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Category: Contract Law

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BAILMENT

Kaliaperumal Pillai v. Visalakshmi, AIR 1938 Mad 32 

ISSUE:

Whether or not the delivery of the good took place in this case

RULE:

Under the provisions of Sections 148 and 149, Contract Act, delivery is necessary to constitute the bailment. It is true that the delivery may be made by doing anything which has the effect of putting the goods in the possession of the intended bailee; but the mere leaving of the box in a room in the defendant's house, when the plaintiff herself took away the key of that room, cannot certainly amount to delivery within the meaning of the provision in Section 149.

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BAILMENT

R D Saxena v. Balram Prasad Sharma, (2000) 7 SCC 264 

ISSUE:

Does the advocate have a lien for his fees on the litigation papers entrusted to him by his client?

RULE:

A thing to be considered a good under section 171 of the Indian Contract Act, should have marketability and the person to whom it is bailed should be in a position to dispose it of in consideration of money. Goods referred to under s. 171 are saleable goods. In this case there is no scope for converting the case files into money, nor can they be sold to any third party and reliance to s. 171 cannot be placed.

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GUARANTEE

Bank of Bihar v. Damodar Prasad, (1969) 1 SCR 620

ISSUE:

Whether the plaintiff can recover the amount from the guarantor or does he have to wait till he has exhausted his remedies against the defendant?

RULE:

It is the duty of the surety to pay the decretal amount. On such payment he will be subrogated to the rights of the creditor under s. 140 of the Indian Contract Act and he may then recover the amount from the principal.

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GUARANTEE

Anirudhan v. Thomco’s Bank, AIR 1963 SC 746

ISSUE:

Whether a document jointly executed by two person creating a liability equal for both is to be regarded as materially altered if the liability is reduced equally for both but the alteration is made only by one of them?

RULE:

At the stage when the alterations were made, the principal debtor had been acting for and on behalf of the appellant as the appellant had been standing surety for him. The plea of avoidance of contract by material alteration was of no avail to the appellant because the document was not altered while in possession of the promisee but was altered by the principal debtor who was at the time acting as the agent of the appellant.

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GUARANTEE

Hindustan Steel Work Corp. v. Tarapore & Co., (1996) 5 SCC 34

ISSUE:

Whether the breach of contract was committed by HSCL or the contractors and if the court can interfere in this matter?

RULE:

Bank guarantees are an independent and distinct contract between the bank and the beneficiary and thus courts are not to interfere in them until there exists a situation of fraud.

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INDEMNITY

Gajanan Moreshwar v. Moreshwar Madan, A.I.R. 1942 Bom, 302

ISSUE:

Whether the suit for indemnity was premature as the plaintiff had not yet incurred any loss per se?

RULE:

If the indemnity-holder is to wait till a judgment is pronounced, and it was only after he had satisfied the judgment that he could sue on his indemnity, it is clear that this might under certain circumstances, throw an intolerable burden upon the indemnity-holder. Accordingly, if the liability of the indemnity-holder has become absolute, then he is entitled either to get the indemnifier to pay off the claim or to pay into Court sufficient money which would constitute a fund for paying off the claim whenever it was made.

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INDEMNITY

Shanti Swarup v. Munshi Singh, AIR 1967 SC 1315

ISSUE:

Whether there exists a contract of indemnity between the plaintiff and the defendant?

RULE:

When a conveyance contains a covenant by a purchaser to pay off an encumbrance on the property sold it is nothing more than an implied contract of indemnity. The contract of indemnity need not be express, it can be implied as well.

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REMEDIES

Hadley v. Baxendale (1854), 9 Ex 341

ISSUE:

Whether the defendants are liable to Plaintiffs for damages suffered by Plaintiffs due to loss of profits or was the damage too remote to be able to claim?

RULE:

Damages are limited to those that arise naturally from a breach and those that are reasonably contemplated by the parties at the time of contracting.

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