II: Paper-I : Law of Contract-II

Subject introduction

Law of Contract–II is an advanced branch of contract law dealing with certain special forms of contractual and commercial relationships. It is primarily governed by the Indian Contract Act, 1872, the Sale of Goods Act, 1930, and the Indian Partnership Act, 1932. The subject covers contracts of indemnity and guarantee, bailment and pledge, agency, sale of goods and partnership. It explains the rights, duties and liabilities of indemnifiers, guarantors, bailors, bailees, pledgers, agents, buyers, sellers and partners. It also examines the formation and dissolution of partnerships, conditions and warranties in a contract of sale, transfer of ownership and remedies for breach. Its central purpose is to regulate special commercial transactions and protect the legal interests of parties engaged in business relationships.

Syllabus

PAPER - I

LAW OF CONTRACT - II

• Unit-I: Indemnity and Guarantee - Contract of Indemnity, definition, Rights of Indemnity holder, Liability of the indemnified, Contract of Guarantee, Definition of Guarantee, Essential characteristics of Contract of Guarantee, Distinction between Indemnity and Guarantee, Kinds of Guarantee, Rights and liabilities of Surety, Discharge of surety, Contract of Bailment, Definition of bailment, Essential requisites of bailment, Kinds of bailment, Rights and duties of bailor and bailee, Termination of bailment, Pledge, Definition of pledge, Rights and duties of Pawnor and Pawnee, Pledge by non-owner.

• Unit-II: Contract of Agency - Definition of Agent, Creation of Agency, Rights and duties of Agent, Delegation of authority, Personal liability of agent, Relations of principal and agent with third parties, Termination of Agency.

• Unit-III: Contract of Sale of Goods - Formation of contract, Subject matter of sale, Conditions and Warranties, Express and implied conditions and warranties, Pricing, Caveat Emptor, Hire Purchaser Agreements.

• Unit-IV: Property - Possession and Rules relating to passing of property, Sale by non-owner, Nemo dat quod non habet, Delivery of goods, Rights and duties of seller and buyer before and after sale, Rights of unpaid seller, Remedies for breach.

• Unit-V: Contract of Partnership - Definition and nature of partnership, Formation of partnership, Test of partnership, Partnership and other associations, Registration of firm, Effect of non-registration, Relations of partners, Rights and duties of partners, Property of firm, Relation of partners to third parties, Implied authority of partners, Kinds of partners, Minor as partner, Reconstitution of firm, Dissolution of firm, Limited Liability Partnership (LLP).

• Suggested Readings:

  1. Anson's Law of Contract, Oxford University Press, London.

  2. Venkatesha Iyyer: The Law of Contracts and Tenders, Gogia & Co., Hyderabad.

  3. Cheshire & Fifoot: Law of Contract, Butterworth, London.

  4. Mulla: The Indian Contract Act, N.M.Tripati (P) Ltd. Bombay.

  5. G.C.V.SubbaRao: Law of Contracts, S.Gogia & Co., Hyderabad.

  6. Krishnan Nair: Law of Contracts, S. Gogia & Co. Hyderabad.

  7. Avatar Singh: Law of Contracts, Eastern Book Company, Lucknow.

  8. A Ramaiah's Sale of Goods Act, The Law Book Co., Allahabad.

  9. Benjamin's Sale of Goods, Sweet & Maxwell, London.

  10. P.S.Atiyah: Sale of Goods Act, Universal Book Traders, Delhi.

  11. Charles D.Drale: Law of Partnership, Sweet & Maxwell, London.

  12. Bowstead on Agency, Sweet and Maxwell, London.

Unit-wise notes

Quick Reference

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