LAWACADEMY

  Contract of Guarantee Guarantee can be defined as an agreement by which one person undertakes to discharge the liability in case another person makes default. Section 126 defines 'Contract of Guarantee', 'Surety', 'Principal Debtor and 'Creditor. According to Section 126 a "contract of guarantee" is a contract to perform the promise, or discharge the liability of a third person in case of his default. The person who gives the guarantee is called the 'surety'. The person in respect of whose default the guarantee is given is called the 'principal debtor'. The person to whom the guarantee is given is called the creditor For example, 'A' asks 'B' to lend Rs 1 lac to C and undertakes a guarantee that if C fails to pay the amount 'A' will pay. This is a contract of guarantee in which 'A' is the surety, 'B' is the creditor and 'C is the principle debtor. Essential features of contract of guarantee:...

  Contract of Indemnity The term ' indemnify ' means to make good the loss of another in certain situations. It is a security against, or compensation for loss. Section 124 defines 'Contract of Indemnity'. It is a contract by which one party promises to save the other from loss caused to him:- (1) By the conduct of the promisor himself; or (i) By the conduct of any other person Parties in contract of indemnity:-There are two parties in a contract of indemnity- Indemnifier : the person who gives the indemnity. Indemnity-holder : the person for whose protection the indemnity is given. For example, 'P' contracts to indemnify 'Q' against the consequences of any proceedings which 'Y' may take against 'Q' in respect of a certain sum of Rs. 500. This is a contract of indemnity. A contract of indemnity is a direct contract between two parties i.e. indemnifier and indemnity holder. It is a contingent contract wherein the happening of the loss is ...

 100 MCQs on the Limitation Act,  1963What is the primary objective of the Limitation Act, 1963? a) To punish defendants for delaying legal proceedings b) To prescribe time limits for initiating legal proceedings and prevent stale claims c) To extend the time for filing suits indefinitely d) To override the jurisdiction of civil courts Answer: b) To prescribe time limits for initiating legal proceedings and prevent stale Claims  under Section 3 of the Limitation Act, 1963, what happens if a suit is filed after the prescribed period of limitation? a) The court must extend the time on equitable grounds b) The suit must be dismissed, even if limitation is not raised as a defense c) The court can condone the delay under Section 5 d) The suit proceeds as if no limitation period exists Answer: b) The suit must be dismissed, even if limitation is not raised as a defense What is the limitation period for filing a suit for the recovery of money under a simple contract as per the L...

THE HINDU MARRIAGE ACT, 1955 The Hindu Marriage Act, 1955 (HMA) received the assent of the President on 18 May, 1955 and became law on that day. Overriding effect of the Act The Act has an overriding effect and it abrogates all the rules of marriage previously applicable. Section 4 provides that any text, rule or interpretation, custom or usage of Hindu Law in force immediately before the commencement of this Act shall cease to have effect with respect to any matter for which provision is made in this Act. Any other law in force immediately before the commencement of this Act shall cease to have effect in so far as it is inconsistent with any of the provisions contained in this Act. Extra-territorial application of the Act The Act will apply to Hindu domiciled in India even if they reside outside India Section 1(2) provides for the extra-territorial application of the Act. It lays down that the Act extends to the whole of India. It also applies to Hindus domiciled in the territories to...

Contract The term 'Contract' is defined under Section 2(h) of the Act. It provides that 'an agreement enforceable by law is a contract'. Therefore, from this definition we find that essential element of contract is (1) there should be an agreement and (2) it must have element of enforceability. Therefore, those agreements which are enforceable are called contracts. Enforceability means that it is recognized in the eyes of law and the courts of law will enforce the agreement. Agreement As far as 'agreement' is concerned, it is defined in Section 2(e) . It provides that 'every promise and every set of promises, forming consideration for each other, is an agreement'. Section 2(b) provides that a proposal when accepted becomes promise. Thus, it can be said that a proposal when accepted becomes promise. Every promise is an agreement and when such agreement is enforceable by law it is called contract.  For example, 'A' proposes to 'B' '...