Law of Contract – II

Savitribai Phule Pune University · LL.B. Semester 2 · LCC 0602

Unit 1 — Contracts of Indemnity - Sections 124-125 of the Indian Contract Act, 1872:

1. Principle of indemnity in general · 2. Meaning and definition of the contract of indemnity · 3. Formation and essential features · 4. Nature and extent of liability of the indemnifier · 5. Commencement of liability of the indemnifier · 6. Examples: Indemnity for issuing duplicate share certificate, or bank deposit receipt; Indemnity by owner of a plot of land to a local authority as condition for grant of commencement certificate for construction; Indemnity clause in a contract between a publisher and the printer; Indemnity clause in a sale deed of land supporting assurance of title given by the seller

Unit 2 — Contracts of Guarantee - Sections 126 to 147 of the Indian Contract Act, 1872:

1. Definition of a contract of guarantee & kinds of guarantee · 2. Formation, essential features & parties to the contract of guarantee · 3. Contract of guarantee as distinguished from a contract of indemnity · 4. Consideration for a contract of guarantee · 5. Continuing guarantee, and its revocation · 6. Nature and extent of surety's liability - commencement, duration, termination & discharge of Surety. · 7. Surety’s rights against the principal debtor · 8. Surety’s rights against the creditor. · 9. Letters of credit and bank guarantees · 10. Co-surety and manner of sharing liabilities and rights

Unit 3 — Contracts of Bailment - Sections 71, 148-171, 180-181 of the Indian Contract Act 1872:

1. Definition of a contract of Bailment · 2. Formation, essential features and parties to the contract of bailment. · 3. Kinds of Bailment · 4. Examples of contracts of bailment: for benefit of bailor, for benefit of bailee · 5. Rights, duties, disabilities and liabilities of a bailor of a bailee vis-à-vis the bailor of abailee vis-à-vis the third parties, and the true owner · 6. Termination of bailment, and consequences of termination · 7. Finder of goods as a bailee

Unit 4 — Contracts of Pledge - Sections 172 – 179 of the Indian Contract Act 1872:

1. Meaning and definition of a contract of Pledge · 2. Essential features and parties to the contract of pledge. · 3. Creation of a contract of pledge · 4. Distinction between contracts of pledge, bailment & hypothecation · 5. Rights, liabilities, duties and disabilities of the pawnor · 6. Rights, liabilities, duties and disabilities of the pawnee; · 7. Pledge by certain specified persons: Sections 178, 178A, 179 of ICA.

Unit 5 — Contracts of Agency - Sections 182 – 238 of the Indian Contract Act 1872:

1. Meaning and definition of a contract of Agency · 2. Essential features of a contract of agency. Parties involved. Kinds of agents and agencies · 3. Creation of agency · 4. Distinction between agent, servant or employee, and independent contractor · 5. Agent’s authority - Scope and extent, Express, implied, apparent or ostensible authority, and authority in an emergency, Restrictions or limitations · 6. Delegation of authority, Relationship between a principal, agent, sub-agent & Substituted agents · 7. Rights, duties, immunities, disabilities and liabilities of an agent towards the principal and third party · 8. Rights, duties, immunities, disabilities and liabilities of a principal towards the agent and the third party · 9. Personal liability of an agent. Pretended agent. Undisclosed principal · 10. Revocation and other modes of termination of agency, Irrevocable agency, Effect of termination of agency, Liability of the principal and agent before and after termination of agency.

Unit 6 — Contracts of Sale of Goods - The Sale of Goods Act, 1930:

1. Definition of a contract of Sale of Goods · 2. Essential features of a contract of sale. Parties, Goods, Price, Delivery, Risk and Property · (ownership). · 3. Sale as a transfer of property, Sale and agreement to sell. Effect of perishing of goods · 4. Goods – Meaning, existing and future goods, specific, ascertained, unascertained & contingent goods. · 5. Implied conditions and warranties, Express conditions and warranties · 6. The rule of ‘caveat emptor’ and exceptions to the rule · 7. Transfer of title, Transfer by non-owners (Nemo Dat Quod Non Habet) & Passing of risk · 8. Rules as to delivery of goods, various modes of delivery and their effect, Inspection of goods and Rejection of goods · 9. Rights and liabilities of the buyer and seller, Unpaid seller and his rights against the goods and buyer · 10. Remedies for price and for breach of contract of sale, Interest and taxes · 11. Auction sales

Unit 7 — Contracts of Partnership - The Indian Partnership Act, 1932 and The Limited Liability Partnership Act 2008:

1. Meaning and definition of a contract of partnership · 2. Essential features of a contract of partnership, the firm, firm name, business, property of the firm and the partners, Minor as a partner · 3. Kinds of partnership · 4. Relations of partners with one another: their rights, liabilities, duties, immunities and disabilities · 5. Relations of partners to third parties, Partner as agent of firm, Partners’ authority, Implied authority, Mode of exercising authority, Liability of the firm for acts of partners · 6. Change in constitution of a firm. Admission, retirement, expulsion, death and insolvency of any partner, Public notice, Effect of change in constitution of the firm · 7. Dissolution of a firm, Modes of dissolution, Effect of dissolution, Agreements in restraint of trade · 8. Registration of firms, Procedure of registration, Effect of non-registration · 9. Limited Liability Partnership: Essential features, Distinction between limited liability partnership and ordinary partnership.