Law of Contract-II

Gondwana University · LL.B. Semester 2 · UL32C04

Unit I — Indemnity and Guarantee

Contract of Indemnity – Documents/Agreements of Indemnity ,Definition, Nature and Scope , Rights of indemnity holder ,Commencement of the indemnifier's liability · Contract of Guarantee – The concept. , Definition of guarantee: as distinguished from indemnity. , Basic essentials for a valid guarantee contract, 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. , Rights 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 II — Bailment and Pledge

Bailment : Definition, kinds of bailments, distinction between bailment and license, bailment and sale, rights and duties of a bailee, rights and duties of a bailor, rights of a bailee against wrong doer, termination of bailment, finder of lost goods, rights of finder of goods. · Pledge : Definition, bailment and pledge, ementials of pledge, rights and duties of pawnor and pawnee.

Unit III — Agency

Appointment and authority of agent, sub-agency, kinds of agency, creation of agency, renunciation of agency and revocation of authority. · Duties of principal and agent towards each other, effect of agency on contracts with thim persons. · Rights and duties of agent, rights and duties of principal, principal's liability for acts of the agent, liability of undisclosed principal, liability of pretnded agent, personal liability of agent to third part, termination of agency.

Unit IV — Partnership

Nature of partnership : Definition of partnership firm, mode of determining existence of partnership, distinction between partnership and co-ownership, partnership and joint Hindu family business, partnership and company. · Relation of partners to one another : Rights of partner, duties and liabilites of partner, property of firm and its application. · Relation of partners to third persons : Authority of the partner, liability of firm for partner's acts, liability by holding-out, right of a transferee of a partner's interest, law relating to minors admitted to the partnership. · Incoming and outgoing partner : New partner, retirement of the partner, rights and liabilities of an outgoing partner, expulsion of a partner, deceased partner. · Dissolution of a partnership firm : Mode of dissolution, grounds of dissolution, consequences of dissolution, right and liabilities of partners after dissolution, rules of settlement of accounts after dissolution. · Registration of a firm : General provisions of registration, effect of registration, effect of non- registration.

Unit V — Sale of Goods

Contract of Sale of Goods : Essentials of contract of sale, distinction between sale and agreement to sell, formalities of the contract, contract of sale. · Condition and Warranties : Definition of condition and warranty, express and implied condition and warranty, doctrine of caveat emptor. · Effect of Contract : Transfer of property as between seller and buyer, transfer of title on sale. · Performance of the contract of sale : Duties of the seller and buyer, mode of delivery and rules as to delivery of goods. · Rights of unpaid seller against the goods : Definition of unpaid seller, unpaid sellers' rights, unpaid sellers lien, stoppage-in-transit, transfer by buyer and seller. · Suits for breach of contract : Remedies for breach of contract, repudiation of contract of sale/ · Sale by Auction