2. Contract of Indemnity and Guarantee
Indemnity (S.124) A Contract, by which one party promises to save the other from loss caused to him by the conduct of the promisor himself or by the conduct of any other person, is called an Indemnity.
Guarantee (S.126): A Contract to perform the promise or discharge the liability of a third person, in case of his default.
One who gives the Guarantee – Surety
To the one for whom the guarantee is given – Principal Debtor
To whom the Guarantee is given - Creditor

3. If you lend Rs…. To C, I’ll see that your money comes back (Indemnity) – 2 Parties
If you lend Rs…. To C, and if C does not repay you, I will (Guarantee) – 3 Parties.
The liability of a Surety is co-exhaustive with that of Principal Debtor ie., Surety is liable for Principal Amount and Interest. Creditor may sue Surety without suing Principal Debtor.

4. Rights of A Surety Against Principal Debtor:
Right of Subrogation (S.140). Surety has all the rights of the Creditor once the debt is settled.
2. Right to be indemnified (S.141). Right to be repaid with interest from P.D
Against Co-Sureties:
Right of Contribution(S.146). When one Surety has paid more than his Share
Against the Creditor:
Right to claim Securities
2. Right to Set Off (Adjustment of Other Loans)
3. Right to Withdraw (if P.D. was incapable)

5. Discharge of Surety 1.By notice of Revocation(S.130)
2.By Death of Surety (S.131)
3.By variance in terms of Contract (S.133)
4.By release of Discharge of P.D (S.134)
5.By compounding with, or giving time to or agreeing not to sue P.D (S.135)
6.By creditor’s act of omission impairing surety’s eventual remedy (S.139)
7.Loss of Security (S.141)

6. Contract of Agency
(Sec182): An Agent is a person employed to do any act for another or to represent another in dealings with the third person.
Essentials of Agency:
1.Basis of the Agreement
2.Consideration not necessary
3.Capacity to employ an Agent
4.Capacity to be employed as an Agent

7. Modes by which an Agency is created
1.Express Agency - S.187
2.Implied Agency – S.187
3.Agency By Estoppel – S.237
4.Agency By Holding Out – S.188
5.Agency of Necessity – S.189
6.Agency by Ratification – S.196

8. Duties of an Agent – Sec.211
1.To conduct the business of Agency according to the Principal’s directions
2.Duty to act with reasonable care and skill
3.To render Proper Accounts
4.In case of difficulty, to communicate with the Principal
5.Not to deal on his own account
6.Not to make any secret profits
7.Not to disclose confidential information

9. Duties of an Agent – Sec.211
8.Bit to use information obtained in the course of Agency against the Principal
9.Not to set up adverse Title
10.Duty to exercise his authority personally

10. Termination of Agency I. By Act of Parties: II. By Operation of Law:
By Agreement
By Revocation by the Principal
II. By Operation of Law:
1.Completion of Business
2.Expiry of Time
3.Death of Principal or Agent
4.Insanity of the Principal or Agent
5.Insolvency of the Principal
6.Destruction of the Subject Matter
7.Dissolution of a Company
8.Termination of Sub Agent’s Authority

11. Classification of Agents
Broker
Factor
Commission Agent
Del Credre Agent (For Foreign Contracts)
Autioneer
Banker
Indentor
Wife as an Agent
Sub Agent and Substituted Agent

12. Contract of Bailment and Pledge
Bailment – S.148: Delivery of goods by one to another person for some purpose upon a contract that they shall be returned.
Person Delivering – Bailor
To whom the goods are delivered – Bailee
Characteristics:
Delivery of the Goods
Contract
Return of goods in specie (specific)

13. Duties of the Bailee 1.To take care of the goods
2.Not to make unauthorised use of goods
3.Not to mix bailor’s goods with his own
4.To return the goods bailed
5.To return any accretion to the goods bailed.
Rights of a Bailee:
1.Can sue Bailor for non disclosure of faults
2.Lien on the Goods.

14. Duties of the Bailor S-150 1.To disclose faults in the goods
2.Liability for breach of warranty asto Title
3.To bear expenses in case of gratuitous bailment (horse for hire – Food to be given, but medical expenses to be refunded)
PLEDGE: S-172: The bailment of goods as a Security for payment of a debt or performance of a promise in “Pledge”

15. Differences between Bailment and Pledge
1. Pledge is a kind of bailment as a security for payment. Bailment is a broader expression
2. In the event of default, Pledge Pledgee has the right to sell the goods. Bailee cannot sell the goods but only has a lien
3. Pldgee can further pledge the goods. Bailee doesn't have such a right

16. Presumptions / Requisites (section 118 & 119)
As to consideration
As to date
As to acceptance
As to the order of endorsement
As to transfer
As to lost instruments
As to the holder in due course
As to dishonor

17. Negotiable Instruments Act 1881

18. Negotiable means transferable from one person to another person.
Instrument means – Any written document by which a right is created in favor of some person.

19. Definition of a Negotiable Instrument
A “Negotiable instrument” means a promissory note, bill of exchange or cheque payable either to order to bearer (Section 13)

20. Features of Negotiable instruments
(1) Freely transferable – By delivery or by endorsement and delivery.
(2) Holder’s title free from defect – Holder in due course acquires a good title not withstanding any defect in a previous holder title. A holder in due course is one who receives the instrument for value and without any notice as to the defect in the title of the transferor.
(3) The holder can sue in his own name
(4) Can be transferred any number of times (Infinity) till its maturity.
(5) It is subject to certain presumptions

21. Holder in due course
Holder:- The holder of a promissory note, bill of exchange or cheque means any person entitled in his own name
Holder in due course:-Who for consideration, if payable to order, before the amount mentioned in it, becomes payable and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title. Holder in due course acquires a better title than that of its transferor.

22. Promissory note
An instrument in writing containing an unconditional undertaking, signed by the maker to pay a certain sum of money only to or to the order of a certain person or to the bearer of the instrument.

23. Essential Characteristics of a Promissory Note
Should be in writing
Promise to pay:
Unconditional
Signed by the maker
Promise to pay money only
Number, place, date etc – usually found.
May be payable in installments
It may be payable on demand or after a definite period (A demand promissory note becomes times barred on expiry of 3 years from the date it bears)
It must be duly stamped under the Indian Stamp Act.

24. Bill of Exchange
An instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to or to the order of a certain person or to the bearer of the instrument.

25. Cheque
Bill of exchange drawn on a specified banker always payable on demand.
Crossing of cheques:
General Crossing
Special crossing

26. Content Development of Our Programs
The main content for each program will be listed in about 10 Points
All the Sessions will have high level of Participation and Interaction
Pre and Post Assessment Test will be conducted at regular intervals
Experienced Professionals will be conducting the Sessions in the Domain area of Specialization

27. Our Sessions Handled by certified Professionals Strategized programs
Highly interactive sessions
Open to feedback
Scheduled approach
Experiential Learning

28. Profile of our Trainers
Highly Experience Certified Trainers
Across various Industries
Several Years of Training and Teaching Experience
Rich Corporate and Academic Specialisation
Have trained Students, Managers, Executives and Engineers
Many Qualified trainers are associated with Careers Junction in our Training Programs