UNDER GRADUATE – IInd SEMESTER

SESSION 2022-2023

Monsoon Semester
(February- June)

COURSE OUTLINE

CONTRACT II

FACULTY: Ms. Soni Bhola

Assistant Professor (Law)

NATIONAL UNIVERSITY OF STUDY AND RESEARCH IN LAW, RANCHI

AT NAGRI, P.O. - BUKRU, KANKE-PITHORIA ROAD, KANKE
RANCHI- 834006 (JHARKHAND)
INDIA
OBJECTIVE OF THE COURSE

The principles of contracts are not only a significant and pervasive part of our daily lives, they also
bind us legally. It is therefore vital to understand the basic principles of contracts. Law on contract
forms one of the foundation courses in the scheme of legal education. Its application is confined not
only to the established commercial transactions, but it also finds its place in our day-to-day relations.
In the previous semester, the course on law of contract focused primarily on the general principles of
contracts. This semester’s course is a step ahead. It dwells upon various specific contracts including
contract of indemnity, guarantee, bailment, pledge, and law of agency, partnership and specific
reliefs. At the conclusion of this course, the students will be able to understand and analyse the
implications of a contractual arrangement falling under any of the discussed head of special contracts.

The aim of this course is to equip the students with-

a) A holistic understanding of fundamental principles underlying these special forms of contract.
b) An insight into the basic terms associated with these contract and the concepts related therein.
c) To develop capacity of analysis and argument building skills in relation to the course.

TEACHING SCHEME

The course has been allotted five teaching hours per week, in addition thereto, it will include
presentations by students, guest lectures and related academic exercises. Teaching methodology will
include lectures, discussions, case studies, simulation exercises and presentations.

SYLLABUS OUTLINE

MODULE 1: CONTRACT OF INDEMNITY AND GUARANTEE

 Contract of Indemnity: Nature, Meaning and Definition

- English law and Indian law on Indemnity: A Comparison
- Rights of Indemnity Holder when sued
- Commencement of Indemnifier’s Liability
 Contract of Guarantee: Meaning, nature and Definition
- Tripartite nature of Guarantee
- Continuing Guarantee, its revocation
- Guarantee obtained by Misrepresentation, Concealment
 - Discharge of Surety, Rights and Liabilities of Surety, Co-Surety
 Indemnity and Guarantee: Comparison

Important Cases:
Adamson v. Jarvis (1827) 4 Bing 66
Sec. of State v. bank of India Ltd. (1938) 175 IC 327 (PC)
State of Orissa v. United India insurance Co. Ltd., AIR 1997 SC 2671
Richardson Re, Ex parte The Governors of St. Thomas’s Hospital, (1911) KB 705
Taylor v. Lee 187 NC 393
United City Merchants (Investments) Ltd. and Ors. v. Royal Bank of Canada:
[1983] A.C. 168 (H.L.)
M. S. Anirudhan v. Thomcos Bank Ltd, 1963 SCR Supl. (1) 63
State Bank Of Saurashtra v. Chitranjan Rangnath Raja And Anr, 1980 SCR (3)
915
Nangia Construction India (P) Ltd. V. National Buildings Construction, (1992) 73
Comp Case701 (Delhi)
M/S. Rahee Industries Ltd v. Corpn. Of India Ltd. And Anr, CIVIL APPEAL No.
6145 OF 2008
Gajanan Moreshwar v. Moreshwar Madan AIR 1942 Bom 302

Osman Jamal V. Gopal Purushottam (1928) ILR 56 Cal 262

Bank of Bihar v. Damodar Prasad AIR 1969 SC 297

Kashba v. Shripat (1994) 19 Bom 697

MODULE 2: CONTRACT OF BAILMENT

 Nature and Definition of Contract of Bailment

 Essentials of Bailment
 Concept of Bailor and bailee
 Rights and Duties of Bailor and Bailee
 Deemed bailment and Finder of Goods
 Concept of Lien: Particular Lien and General Iien

Important Cases:
 Dominion of India v. Messrs. Gaya Pershad Gopil Narain, (S) AIR 1956 All 338(FB)
The Trustees Of The Port Of Bombay v. The Premier Automobiles Ltd, 1981 SCR (1) 532
Kaliaperumal Pillai v. Vishalakshmi, AIR 1938 Mad 32
Ram Gulam v. State of UP, AIR 1950 All 206
Queen v. Mc Donald, [1960] S.C.R. 186
Chhaganlal v. Dominion of India, 59 Bom LR 704
State Of Bombay (Now Gujarat) v. Mahomed Haji Hasam, 1967 SCR (3) 938
State of Tripura v. Bina Choudhary, Appeal (civil) 2362 of 2005.
Standard Chartered Bank v. Custodian, AIR 2000 SC 1488
Indra Kumar v. State of MP AIR 1963 All 70

Morvi Mercantile Bank v. Union of India AIR 1965 SC 1954

SBI v. Quality Bread Factory AIR 1983 P&H 244

United India Insurance v. Pooppally Coir Mills (1994) 2 Ker LT 473
Binstead v. Buck (1776) 2 Wm Bl 117
Nicholson v. Champan (1793) 2 Hy Bl 254

Syndicate Bank v. Vijay Kumar (1992) 2 SCC 330

Hutton v. Car Maintenance Co. (1915) 1 Ch 21

Dharmodas Agarwal v. R. Badrilal AIR 1987 AP 254

RD Saxena v. Balram Prasad Sharma (2000) 7 SCC 264

MODULE 3: CONTRACT OF PLEDGE

 Definition-Pledge, Pawner and Pawnee

 Comparison:
- Bailment and Pledge
- Pledge and Hypothecation
- Pledge and Mortgage
 Pawner and Pawnee: Rights and Duties
 Pledge by Mercantile Agent
 Pledge by persons in possession under Voidable Contract

Important Cases:
 State Bank Of Saurashtra v. Chitranjan Rangnath Raja, 1980 SCR (3) 915
Lord Krishna Bank v. Asst. Commissioner (1999) 114 STC 333
Sunderlal Saraf v. Subhas Chand Jain, AIR 2006 MP 35
Central Bank of India v. Siriguppa Sugars and Chemicals Ltd., AIR 2007 SC 2804
Lallan Prasad v. Rahmat Ali and another(1967 (2) SCR 233
Karnataka Pawn Broker's Association v. State of Karnataka (1998) 7
SCC 707

MODULE 4: CONTRACT OF AGENCY

 Concept of Agency, Agent and Principle

- Identification of different kinds of agency transactions in day-to-day life and in
commercial world
 Creation of Agency, who may employ an agent; who may be appointed as agent
 Agent and Servant- Distinction
 Rights, duties and liabilities of principal and agent,
 Appointment of sub-agents
 Ratification: Effect, Modes and implications
 Revocation of Authority
- Methods of termination of agency contract
- Liability of the principal and agent before and after such termination.

Important Cases:
Narandas Morardas Gajiwala v. SPAM Papammal, AIR 1967 SC 333
Lakshminarayan Ram Gopal v. Govt. of Hyderabad, AIR 1954 SC 367
National Petroleum Co. Ltd. v. Popatlal Mulji, 38 Bom. LR 810

Mohan Lal Jain v. Sawai Man Singh AIR 1962 SC 73

MODULE 5: LAW OF PARTNERSHIP

 Nature and Definition of Partnership, Partner, Firm

 Modes of Creation and Determining Existence
 Rights and Duties of Partners
  Mutual Relationship between Partners
 Partnership and Third Party Relationship
 Doctrine of Holding Out
 Minors and Partnership
 Dissolution of Firm- Different Modes
- Liability for acts of partners done after dissolution
- Continuing authority of partners for purpose of winding up
- Sale of goodwill after dissolution
 Registration of Partnership Firm
 Limited Liability Partnership

Important Cases:
Syndicate Bank v. R.S.R. Engg. Works (2003) 6 SCC 265
Pamuru Vishnu Vinodh Reddy v. Chhillakuru Chandrasekhara Reddy (2003) 3 SCC 445
Vishnu Chandra v. Chandrika Prasad Agarwal, AIR 1983 SC 523
Saligram Ruplal Khanna v. Kanwar Rajnath, AIR 1974 SC 1094
Santiranjan Das Gupta v. Dasuram Murzamull, AIR 1973 SC 48
M/s. Juggilal Kamlapat v. M/s. Sew Chand Bagree, AIR 1960 Cal. 463
Sharad Vasant Kotak v. Ramniklal Mohanlal Chawda (1998) 2 SCC 171
S.V. Chandra Pandian v. S.V. Sivalinga Nadar (1993) 1 SCC 589
CIT v. M/s. Pigot Champan and Co., AIR 1982 SC 1085

MODULE 6: LAWS OF SPECIFIC RELIEF

 Specific Performance of Contracts

 Rectification and Cancellation of Instruments
 Recession of Contracts
 Declaratory Decrees
 Injunctions
- Temporary Injunction
- Perpetual Injunction
- Mandatory Injunction
- Injunctions when can be granted and when can be refused
Major statutes to be referred:

- The Indian Contract Act, 1872

- The Specific Relief Act, 1963
- The Indian Partnership Act, 1932
- The Limited Liability Partnership Act, 2008

Suggestive Readings:

1. P.S. Atiah, An Introduction to the Law of Contract, (Clarendon Press, Oxford 1998)

2. W. Friedmann, Law in the Changing Society, (Universal Law Publishing Co. Pvt. Ltd. 2001)
Chapter-4,pp-119-161

3. R G Padia (ed), Pollock and Mulla, Indian Contract and Specific Relief Acts, Vol I,13th edn,
Fourth Reprint,2009, Lexis Nexis Butterworths, New Delhi,

4. J.Beatson, Anson’s Law of Contract, J. Beatson Ed., New York: Oxford University Press 2005

5. Avatar Singh, Contract and Specific Relief Act, EBC (2017)

6. Sanjiv Agarwal and Rohini Agarwal, Limited Liability Partnership : Law and Practice
(2009).

7. G.C Bharuka, The Indian Partnership Act (7th ed., 2007)

8. V.P. Verma (Rev.), S. D. Singh and J.P. Gupta, Law of Partnership in India (5th ed., 1996)

9. Avatar Singh, Law of Partnership (3rd ed., 2001 with supplement 2003)

10. Dr. Sanjiv Agarwal & Rohini Aggarawal, Limited Liability Partnership Law and Practice,
Lexis Nexis Butterworth, Whadhwa, Nagpur (2009)

11. Dr. S.A.Naik, Law Relating To Limited Liability Partnership In India Law, Practice And
Procedure, LexisNexis Butterworths Wadhwa Nagpur, (2009)

12. P.L Subramanian, Practical Guide To Limited Liability Partnership (Law, Practice And
Procedures), Snow White Publications Pvt. Ltd, (2009)

13. Dr.D K Jain, Law & Procedure of Limited Liability Partnership, Bharat Publication, (2009

14. Nilima Bhadbhade, Pollock & Mulla, Indian Contract & Specific Relief Acts (Latest Ed.)
Important Note:-

- The topics and cases given above are not exhaustive. The course instructor shall be at
liberty to modify or add new topics/cases.
- The students are required to study the legislations as amended up-to-date and consult the latest
editions of books.