Special Contracts

Maharashtra National Law University, Aurangabad · LL.B. Semester 3

Unit I — Indemnity

Indemnity and Guarantee, Definition - English and Indian, Distinction between indemnity and guarantee, Rights of the indemnity holder, Rights of the indemnifier, Implied indemnity dealt · with Section 59,145,164 and 222 of the Contract Act., Codification not exhaustive-principles of equity applicable.

Unit II — Guarantee

Definition - English and Indian definitions, Essentials and nature of guarantee, Distinction between guarantee and indemnity - guarantee and insurance, Elements of consideration in a contract of guarantee, Nature and quantum of surety’s liability. Kinds of guarantee and their incidents. Surety ship arises on contract and not on notice-position in English Law, Duty of disclosure in guarantee, Rights of surety against principal debtor-credit-co-sureties- difference in English Law-Circumstances which a surety discharges.

Unit III — Pledge

Definition, bailment and pledge compared, Pledge transactions, statutory regulations, Rights and duties of pawner and pawnee [Individually and mutually], Pledge in Indian contract Act.

Unit IV — Bailment

Meaning and Definition, Creation of Bailment Contracts, Rights and duties of bailor and bailee (Individually and mutually), Finder of goods, Liability towards owner, Obligation of safe keeping and Disposing off of goods.

Unit V — Agency

Establishing Agency, Distinction between agent and servant, Essentials of an agency transaction, Various methods of creation of agency, 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 agent, 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 VI — Indian Partnership Act, 1932 Nature of Partnership (Section 4-8)

Definition of Partnership, Partner, Firm & firm name, Partnership not created by status, Mode of determining existence of partnership, Partnership at will, Particular Partnership. Relation of Partners to Third Parties (Section 18-30) Partners to be agent of firm, Implied Authority of partner as agent of firm, Extension and restriction of partners implied authority, Liability of Partner for acts of firm, Liability of firm for wrongful acts of a partner, Holding out, Minor as partner. Incoming & Outgoing Partners (Rights & Liabilities (Section 31-36) Introduction of New Partner, Retirement of partner, Expulsion of partner, Right of outgoing partner to carry competing business Dissolution of a Firm (Section 40-69) Dissolution by Agreement, Compulsory Dissolution, Dissolution on happening of certain contingencies, Dissolution by notice of partnership at will, Dissolution by the Court, Sale of Goodwill after dissolution, Effect of non-registration.

Unit VII — Comparative Study of Partnership Act and Limited Liability Partnership Act,

2008 A Comparative study of Indian Partnership Act 1932 with LLP

Unit VIII — Sale of Goods Act 1930

Law relating to sale of goods, Definition of Contract of Sale, Effect of Goods perishing, Auction Sale, Conditions and Warranties (Implied conditions), The rule of caveat emptor, Implied Warranties, Transfer of property and title, Performance of the Contract, Rights of Unpaid Seller against the goods, Suits for breach of contract.