Interested to Buy Any Domain ? << Click Here >> for more details...
Distinguish between Contract of Indemnity and Contract of
guarantee.
- 8 Answers
- 41699 Views
- I also Faced
- E-Mail Answers
Answer Posted / avik ghosh
CONTRACT OF INDEMNITY
1)Section 124 of the Indian Contract Act 1872 defines a
"contract of indemnity" as a contract by which one party
promises to save the other from loss caused to him by the
conduct of the Promisor himself, or by the conduct of any
other person.
e.g = 'x' contracts to indemnify 'y' against the
consequences of any legal proceedings which c
may take against B in respect of a certain sum of
Rs.200/=.
2 There are two parties
to the contract viz.
the indemnifier and the
indemnity holder
3 The liability of the
indemnifier is primary
4 In the Contract of indemnity the liability of the
indemnifier arises only on the happening of the contingency.
5 In the contract of indemnity the loss falls on the
indemnifier except in certain special cases.
6 There is only one contract in case of contract of
indemnity i.e, b/w the indemnifier and indemnity holder.
CONTRACT OF GUARANTEE
1 Section 126 of the Indian Contract Act 1872 defines a
contract of guarantee is a contract to perform the promise
or discharge the liability of a third person in case of his
default”. The person who gives the guarantee is called the
“surety”; the person in respect of whose default the
guarantee is given is called the “principal debtor”, and the
person to whom the guarantee is given is called the
“creditor”.A guarantee may be either oral or written.
e.g, 'P' lends Rs. 5000/= to 'Q' and 'R' promises to 'P'
that if 'Q' does not pay the money back then 'R' will do so.
2 There are three parties
to the contract viz. the
creditor, the principal
debtor and the surety.
3 The liability of the
surety to the creditor
is secondary i.e, the surety is
liable only if the principal debtor
fails to perform his obligation.
4 In a contract of guarantee there is an existing debts or
duty, the performance of which is guaranteed by the surety.
5 In the contract of guarantee the surety , after discharges
the debts owing to the creditor, can proceed against the
principal debtor.
6 In case of contract of guarantee there are three contracts.
a) contract b/w the principal debtor and the creditor.
b) contract b/w the creditor and the surety.
c) contract b/w the surety and the principal debtor.
| Is This Answer Correct ? | 24 Yes | 4 No |
Post New Answer View All Answers
Which law is broken most frequently?
What is the TDS rules for a NRI who is partner in Partnership Firm in India and on retirement he gets Rs. 150 Lacs equal to the credit balance in his capital account. This credit in his capital account has come on account of revaluation of immovable property owned by thr firm. What is the Firm's liability towards income tax on revaluation of immovable property and what are the obligation of TDS while making payment to the NRI.
CASE STUDY (i) A invites B to a dinner party. B accepts the invitation. A made elaborate arrangements but B failed to turn up. Can A sue B for the loss he has suffered? (ii) On the other hand, if B went to the venue for the dinner party. To his surprise he finds that no dinner Arrangement has been made. B had spent a certain amount to reach the venue. Can B sue A for the loss he (B) has suffered? (iii) A sees a rare book displayed in a shop. It is labeled “First Edition Rs.15” A enters the shop and puts Rs. 15 on the counter and asks for the book. The book- seller does not agree to sell saying that the Real price of the book is Rs.50 and that it had been marked Rs.15/- by mistake. Is the book seller Bound to sell the book for Rs.15/- (iv) On the 5th of a month A makes an offer to B by a letter which reaches B on the 6th On the 7th B posts his letter of acceptance. Meanwhile, on the 6th a posts a letter to B revoking the offer. On seeing it B sends a telegram to A on the 8th confirming the acceptance given through his letter on the 7th Discuss the legal effects of the three letters and the telegram. Note: Assignment should consist of about 200 words per case-let. I.e. totally 800 words (about 4 pages) for the Entire case study. Questions: Q1. Introduction of the subject being discussed and the principle enunciated in the Law. Q2. Enumerate the facts of the decided case on the point. Q3. Explain the decision pronounced by the Court of Law in each of these cases.
i am married to usa green card holder and now i want to go to usa on the student visa, will i have to face any problem if i get the visa and then i go to usa at the time of filing me on the immigrant visa status.
Would it be wrong for judges to be elected?
how long does it take to release the gratuity,after we quit the job?
Why would you want to do legal aid work?
I belong from Other Backward Class Category I want to Purchase land of ST category Man . What is Process. ? Please tell me.
among the tax revenue of the goverment of india ,the most important is a.income tax b.custom duty. c. corporation tax. d. union excise duty.
Should the law exist to protect us from ourselves?
suing social services health service and social security
Whether TDS is to be Deducted from Freight inward And Freight Outward?
if my employees are having esic , then do i need to take workman compensation for them ? is it compulsory for me to take workman compensation even if having esic ?
How securied Corporate Fixed deposite is? And can Corporate Fixed deposite is insured?
if any employees "basic+ da" is more than 6500, then, it is mandatory for employer for epf deduction?
