What Are Special Contracts Explain

Here is a basic example of a warranty contract. Suppose person A buys an item from B. C, another person explains that if A B does not pay for this item, C himself will pay for it. Thus, in the given scenario, A is the principal debtor, B is the creditor and C is the guarantor. The main reason for creating collateral contracts is therefore to provide additional security to the creditor. According to section 182, an «agent» is a person who is used for acts or activities intended to be committed for another person and to represent that person vis-à-vis a third party. The person who employs an agent is called a «principal». A «commercial agency contract» therefore includes the establishment of a principal-agent relationship. The test for establishing the existence of a relationship of agency was used in Loon Karan Sohan Lal v. John and Co. (1967).

What made you look for special contracts? Please let us know where you read or heard it (including the quote, if possible). Deposits can exist independently of contracts. They would exist sui generis, as noted in Building and Civil Engineering Holidays Scheme Management Ltd. v. Post Office (1964). Thus, the voluntary seizure or custody of goods in the possession of another is a discovery repair independent of a contract. The extent of a guarantor`s liability depends on the provisions of the contract. This was effectively explained in Syndicate Bank v. Channaveerappa Beleri (2006). The Supreme Court has held that the liability of a guarantor or guarantor cannot be universal and that a guarantee contract can take many forms.

A distinction is made between a security right, which stipulates that a guarantee is required to pay the creditor only on demand, and a guarantee, which does not contain such a condition. In addition, depending on the terms of the contract, the liability of a guarantor may be limited to a certain amount and not equal to that of the principal debtor. The obligation to pay may arise simultaneously or at different times for the principal debtor and the guarantor. A claim against the principal debtor may even be time-barred, but enforceable against the guarantor. The parties may agree that the liability of a guarantor arises at a later date than that of the principal debtor. Section 124 does not include insurance contracts related to non-man-made accidents. Apart from that, almost all insurance, with the exception of life and accident insurance, are compensation contracts. The insurer`s promise of compensation is absolute.

Legal action can be brought immediately after non-performance, regardless of the actual loss. If the holder of the indemnity had incurred liability and that liability was absolute, he would be entitled to ask the indemnitee to protect him from such liability by reimbursing it. However, if an insurer promises through an insurance contract to pay for insurance in the event of an accident such as fire, this is not mentioned in section 124. However, these are still valid contracts and fall under Article 31 of the Contracts Act, which refers to conditional contracts. Under Article 129, a guarantee covering a number of operations is called a permanent guarantee. A permanent guarantee may be revoked from the guarantee for future transactions by notifying the creditor (Article 130). In addition, Article 131 provides that the death of a guarantor is also used as a method of revoking collateral contracts for future transactions. Thus, the essential points of the special contract of compensation can be summarized as follows: the «pledge», also called «pledge», is a kind of rescue of property with a particular purpose. It is defined in Article 172 of the Contracts Act.

Property pledged serves as security for the payment of a debt or the fulfillment of a promise. The guarantor in this case is called a «pledge» or a «pledge», and the depositary in this case is called a «lien» or a «pledge». The secured creditor therefore has a special right or interest in the pledged object. The property or special interest is continuous and exists to force payment of the debt or to sell the property when the need arises. The specificity of pledged assets was explained by the Supreme Court in Bank of Bihar v. State of Bihar (1971). Sometimes it may happen that a pledge is made in which the secured creditor has a limited interest. Even in this case, the privilege applies to the extent of this interest (§ 179). The article was written by Ansruta Debnath, a law student at Odisha National Law University. This article deals with the definition of the characteristics of special types of contracts that have specific legal recognition in India. A locked contract; a specialty; unlike an oral or written unsealed.

However, in everyday language, this term is often used to refer to an express or express contract that clearly defines and regulates the mutual rights and obligations of the parties, as opposed to a contract that must be determined by the conclusion of the law from the nature and circumstances of the transaction and its established terms. Compound words and phrases. A contract is a legally binding agreement between two or more parties. Although contracts can be of different types, some specific and special types of contracts have been recognized by Indian law to give them some sort of formality.