Contracts Of Indemnity & Guarantee/Bailment & Pledge/Contract Of Agency
Contracts Of Indemnity & Guarantee/Bailment & Pledge/Contract Of Agency are the special contracts which are explained and included in Contract act.
CONTRACT OF INDEMNITY
The term 'CONTRACT OF INDEMNITY' is defined in Section 124 of the Indian Contract Act as, "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, is called a contract of indemnity."
According to Section 126 of the Indian Contract Act, “A Contract Of Guarantee' is a contract to perform the promise, or discharge the liability, of a third person incase of his default.
As per section 148 of the Indian Contract Act “A bailment is the delivery of goods by one person to another 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 "BAILER".
The person to whom they are delivered is called the "BAILEE".
Pawn or Pledge is a kind of bailment where a movable thing is bailed as security for the repayment of a debt or for the performance of a promise. Section 172 of Indian Contract Act Defines Pledge as
The bailment of goods as security for payment of a debt or performance of a promise is called "pledge". The bailor is in this case called the "pawnor". The bailee is called "pawnee"
Contract of Agency
Section 182 of Indian Contract Act Defines Agent, Principal and Agent as follows
An “Agent” is a person employed to do any act for another or to represent another in dealings with a third person. Person for whom such act is done, or who is so represented, is called the “Principal”. The appointment of such a person to act on his behalf results in the creation of agency.
ESSENTIALS OF RELATIONSHIP OF AGENCY
Agreement between agent and principle:
Intention of agent to work on behalf of principle:
RULES OF AGENCY
Whatever a person can do personally can do through his agent
He who does an act through others does it himself
Kinds Of Agents
Del Credere Agent
DUTIES OF AN AGENT
To carry out the work according to the instructions of the principal.
To work with care and diligence
To pay the Sum received
To provide accounts
Not to deal in his account
Not to use information obtained against the principle
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