Special Contracts: Indemnity; Guarantee; Bailment and pledge; Agency.

 Rights of a Bailor

  • Right to claim damage in case of negligence [Section152]

If the bailee has not taken reasonable care or special care,the bailor has a right to claim damages for the loss,destruction or deterioration of the goods bailed.

  • Right to terminate the contract in case of unauthorized use [Section 153]

If the bailee does any act in respect of goods bailed,which is inconsistent with the conditions of the bailment,the bailor has a right to  terminate the contract of bailment.

  • Right to claim compensation in case of unauthorized use [Section 154]

If  the bailee doest not use the goods bailed according to the conditions of the bailment,the bailor has aright to claim compensation from bailee for any damage arising to the goods from or during such use of them.

  • Right to claim the separation of goods in case of unauthorized mixture of goods [Section 156]

If the bailee,without the consent of the bailor mixes bailor’s goods with his own goods and the goods can be separated,the bailor has a right to claim his goods after separation.

  • Right to claim compensation in case of unauthorized mixture of goods which canoot be separated[Section 157]

If the bailee,without the consent of the bailor mixes bailor’s goods with his own goods and the goods cannot be separated,the bailor has  a right to claim compensation from bailee for the loss of the goods.

  • Right to demand return of goods [Section 160]

The bailor has a right to demand return of goods after the accomplishment of the purpose or after the expiry of period of bailment.

  • Right to claim compensation in case of unauthorized retention of goods [Section 161]

If the bailee does not return or deliver the goods according to the bailor’s directions after the accomplishment of purpose or after the expiry of period of bailment,the bailor has a right to claim compensation for any loss,destruction or deterioration of the goods from that  time.

  • Right to demand accretions to goods[Section 163]

In the absence of contract to the contrary,the bailor has a right to demand any increase or profit which may have accrued from the goods bailed.

RIGHTS OF A BAILEE

  • Right to claim damage [Section 150]

In case of gratuitous bailment

If th ebailor does not disclose the defect in the goods which are known to him and the bailee suffers dome loss due to such defects,the bailee has a right to claim damages.

In case of non gratuitous bailment

If the bailee suffers any loss due to any defect in the goods,the bailee has a right to claim damages.

  • Right to claim reimbursement of expenses [Section 158]

In case of gratuitous bailment

The bailee has a right to claim reimbursement of all the necessary expenses which he has already incurred for the purpose of bailment.

In case of non-gratuitous bailment

The bailee has a right to claim reimbursement of all the extraordinary expenses which the bailee has already incurred for the purpose of bailment.

  • Right to be indemnified in case of premature termination of gratuitous bailment [Section 159]

Th ebailee has a right to be indemnified in case the loss arising due to premature termination of th egratuitous bailment exceeds the benefits actually derived by him.

  • Right to recover loss in case of bailor‘s defective title [Section 164]

The bailee has a right to be indemnified in case he suffers any loss because of the defective title of the bailor.

  • Right to recover loss in case of bailor‘s refusal to take the goods back [Section 164]

The bailor has a right to be indemnified in case he suffers any loss because of bailor’s refusal to take the goods back.

  • Right to deliver goods to any one of the joint bailors [Section 165]

In the absence of any contract to the contrary,the bailee has a right to deliver back the goods to anyone of the joint owners or may deliver the goods back according to the directions of one joint owner without the consent of all.

  • Right to deliver goods to bailor in case of bailor‘s defective title [Section 166]

If the bailor has no title to the goods,the bailee, in good faith,delivers them back to,or according to the directions of the bailor,the bailee is not responsible to the owner in respect of such delivery.

  • Right to particulars lien [Section 170]

Where the bailee has,in accordance with the purpose of the bailment rendered any service involving the exercise of labour or skill in respect of the goods bailed,he has,in absence of a contract to the contrary,a right to retain such goods until he receives due remuneration for the services he has rendered in respect to them.

Special Contracts: Indemnity; Guarantee; Bailment and pledge; Agency.

14 thoughts on “Special Contracts: Indemnity; Guarantee; Bailment and pledge; Agency.

  1. Amazing notes, covering almost all points of the topics.

    Some points may be further added:-

     DEFINITION OF INDEMNITY AS PER ENGLISH LAW
     INDEMNITY AND INSURANCE
     CLAIM OF LOSS BEFORE PAYMENT
    – Usman Jamal vs. Gopal Purushottam, 1928 ILR, Kolkata
     METHOD OF CREATING INDEMNITY OBLIGATIONS
     SITUATIONS OF TYPES OF INDEMNITY CREATION
     LIABILITY OF INDEMNIFIER
     COMMENCEMENT OF LIABILITY OF INDEMNIFIER
     DOCUMENTS AGREEMENTS OF INDEMNITY

     LIABILITY OF SURETY
     RIGHTS OF SURETY
     POSITION OF MINOR
     LETTER OF CREDIT OR BANK GUARANTEE
     SURETY AS FAVOURED DEBTOR
     Brikmyr vs. Darnell
     CONTINUING GUARANTEE – Durga Priya Choudhary vs. Durga Pada
     EXTENT OF SURETY’S LIABILITY S.128

     FINDER OF GOODS AS BAILEE
     ACTUAL DELIVERY AND CONSTRUCTIVE DELIVERY (Fazal vs. Salamat Rai)
     RIGHT TO DISPOSE OF THE GOODS
     BAILMENT AND HIRE PURCHASE

     PLEDGE BY CERTAIN SPECIFIED PERSONS MENTIONED IN THE INDIAN CONTRACT ACT

     KINDS OF AGENTS AND AGENCIES
     DISTINGUISHEMENT BETWEEN AGENT AND SERVANT
     LIABILITY OF PRINCIPAL FOR AGENT’S MISCONDUCT AND TORT
     LIABILITY OF PRINCIPAL AND AGENT BEFORE AND AFTER TERMINATION

    *Over all the notes are superb…….!!!

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