Contract Law II

Contract Law II (Paper Code:)

Course Teacher: Ms. Rupa Pathakji

Resource Persons (Guest Lectures): Research Scholars, Judiciary & Academia

Objectives:

This course is to be taught after the students have been made familiar with the general
principles of contract in which the emphasis is on understanding and appreciating the basic
essentials of a valid contract and on the existence of contractual relationship in various
instances. Obviously, a course on special contracts should initiate the students to different
kinds of contracts with emphasis on the intricacies therein. This course also should provide
an insight into the justification for special statutory provisions for certain kinds of contracts.

Duration: The course will comprise of 4 credits of 60 hours duration.

Syllabus

Unit 1
1.1. Indemnity

i The concept
ii Definition of Indemnity
iii Insurance Contract, if contract of indemnity India
iv Rights of Indemnity Holder
v When can an indemnifier be made liable? Can he claim to be indemnified before he is
indemnified

1.2. Guarantee

i The concept
ii. Definition of guarantee: as distinguished from indemnity.
iii. Basic essentials for a valid guarantee contract
iv. The place of consideration and the criteria for ascertaining the existence of
consideration in guarantee contracts
v Continuing guarantee
vi. Nature of surety's liability
vii. Duration and termination of such liability
viii. Illustrative situations of existence of continuing guarantee
ix. Rights of surety
x. Position of surety in the eye of law
xi. Various judicial interpretations to protect the surety
xii. Co-surety and manner of sharing liabilities and rights
xiii. Discharge of surety's liability
Unit 2
2.1. Bailment

i Definition of bailment
ii Essentials of Bailment
iii Duties of Bailor and Bailee towards each other
iv Rights of bailee
v Finder of goods as a bailee.

2.2. Pledge

i Pledge: comparison with bailment

ii Definition of pledge under the Indian contract Act
iii Rights of the pledgee or pawnee.
iv Right of suit against pawnor
v Right of sale of the pledged goods

Unit 3
3.1.Agency

i Establishing Agency
ii Different kinds of Agent
iii Distinction between agent and servant
iv Essentials of a agency transaction
v Various methods of creation of agency
vi Duties and rights of agent
vii Scope and extent of agent's authority
viii Liability of the principal for acts of the agent including misconduct and tort of the
agent
ix Liability of the agent towards the principal
x Personal liability towards the parties
xi Methods of termination of agency contract
xii Liability of the principal and agent before and after such termination

3.2. Sale of Goods

i. Law pertaining to sale of goods

ii. Definition of Contract of Sale
iii. Effect of Goods perishing
iv. Auction Sale
v. Conditions and Warranties i.e Implied conditions
vi. The rule of caveat emptor
vii. Implied Warranties
viii. Transfer of property and title
ix. Performance of the Contract
x. Rights of Unpaid Seller against the goods
xi. Suits for breach of contract
Unit 4
4.1.Partnership

i. Nature of partnership: definition

ii. Essentials of Partnership
iii. Mutual relationship between partners (Relations Interse with partners and third
parties)
iv. Incoming of partners
v. Outgoing of partners
vi. Registration of Partnership
vii. Dissolution of Partnership

4.2. Negotiable Instruments

i. The definition
ii. Various kinds of Negotiable Instrument
iii. Promissory note and its characteristics, Bills of exchange and its characteristics,
Acceptance, ambiguous instruments, cheques and other kind of instruments
iv. Holder and holder in due course: meaning, essential conditions rights and privileges
Of holder in course, endorsee from the holder in due course and parties
v. Negotiation and Liability
vi. Presentment of the instrument
vii. Modes of discharge from liability
viii. Cheques: Kinds of crossing cheque and Protection of collecting banker
ix. Miscellaneous provisions i.e notice of dishonour of cheque and its effect
x. Special rules of evidence

Required Reading:
Contract II- R.K. Bangia Publication Allahabad Law Agency
R.K.Abhichandani (ed.), Pollock and Mulla on Contracts and Specific Relief Acts (1999)
Tripathi, Bombay
Avtar Singh, Contract Act (2000), Eastern, Lucknow.
Krishnan Nair, Law of Contract,(1999) Orient
Avtar Singh, Principles of the Law of Sale of Goods and Hire Purchase (1998), Eastern,
Lucknow
J.P.Verma (ed.), Singh and Gupta, The Law of Partnership in India (1999), Orient Law
House, New Delhi.
A. G. Guest (ed.), Benjamin`s Sale of Goods (1992), Sweet & Maxwell.
Bhashyam and Adiga, The Negotiable Instruments Act (1995), Bharath, Allahabad
M.S.Parthasarathy (ed.), J. S. Khergamvala, The Negotiable Instruments Act
Beatson (ed.), Ansons' Law of Contract, (1998), Oxford, London
Saharay, h.k., Indian Partnership and Sale of Goods Act (2000), Universal
Ramnainga, The Sales of Goods Act (1998), Universal
Evaluation components
Maximum marks allotted for the paper is 100 out of which 50% is allotted for semester
end examination and 50% for continuous evaluation by the concerned course teachers.