Partnership S 4

Essentials are:

1. Agreement 2. Business 3. Share profit 4. Mutual Agency

DUTIES

1.GOODFAITH -S 9 Bentley v. Craven,1857 2. NOT TO COMPETE S 16 B Pulin Bihari v.

Mahendra Ghoshal,1921 3. DUE DILIGENCE S -12B 4. INDEMNIFY FOR FRAUD S-10 Campbell v.
Campbell,18345. RENDER TRUE ACCOUNTS S-9 Law v. Law S 6. PROPER USE OF PROPERTY
S-157. ACCOUNT FOR PERSONAL PROFITS S-16

RIGHTS

1.Right to take part in business- s. 12(a) Blisset v. Daniel, 1853 RIGHT TO ACCESS BOOKS-S. 12(d) 4.
RIGHT TO INDEMNITY- s.13(e) 5. RIGHTS TO PROFITS S. 13(b) 6. RIGHT TO INTEREST-
ss.13(c )& 13(d) 7. RIGHT TO REMUNERATION s.13(a)

DISSOLUTION OF FIRM 39

By consent By Agreement 40 2. Compulsory dissolution 41 3. Contingent Dissolution 42

Ramnarayanan v. Kashinath,1954,Pat HC 4.By notice of dissolution at will 43 5. Dissolution by court
44

PLEDGE 172 Blundell-Leigh v. Attenborough,1912

RIGHTS OF PAWNEE

1.RIGHT TO RETAINER- s.173 & s.174 Bank of Bihar v. State of Bihar, 1972,SC 2 . RIGHT TO
EXTRA ORDINARY EXPENSES-S.175 3. RIGHT TO SELL-S.176 Lallan Prasad v. Rahmat Ali,

PAWNORS RIGHT TO REDEMPTION S-177

AGENCY s. 182 Shree Digvijay Cement Co Ltd v. State Trading Corporation of India
Emergency Powers-s.189 1 If necessary 2Even if not authorized 3 Reasonable prudent man 3Agency of
Necessity

DUTIES OF AGENT TO PRINCIPAL

Duty to follow instructions-s.211 Lilley v. Doubleday, 1881,QB 2 . Duty of Skill and Diligence- s.212 Bank of
Bihar ltd v. Tata Scob Dealers 3. Duty to maintain accounts-s.213 Narandas Morardas Gajiwala v. SPAM
Papammal, 4. Agents Duty to Communicate- s.214 5. Duty to avoid conflict- s.215 6. Duty not to make secret
profit-s.216 Bentley v. Craven, 1853 7. Duty to Remit sums- s.218
RIGHTS OF AGENT

1 Right to remuneration- s.219 Green v. Bartlett,1863 2 Right of Retainer- s.217 3 Right to lien- s.221
Ram prasad v. State of MP, 1971, SC 4 Right to Indemnity- ss.222-223 Hichens Harrison,Woolstan & Co v.
Jackson & sons, 1943 5 Right to Compensation- s.225

Revocation of Agency:ss.203-207 S.203: subject to s.202, Agency can be revoked anytime Turner v.
Goldsmith, S.204: Revocation is prospective only S.205: Compensation for all the acts done/to be done
Agency was for a period S.206:Reasonable notification necessary for revocation/renunciation S.207: It can
be implied /explicit

Apparent/ostensible Authority-S.237

BAILMENT S.148
CHARACTERSTICS 1 Specific Movable Goods 2Delivery of Possession Kaliaperumal Pillai v. Visalakshmi
3 Obligation to return the goods/dispose off

DUTIES OF BAILOR

1.DUTY OF DISCLOSURE Hyman v. Nye, 1881,QB 2 BAILORS DUTY TO PAY NECESSARY EXPENSES 3
BAILORS DUTY TO COMPENSATE

DUTIES OF BAILEE

1 DUTY OF REASONABLE CARE SS.151 &152 UOI v. Amar Singh, 2 DUTY NOT TO MAKE
UNAUTHORISED USE S 154 Alias v. EM Patil 3 DUTY NOT TO MIX 155-157 4 DUTY TO RETURN THE
GOODS SS 160 & 161 SHAW & CO. v. SYMMONS & SONS, 5 DUTY NOT TO SET UP JUS TERTII (ADVERSE
TITLE) 6 DUTY TO RETURN ANY ACCRETION

RIGHTS OF BAILEE

1RIGHT TO EXPENSES OR REMUNERATION-S.158 2 RIGHT TO COMPENSATION S.164 2 FINDER OF

GOODS S.168-S.169 3 RIGHT OF LIEN SS.170&171 EC Eduljee v. Caf John Bros,1943 4

TYPES OF LIEN 1 Particular Lien s.170 EC Eduljee v. Caf John Bros,1943 2 General Lien- s.171

Applicable in special 5 cases: 1 Bankers 2 Factors 3 Wharfingers 4 Attorney at HC 5 Policy Brokers

TERMINATION OF BAILMENT

1TERMINATION BY INCONSISTENT ACTS (S.153) 2 TERMINATION BY DEATH (S.162) 3

TERMINATION BY RETURN OF GOODS/FINISHING PURPOSE OF BAILMENT (S.160) 3 OTHER
REASONS: DESTRUCTION OF SUBJECT MATTER, FRAUD, ETC
CONTRACT OF GURANTEE
A guarantee is an undertaking to indemnify, if some other person does not fulfill his promise s. 126

Characteristics of Guarantee Contract Principal debtor surety creditor

Swan v. Bank of Scotland,1836,HL

Misrepresentation 142 Barclays Bank plc v. OBrien

Consideration S.127 Ujjal transport Agency v. Coal India Ltd

TYPES OF GUARANTEE

CONDITIONAL GUARANTEE

111. Performance Bond Edward Owen Engg ltd v. Barclays Bank Intl ltd

1V. GUARANTEE FOR FIDELITY v. SURETY BONDS TO COURT VI. Limited Guarantee VII. Joint & Several
Guarantee VIII. BANK GUARANTEE I.T.C. Limited vs The Debts Recovery Appellate IX. CONTINUING
GUARANTEE S.129

LIABILITIES OF SURETIES S. 128

DISCHARGE OF LIABILITIES

REVOCATION- S.130 Offord v. Davis,1862 BY DEATH OF SURETY S 131 DISCHARGE BY VARIANCE IN

TERMS S 133 4. DISCHARGE BY RELEASE/DISCHARGE OF P.D S 134 Composition, Extension of time and
Promise not to sue S 135 6.IMAPIRING THE SURETYS REMEDIES

Rights against P.D

Right of subrogation (s.140) Right of Indemnity(s.145)

Rights against Creditor

Right to securities(s.141) Right to Share reduction