This is an English case, and it comes under the Specific Contract (Section 124-238) of the Indian Contract Act, 1872. Specific Contracts include contracts of indemnity, guarantee, bailment, pledge, and agency. The 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 arising out of the conduct of either the promisor himself or any other person is called a contract of indemnity. The promisor is called the indemnifier, whereas the other party is called the indemnity-holder or indemnified. For example, A has a bike, and B says that 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 a 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 that were 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's instruction. The main issue was whether Adamson was entitled to the indemnification or not. If he was, then to what extent?
Adamson v Jarvis Judgment
The court held that Adamson had done nothing illegal as he only acted as per the instruction given by Jarvis, and that too in good faith. The court held that Adamson was entitled to 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 losses caused by any natural calamity, as they are covered under the 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 another person, is qualified for compensation in case of any loss suffered by him.
Also Read:
Lalman Shukla vs Gauri Datt
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