Price: In ordinary usage, priceis the quantity of payment or compensation given by one party to another

in return for goods or services. In all modern economies, the overwhelming majority of prices are quoted in (and the transactions involve) units of some form of currency. Although in theory, prices could be quoted as quantities of other goods or services this sort of barter exchange is rarely seen. Price Fixing: Price Fixing is an agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand. The group of market makers involved in price fixing is sometimes referred to as a cartel. The intent of price fixing may be to push the price of a product as high as possible, leading to profits for all sellers, but it may also have the goal to fix, peg, discount, or stabilize prices. The defining characteristic of price fixing is any agreement regarding price, whether expressed or implied. Price fixing is a conspiracy between business competitors to set their prices to buy or sell goods or services at a certain price point. This benefits all businesses or individuals that are on the same side of the market and involved in the conspiracy, as prices are either set high, stabilized, discounted, or fixed. How Price Fixing Violates the Law: Price fixing violates state and federal competition laws, which prohibits businesses collusion. Business collusion is an agreement between businesses that fraudulently prevents other businesses from being able to compete in the open market. Price fixing violates competition law because it controls the market price or the supply and demand of a good or service. This prohibits other businesses from being able to compete against the businesses in the price fixing agreement, which prevents the public from being able to expect the benefits of free competition. This violation can be implied or express, with minimal evidence needed to prosecute. How Price Fixing Happens: Price fixing can happen several ways. Businesses can agree to set their prices high, so that consumers have no choice but to buy at the high price. They can also agree to set mark-ups, sales, surcharges or discounts on goods or services at the same rate. Businesses can also agree to set their maximum purchasing price so that a seller of a product, service or commodity will be forced to sell at the set price. Price fixing can also happen in the credit market, where companies agree to standardize credit terms to consumers. Many states have below sales-cost laws, which prohibit businesses from selling goods or services below market cost, if their intent is anti-competitive. It is important to remember that illegal price fixing only occurs when there is an agreement between businesses to fix prices. A business, acting on its own, may use legitimate efforts to obtain the best price they can, including the ability to raise prices to the detriment of the general public. Further, businesses that conform to the same prices without an express or implied agreement are not in violation of price fixing laws. However, there is a fine line between conforming to prices at one s own accord, and having an implied agreement to do so. Sale and agreement to sell: A "sale" is (colloquially) a completed transaction where the only remaining duties of the buyer may be timely rejection after inspection, and the only remaining duty of seller is to honor any express or implied warranty. This assumes the full price was paid during the sale and the goods were delivered, otherwise, the sale is not technically complete. An "agreement to sell" is a contract that envisions (or defines) a future sale, thus all conditions precedent and other terms (delivery, payment, etc), continue to be "executor", that is, are yet to be fully carried out. A breach of this contract could result in a court order of specific performance, or for damages caused by the loss of the opportunity to buy or sell. A sale and an agreement to sell can be distinguished as:- i) Transfer of

Property (Ownership): In a sale, the property in goods or the ownership is immediately transferred from the seller to the buyer. In an agreement to sell the property in the goods is not transferred immediately at the time of contract, but the ownership is transferred at a later time either at the expiry of a certain period or fulfillment of certain condition. Until then, the seller continues to be the owner of the goods. ii) Risk of Loss: The general rule is that, unless otherwise agreed, the risk of loss passes with property. In case of sale, if the goods are destroyed the loss falls on the buyer, even if the buyer is not in possession of goods because the ownership has been transferred. In an agreement to sell, the loss is to be borne by the seller because the ownership has still not passed on to the buyer, even if the buyer has possession of it. iii) Consequences of Breach: In case of sale, if the buyer fails or refuses to pay the price of the goods, the seller can sue for the price, even if he has the possession of goods. In an agreement to sell, if the buyer fails to accept and pay the price, the seller can sue him only for damages and not for the price, even if the goods in possession of the buyer. iv) Right of Resale: In a sale the property of goods is immediately transferred to the buyer and so the seller (even if the goods are in his possession) cannot result the goods. If the seller does so, the subsequent buyer cannot acquire the title to the goods. The original buyer can recover the goods from the third person and can also sue the seller for the breach of contract. In an agreement to sell, the seller can sell the goods to anyone as he has the property of goods and the new buyer gets the title of goods as he purchases the goods for consideration and without any notice of prior agreement. In such a case the original buyer can only sue for damages. v) Buyers Insolvency: In a sale, if the buyer becomes insolvent before he pays the price of the goods, the seller will have to deliver the goods to the official assignee or receiver and he can only claim dividend for the price of the goods. In an agreement to sell, if the buyer becomes insolvent and has not paid the price, the seller can refuse to deliver the goods to the official assignee or receiver until paid in full. vi) Seller s Insolvency: If the seller becomes insolvent then in case of sale the buyer is entitled to recover the goods from the official assignee of receiver since the ownership has been transferred to the buyer. In case of an agreement to sell, if the buyer has paid the full price, he can only claim a rateable dividend and not the goods because the property in the goods still rests with the seller. vii) Nature of Contract: A sale is an executed contract. An agreement to sell is an executary contract. viii) Types of Goods: A sale can only be in the case of existing and specific goods. An agreement to sell mostly takes place in the case of future and contingent goods. Dissolution of Partnership: A partnership may be dissolved by mutual consent, by expiration of predetermined time, by death of one of the partners, by insanity, by the bankruptcy of either partner, or by the court for any good cause, such as dishonesty of one partner against the rest, or incapacity caused by habitual drunkenness or conviction of any crime. A partner may withdraw at any time if no time for the continuation of the partnership is mentioned in the articles of agreement, but he must give due notice of his intention to the other partners. If the time for the continuance of the partnership is mentioned, a partner can nevertheless withdraw at any time, but he is responsible to the firm for damages caused by the breach of his promise. If a partner dies the surviving partners alone have the right to settle up the business. To his heirs and legal representatives they need only to render an account of the business. Modes of Dissolution: According to Indian Partnership Act 1932 also adopted in Pakistan follow are five modes of dissolution of firm: 1. Dissolution by Agreement. A firm is a creation of an agreement between partners. Similarly, the partners may agree to terminate

the firm and the firm shall be dissolved. 2. Compulsory Dissolution. The Partnership Act 1932 provides that under the following circumstances the firm shall be compulsorily dissolved:(a) All of the partners are declared as insolvent. (b) All of the partners except one are declared as insolvent. (c) The business carried on by the firm becomes unlawful. 3. Contingent Dissolution.On the happening of anyone of the following contingencies, the partners of a firm may decide to close the business of the firm.(a) If the firm is constituted for a fixed term, on the expiry of that term. (b) If the firm is constituted to carry out one or more projects, on the completion thereof. (c) If a partner of the firm dies. (d) If a partner of the firm is declared as insolvent. 4. Dissolution by Notice. Where the partnership is at-will, the firm may be dissolved by any partner by giving a notice in writing to all the other partners of his intention to dissolve the firm.The firm is dissolved as from the date mentioned in the notice as date of dissolution or if no date is mentioned, as from the date of communication of the notice.5. Dissolution by Court. Under section 44 of Partnership Act 1932 at the suit of a partner the court may dissolve a firm on any of the following ground as under;_(a) That a partner has become unsound mind in which cases the suit may be brought as well by the next friend of the partner who has become of unsound minds as by any other partner. (b) That a partner other than the partner suing has become in any way permanently incapable of performing his duties as partner. (c) That a partner other than the partner suing is guilty of conduct which is likely to affect prejudicially the carrying on the business regards being had to the nature of the business. (d) That a partner other then the partner suing willfully of persistently commits breach of agreement relating to the management of the affairs of the firm of the conduct of its business or otherwise so conducts himself in matters relating to the business that it is not reasonably practicable for the other partners to carry on the business in partnership with him. (e) That a partner other than the partner suing has in any way transferred the whole of his interest in the firm to a third party or has allowed his share to be charged under provision of Rule 49 of Order XXI of the First Schedule to the Code of Civil Procedure 1908 or has allowed it to the sold in the recovery of arrears of land revenue of any dues recoverable as arrears of land revenue due by the partner. (f) That the business of the firm cannot be carried on save at a loss. (g) Any other gourd which renders it just and equitable that the firm should be dissolved. Difference Between Dissolution of Firm and Partnership: The dissolution of firm involves the complete breakdown of the partnership relation and not any change in constitution of the firm. In dissolution of partnership, the partner may, by agreement amount themselves provides for the continuance of the firm. In dissolution of firm there is a complete termination of the relation b/w the partners whereas in case of dissolution of partnership, partner terminates his relationship with the firm. In dissolution of firm, business is closed but in dissolution of partnership, business of the firm continues for the remaining partners. In dissolution of firm, assets are realized and liabilities are paid off and share of each partner is calculated whereas in dissolution of partnership, only the share of outgoing partner is calculated. Reconstitution of a Firm: he change in relation of partners will result in the reconstitution of the partnership firm. Thus a firm will be reconstituted on the happening of following events: Admission of a new partner. Retirement of a existing partner. Expectation of partner. Death of a partner. Insolvency of a partner. Transfer of partner s interest to outsiders. Expulsion of Partner: It is generally not permissible but expulsion can be made under following condition: Powers to expel a partner is available by an express agreement by or b/w the partners. The power is exercised by a majority of partners in good faith. The partner who has been expelled must be given a notice and opportunity to defend himself.

Factory act 1934 health and safety of workers: 1.Cleanliness.(1) Every factory shall be kept clean and free from effluvia arising from any drain, privy or other nuisance, and in particular, (a) accumulation of dirt and refuse shall be removed daily by sweeping or by any other effective method from the floors and benches of work-rooms and from staircases and disposed of in a suitable manner ; (b) the floor of every work-room shall be cleaned at least once in every week by washing, using disinfectant where necessary or by some other effective method ;2.Disposal of wastes and effluents.(1) Effective arrangements shall be made in every factory for the disposal of wastes and effluents due to the manufacturing process carried on therein. (2) The Provincial Government may make rules prescribing the arrangements to be made under sub-section (1) or requiring that the arrangements made in accordance with that subsection shall be subject to the approval of such authority as may be prescribed.3.Ventilation and temperature.(1) Effective and suitable provisions shall be made in every factory for securing and maintaining in every work-room. 4.Dust and fume.(1) In every factory in which, by reason of the manufacturing process carried on, there is given off any dust or fume or other impurity of such a nature and to such an extent as is likely to be injurious or offensive to the workers employed therein, effective measures shall be taken to prevent its accumulation in any work-room and its inhalation by workers and if any exhaust appliance is necessary for this purpose, it shall be applied as near as possible to the point of origin of the dust, fume or other impurity, and such point shall be enclosed so far as possible. (2) In any factory no stationary internal combustion engine shall be operated unless the exhaust is conducted into open air and exhaust pipes are insulated to prevent scalding and radiation heat, and no internal combustion engine shall be operated in any room unless effective measures have been taken to prevent such accumulation of fumes therefrom as are likely to be injurious to the workers employed in the workroom. 5.Overcrowding.(1) No work-room in any factory shall be over-crowded to an extent injurious to the health of the workers employed therein. (2) Without prejudice to the generality of the provisions of sub-section (1) there shall be provided for every worker employed in a work-room. 6.Lighting.(1) In every part of a factory where workers are working or passing, there shall be provided and maintained (a) sufficient and suitable lighting, natural or artificial, or both; and (b) emergency lighting of special points in work-room and passages to function automatically in case of a failure of the ordinary electric system. 7.Drinking Water.(1) In every factory effective arrangements shall be made to provide and maintain at suitable points conveniently situated for all workers employed therein a sufficient supply of whole-some drinking water. (2) All such points shall be legibly marked "Drinking Water" in a language understood by the majority of the workers and no such point shall be situated within twenty feet of any washing place, urinal or latrine, unless a shorter distance is approved in writing by the Chief Inspector. 8.Spittoons.(1) In every factory there shall be provided, at convenient places, a sufficient number of spittoons which shall be maintained in a clean and hygienic condition. (2) The Provincial Government may make rules prescribing the type and the number of spittoons to be provided and their location in any factory and such further matters as may be deemed necessary relating to their maintenance in a clean and hygienic condition. Restrictions on Working Hours of Adults IN FACTORY ACT 1934: 1.Weekly hours. No adult worker shall be allowed or required to work in a factory for more than forty-eight hours in any week, or, where the factory is a seasonal one, for more than fifty hours in any week : Provided that an adult worker in a factory engaged in work which for technical reasons must be continuous throughout the day may work

for fifty-six hours in any week. 2.Weekly holiday.(1) No adult worker shall be allowed or required to work in a factory on a Sunday unless -(a) he had or will have a holiday for a whole day on one of the three days immediately before or after that Sunday, and (b) the manager of the factory has, before that Sunday or the substituted day, whichever is earlier. 3.Compensatory holidays: (1) Where as a result of the passing of an order or the making of a rule under the provisions of this Act exempting a factory or the workers therein from the provisions of section 35, a worker is deprived of any of the weekly holidays for which provision is made by sub-section1 of that section, he shall be allowed, as soon as circumstances permit, compensatory holidays of equal number to the holidays so lost. (2) The Provincial Government may make rules prescribing the manner in which the holidays for which provision is made in sub-section (1) shall be allowed. 4.Daily hours. No adult worker shall be allowed or required to work in a factory for more than nine hours in any day : Provided that a male adult worker in a seasonal factory may work ten hours in any day. 5.Spread over. The periods of work of an adult worker in a factory shall be so arranged that along with his intervals for rest under section 37, they shall not spread over more than ten and a half hours, or where the factory is a seasonal one, eleven and a half hours in any day, save with the permission of the Provincial Government and subject to such conditions as it may impose, either generally or in the case of any particular factory. 6.Notice of periods for work for Adults and preparation thereof.(1) There shall be displayed and correctly maintained in every factory in accordance with the provisions of sub-section2 of section 76 a Notice of Periods for Work for Adults showing clearly the periods which adult workers may be required to work. (2) Where all the adult workers in a factory are required to work within the same periods, the manager of the factory shall fix those periods for such workers generally. (3) Where all the adult workers in a factory are not required to work within the same periods, the manager of the factory shall classify them into groups according to the nature of their work. (4) For each group which is not required to work on a system of shifts, the manager of the factory shall fix the periods within which the group may be required to work. 7.Register of Adult Workers.(1) The manager of every factory shall maintain a Register of Adult Workers, showing : (a) the name and age of each adult worker in the factory, (b) the nature of his work, (c) the group, if any, in which he is included, (d) where his group works on shifts, the relay to which he is allotted, and (e) such other particulars as may be prescribed. 8.Special provision for nights-shifts. Where a worker works on a shift which extends over midnight, the ensuing day for him shall be deemed to be the period of twenty-four hours beginning when such shift ends and the hours he has worked after midnight shall be counted towards the previous day : Provided the Provincial Government may, by order in writing, direct that in the case of any specified factory or any specified class of workers therein the ensuing day shall be deemed to be the period of twenty-four hours beginning when such shift begins and that the hours worked before midnight shall be counted towards the ensuing day. 9.Obligation to work overtime. Any adult worker may be required to work overtime, provided that such working conforms to the provisions of this Act and the rules made there under. 10. Restriction on double employment. No adult worker shall be allowed to work in any factory on any day on which he has already been working in any other factory, save in such circumstances as may be prescribed. 11.Control of overlapping shifts. The Provincial Government may make rules providing that in any specified class or classes of factories work shall not be carried on by a system of shifts so arranged that more than one relay of workers is engaged in work for the same kind at the same time save with the permission of the Provincial Government and subject to such conditions as it may impose, either generally or in the case of any particular factory.

Special Provisions for Adolescents and Children IN FACTORY ACT 1934: A.Prohibition of employment of young children. No child who has not completed his fourteenth year shall be allowed to work in any factory. B.Non-adult workers to carry tokens giving reference to certificates of fitness. No child who has completed his fourteenth year and no adolescent shall be allowed to work in any factory unless, (a) a certificate of fitness granted to him under section 52 is in the custody of the manager of the factory, and (b) he carries while he is at work a token giving a reference to such certificate. C.Certificates of fitness. (1) A certifying surgeon shall, on the application of any child or adolescent who wishes to work in a factory, or, of the parent or guardian of such person, or of the factory in which such person wishes to work, examine such person and ascertain his fitness for such work. (2) A certifying surgeon may revoke any certificate granted under sub-section (2) if, in his opinion, the holder of it is no longer fit to work in the capacity stated therein in a factory. D. Effect of certificate granted to adolescent.(1) An adolescent who has been granted a certificate of fitness to work in a factory as an adult, under clause (b) of sub-section (2) of section 52, and who, while at work in a factory, carries a token giving reference to the certificate, shall be deemed to be an adult for all the purposes of Chapter IV. (2) An adolescent who has not been granted a certificate of fitness to work in a factory as an adult under sub-section (2) of section 52, shall, notwithstanding his age, be deemed to be a child for the purposes of this Act. E. Restrictions of the working hours of a child.(1) No child shall be allowed to work in a factory for more than five hours in any day. (2) The hours of work of a child shall be so arranged that they shall not spread over more than seven-and-a-half hours in any day. Provided that the Provincial Government may, by notification in the Official Gazette in respect of any class or classes of factories and for the whole year or any part of it, vary these limits to any span of thirteen hours between 5 a. m. and 7.30 p.m. (3) No child shall be allowed work in any factory on any day on which he has already been working in another factory.F. Notice of Periods for Work for Children.(1) There shall be displayed and correctly maintained in every factory in accordance with the provisions of sub-section (2) of section 76, a Notice of Periods for Work for Children, showing clearly the periods within which children may be required to work. (2) The periods shown in the Notice required by sub-section (1) shall be fixed beforehand in accordance with the method laid down for adults in section 39 and shall be such that children working for those periods would not be working in contravention of section 54. (3) The provisions of section 40 shall apply also to the Notice of Periods for Work for Children. (4) The Provincial Government may make rules prescribing form for the Notice of Periods for Work for Children and the manner in which it shall be maintained.G. Register of Child Workers.(1) The manager of every factory in which children are employed shall maintain a Register of Child Workers showing, (a) the name and age of each child worker in the factory, (b) the nature of his work, (2) The Provincial Government may make rules prescribing the form of the Register of Child Workers, the manner in which it shall be maintained and the period for which it shall be preserved. H. Hours of work to correspond with Notice and Register. No child shall be allowed to work otherwise than in accordance with the Notice of Periods for Work for Children displayed under sub-section (1) of section 55 and the entries made before-hand against his name in the Register of Child Workers maintained under sub-section (1) of section 56. I. Provisions to be in addition to Act XXVI of 1938. - The provisions of this Chapter shall be in addition to, and not in derogation of the provisions of the Employment of Children Act, 1938 (XXVI of 1938).

Holiday with Pay IN FACTORY ACT 1934: The provisions of this Chapter shall not apply to a seasonal factory. The provisions of this Chapter shall not operate to the prejudice of any rights to which a worker may be entitled under any other enactment, or under the terms of any award, agreement or contract of service. A.Annual holidays.(1) Every worker who has completed a period of twelve months continuous service in a factory shall be allowed, during the subsequent period of twelve months holidays for a period of fourteen consecutive days, inclusive of the day or days, if any, on which he is entitled to a holiday under sub-section (1) of section 35. (2) If a worker entitled to holidays under sub-section (1) is discharged by his employer before he has been allowed the holidays, or if, having applied for and having been refused the holidays, he quits his employment before he has been allowed the holidays, the employer shall pay him the amount payable under section 49-C in respect of the holidays. B. Pay during annual holiday. Without prejudice to the conditions governing the day or days, if any, on which the worker is entitled to a holiday under sub-section (1) of section 35, the worker shall, for the remaining days of the holidays allowed to him under section 49-B, be paid at a rate equivalent to the daily average of his wages as defined in the Payment of Wages Act, 1936 (IV of 1936), for the days on which he actually worked during the preceding three months, exclusive of any earning in respect of overtime. C. Payment when to be made. A worker who has been allowed holidays under section 49-B shall, before his holidays begin, be paid half the total pay due for the period of holidays. D. Power of Inspector to act for worker.Any Inspector may institute proceedings on behalf of any worker to recover any sum required to be paid under this Chapter by an employer which the employer has not paid. E. Power to make rules. (1) The Provincial Government may make rules to carry into effect the provisions of this Chapter. (2) Without prejudice to the generality of the foregoing power, rules may be made under this section prescribing the keeping by employers of registers showing such particulars as may be prescribed and requiring such registers to be made available for examination by Inspectors. F. Exemption of factories from the provisions of this Chapter. Where the Provincial Government is satisfied that the leave rules applicable to workers in a factory provide benefits substantially similar to those for which this Chapter makes provision, it may, by written order exempt the factory from the provisions of this Chapter. G. Casual leave and sick leave.(1) Every worker shall be entitled to casual leave with full pay for ten days in a year. (2) Every worker shall be entitled to sixteen days sick leave on half average pay in a year. H. Festival Holidays. (1) Every worker shall be allowed holidays with pay on all days declared by the Provincial Government to be festival holidays. (2) A worker may be required to work on any festival holiday but one day's additional compensatory holiday with full pay and a substitute holiday shall be allowed to him in accordance with the provisions of section 35. Contract of Life Insurance: In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the insured, known as the policyholder, which determines the claims which the insurer is legally required to pay. In exchange for payment, known as the premium, the insurer pays for damages to the insured which are caused by covered perils under the policy language. Insurance contracts are designed to meet specific needs and thus have many features not found in many other types of contracts. Since insurance policies are standard forms, they feature boilerplate language which is similar across a wide variety of different types of insurance policies.Essentials of a Valid Insurance Contract: 1.Offer and Acceptance:When applying for insurance, the first thing you do is get the proposal form of a particular insurance company. After filling in the requested details, you send the

form to the company (sometimes with a premium check). This is your offer. If the insurance company accepts your offer and agrees to insure you, this is called an acceptance. In some cases, your insurer may agree to accept your offer after making some changes to your proposed terms (for example, charging you a double premium for your chain-smoking habit). 2.Consideration:This is the premium or the future premiums that you have pay to your insurance company. For insurers, consideration also refers to the money paid out to you should you file an insurance claim. This means that each party to the contract must provide some value to the relationship. 3.Legal Capacity:You need to be legally competent to enter into an agreement with your insurer. If you are a minor or are mentally ill, for example, then you may not be qualified to make contracts. Similarly, insurers are considered to be competent if they are licensed under the prevailing regulations that govern them. 4.Legal Purpose: If the purpose of your contract is to encourage illegal activities, it is invalid. Procedure Parts of an insurance contract: 1.Declarations: identifies who is an insured, the insured's address, the insuring company, what risks or property are covered, the policy limits (amount of insurance), any applicable deductibles, the policy period and premium amount. These are usually provided on a form that is filled out by the insurer based on the insured's application and attached on top of or inserted within the first few pages of the standard policy form. 2.Definitions - define important terms used in the policy language. 3.Insuring agreement - describes the covered perils, or risks assumed, or nature of coverage, or makes some reference to the contractual agreement between insurer and insured. It summarizes the major promises of the insurance company, as well as stating what is covered. 4.Exclusions - take coverage away from the Insuring Agreement by describing property, perils, hazards or losses arising from specific causes which are not covered by the policy. 5.Conditions - provisions, rules of conduct, duties and obligations required for coverage. If policy conditions are not met, the insurer can deny the claim. 6.Endorsements - additional forms attached to the policy form that modify it in some way, either unconditionally or upon the existence of some condition. Endorsements can make policies difficult to read for nonlawyers; they may modify or delete clauses located several pages earlier in the standard insuring agreement, or even modify each other. Because it is very risky to allow nonlawyer underwriters to directly rewrite core policy language with word processors, insurers usually direct underwriters to modify standard forms by attaching endorsements preapproved by counsel for various common modifications. CONTRACT OF AGENCY:The law of agency is an area of commercial law dealing with a contractual or quasi-contractual, or non-contractual set of relationships when a person, called the agent, is authorized to act on behalf of another (called the principal) to create a legal relationship with a third party.[1] Succinctly, it may be referred to as the relationship between a principal and an agent whereby the principal, expressly or impliedly, authorizes the agent to work under his control and on his behalf. The agent is, thus, required to negotiate on behalf of the principal or bring him and third parties into contractual relationship. This branch of law separates and regulates the relationships between: Agents and principals; Agents and the third parties with whom they deal on their principals' behalf; and Principals and the third parties when the agents purport to deal on their behalf. The common law principle in operation is usually represented in the Latin phrase, qui facit per alium, facit per se, i.e. the one who acts through another, acts in his or her own interests and it is a parallel concept to vicarious liability and strict liability in which one person is held liable in criminal law or tort for the acts or

omissions of another. The reciprocal rights and liabilities between a principal and an agent reflect commercial and legal realities. A business owner often relies on an employee or another person to conduct a business. In the case of a corporation, since a corporation is a fictitious legal person, it can only act through human agents. The principal is bound by the contract entered into by the agent, so long as the agent performs within the scope of the agency. CONTRACT OF BAILMENT:Bailment describes a legal relationship in common law where physical possession of personal property, or chattel, is transferred from one person (the 'bailor') to another person (the 'bailee') who subsequently has possession of the property. It arises when a person gives property to someone else for safekeeping. A bailment is the delivery of 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 of according to the directions of the person delivering them. Essentials of bailment: (1) Delivery of goods is upon a contract. There is a change of possession of goods by delivery by one person to another for a temporary period. (2) Delivery may be actual or constructive. (3) Delivery of goods must be for specific purpose (4) Bailment can be only of lawful goods (5) The bailee must return the specific goods either to the bailor or to somebody according to his directions. Kinds of bailment: (1) Gratuitous bailment i.e. bailment without any reward or remuneration (2) Bailment for reward or remuneration (3) Goods delivered as security for money borrowed called pawn or pledge. CONTRACT OF PLEDGE:pledges are a form of security to assure that a person will repay a debt or perform an act under contract. In a pledge one person temporarily gives possession of property to another party. Pledges are typically used in securing loans, pawning property for cash, and guaranteeing that contracted work will be done. Every pledge has three parts: two separate parties, a debt or obligation, and a contract of pledge. Pledges are different from sales. In a sale both possession and ownership of property are permanently transferred to the buyer. In a pledge only possession passes to a second party. The first party retains ownership of the property in question, while the second party takes possession of the property until the terms of the contract are satisfied. The second party must also have a lien or legal claim upon the property in question. If the terms are not met, the second party can sell the property to satisfy the debt. Any excess profit from the sale must be paid to the debtor, or first party. But if the sale does not meet the amount of the debt, legal action may be necessary. In pledges both parties have certain rights and liabilities. The contract of pledge represents only one set of these: the terms under which the debt or obligation will be fulfilled and the pledged property returned. On the one hand, the pledgor's rights extend to the safekeeping and protection of his property while it is in possession of the pledgee. The property cannot be used without permission unless use is necessary for its preservation, such as exercising a live animal. Unauthorized use of the property is called conversion and may make the pledgee liable for damages; thus, Mary should not use John's stereo while in possession of it. CONTRACT OF GUARANTEE: A "contract of guarantee" is a contract to perform the promise, or discharge the liability, of a third person in case of his default. The person who gives the guarantee is called the "surety"; the person in respect of whose default the guarantee is given is called the "principal debtor ", and the person to whom the guarantee is given is called the "creditor". A guarantee may be either oral or written. In sharp contrast to an indemnity, a guarantee is a promise to answer for debt, default or other financial liability of another. You promise to pay for any damages or default in the event of the principal person refusing to do so or when he cannot do so. If you are a guarantor, once you have paid the principal obligation, your obligation is terminated. Guarantee clause is not the main agreement and is generally collateral to some

other obligation or debt. You are held accountable or liable for this debt or obligation after you have fulfilled your obligation as a guarantor. It is therefore prudent to study all clauses or underlying contract before signing any guarantee contract. CONTRACT OF INDEMNITY: THE words "guarantee" and "indemnity" are commonly used. These words are frequently encountered in hire purchase and loan agreements and in many other transactions. However, what these words mean is not always a matter of immediate concern. 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, is called a "contract of indemnity." When you agree to an indemnity agreement, you agree to assume all responsibility and liability for any injuries or damages to someone else. Whenever there is an indemnity contract and one party suffers any losses, the other has the liability to indemnify for the consequences. The common phrases that are included in indemnity contracts say that the person agrees to indemnify and hold harmless or to defend, indemnify and hold harmless. If there is a clause or obligation to defend, you should also get a clause included requiring the person who is being indemnified to tender the defense to you. At least you should get the clause of right to control defense. In the absence of these provisions, the party that you are indemnifying can cost you dearly by raking up huge attorney fees and other sundry expenses. But if you are controlling the defense, you can have a say in the selection of attorney thereby minimizing litigation costs. In general indemnity agreement covers damages, loss, costs, expenses and fees of attorneys. If there is no mention of attorney fees, the court may not require the person promising to indemnify to pay attorney fees. CONTRACT OF WARRANTY: In business and legal transactions, a warranty is an assurance by one party to the other party that certain facts or conditions are true or will happen; the other party is permitted to rely on that assurance and seek some type of remedy if it is not true or followed. In real estate transactions, a general warranty deed is a promise that the buyer's title to a parcel of land will be defended. A limited warranty deed, on the other hand, is a promise that the title will be defended against a limited set of claims which is usually claims arising from incumberances executed by the grantor. Thus, a general warranty deed binds the grantor to defend the title against all claims even those arising from previous owners; whereas, a limited warranty deed typically only binds the grantor to defend the title against claims arising from when the grantor held title to the property. A limited warranty deed is the deed of choice for banks when selling foreclosed properties.