Beruflich Dokumente
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Contracts
of
Indemnity
&
Guarantee are a species of the
general contract. They are
contained in Chapter VIII (Sec
124 to 147) of the ICA 1872.
Contract of Indemnity
Examples:
All damages
All costs (for defending the suit)
All sums which he may have paid under the terms of any
compromise of any such suit.
Rights of Indemnifier:
Contract of Guarantee
P
Giver of Guarantee
Surety
Pr. Debtor
Creditor
Contact of Guarantee
2 parties
3 parties
Liability is primary
Liability is secondary or
collateral
3 contracts
Necessary
Kinds of Guarantee:
Before payment of guaranteed debt: He can require the cr. to sue the pr. debtor, but he
will have to indemnify the cr. for all exp.
Right of Set off: on being sued by cr. he can rely on set off or counter claim which the dr.
has against the cr.
On payment of guaranteed debt: the surety is to all rights of the cr. & gets the rt. to
demand from the cr. all securities received before or after, irrespective of whether he is
aware of it or not.
Right to equities: he is entitled to all equities which the cr. could have enforced.
Right of subrogation: On pmt. of the guaranteed debts the surety steps into the shoes of
the cr. He has now the rt. of getting back all payments made by him.
Right to be relieved o liability: Before the pmt has been made the surety can compel the
pr. debtor to relieve from liability by paying off the debt.
Right to indemnity: has rt. to recover all pmts. made.
Requisites of Bailment:
Contract
Delivery of possession: mere custody
doest create a relationship of bailor and
bailee.
There has to be a purpose
Return of specific goods
Bailment is concerned only with goods
In a contract of bailment it is only
possession that passes from bailor to
bailee and not ownership.
Classification of
Bailment
Duties of Bailee
Rights of Bailor
Enforcement of rights
Avoidance of contract
Return of goods lent gratuitously
Compensation from a wrong doer
Rights of Bailee
General Lien
Finder of Goods:
Right of Lien: The finder of goods has a right of lien over the goods for his
expenses. As such he can retain the goods against the owner until he
receives compensation for the trouble and expenses incurred in preserving
the goods and finding out the owner.
Right to sale: He can sell the goods found if: 1) The owner cannot be
found with reasonable diligence, 2) If found, he refuses to pay lawfully
charges to the finder 3) If goods are in the danger of perishing, 4) If lawful
charges of the finder, in respect of the goods found amount to 2/3rd of their
value.
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