Contract Law | Difference Between | Indemnity and Guarantee

Difference between Indemnity and Guarantee

Difference between Indemnity and Guarantee Indemnity Guarantee Section 124 of Indian Contract Act: a contract by which one party promises to save others from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person Section 126 of Indian Contract Act: a contract to perform the promise, or…

Contract Law | Indemnity and Guarantee

GREEV vs. KETTLE

GREEV vs. KETTLE Key Words: mutual mistake in guarantee, estoppel, rectification Facts: Defendant Company (S), in consideration of Plaintiff Company’s (C) giving credit to principle debtor (D), guaranteed the payment of debt, which was stated in deed to be secured by ‘validly issued shares in Company’. Though both S and C believed this fact to…

Contract Law | Indemnity and Guarantee | Sale of Goods

Kailash Sharma vs. The Patna Municipal Corporation and Ors.

Kailash Sharma vs. The Patna Municipal Corporation and Ors. Citation: CWJC No. 9730 of 2006 Full Text here Facts: The Appellant-Company sold a certain number of fogging machines (used for killing mosquitoes) to the Respondent-Corporation for which the payment had to be made within one week of delivery. The Respondents did not pay within one week….

Contract Law | Indemnity and Guarantee

Ansal Engg. Proj. Ltd. v. Tehri Hydro Development Corp. Ltd. and Anr.

Ansal Engg. Proj. Ltd. v. Tehri Hydro Development Corp. Ltd. & Anr. 1997 88 CompCas 149 SC (if no fraud involved, court has no role) FACTS: The petitioner/appellant (A) had undertaken to do some construction for the defendant/respondent(R) and as per the terms of the contract had furnished a bank guarantee (BG) for faithful performance…

Contract Law | Indemnity and Guarantee

Hindustan Steel Workers Construction Ltd. v. G.S. Atwal & Co. (Engineers) Pvt. Ltd.

Hindustan Steel Workers Construction (HS)[1] Ltd. v. G.S. Atwal & Co. (Engineers) Pvt. Ltd. (GS)[2] 1995 SCC (6) 76 (Unconditional Bank Guarantee, Performance Guarantee) FACTS   HS and GS entered into contracts whereby GS was to construct 11 schools. The United Commercial Bank, Calcutta (Bank) gave two Bank Guarantees (BG1 &2) to HS on behalf…