Special ContractsIndemnity &GuaranteeBailment &PledgeAgencySec - 124Sec - 148Sec - 182

Indemnity & GuaranteeIndemnity Sec - 124One personMakes a PromiseTo another personTo save from lossBy doing somethingE.G. Insurance Agreement

Parties of indemnity

Indemnifier: Person giving promiseIndemnified: Person receiving promiseNature of IndemnityIt is a type of contingent contract. Right of Indemnity holder Sec - 125

Indemnity Holder Is Entitled To Recover :All damages All sums paid as compromise to such suit.

Guarantee Sec - 126One personMakes a PromiseTo another personTo pay some moneyIf some other personMakes default in payment of moneyPayable by himE.G. Surety in loan agreements

Types Of GuaranteeSpecific Guarantee: For a single transaction.Continuing Guarantee: For many transactionsIt may be for a fixed timeIt may be revokedAfter revocation it will not apply to future transactionsIt remains applicable for past transactions

Parties

Rights Of SuretiesAgainstDebtor Subrogation sec 140Indemnity sec 145. Againstcreditor Claim securitySetoffAgainstco-sureties Equal contribution Sec 146

Discharge of SuretyRevocation -- notice to the creditor Sec -130 Specific guarantee cannot be revoked.Continuing guarantee -- revoked by death of surety, sec 131Substituting new contract Sec 62.Conduct of the creditorVariation -- without the suretys consent Sec 133. Creditor makes a composition with debtor Sec 135.Creditors losses security given to him. Sec 141.By invalidation of contract of guarantee Sec 142.

BailmentBailment is Delivery of goods By one person to another For some purpose, They shall be returned According to the directions of the person delivering themMEANING: Sec 148

Same goods to be returned but form of goods may be changed. E.g. when cloth is stitched by tailor.Characteristics of bailmentPerson delivering goods is called the bailor Person to whom they are delivered is called the bailee. Sec 148Parties

Placing an ornament in a bank locker is not bailment. Deposit of money in a bank is not bailment.

Examples :