Contract of Indemnity

Definition: In common parlance, the word ‘indemnity’ implies reimbursement against financial loss or protect someone from incurring a loss. In law, Contract of indemnity can be defined as a legal contract between two persons whereby one party commits to indemnify, i.e. to compensate or reimburse, the loss incurred to the other party, by the conduct…

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Contract of Agency

Definition: Agency can be defined as the relationship between two persons, wherein a person has the authority to act on behalf of another, bind him/her into a legal relationship with the third party. There are two parties in a contract of agency – principal and agent. Contract of Agency is based on the fact that…

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Pledge

Definition: Pledge can be defined as that special form of bailment in which goods are bailed as security by one party to another, for the repayment of debt or performance of a promise. The party who deposits the goods is the bailor, called as pawnor, whereas the party who takes the possession of the goods…

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Bailment

Definition: In basic terms, bailment implies the “change in possession” or “to hand over”. As per Contract Act, bailment can be understood as the transaction wherein delivery of any item by an individual (bailor) to another individual (bailee) takes place with a specific objective, under a contract. The contract states that the item has to…

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Voidable Contract

Definition: Voidable contract is that form of a contract, wherein one party to the contract has the right to put it to an end if it is discovered that the contract contains some defects, concerning the lack of free consent. This means that the party, whose consent is influenced, is in a position to deny…

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Void Contract

Definition: Void Contract, as the name suggests is a contract which fails to be enforceable by the court of law, is said to be a void contract, at the time when it discontinues enforceability. Hence we can say that any contract, which cannot be legally enforceable or which does not have any legal effect is…

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Agreement

Definition: In legal parlance, the word ‘agreement’ is used to mean a promise/commitment or a series of reciprocal promises which constitutes consideration for the parties to contract. In an agreement, one person offers or proposes something to another person, who in turn accepts the same. In other words, offer plus acceptance amounts to the agreement,…

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Promissory Note

Definition: A Promissory Note, as the name itself gives a brief description, is a legal financial instrument issued by one party, promising to pay the debt owed to another party. It is a written negotiable instrument duly signed by the maker that contains an unconditional promise to pay the stated sum of money to a…

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Bill of Exchange

Definition: Bill of Exchange, can be understood as a written negotiable instrument, that carries an unconditional order to pay a specified sum of money to a designated person or the holder of the instrument, as directed in the instrument by the maker. The bill of exchange is either payable on demand, or after a specified…

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Contract

Definition: The term contract is defined as an agreement between two or more parties which has a binding nature, in essence, the agreement with legal enforceability is said to be a contract. It creates and defines the duties and obligations of the parties involved. Process of Contract First and foremost, an offer is made by…

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