for indemnity to facilitate commercial transactions · Method of creating indemnity obligations · Definition of indemnity · Nature and extent of liability of the indemnifier · Commencement of liability of the indemnifier · Situations of various types of indemnity creations · Documents/ agreements of indemnity · Nature of indemnity clauses · Indemnity in case of International transactions · Indemnity by Governments during interstate transactions
Unit II — Guarantee
The concepts · Definition of guarantee: as distinguished from indemnity · Basic essentials for a valid guarantee contract · The place of consideration and the criteria for ascertaining the existe · , WET a nce of consideration in guarantee contracts · Position of minor and validity of guarantee when minor is the principal debtor. creditor or surety · Continuing guarantee · Nature of surety's liability · Duration and termination of such liability · Illustrative situations of existence of continuing guarantee · Creation and identification of continuing guarantees · Letters of credit and bank guarantee as instances of guarantee transactions · Right of surety · Position of surety in the eye of law · Various judicial interpretations to protect the surety · Co-surety and manner of sharing liabilities and rights · Extent of surety's liability · Discharge of surety's liability
Unit III — Bailment
Identification of bailment contracts in day to day life · Manner of creation of such contracts · Commercial utility of bailment contracts · Definition of bailment · Kinds of bailees · Duties of bailor and bailee towards each other · Rights of bailor and bailee · Finder of goods as a bailee · Obligation to keep the goods safe · Right to dispose of the goods · Pledge · Pledge: comparison with bailment · Commercial utility of pledge transactions · Definition of pledge under the Indian Contract Act · Other statutory regulations (State & Centre) regarding pledge, reasons for the same · Rights of the pawner and pawnee · Pawnee's right of sale as compared to that of an ordinary bailee · Pledge by certain specified persons mentioned in the Indian Contract Act
Unit IV — Agency
Identification of different kinds of agency transactions in day to day life in the commercial world · Kinds of agents and agencies · Distinction between agent and servant · Essential of agency transaction · Various methods of creation of agency · Delegation · Duties and rights of agent · Scope and extent of agent's authority · Liability of the principal for acts of the agent including misconduct and tort of the agert · Liability of the agent towards the principal · Personal liability towards the parties · Methods of termination of agency contract · Liability of the principal and agent before and after such termination
Unit V — Sale of Goods
Concept of sale as a contract · Illustrative instances of sale of goods and the nature of such contracts · Essentials of contract sale · Essential conditions in every contract of sale · Implied terms in contract sale · The rule of caveat emptor and the exceptions thereto under the sale of Goods · Changing concepts of caveat emptor · Effect and meaning of implied warranties in the sale · Transfer of title and passing of risk · Delivery of goods: various rules regarding delivery of goods · Unpaid seller and his rights · Remedies for breach of contract