Law of Contract II Notes | LL.B. (Three Years) Semester 2 | SPPU | munotes

Contents

Module 01 Contracts of Indemnity - Sections 124-125 of the Indian Contract Act, 1872

1. The Contract of Indemnity 1
2. The Rights of the Indemnity Holder When Sued 9
3. Indemnity in Practice: Duplicate Certificates, Building Permissions, Printing Contracts and Sale Deeds 20

Module 02 Contracts of Guarantee - Sections 126 to 147 of the Indian Contract Act, 1872

1. The Contract of Guarantee, and How It Differs from an Indemnity 25
2. When a Guarantee Is Invalid 33
3. Consideration for a Guarantee 42
4. Continuing Guarantee, and How It Is Revoked 49
5. The Surety's Liability 57
6. Discharge of a Surety by Variance, and by Release of the Principal Debtor 64
7. Discharge by the Creditor's Act or Omission 73
8. Discharge by Composition, Giving Time, or a Promise Not to Sue 81
9. The Surety's Rights Against the Principal Debtor 89
10. Subrogation, and the Surety's Right to the Creditor's Securities 97
11. Guarantees and Letters of Credit 105
12. Co-Sureties 112

Module 03 Contracts of Bailment - Sections 71, 148-171, 180-181 of the Indian Contract Act 1872

1. What Bailment Is, and Its Kinds 121
2. The Duties of a Bailor 130
3. The Care a Bailee Must Take 139
4. Unauthorised Use, and Acts Inconsistent with the Bailment 147
5. Mixing the Bailor's Goods with the Bailee's 154
6. Returning the Goods, and What Happens If They Are Not Returned 162
7. Increase and Profit from the Goods Bailed 170
8. Re-delivery to a Bailor Without Title, and Third Party Claims 177
9. The Bailee's Particular Lien 185
10. The General Lien 193
11. Suits Against a Wrong-Doer, and How the Compensation Is Divided 201
12. The Finder of Goods 208

Module 04 Contracts of Pledge - Sections 172 to 179 of the Indian Contract Act 1872

1. What a Pledge Is 217
2. Securities for Advances 225
3. The Pawnee's Rights 232
4. Default, Sale and Redemption 240
5. Pledge by a Person Who Is Not the Owner 249

Module 05 Contracts of Agency - Sections 182 to 238 of the Indian Contract Act 1872

1. What Agency Is 258
2. Who May Be a Principal, and Who May Be an Agent 266
3. How an Agency Is Created, and Kinds of Agent 274
4. Ratification 282
5. Who Is a Servant 292
6. The Extent of an Agent's Authority, and Authority in an Emergency 296
7. Sub-Agents and Substituted Agents 305
8. The Duties of an Agent 316
9. The Rights of an Agent 326
10. The Agent's Right to Be Indemnified, and to Be Compensated 335
11. An Agent Who Deals on His Own Account 344
12. The Principal's Liability on the Agent's Contracts 353
13. The Pretended Agent, and Fraud or Misrepresentation by an Agent 363
14. The Undisclosed Principal 372
15. Termination of Agency 382

Module 06 Contracts of Sale of Goods - The Sale of Goods Act, 1930

1. The Sale of Goods Act, and What It Took from the Contract Act 394
2. The Vocabulary of the Act 402
3. A Contract of Sale, How It Is Made, and Sale against Agreement to Sell 412
4. Sale Distinguished from Hire Purchase, and from Four Other Transactions 422
5. The Goods: Existing, Future and Contingent, and What Happens If They Perish 433
6. The Price 443
7. Condition and Warranty 453
8. Stipulations as to Time 463
9. The Implied Conditions as to Title, Quiet Possession and Freedom from Encumbrance 471
10. Sale by Description, and Sale by Sample 480
11. Caveat Emptor and Its Exceptions 489
12. Excluding the Implied Terms, and What 'Reasonable Time' Means 500
13. Why the Passing of Property Matters 510
14. Passing of Property in Specific Goods 520
15. Passing of Property in Unascertained and Future Goods 529
16. Goods Sent on Approval, and Reservation of the Right of Disposal 538
17. Sale by a Person Who Is Not the Owner 548
18. The Duties of Seller and Buyer, and What Delivery Is 561
19. The Rules as to Delivery 571
20. Delivery of the Wrong Quantity, and Delivery by Instalments 583
21. Examining, Accepting and Refusing the Goods 593
22. Who Is an Unpaid Seller, and What Rights He Has 604
23. The Seller's Lien 614
24. Stoppage in Transit 624
25. Resale by the Unpaid Seller 636
26. The Seller's Suits Against the Buyer 647
27. The Buyer's Remedies Against the Seller 657
28. Auction Sale 667

Module 07 Contracts of Partnership - The Indian Partnership Act, 1932 and The Limited Liability Partnership Act 2008

1. The Partnership Act Sits on Top of the Contract Act 676
2. What a Partnership Is: The Definition and Its Four Essentials 682
3. How a Court Decides Whether a Partnership Exists 688
4. Partnership Is Not Created by Status 694
5. Partnership Distinguished from Co-ownership, a Company, a Club and a Joint Family Business 699
6. The Partnership Deed, and How the Partners' Own Contract Works 704
7. The Property of the Firm, and What May Be Done with It 711
8. A Minor Admitted to the Benefits of Partnership 718
9. Kinds of Partnership, and Kinds of Partner 726
10. The Mutual Rights and Liabilities of Partners 733
11. The General Duties of Partners, and the Duty to Indemnify for Fraud 740
12. The Transferee of a Partner's Interest 746
13. Personal Profits Earned by a Partner, and Rights After a Change in the Firm 752
14. A Partner Is the Agent of the Firm 759
15. The Implied Authority of a Partner 766
16. A Partner's Authority in an Emergency, and How an Act Binds the Firm 773
17. Admissions by a Partner, and Notice to a Partner 780
18. The Liability of Partners to Outsiders 786
19. The Firm's Liability for a Partner's Wrongful Acts and for Misapplication 792
20. Holding Out 798
21. The Incoming Partner 804
22. Retirement and Expulsion of a Partner 811
23. Insolvency of a Partner, and the Estate of a Deceased Partner 819
24. Public Notice: When It Is Needed, and How It Is Given 826
25. What an Outgoing Partner May Do, and What He May Claim 833
26. Dissolution of a Firm, and Dissolution of Partnership 841
27. Compulsory Dissolution, and Dissolution by the Court 847
28. Winding Up After Dissolution 855
29. Settling the Accounts Between Partners 863
30. Return of Premium, Rescission for Fraud, Sale of Goodwill, and Restraint of Trade 870
31. Registering a Firm: Why, Where and How 879
32. Keeping the Register Correct, and the Register as Evidence 888
33. The Effect of Non-Registration 897
34. Why Parliament Made the Limited Liability Partnership Act 907
35. An LLP Is a Body Corporate, and the Partnership Act Does Not Apply to It 913
36. An LLP Compared with a Partnership Firm, and with a Company 920