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A Presentation On Indemnity & Guarantee Bailment & Pledge

A Presentation On Indemnity & Guarantee Bailment & Pledge Submitted to : Submitted by : Shakti
A Presentation On Indemnity & Guarantee Bailment & Pledge Submitted to : Submitted by : Shakti
A Presentation On Indemnity & Guarantee Bailment & Pledge Submitted to : Submitted by : Shakti

Submitted to :

Submitted by :

Shakti Dodiya Ravi Barot (02)

SPECIAL CONTRACTS

SPECIAL

CONTRACTS

CONTRACT OF INDEMNITY

181 }
181 }
SPECIAL CONTRACTS SPECIAL CONTRACTS  CONTRACT OF INDEMNITY 181 } {SEC. 124 & 125 } 

{SEC. 124 & 125 } CONTRCAT OF GUARANTEE

{SEC. 126

TO 147 }

CONTRACT OF BAILMENT

{SEC. 148 TO

CONTRACT OF PLEDGE

CONTRACT CONTRACT OFOF

INDEMNITY

INDEMNITY

Meaning and Definition of Indemnity

Section 124 defines a contract of indemnity as “A contract of indemnity is a contract whereby 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.

Definition of Indemnity under Section 124 is restrictive.

CONTRACT OF OF INDEMNITY INDEMNITY  Meaning and Definition of Indemnity Section 124 defines a contract

FEATURES OF INDEMNITY

It must possess all ingredients of a valid agreement.

It is a contingent agreement to make good the loss.

The loss must be caused by human conduct only.

Loss must have actually been suffered.

PARTIES TOTO CONTRACT

PARTIES

CONTRACT OFOF INDEMNITY

INDEMNITY

INDEMNIFIER:

INDEMNITY HOLDER:

Examples:

Motor insurance Marine insurance Fire insurance

Life insurance is not the contract of indemnity

FEATURES OF INDEMNITY  It must possess all ingredients of a valid agreement.  It is

RIGHTS OFOF INDEMNITY

RIGHTS

INDEMNITY-HOLDER

-HOLDER

WHEN SUED

WHEN

SUED

All Damages

All Costs

All Sums

RIGHTS OFOF INDEMNIFIER

RIGHTS

INDEMNIFIER

The contract act is silent about the rights of indemnifier.

RIGHTS OF OF INDEMNITY RIGHTS INDEMNITY -HOLDER -HOLDER WHEN SUED WHEN SUED  All Damages 

CONTRACT OFOF GUARANTEE

CONTRACT

GUARANTEE

 

Meaning and Definition

A contract of guarantee is defined by the Indian Contract Act, as “A contract to perform the promise or discharge the liability of a third person in case of his default.” A guarantee may be either oral or written. [section 126].

OF OF GUARANTEE CONTRACT  Meaning and Definition A contract of guarantee is defined by

ESSENTIALS OFOF CONTRACT

ESSENTIALS

CONTRACT OFOF GUARANTEE:

GUARANTEE:

Existence of a principal debt. Consideration for a contract of guarantee. There should be no misrepresentation or concealment. Contract of guarantee must contain all the essential elements of valid contract. Contract of guarantee is a complete and separate contract by itself.

PARTIES TOTO CONTRACT

PARTIES

CONTRACT OFOF GUARANTEE

GUARANTEE

SURETY:

PRINCIPAL DEBTOR:

CREDITOR:

OF OF CONTRACT ESSENTIALS OF OF GUARANTEE:  Existence of a principal debt.  Consideration

TYPES OFOF GUARANTEE

TYPES

GUARANTEE

OF OF GUARANTEE TYPES  SPECIAL GUARANTEE A guarantee is a “specific guarantee”, if it

SPECIAL GUARANTEE

A guarantee is a “specific guarantee”, if it is

intended to be applicable to a particular debt and thus

comes to an end on its repayment.

CONTINUING GUARANTEE

A guarantee which extends to a series of

transactions is called a “continuing guarantee”,

e.g., (i) fidelity guarantee, (ii) overdraft.

OF OF GUARANTEE TYPES  SPECIAL GUARANTEE A guarantee is a “specific guarantee”, if it

RIGHTS OFOF SURETY

RIGHTS

SURETY

AGAINST THE PRINCIPAL DEBTOR

Right of subrogation

Right to indemnity

AGAINST THE CREDITOR

Right Of Securities

Right To Claim Set Off

AGAINST THE CO-SURETIES

When several co-sureties have given guarantee for the same debt with their maximum limits, they are liable to pay equally but subject to the limits they have fixed

OF OF SURETY RIGHTS AGAINST THE PRINCIPAL DEBTOR  Right of subrogation  Right to

DISCHARGE OFOF SURETY

DISCHARGE

SURETY

Revocation by notice.

Revocation by death.

Discharge of surety by variance in terms of contract.

Discharge of surety by release or discharge of principal debtor.

Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor.

Creditor's forbearance to sue does not discharge surety.

Release of one co-surety does not discharge other.

Discharge of surety by creditor's act or omission impairing surety's eventual remedy.

By the creditor losing his security.

OF OF SURETY DISCHARGE  Revocation  Revocation  Discharge of surety by variance in

By concealment or misrepresentation

CONTRACT OFOF BAILMENT

CONTRACT

BAILMENT

What is Bailment?

Section 148 defines Bailment as:

“The delivery of goods by one to another person for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them.” The person delivering the goods is called the ‘Bailor’, and the person to whom goods are delivered is called the ‘Bailee

OF OF BAILMENT CONTRACT What is Bailment? Section 148 defines Bailment as: “The delivery of

ESSENTIALS

ESSENTIALS AND

AND LEGAL

LEGAL RULES

RULES ASAS

TOTO BAILMENT:

BAILMENT:

Contract:

Delivery of Goods:

No Transfer of Ownership:

Delivery of Goods for Some Purpose:

Return of Specific Goods:

Movable Goods:

Deposit of Money Into Bank:

ESSENTIALS AND LEGAL RULES AS AS TO TO BAILMENT:  Contract:  Delivery of Goods: 

KINDS OF

KINDS

OF BAILMENT

BAILMENT

On the basis of benefit

Bailment exclusive for Bailor’s benefit. Bailment exclusive for Bailee’s benefit Bailment for mutual benefit.

On the basis of willingness

Voluntary Bailment Involuntary bailment

On the basis of Rewards

Gratituous Bailment Non-Gratituous Bailment

KINDS OF KINDS OF BAILMENT BAILMENT On the basis of benefit    Bailment exclusive

Rights Of

Rights

Of Bailor

Bailor

Rights Of Rights Of Bailor Bailor  Right of indemnity for losses due to negligence by

Right of indemnity for losses due to negligence by bailee[S.152] Termination of bailment on inconsistent use by the bailee[S.153] Compensation for unauthorised use by the bailee[S.154] Compensation when the bailee mixes the goods bailed with own goods [S.155] Right of return of goods back[S.160] Right to profit from goods bailed[S.163]

Duties Of

Duties

Of Bailor

Bailor

Rights Of Rights Of Bailor Bailor  Right of indemnity for losses due to negligence by

To Disclose faults in goods bailed [S.150] To repay the necessary expenses [S.158] To indemnify the bailee [S.164] Liability on premature breach of bailment[S.159]

Rights Of Rights Of Bailor Bailor  Right of indemnity for losses due to negligence by

Rights Of

Rights

Of Bailee

Bailee

Rights Of Rights Of Bailee Bailee  Right to compensation for loss on account of fault

Right to compensation for loss on account of fault in goods

bailed[S.150]

Right to receive necessary expenses[S.158] Right against premature termination of bailment[S.159] Right to compensation in case of defective title[S.164] Delivery of goods to one of the joint owners[S.165] Right against third parties

Duties Of

Duties

Of Bailee

Bailee

Rights Of Rights Of Bailee Bailee  Right to compensation for loss on account of fault

Take reasonable care of goods[S.151] Not to make unauthorized use of goods[S.154] Not to mix goods with his own goods[S.155-157] Duty to return goods[S.160&161] Not doing any act inconistent with terms of bailment[S.153] Returning any profit [S.163]

Rights Of Rights Of Bailee Bailee  Right to compensation for loss on account of fault

CONTRACT OFOF PLEDGE

CONTRACT

PLEDGE OFOF PAWN

PAWN

Section 172

Pledge is the bailment of goods as security for payment of debt or performance of a promise.” Bailment of goods as a security for payment of debts or performance of promise is called pledge. The bailor is called pledgor or pawnor and the bailee is called Pawnee.

OF OF PLEDGE CONTRACT OF OF PAWN  Section 172 “ Pledge is the bailment

ESSENTIALS OFOF PLEDGE:

ESSENTIALS

PLEDGE:

OF OF PLEDGE: ESSENTIALS  Delivery of Goods:  Delivery of goods should be by

Delivery of Goods:

Delivery of goods should be by way of security ..

Goods must be movable.

RIGHTS AND

RIGHTS

AND DUTIES

DUTIES OFOF PAWNEE

PAWNEE

OF OF PLEDGE: ESSENTIALS  Delivery of Goods:  Delivery of goods should be by

Right of retainer {S.173}:

Right of particular lien

Right to extraordinary expenses {S.175}

Right in case of default of the pawnor

RIGHTS RIGHTS AND AND DUTIES DUTIES OFOF PAWNOR PAWNOR

Right of redemption

Right to take back the goods.

OF OF PLEDGE: ESSENTIALS  Delivery of Goods:  Delivery of goods should be by

PLEDGE BYBY NON

PLEDGE

NON OWNERS

OWNERS

BY BY NON PLEDGE OWNERS  Pledge by mercantile agent  Pledge by person in

Pledge by mercantile agent

Pledge by person in possession under

voidable contract

Pledge where pawnor has only a limited

interest

Pledge by co-owner in possession

Pledge by seller or buyer in possession

after sale

.

BY BY NON PLEDGE OWNERS  Pledge by mercantile agent  Pledge by person in