Overview: Builds on Contract I by covering special contract types (indemnity, guarantee, bailment, agency) and sale/partnership law.
Objectives: To examine specific contracts beyond general principles. Students learn how indemnity/guarantee contracts function, the law of agency (creation and termination), and the law of sale of goods and partnership (governed by separate statutes).
Outcomes: Students will define contracts of indemnity, guarantee, bailment, pledge; distinguish them and state their legal rules. They will understand sale under the Sale of Goods Act, passing of property and risk, rights of unpaid seller. They will grasp partnership principles (Partnership Act, 1932): formation, mutual rights/duties, and dissolution.
Syllabus (Topics) – CCSU:
- Indemnity and Guarantee: Definitions (s.124-126 Contract Act); difference between them; rights of indemnity-holder; continuing guarantee.
- Bailment & Pledge: Bailment (s.148-181): rights/duties of bailor/bailee, finder of goods. Pledge (s.172-181): essentials (delivery), rights of pledgee.
- Agency: (s.182-238): Creation (express/implied), authority of agent, duties, termination. (Example: principal liable for agent’s acts within authority.)
- Sale of Goods: Definition (Sale of Goods Act, 1930); conditions vs. warranties; transfer of ownership (s.18-25); performance (delivery). Unpaid seller’s rights (withholding, stoppage in transit, resale, lien, replevin).
- Partnership: Partnership Act, 1932. Essentials (section 4), registration (voluntary), rights/duties of partners, relations to third parties, liabilities of firm, incoming/outgoing partners. Dissolution (by notice, insolvency, etc.).
- (Not in syllabus but often included: Compare joint stock companies vs partnerships in formation/liability.)
Recommended Texts:
- Anson on Contract (sec. on indemnity, etc.).
- Bangia, Contract Act chapters on these contracts.
- Moitra, Contract Act (Digest chapters).
- Narayena P.S., Law of Partnership – authoritative on partnership.
- Dr. Avtar Singh, Partnership & Companies.
- Pollock & Mulla (contract and specific relief).