STUDY TO ENLIGHTEN YOURSELF
RIGHTS OF SURETY A surety is a person giving a guarantee in a contract of guarantee. A person who takes responsibility to pay a sum of money, perform any duty for another person in case that person fails to perform such work. After making a payment and discharging the liability of the principal debtor, the…
CONTRACT OF GUARANTEE NOTES Contract of Guarantee means a contract to perform the promises made or discharge the liabilities of the third person in case of his failure to discharge such liabilities. ACCORDING TO SECTION 126 OF INDIAN CONTRACT ACT, 1872 “A contract of guarantee is a contract to perform the promise or discharge the liability of the…
CONTRACT OF INDEMNITY The term Indemnity literally means “Security against loss”. In a contract of indemnity one party – i.e. the indemnifier promise to compensate the other party i.e. the indemnified against the loss suffered by the other. ACCORDING TO ENGLISH LAW “It is a promise to save a person harmless from the consequences of…
DISCHARGE OF CONTRACT Discharge of Contract implies termination of contractual obligations. This is because when the parties originally entered into the contract, the rights and duties in terms of contractual obligations were set up. Consequently when those rights and duties are put out then the contract is said to have been discharged. Once a contract stands discharged, parties…
FRAUD VS MISREPRESENTATION FRAUD Fraud means dishonestly making a false, untrue or misleading representation with a view to gain or with intention to cause loss. If the fraud results in injury to the deceived party, he/ she may claim damages for the tort of deceit. A contract obtained by fraud is voidable on the grounds…
MISTAKE IN CONTRACT LAW Mistake in contract law is a misconception or error. It means that parties intending to do one thing have by unintentional error done something else. Mistake may be defined as an erroneous belief about something. It refers to either one or both the parties to the contract are not properly understood…
MISREPRESENTATION A misrepresentation is an untrue statement of a material fact made by one party which affects the other party’s decision in corresponding to a contract. If the mis-representation is identified, the contract can be declared void. ACCORDING TO SECTION 18 OF INDIAN CONTRACT ACT, 1872 “Misrepresentation is a form of a statement made preceding…
FRAUD Fraud means dishonestly making a false, untrue or misleading representation with a view to gain or with intention to cause loss. If the fraud results in injury to the deceived party, he/ she may claim damages for the tort of deceit. A contract obtained by fraud is voidable on the grounds of fraudulent misrepresentation….
COERCION VS UNDUE INFLUENCE The difference between coercion and undue influence is as follows: COERCION Coercion means using force to compel a person to enter into a contract. So force or threats are used to obtain the consent of the party under coercion, i.e it is not free consent. ACCORDING TO SECTION 15 OF INDIAN…
UNDUE INFLUENCE The term ‘undue influence’ means the improper or unfair use of one’s superior power in order to obtain the consent of a person who is in a weaker position. ACCORDING TO SECTION 16 OF INDIAN CONTRACT ACT 1872 “When the relations between the two parties are such that one party is in a…
