Contract of Indemnity
“A contract of indemnity is a contract by which 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.” (Section 124) Mr. A contracts with the Government to return to India from abroad after completing his studies and serve the Government for a fixed period. He fails to return to India. This is a contract of indemnity and he is bound to reimburse the Government.
“A bailment is the delivery of the goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed off according to the directions of the person delivering them.”
Bailment means to deliver or to hand over.
Custody of goods without possession does not constitute Bailment.
Law of Agency
An Agent is a person employed to do an act for another or to represent another in dealings with third persons.
The person for whom such act is done, or who is so represented, is the Principal.
The relationship between them is called Agency.