This case is an English case, and it comes under Specific Contract (Section 124-238) of the Indian Contract Act, 1872. Specific Contracts includes contract of indemnity, guarantee, bailment, pledge, and agency. Adamson v. Jarvis case is related to the Contract of Indemnity (Section 124).
Contract Of Indemnity
Contract of Indemnity is defined under Section 124 of the Indian Contract Act. A contract by which one person or party promises to save the other from any loss arised out of the conduct of either the promisor himself or any other person is called a contract of indemnity. The promisor is called indemnifier, whereas the other party is called indemnity-holder or indemnified. For example, A has a bike and B says if any person steals A's bike, he will pay for the loss incurred by A. Here, the act of stealing A's bike is loss and paying for this loss is security or protection.
Facts of Adamson v Jarvis
Adamson, an auctioneer, was given certain cattle by Jarvis to sell in the auction. Adamson, in good faith, followed the instruction given by Jarvis and sold the cattle. Eventually, it was known that the cattle which was sold by Adamson did not belong to Jarvis. Adamson was sued by the cattle owner and he had to compensate the real owner of the cattle.
Main Issue
Adamson sued Jarvis for the loss he suffered following Jarvis instruction. The main issue was whether Adamson was entitled for the endemnification or not. If he was then to what extent.
Adamson v Jarvis Judgment
The court held that Adamson has done nothing illegal as he only acted as per the insctruction given by Jarvis and that too in good faith. The court held that Adamson was entitled for indemnification. Jarvis had to pay Adamson the legal costs as well which he incurred during the case.
Present Day Significance
The principle of contract of indemnity provides security in case of any loss incurred by a party either by the indemnifier or any third person. Moreover, such a contract is only applicable if the loss is caused by human agency. However, it does not include loss caused by any natural calamity as they are covered under Contingent Contract.
FAQs on Adamson v. Jarvis
1. What is Adamson v. Jarvis about?
It is a famous English contract law case related to the contract of indemnity.
2. Who were the parties in the case?
The parties in the case were: (i) Adamson - An auctioneer, and (ii) Jarvis - the person who instructed Adamson to sell cattle.
3. What legal issue arose in the case?
The issue raised in the case was whether a person, acting in good faith, on the instruction given by other person is qualified for compensation in case of any loss suffered by him.
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