2. Main purpose of framing Public notice?

Public notices are an important part of the legal process, notifying citizens any ongoing or

completed legal proceedings is often considered to be of high value. These notices were sent
out to the newspapers with the rationale of making the general public aware of the alteration
in government or public bodies. A Public Notice advertisement in the newspaper, relating to
any specific legal proceedings can be made by either the government or a business
enterprise (company, partnership, LLP etc.) or even by individuals. The government, makes
public notices to spread awareness about granting or revoking of any license or relating to
law-making etc. It must be published in a widely circulated newspaper notice of English and
vernacular language.  It must be archivable, accessible and verifiable.

3. What is lease
Section 105 of Transfer of Property Act, 1882 states the definition of a lease which states
that it is a transfer of immovable property for a particular time period for a consideration of
which the transferee has accepted the terms surrounding the agreement.
4. Difference between Lease, sale and license
Section 54 provides: "Sale" is a transfer of ownership in exchange for a price paid or
promised or part-paid and part-promised. In a lease one has the right only to enjoy the
property, but in a sale one has the right to take it away
A lease is a transfer of an interest in a specific immovable property, while licence is a bare
permission, without any transfer of an interest. A lease creates an interest in favour of the
leassee with respect of the property, but a licence does not create such an interest.

A lease is both transferable and heritable, a sub tenancy can be created by the tenant and on
the death of the tenant, the tenancy can be inherited by his/her legal heir, whereas, licence is
neither transferable nor heritable.
A licence comes to an end with the death of either the grantor or the garantee, since it is a
personal contract, but a lease does not comes to an end on either the death of the grantor or
grantee.

A lease is unaffected by the transfer of the property by sale in favour of a third party. It
continues and the purchaser has to wait till the time period for which the tenancy was created
is over before he can get the possession, whereas, in case of a licence, if the property is sold
to a third party, it comes to n end immediately.
A lessee has a right to protect the possession in his own right. Whereas, a licencee cannot
defend his possession in his own name as he does not have any proprietary right in the
property.

5 & 6. What is sale and Agreement to sale and Difference between sale and agreement to sell
Sale :Section 4(1) defines sale as a contract whereby, the seller transfers or agrees to transfer
the property in goods to the buyer for a price. Thus, it happens in the present. Such an event
of sale is fixed, conditional and binding upon both the parties. A contract of sale is made by
an idea to purchase or sell merchandise at a cost and the affirmation of such an offer.
Agreement to sale : An agreement to sell can be defined as the transfer of property in goods
that is to take place in future time or the transfer might take place depending on the fulfilment
of certain conditions.  The same had been defined in section 4(3). An agreement to sell also
becomes a sale when the given time elapses or the conditions that are needed for the transfer
to happen gets fulfilled. Thus, an agreement to sell establishes the terms and conditions of the
offer of a property by the seller to the buyer.

Diffrence
The sale takes place immediately, while an agreement to sell takes place in the future
depending upon the fulfilment of certain terms and conditions. Thus at the time of the sale, an
actual transfer takes place whereas at the time of the agreement to sell future transfer takes
place. Risks are transferred immediately in sale whereas in the agreement of sale risks are
attached to the seller till the goods are being transferred in the future. The sale is an executed
contract whereas agreement to sell is an executory contract.

Chart Showing The Differences Between Sale And Agreement To Sell

SALE AGREEMENT TO SELL

In the agreement to sell the parties agree to

In the contract of sale, the exchange of goods exchange the goods for a price depending on
takes place immediately. the fulfilment of certain conditions at a future
specified date.

The nature of the agreement to sell is

The nature in the sale is absolute.
conditional.

It is an executed contract. It is an executory contract.

Transfer of risk doesn’t take place, until and

Transfer of risk takes place immediately.
unless the goods are transferred.

The right to sell remains with the buyer The right to sell remains with the seller.
 Here the seller has the right to sue for the Here the seller has the right to sue for
price. damages.

It creates a right in rem. It creates a right in personam.

The seller has the right to resell the same

The seller has no right to resell.
goods if the conditions are not fulfilled.

On the off chance that the products are

The loss falls on the seller despite the fact
annihilated, the misfortune is borne by the
that the merchandise is in the ownership of
buyer despite the fact that the merchandise is
the buyer.
in the ownership of the seller.

7 & 8. Mortgage and 6 types of Mortgages

As per Section 58 of Transfer of Property Act, 1882 the following words are defined

 Mortgage

A mortgage is the transfer of an interest in immovable property for the purpose of securing
the payment of money advanced, an existing or future debt or the performance of an
engagement which may give rise to a pecuniary liability.

Essential conditions of a mortgage:

1. There is a transfer of interest to the mortgagee.

2. The interest created in specific immovable property.
3. The mortgage should be supported by consideration.

Kinds of Mortgage

As per Section 58 of Transfer of Property, there are six kinds of mortgages

Simple Mortgage

 Simple Mortgage is defined under Section 58(b) of Transfer of Property Act, 1882.
  In a simple mortgage, the mortgagor does not transfer immovable property to the
mortgagee but agrees to pay the mortgage money.
 The mortgagee agrees on a condition that in the event of not paying the mortgage
money the mortgagee has every right to sell the property and can use the proceeds
of the sale and such a transaction is called a simple mortgage.

Conditional Mortgage

 Mortgage by conditional sale is defined under Section 58(c) of Transfer of

Property Act, 1882.
 In this mortgagee places three conditions to the mortgagor, and the mortgagee
shall have the right to sell the property if:

1. mortgagor defaults in payment of mortgage money on a certain date.

2. as soon as the payment is made by the mortgagor the sale shall become void.
3. on the payment of money by the mortgagor, the property is transferred and such a
transaction is called a mortgage by conditional sale.

Usufructuary Mortgage

 Usufructuary Mortgage is defined under Section 58(d) of Transfer of Property Act,

1882.
 In this mortgage, the mortgagor delivers the possession of the property to the
mortgagee and authorises the mortgagee to retain such property until the payment
is made by the mortgagor and further authorise him to receive the rent or profit
arising from such mortgaged property and to appropriate the same instead of
payment of interest. Such a transaction is called a Usufructuary transaction.

English Mortgage

 English Mortgage is defined under Section 58(e) of Transfer of Property Act,

1882.
 In this mortgage, the mortgagor transfers the property absolutely to the mortgagee
and binds himself that he will repay the mortgage money on the specified date and
lays down a condition that on repayment of money mortgagee shall re-transfer the
property. Such a transaction is called an English mortgage transaction.

Deposit of title-deeds

 Deposit of title -deeds are defined under Section 58(f) of Transfer of Property Act,
1882.
  In this mortgage where a person is in Calcutta, Madras, Bombay and in any other
towns as specified by the state government and the mortgagor delivers to a creditor
or his agent the documents of title of immovable property with an intent to create
security and then such a transaction is called Deposits of title-deeds.

Anomalous Mortgage

 An Anomalous Mortgage is defined under Section 58(f) of Transfer of Property

Act, 1882.
 A mortgage which is not any one of the mortgages mentioned above is called an
anomalous mortgage.

9 & 10. What is gift. How gift deed is different from will.

Gift 

Section 122 of Transfer of Property Act defines a gift as the transfer of an existing moveable
or immovable property. Such transfers must be made voluntarily and without consideration.
The transferor is known as the donor and the transferee is called the donee. The gift must be
accepted by the donee. This Section defines a gift as a gratuitous transfer of ownership in
some property that is already existing. The definition includes the transfer of both immovable
and moveable property.

The donee must accept the gift. Property cannot be given to a person, even in gift, against
his/her consent. The donee may refuse the gift as in cases of non-beneficial property or
onerous gift. Onerous gifts are such where the burden or liability exceeds the actual market
value of the subject matter. Thus, acceptance of the gift is necessary. 

Section 123 of the Transfer of Property Act deals with the formalities necessary for the
completion of a gift. For the gift of immovable property, registration is necessary. In case the
property is movable, it may be transferred by the delivery of possession.
Difference between WILL and GIFT DEED

Coming into effect: WILL comes into effect ONLY after the death of the testator (person
making the WILL).

GIFT DEED comes into effect the very day it is made.

Revocation:

WILL once made can be changed or revoked any number of times and till the testator (person
making the WILL) is alive.

GIFT DEED once executed cannot be revoked. The person to whom the gift is bestowed by
the gift deed becomes the absolute owner.

Registration:

WILL is not compulsorily registrable and an unregistered WILL is very much legal in the
eyes of law.

GIFT of movable property (for eg., car, machine, gadget, goodwill etc) is not required to be
registered but GIFT of immovable property (for eg., land, flat, house etc) is compulsorily
required to be registered.

11. What is probate

A Probate means certification of the copy of a Will under the seal of a court having
jurisdiction thereof. It is an instrument that bestows a right of administration to the estate of a
testator. 

As per the Section 222 of the Indian Succession Act, 1925, a probate is granted only to the
executor and no other person, if such person is not named either expressly or impliedly in the
Will. Such a person cannot make an application for obtaining a grant of probate of the Will.

Section 213(1) makes it a requisite for every legatee or executor to acquire a probate of the
Will or Letter of Administration with the Will prior to execution of the Will for creating any
right in a court of law about the subject matter of the concerned Will and any estate stated
therewith.
In other words, an executor or the legatee can only complete their obligations in disposition
of the deceased estate, when they duly obtain a Probate/Letter of Administration from a court
of competent jurisdiction. 

The Will which is required to be probated as per the provisions of the Indian Succession Act,
1925, if not probated, has no legality and cannot be enforced.

A probate is necessary in case no Will is executed. Probate helps to determine the

beneficiaries and to apportion the deceased’s assets and title in the property.

In cases where a valid Will exists, a probate is required for the assets of an estate (other than
the smaller estates) to be appropriately disseminated to the termed beneficiaries for proper
distribution of assets to be bequeath through the Will.

In some cases, the authenticity of the Will may be questioned due to mistakes in drafting. To
remove such errors, a probate is required.

In the case that a deceased person is not the sole owner of a property, but owns it along with
other persons, probate has to be obtained to remove the deceased’s name from the property
jointly owned, and transfer own share of the property to the appropriate beneficiaries.

12. Difference between Indemnity and Guarantee

Contract of Indemnity is a special contract which is mentioned under Indian Contract Act,
1872 in section 124 and 125. It is a contingent contract.

It is defined as ‘A contract of indemnity is a contract whereby 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 person.’

Under an indemnity contract one agrees to assume all responsibility and liability for any
injuries or damages to someone else.

The person who undertakes to indemnify or make the good loss is called the ‘indemnifier’
and whose loss is made good is called the ‘indemnified’ or ‘indemnity holder’
Example: A contracts to indemnify B for any consequences of any proceedings which C may
against B with respect to certain sum of Rs.200. This is a contract of indemnity. If B is
ordered to pay to C Rs.200, A shall be required to pay this amount to B.  

Guarantee

Contract of Guarantee is a special contract which is mentioned under Indian Contract Act,
1872 from section 126 from 146.

Guarantee is a kind of an agreement or promise to pay the debts when the principal debtor
fails to do so. Basically, in it the liability of third person is discharged by way of performing
contract.  

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’.

BASIS INDEMNITY GUARANTEE

It includes three parties i.e. Principal

No. of parties It has two parties.
Debtor, surety, creditor.

It has two contracts. One is the

No. of
It has only one contract. Principal contract and the other is
Contracts
the guarantee contract.

Its nature is to compensate

someone for loss and is
independent of the obligations of Its nature is to create secondary
Nature
the party whose covenants are obligations.
being reinforced by the provision
of indemnity.

It has only primary It has only

It has two liabilities. Primary and
primary liability. It provides that
secondary. Primary is with Principal
Liability the liability of the indemnifier is to
Debtor and secondary which lies
run with any loss by the person he
with the surety.
indemnifies.

Obligations Obligation under indemnity arises Under it, obligation of guaranty

 contract is triggered by a demand
out of occurrence of an event. which says the principal debtor is at
fault.

In it liability remains under the

When the guarantor pays the sum for
transaction notwithstanding that
Discharge which he is liable then he
the debtor is discharged under the
extinguishes his liability.
main contract.

Under the contract of indemnity In guarantee, if surety makes

the claimant can recover all the payment to creditor, surety can
Remedy
loss if there is a breach of a recover that amount from principal
contract. debtor.

     

Proof of loss Under the contract of indemnity, a Under it, the buyer has to proof the
buyer can recover any losses loss suffered due to breach of
  without having to prove that loss. guarantee to be entitle for damages.

The limitation period starts from

Limitations –
the date when loss is suffered.

11. How indemnity bond is drafted

An indemnity bond is a bond that is intended to reimburse the holder for any actual or
claimed loss caused by the issuer’s conduct or another person’s conduct. An indemnity bond
acts as coverage for loss of an obligee when a principal fails to perform according to the
standards agreed upon between the obligee and the principal. During the time of foreclosure,
if the house is sold to pay off the loan and there is negative equity, then the indemnity bond
pays the difference.
Indemnity is considered to be a contractual agreement between two parties whereby one party
agrees to pay for potential losses or damages caused by another party. In Other words,
Indemnity bond is an agreement executed agreeing to indemnify the loss that may occasion in
future on account of the act favoured to the executants.
Indemnity is common in agreements between an individual and a business, but it also applies
on a larger scale to relationships between businesses and government or between
governments of two or more countries. Indemnity is a comprehensive form of insurance
compensation for damages or loss, and in the legal sense, it may also refer to an
exemption from liability for damages.

NDEMNITY BOND FOR GUARANTEED PERFORMANCE

This deed of Indemnity executed on [DATE] at [PLACE] by ___________ having its
registered office at ___________, through Mr. ___________ as the authorized representative,
hereinafter referred to as the ‘Indemnifier’, the expression which shall, unless repugnant to
the context or meaning thereof, include its administrators, successors, representative and
assignees in favour ___________ having its registered office at ___________, through Mr.
___________ as the authorized representative, hereinafter referred to as the ‘Indemnified’,
the expression which shall, unless repugnant to the context or meaning thereof, include its
administrators, successors, representative, and assignees.

WHEREAS the indemnified herein has awarded to the Indemnifier herein a Purchase Order
No. ___________ valued at Rs ___________ (Rupees ___________only) for the supply of
___________ on terms and conditions as mutually agreed by the parties.

WHEREAS, a clause of the above mentioned Purchase Order provides for the guarantee (i.e.)
for the products supplied by the Indemnifier to the Indemnified, to be free from any defect
subject to faulty material or workmanship for a period of twelve (12) calendar months from
the date of commissioning of the Purchase Order.

The Indemnifier hereby irrevocably agrees to indemnify the indemnified in the event of any
defect subject to faulty material, workmanship or any defect which may arise in the delivered
due to the shortcomings of the Indemnifier for the said period of twelve (12) calendar months
from the date of commissioning of the Purchase Order. The indemnifier shall as may be
deemed necessary repair the defective products at the site, free of cost, within a reasonable
time specified by the indemnified or shall reimburse the pro-rata cost of the products to the
extent as per the Purchase Order, or shall deliver spares for the defective portion only free of
cost at site with respect of the Purchase Order.

PLACE: ___________

DATE: ___________

(Signature with Name and Designation)

(Company Seal)

WITNESS:

1…

2…

Q.14. concept of memorandum of understanding

A Memorandum of Understanding (MoU) is a formal arrangement between two or more
parties that have agreed to enter into a contract, usually executed by the government
organizations, non-government organisations, and occasionally by the corporates. An MoU is
described as a ‘meeting of the minds’ between the parties and aids to understand their
purpose, goals, needs, obligations, and roles. In India, MoU is acknowledged as the letter of
intent, where two or more parties summarise the Consensus or Common Parameters to work
and must be signed by contracting parties.

Purpose of MoU

The Memorandum of Understanding is entered into in a variety of situations where:

1. Parties have no intention to create a legal relationship

2. Parties want to have a mutually beneficial partnership; or 
3. Want to summarize the mutual conditions of transactions 

Examples: MoU entered by two universities, Professional institutions from different

countries, between two governments or government bodies of different states or different
counties. 

Intention of MoU

MoU records agreements that are not necessarily legally binding. Parties use them to mark a
commercial partnership rather than to create legal obligations. In other words, MoUs may be
used to reduce the goals and roles of parties in a commercial partnership, however, this
document assists the parties for negotiation. It is evident that breaches do not have a legal
consequence and it is up to the parties to resolve disputes.
Enforceability MoU

MoU is a document that outlines the agreement or promise between the parties. MoU does
not behave like a contract, however, where an MoU satisfies the conditions of Section 10 of
Indian Contracts Act, 1872, i.e. where there is a valid offer and acceptance with lawful
consideration then such MoU shall be legal and enforceable under Specific Relief Act, 1966. 

Therefore, the legal enforceability of MoU solely relies on the manner of drafting, contents
mentioned in MoU, duties, and obligations listed out in the MoU. Also, the inclusion of an
indemnification clause, dispute resolution clause, and applicable law clause can make the
MoU binding, as these clauses obligate the parties to adhere to the terms written in the MoU.