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Understanding Bailment and Pledge

This document summarizes bailment and pledge under Indian law. It defines bailment as the delivery of goods by one person to another for a specific purpose, with the bailee agreeing to return or dispose of the goods per the bailor's instructions. The key parties are the bailor who provides the goods and the bailee who receives them. It also outlines the duties of bailors and bailees, and distinguishes between different types of bailments including gratuitous versus non-gratuitous bailments. Pledge is defined as a type of bailment where goods are provided as security for a debt or promise, with the pawner as the bailor and the pawnee as the ba

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159 views13 pages

Understanding Bailment and Pledge

This document summarizes bailment and pledge under Indian law. It defines bailment as the delivery of goods by one person to another for a specific purpose, with the bailee agreeing to return or dispose of the goods per the bailor's instructions. The key parties are the bailor who provides the goods and the bailee who receives them. It also outlines the duties of bailors and bailees, and distinguishes between different types of bailments including gratuitous versus non-gratuitous bailments. Pledge is defined as a type of bailment where goods are provided as security for a debt or promise, with the pawner as the bailor and the pawnee as the ba

Uploaded by

Asad Khan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Bailment & pledge

Section 148 Delivery of goods by 1 person to another for some purpose contract: to return after use or to dispose as asked by the person who delivered the goods Bailor: who gives Bailee : who takes Bailment: transaction

Examples:
Hiring a bicycle Giving cloth to a tailor Delivering watch for repair

Kinds of bailment
Based on benefit: Bailment for the exclusive benefit of :1] bailor: leaving goods in safe custody without paying 2] bailee :a loan of some article like a pen 3] mutual benefit: contracts for hiring, repair ,etc

Kinds of bailment:
Based on reward: 1] gratuitous bailment: neither bailor nor bailee is entitled for remuneration, example: lending a book to a friend 2] non-gratuitous bailment: bailment of reward: either bailee or bailor is entitled to a remuneration , example: hire, tailor, etc

Difference between sale & bailment


Ownership transferred? Buyer under no obligation to return goods? Ownership not transferred?

Difference between bailment & licence


Permission to use place? No delivery of goods? Responsible for safety of goods? Goods delivered?

Duties of bailee:
Take reasonable care of goods[S.151] Not to make unauthorized use of goods[S.154] Not to mix goods with his own goods Duty to return goods {A hires a horse for 4 days, fails to return, horse dies, has to pay price of horse} Duty to return any accretion to goods {cow + calf}

Duties of bailor:
Disclose faults in goods Repay necessary expenses in case of gratuitous bailment.. feeding expenses for the horse kept in safe custody Repay extraordinary expenses in case of non-gratuitous bailment.. If horse falls ill during bailment period then giving expenses Duty to indemnify bailee.. If A gives his neighbor's scooter to B Duty to receive back the goods

PLEDGE OR PAWN
Bailment of goods as security for payment of debt or performance of a promise :PLEDGE Bailor: PAWNER Bailee: PAWNEE Example: A borrows Rs.100 from B & keeps his watch as security : pledge

Difference between bailment & pledge:


PURPOSE: security? ; repairs? RIGHT OF SALE: sale on default? ; no right to sale? RIGHT OF USING THE GOODS: no right?

Rights of Pawnee:
Right of retainer{S.173}: right to retain goods until dues paid Right of transfer for subsequent advances:{S.174}: on lending money to same debtor without further security ;right to retain earlier goods extends Right to extraordinary expenses {S.175} Right to sue the pawner or sell the goods on default.

Rights of Pawnor:
Enforcement of pawnees duties Defaulting pawnors right to redeem

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