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INDEMINITY, CONTIGENT
CONTRACT, N GURARENTEE,
COMPARE THEIR FUTURE?
CONTINGENT CONTRACT
DEFINITION
Section 31. of the Contract Act, 1872 defines "Contingent
contract" as A "contingent contract" is a contract to do or not to
do something, if some event, collateral to such contract, does or
does not happen.
.
COLLATERAL EVENT
Example
if I offer a reward for the recovery of lost goods, there is not a
contingent contract; there is no contract at all unless and until some
one, acting on the offer, finds the goods and brings them to me.
PERFORMANCE OF CONTINGENT
CONTRACTS
HAPPENING OF EVENT
.
Non Happening of Event
Un Certain Agreement
WAGERING AGREEMENT
ESSENTIAL OF WAGER
CONTRACT OF INDEMNITY
A contract of indemnity is a contract by which one party promises
to save the other from loss caused to him by the conduct of
the promisor himself, or by the conduct of any other person
(Section 124).
Rights of Indemnity Holder:
Damages are paid all damages which he may
be compelled to pay in any suit in respect of any
matter to which the promise to indemnify applies.
Cost of suit All costs which he may be
compelled to pay brining or defending such suit.
Compromise payment An indemnity holder can
compromise a claim on the best term he can and
then bring an action on the contract of indemnity
(Section 125).
Rights of indemnifier:
Contract of guarantee
A contract of guarantee is a contract to perform the promise or
discharge the liability of a third person in case of his default.
Agreements within
Contract of Guarantee
Essentials of Contract of
Guarantee
Tripartite contract
Consent of all three parties is necessary
Absence of consent of any of them no contract is made.
Liability must be legally enforceable. If the liability does not
exist, there cannot be a contract of guarantee.
A contract of guarantee must meet all the requirements of
a valid contract.
But if a principal debtor goes mad in that case surety is
regarded as the principal debtor and is liable personally
Writing is not necessary and it can be oral or written.
Number of contract
One contact is involve
Nature of Liability
Liability of indemnifier is
primary and independent
Request
Indemnifier promise with
out request of Other party
Guarantee
Three parties, creditor,
principal debtor, surety
Three contracts involved
between contacting parties
Liability of surety is
secondary
.
Existence of Liability
Liability of indemnifier
arises on happening of
event
Filling of suit
Purpose