Guaranty And Indemnity Agreement This: Fill & Download for Free

One may be the beneficiary of an insurance policy, which is a bilateral agreement of indemnity, not transferable on a prospective basis due to lack of insurable interest, which is likely transferable in the event of a claim, and is probably assignable in any event. One cannot trade a policy typically, but viaticals, life settlements, and various types of litigation finance in the event of claim would be exceptions. Amongst those exceptions there is a distinction as to whether the value of the policy is prospective or retrospective: a viatical or life settlement in a life insurance policy is the only prospective trade of which I am aware; there are many sundry ways in which a retrospective claim under a policy might be assigned or transferred, or financed from the perspective of litigation cost.One may be the beneficiary of a financial guaranty or other type of surety bond which is tripartite agreement of performance to pay or otherwise perform. When the surety is to pay (I.e. a financial guaranty), the contract is typically transferable and assignable, so it can be traded if stapled to the same contact it assures. When a surety is to perform, it is might be transferable and or assignable, it depends on contract law in a particular jurisdiction, therefore it could be tradable on a prospective basis, again if stapled to the contract it assures. Similar to an insurance policy as treated in the prior paragraph, a surety or guaranty may also have tradable value as a retrospective contract with a valid claim thereon.

CONTRACT OF IDEMNITYCONTRACT OF GUARANTEEParties Only Two Parties- Identifier & IndemnifiedThere are two parties ‘Creditor’ ‘principle debtor’ and surety’Liability00 The liability of the indemnified is primaryThe liability of the surety is secondary, i.e., the surety’s is liable only if the principle debtor fails. The liability of the principle debtor is primaryContingency- The liability of the indemnifier arises only on the happening of a contingency.There is an existing debt or duty the performance of which is guaranteed by the suretyContract- There is only one contract between the indemnifier and indemnified.Three contracts; one between the creditor and principal debtor; second, between the surety and the creditor, and third between the surety and the principal debtor.Object- The indemnity contract is for reimbursement of loss. It provides ‘security’.The contract of guaranty provides ‘surety’ to the creditor.Right to sue- Indemnifier cannot sue a third party for the loss suffered.(B)Define Bailment and also duties of Bailor.Definition of bailment:Bailment is “the delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the direction of the person delivering them. The person delivering the goods is called the ‘bailor’. The person to whom they are delivered is called the ‘bailee’.Duties of bailor:To disclose faults in the goods bailed (Sec. 150):The bailor is bound to disclose to the bailee faults in the goods bailed of which the bailor is aware, and which materially interfere with the use of them, or expose the bailee to extraordinary risks, and if he does not make such disclosure, he is responsible for damage arising to the bailee directly from such faults.If the goods are bailed for hire the bailor is responsible for such damage. Whether he was or was not aware of the existence of such faults in the goods bailed.Example:-A hires a carriage of B. The carriage is unsafe. Though B is not aware of it and A is injured, B is responsible to A for the injury.R hired a motor launch from B for a holiday on River Thames. The launch caught fire and R could not extinguish the fire as the fire-fighting equipment was out of order. R was injured Held D was liable to pay him damages (Reed V. Dean 1949)Responsibility for title to the goods (Sec. 164): The bailor is responsible to the bailee for any loss which the bailee may sustain by reason that the bailor was not entitled to make the bailment or to receive back the goods or to give directions respecting them.To bear necessary expenses of bailment (Sec. 158):When by the conditions of the bailment the goods are to be kept or to be carried or to have work done upon them by the bailee for the bailor and the bailee is to receive no remuneration (bailment is gratuitous), the bailor shall repay the bailee the necessary expenses incurred by him for the purpose of the bailment.To indemnity gratuitous bailee (Sec. 159):Where the bailor has lent the goods gratuitously for a specified time or purpose is accomplished, he shall indemnify the bailee if he puts the bailee to any loss caused by earlierbear risk for loss etc. Bailor is to bear the risk of loss, destruction or deterioration of the thing bailed if the bailee has taken as much care as a man of ordinary would under similar circumstances, take of his own goods of the same bulk, quality and value as the goods bailed.Explain the various implied conditions in a contract of Sale.Implied Condition (Section 14 to 17)Conditions as to title:In a contract of sale of goods there is an implied conditional that the seller shall have to right to sell the goods on the case of a sale and in an agreement to sell he shall have such a right at the time when the property is to pass. [Section 14 (a)]. For example where a buyer of a car was deprived of the same due to the defective title of the seller, the court decided that the buyer can recover the full price of the car even though he has used to same for a few months. The above implied warranties, in fact, depend upon this condition because a buyer can only enjoy those goods which the seller has right to sell (Section 14 14)Condition as to description: where there is a sale of goods by description the goods shall compound with the description and if the sale is by description as well as by sample is not sufficient if the bulk of the goods corresponds with the sample alone and not with the description (Section 15)Condition as to quality of fitness for a particular purpose:As a general rule the rule of caveat Empter applies when a purchaser purchases the goods for satisfying needs but there are cases when the buyer maker known to the seller the particular purpose for which the goods are required and relief upon seller’s skills and judgment for supplying the goods of his requirement and the goods are of such a nature that they are sold by the seller is the course of his business, (whether he is theImplied condition of merchantability:according to section 16 sub-section 2 where goods are purchased by description from a person who usually sells them (although he may be a manufacturer or producer or not) there is an implied condition that the goods supplied shall be of merchantable quality. For example: (Pir Mohammed V/s Dallo Ram) where black woolen yam was supplied by the seller to the buyer and the same was found moth-eaten. it was decided that there was a breach of his condition.Explain the rights of unpaid seller against goods.Who is Unpaid seller (Section 45): When buyer does not pay the price of goods, the seller is deemed to be unpaid. The seller of goods is deemed to be an unpaid seller within the meaning of this act.When the whole price has not been paid or tenderedWhen a bill of exchange or other negotiable instrument has been received as conditional payment and the condition on which it was received has not been fulfilled by reason of the dishonor of the instrument or otherwise.Rights of unpaid sellerRights against the goodsRight against buyerRight against the goods: An unpaid seller has the following rightsRight of lien (Sec. 47):The term of lien means a right to retain the possession of goods until the tender or payment of the price. An unpaid seller can exercise lien only in the following cases:Where the goods have been sold without stipulation as to creditWhere the goods have been sold on credit but the term of credit has expiredWhere the buyer becomes insolventThe unpaid seller can exercise his lien even if he is in possession of goods as an agent or bailee for the buyer. But the right of lien is available only for the price of goods and not for other charges.Termination of lien (Section 49): An unpaid seller losses has right of lien in the following casesWhen he delivers the goods to a carrier or other bailee for the purpose of transmission to the waiving buyer without reserving the right of disposal of goodsWhen the buyer or his agent lawfully obtains possession of thewaiving the right of lien.Where he takes a security from the buyer for the payment of the price in lien of his lien.Right to stoppage in transit:where the seller has parted with possession of goods, lien is lost. But in certain circumstances, unpaid seller has the right of resuming possession of goods as long as they are in course of transit and may certain them until payment or tender of price. But in order that this right may be exercised three conditions must be satisfied.The seller must be unpaidThe buyer must be insolventThe seller must have parted with the possession of goods and the buyer must not have acquire i.e. goods should be transitDuration of transit: goods are deemed to be in transit from the time when they are delivered to an carrier or other bailee for the purpose of transmission to the buyer. Until the buyer or his agent on his behalf, takes delivery of them from such carrier or other bailee.When does the transit end?Once the goods reach the hands of the buyer or his agent, the transit is at the endAlso, if the or his agent obtains delivery of the goods before they reach their destination.The transit will end if after the arrival of goods at the appointed destination, the carrier or other bailee acknowledges to the buyer or his agent that he holds the goods on his behalf. It is immaterial that a further destination for the goods may have been indicated by the buyer.Where the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or his agent respect, the transit is deemed to be at the end.If the goods are rejected by the buyer and the carrier or other bailee continues in possession of them, the transit is not deemed to be at an end, even if the seller has refused to receive them back.When part delivery of the goods has been made to the buyer with an intention of delivering the whole of the goods, transit will be at end for the remainder of the goods also which are yet in the course of transit.How right of stoppage-in-transit effected (Section 52): The Stoppage in transit can be exercised either by taking actual possession of the goods or by giving notice of this claim to the carrier or to the other bailee in whose possession the goods are. The notice may be given to the principal or his agent. The carrier, after receiving the notice, shall not deliver goods to the buyer.Right of resale (Section 52):The unpaid seller, who has exercised either the right of lien or the right of stoppage-in-transit can sell goods.This can be exercised in the following cases:Where the goods are of a perishable nature.Where the seller expressly reserves the right of resale in case the buyer makes a default in payment of price.Where the unpaid seller who has exercised right if lien or stoppage in transit gives notice to the buyer of his intention to resell, the unpaid seller may, if the buyer does not pay or tender the price within a reasonable time, resell the goods within a reasonable time.()