Tuesday, 24 March 2020

Consent, Indemnity and Guarantee Acts

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Consent, Indemnity and Guarantee Acts


When two or more persons agree upon the same thing in the same sense, they are said to
consent.
For a contract to be valid it is not only necessary that the parties consent but also that they
consent freely.
Coercion is committing or threatening to commit any act forbidden by the Indian Penal
Code.
Misrepresentation is also known as simple misrepresentation whereas fraud is known as
fraudulent misrepresentation.
Mistake may be defined as an erroneous belief on the part of the parties to the contract
concerning something pertaining to the contract.
A contract of guarantee is defined as a contract to perform the promise, or discharge the
liability of a third person in case of his default.
The rights of a surety may be against the creditor, the principal debtor; and co-sureties.
The liability of surety under a contract of guarantee comes to an end under certain
circumstances.
A contract of indemnity is a contract whereby one party promises to save the other from
loss caused to him the promise by the conduct of the promisor himself or by the conduct
of any other person.
In a contract of indemnity, there are only two parties, indemnifier and indemnified.


Coercion: It is (i) the committing or threatening to commit any act forbidden by the Indian Penal
Code, or (ii) the unlawful detaining or threatening to detain any property to the prejudice of any
person whether with the intention of causing any person to enter into an agreement.
Continuing Guarantee: It is a guarantee which extends to a series of transactions.
Contract of Indemnity: It is that contract whereby 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.
Specific Guarantee: It is a guarantee which is intended to be applicable to a particular debt; and
comes to an end on its repayment.
Undue Influence: A contract is said to be induced by undue influence where the relations subsisting
between the parties are such that one of the parties is in a position to dominate the will of the
other, and uses that position to obtain an unfair advantage over the other.

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