CONTRACT – II
Rapid Revision Sheet — Special Contracts
Definitions • sections • distinctions • cases
KSLU • Indian Contract Act 1872 • Partnership Act 1932 • Sale of Goods Act 1930
How to use Skim the night before and morning of the exam. Sections are in brackets — quoting them earns marks. Cases in maroon. |
UNIT I — INDEMNITY & GUARANTEE
Term / Section | In one line |
|---|---|
Indemnity (S.124) | One party promises to save the other from loss caused by the promisor's or another's conduct. |
Rights of indemnity-holder (S.125) | Recover damages, costs, and compromise sums. Liability commences when loss is absolute (Gajanan Moreshwar). |
Guarantee (S.126) | Contract to perform/discharge a third person's liability on default. 3 parties: surety, principal debtor, creditor. |
Consideration (S.127) | Anything done for the benefit of the principal debtor. |
Extent of liability (S.128) | Surety's liability is co-extensive with the principal debtor's. |
Continuing guarantee (S.129) | Covers a series of transactions; revocable for future (S.130) / on death (S.131). |