74. Compensation of breach of contract where penalty stipulated for. When a contract has been broken, if a sum is named in the contract as the amount be paid in case of such breach, or if the contract contains any other stipulation by way of penalty, the party complaining ofKEEP READING
75. Party rightfully rescinding contract, entitled to compensation. A person who rightfully rescinds a contract is entitled to consideration for any damage which he has sustained through the no fulfilment of the contract. Illustration- A, a singer, contracts with B, a manager of a theatre, to sing at his theatreKEEP READING
Chapter VII (76-123) of Indian Contract Act – SALE OF GOODS Sale of Goods – Sections 76-123 [Repealed by the Sale of Goods Act, 1930 (3 of 1930) sec 65] Read Contract Act in a systematic way. Read Contract Act each section wise. Download beautiful, mobile friendly Contract Act PDF.KEEP READING
124. “Contract of indemnity” defined. A contract by which one party promises to save the other from loss caused to him by the contract of the promisor himself, or by the conduct of any other person, is called a “contract of indemnity“. Illustration- A contracts to indemnify B against theKEEP READING
125. Right of indemnity-holder when sued. The promisee in a contract of indemnity, acting within the scope of his authority, is entitled to recover from the promisor- (1) all damages which he may be compelled to pay in any suit in respect of any matter to which the promise toKEEP READING
126. “Contract of guarantee”, “surety”, “principal debtor” and “creditor”. 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 defaultKEEP READING
127. Consideration for guarantee. Anything done, or any promise made, for the benefit of the principal debtor, may be a sufficient consideration to the surety for giving the guarantee. Illustrations- (a) B requests A to sell and deliver to him goods on credit. A agrees to do so, provided CKEEP READING
128. Surety’s liability. The liability of the surety is co-extensive with that of the principal debtor, unless it is otherwise provided by the contract. Illustration- A guarantees to B the payment of a bill of exchange by C, the acceptor. The bill is dishonoured by C. A is liable notKEEP READING
129. Continuing guarantee. A guarantee which extends to a series of transaction, is called a “continuing guarantee“. Illustrations- (a) A, in consideration that B will employ C in collecting the rents of B’s zamindari, promises B to be responsible, to the amount of 5,000 rupees, for the due collection andKEEP READING
130. Revocation of continuing guarantee. A continuing guarantee may at any time be revoked by the surety, as to future transactions, by notice to the creditor. Illustrations- (a) A, in consideration of B’s discounting, at, A’s request, bills of exchange for C, guarantees to B, for twelve months, the dueKEEP READING
131. Revocation of continuing guarantee by surety’ death. The death of the surety operates, in the absence of any contract to the contrary, as a revocation of ma continuing guarantee, so far as regards future transactions. Read Contract Act in a systematic way. Read Contract Act each section wise. DownloadKEEP READING
132. Liability of two persons, primarily liable, not affected by arrangement between them that one shall be surety on other’s default. Where two persons contract with third person to undertake a certain liability, and also contract with each other that one of them shall be liable only on the defaultKEEP READING
133. Discharge of surety by variance in terms of contract. Any variance made without the surety’s consent, in the terms of the contract between the principal debtor and the creditor, discharges the surety as to transactions subsequent to the variance. Illustrations- (a) A becomes surety to C for B’s conductKEEP READING
134. Discharge of surety by release or discharge of principal debtor. The surety is discharged by any contract between the creditor and the principal debtor, by which the principal debtor is released, or by any act or omission of the creditor, the legal consequence of which is the discharge ofKEEP READING
135. Discharge of surety when creditor compounds with, gives time to, or agrees not to sue, principal debtor. A contract between the creditor and the principal debtor, by which the creditor make a composition with, or promises to give time, or not to sue, the principal debtor, discharges the surety,KEEP READING
136. Surety not discharged when agreement made with third person to give time to principal debtor. Where a contract to give time to the principal debtor is made by the creditor with a third person, and not with the principal debtor, the surety is not discharged. Illustration- C, the holderKEEP READING
