Special Contract

Special Contracts
Pre-requisites: None Version: (2017)
Course Code: SLL 1704 Credits: 04
Course Objectives:
Having studied the general principles of contract, this course will introduce students to
certain special forms of contracts, which possess unique characteristics that need to be
appreciated in light of the principles studied. This course seeks to achieve the following
objectives:
1. Introduce students to the legal principles governing various forms of special
contracts in India.
2. Acquaint students with legal nuances of modern day commercial transactions and
business.
3. Expatiate knowledge of legislative regulation of various types of contractual
relations in India.
4. Develop critical thinking regarding the growing horizons of contractual relations in
India, which itself has been characterized by enhanced corporatization.
Learning Outcomes:
At the end of this course the students will be able to:
1. Identify the operation of various forms of contracts in business and society.
2. Juxtapose the legal provisions and principles to the case-laws relevant to the course,
and analyze the judgments.
3. Apply the principles and provisions studied, in analyzing hypothetical factual
situations and answering related questions.
4. Apply the legal principles and provisions studied, to moot court problems.
Scheme: This course shall be covered in about 45 lectures of one hour duration each,
spread into 8-10 topics in each Unit.
Course Contents:
UNIT I-Contracts of Indemnity and Guarantee

Contract of Indemnity: Definition, nature, and parties
Need for indemnity in commercial transactions
Rights and liabilities of Indemnified, indemnifier, and surety
Contract of Guarantee: Definition, nature, and parties
Rights of surety
Extent of liability of surety; Discharge of surety from liability
Rights and liabilities of principal debtor, creditor
Indemnity and guarantee distinguished
1. Sita Ram Gupta v. Punjab National Bank & others AIR 2008 SC 2416
2. SBI v. Kusum Vallabhdas Thakkar (1994) 1 GLH 62
3. Hindustan Steelworks Construction Ltd v. Tarapore & Co (1996) 5 SCC 34
4. Anil Kumar v. Central Bank of India AIR 1997 HP 5
5. Hindustan Steelworks Construction Ltd v. Tarapore & Co (1996) 5 SCC 34
6. Anil Kumar v. Central Bank of India AIR 1997 HP 5
UNIT II-Contracts of Bailment, Pledge, and Agency

Contract of Bailment: Meaning and parties
Essential features of contract of bailment

Duties of bailor and bailee
Involuntary bailee; Finder of goods
Rights of bailor and bailee
Termination of bailment
Contract of Pledge: Definition, scope and parties
Pledge and hypothecation
Pledge by a non-owner
Rights and duties of pawnor and pawnee
Termination of pledge
Pledge and bailment distinguished
Contract of agency: Definition, scope and parties
Essentials of a contract of agency
Representative capacity
Distinction between: agent and servant; agent and bailee; agent and buyer
Creation of agency; Types of agency
Rights and duties of agent
Authority of agent: extent of authority; delegation of agent’s authority
Position of principal in a contract of agency
Termination of agency
7. New India Assurance Co Ltd v. DDA (1991) 2 PLR (Del) 82
8. Blakemore v Bristol and Exeter Rly Co (1858) 8 El&Bl 1035,
9. Union of India v. Amar Singh, AIR 1960 SC 233
10. Alias v. EM Patil, AIR 2004 Ker 214
11. Standard Chartered Bank v. Custodian AIR 2000 SC 1488
12. Loon Karan Sohan Lal v. John & Co, AIR 1967 All 308
13. UCO Bank v. Hem Chandra Sarkar (1990) 3 SCC 389
14. Bank of Bihar Ltd v. Tata Scob Dealers (Controlled Stock) Calcutta Ltd, AIR 1960 Cal 475
15. Federal Insurance Co v. Nakano Singapore (P) Ltd (1992) 1 Curr LJ 539 (CA Singapore)
16. Sardar Gurcharan Singh v. Mahendra Singh (2004) 1 MPLJ 252
UNIT III-Sale of Goods Act, 1930

Essentials of a contract of sale
Distinction between sale and agreement to sell
Goods: Meaning of goods; Classification of goods; price of goods; delivery; effect of
destruction of goods; Passing of property
Doctrine of caveat emptor
Right and duties of parties: Rights of an unpaid seller; Rights of a buyer; Duties of
seller; Duties and liabilities of buyer
Stipulations as to time in sale; Conditions and warranty
17. Sales Tax Officer Pilibhit v. Budh Prakash 1955 SCR 1133
18. Bharat Sanchar Nigam Ltd. & Anr. v. Union of India & Others (2006) 282 ITR 273 (SC)
19. Goddard v Hobbs 1878 4App. Cas. 13
20. Kalka Prasad Ram Charan v. Harish Chandra AIR 1957 All 25
UNIT IV-Indian Partnership Act, 1932

Meaning and essentials of partnership; Test of partnership
Distinction between partnership and co-ownership, partnership and joint family
business, partnership and company
Types of partner; Position of minor as a partner
Relations of partners to one another and outsiders: Rights /Duties of partners inter
se; Partnership Property; Relations of Partners to third parties; Liability for holding
out
Implied authority of a partner; Scope of implied authority
Incoming and outgoing partners: Modes of introduction, liability; Retirement of a
partner; Expulsion of a partner
Dissolution of firm: Liability, accounts, public notice, rights, payment of debts,
Restraint of trade, Good will
21. Mukund Lal v. Purushottam Singh AIR 1968 SC 1182
22. CST v. K. Kelukutty AIR 1985 SC1143
23. Helper Girdharbhai v. Saiyed Mohd Mirasaheb Kadri AIR 1987 SC 1782
24. Crawshay v. Maule (1818) 1 Swan 495
25. Bentley v Craven (1853) 18 Beav 75
26. Glorious Plastics Ltd v. Laghate Enterprises
27. BM Devaiah v. Canara Bank 2003 AIR Kant 143
Suggested Readings:
Prescribed Statutes
 Indian Contract Act, 1872
 Sale of Goods Act, 1930
 The Indian Partnership Act, 1932
Reference texts
 AKHILESHWAR PATHAK, LAW RELATING TO SPECIAL CONTRACTS–CONTRACTS
OF BAILMENT, PLEDGE, HYPOTHECATION, INDEMNITY AND GUARANTEE
(LexisNexis India 2013)
 AVTAR SINGH, LAW OF PARTNERSHIP: PRINCIPLES, PRACTICE AND TAXATION
(Eastern Book Company 10th ed. 2011)
 AVTAR SINGH, LAW OF SALE OF GOODS (Eastern Book Company 7th ed. 2011)
 AVTAR SINGH, TEXTBOOK ON LAW OF CONTRACT AND SPECIFIC RELIEF (Eastern
Book Company 5th ed. 2009)
 JUSTICE K. KANNAN, MULLA ON THE SALE OF GOODS ACT AND THE INDIAN
PARTNERSHIP ACT (LexisNexis India 10th ed 2012)
 J BEATSON, ET AL., ANSONS' LAW OF CONTRACT (Oxford University Press-New
Delhi 29th ed. 2010)
 R. K. BANGIA, LAW OF CONTRACT-II WITH INDIAN PARTNERSHIP ACT AND SALE
OF GOODS ACT (Allahabad law Agency 2015)
 R. K. BANGIA, INDIAN CONTRACT ACT (Allahabad Law Agency 14 th ed. 2015)
 ANIRUDH WADHWA, MULLA ON THE INDIAN CONTRACT ACT (LexisNexis India
14th ed. 2014)
 H.K. SAHARAY, INDIAN PARTNERSHIP AND SALE OF GOODS ACT (Universal
Publication 2000)
Pedagogy:
The application of specific pedagogy is motivated from the fact that the foundation of
professional success, via knowledge, are developed during the professional course itself. In
addition, implied understanding also needs to be developed on current issues relating to
legal scenario in India. Pedagogy for the module has to take care of two things. First, a
constant interaction among students and tutor is required, involving students in active and
participative manner. Second, an instructive strategy is required to help in learning by
doing. Thus, in this module following pedagogical approaches are adopted:
 Lecture and Student Presentation: The lectures will not be confined to classroom
instruction alone, but will be a combination of theoretical and practical insights
into the subject by deriving examples from contemporary mainstream. Students
will be encouraged to give presentations on any assigned topic, to boost self-
learning and peer review.
 Discussion of important judgments: Better understanding of the implementation
and interpretation of laws by the Courts, and practical aspects of law and
procedure, can be achieved by exploring, and analysing the relevant decisions
given by Courts of law.
Examination Scheme:
Component of Evaluation MC RA MT EE
Weightage (%) 10 10 20 60
MC: Moot Court Excercise; RA: Research Assignment; MT: Mid-Term Test; EE: End Term
Examination

Special Contract

Uploaded by

Copyright:

Available Formats

Special Contract

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Special Contract

Uploaded by

Copyright:

Available Formats

Special Contracts

Pre-requisites: None Version: (2017)

Course Code: SLL 1704 Credits: 04

UNIT I-Contracts of Indemnity and Guarantee

UNIT II-Contracts of Bailment, Pledge, and Agency

Essential features of contract of bailment

UNIT III-Sale of Goods Act, 1930

UNIT IV-Indian Partnership Act, 1932

You might also like