Bailment and Pledge

2. 
“A bailment is a transaction whereby one
person delivers goods to another person for
some purpose, upon a contract that they are,
when the purpose is accomplished to be
returned or otherwise disposed of according
to the directions of the person delivering
them.”

3. 
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Examples of Bailment
Hiring of Goods
Delivering of cloth to tailor for stiching
Delivering a car or scooter for repair

4. 
The person who delivers the goods is called
the Bailor and the person to whom they are
delivered is called the Bailee. The transaction
is called a Bailment

5. 

GRATUITOUS BAILMENT
BAILMENT- FOR REWARD OR NONGRATITIOUS BAILMENT

6. 
GRATUITOUS BAILMENT
Bailment in which neither the bailor nor the
bailee is entitled to any remuneration.
eg- lending a book to friend

BAILMENT- FOR REWARD
Bailment in which either the bailor or the
bailee is entitled to remuneration is called
Non-Gratitious Bailment.
eg- Motor Car let out for Hire.

7. 

In sale, the ownership is transferred and he is
under no obligation to return the goods.
In Bailment, only possession is transferred
and not the ownership of goods.

8. 


1. Enforcement of Bailee’s Duty
2. Right to terminate bailment if the bailee
uses the goods wrongfully
3. Right to demand return of goods at any
time in case of gratitious bailment

9. 
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1. Duty to take reasonable care of goods
delivered to him.
2. Duty not to make unauthorised use of
goods.
3. Duty not to mix goods bailed with his own
goods.( goods can be separated or can’t be
separated)
4. Duty to return the goods
5. Duty to deliver any accretion (increase/
decrease)

10. 


1. Duty to disclose faults in goods bailed.
2. Duty to repay necessary expenses in case
of gratitious bailment.( eg- horse and its
feeding expenses)
3. Duty to repay any extra ordinary expenses
in case of non-gratitious bailment.(eg- horse
falls ill , then his medical expenses)

11. 

4. Duty to receive the goods back.
5. Duty to indemnify bailee.

12. 
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1. Enforcement of Bailor’s Duties
2. Rights to deliver goods to one of the
several joint bailor
3. Right to apply to court to stop delivery of
goods.
4. Right of lien.

14. 
A finder of lost goods is under no obligation
to take charge of the goods when he comes
across them. But if he does take charge , he
becomes responsible for the goods like a
bailee in the gratitious bailment.

15. 
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1. Right to take permission of the goods until
the true owner is found.
2. Right of lien over the goods for the
expenses.
3. Right to sue for rewards.
4. Right to Sale

16. 
1. The finder must try to find out the true
owner of the goods.

18. 
Lien means the right to retain property until
all debt or claim is paid. It means that if the
lawful charges of the bailee are not paid, then
he has right to retain the goods till all
expenses are met.

19. 
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There are two types of lien:1. General Lien
2. Particular Lien

20. 
General Lien means the right to retain all the
goods of the other party until all claims of the
holder are paid.

Eg- If there are two loans from bank by a
same person, then the bank has a right to
retain the security of both the loans even if
the amount of first loan has been paid.

21. 
A bailee has a particular lien when he has
rendered any service upon an article and is
entitled to some remuneration for it. It is
exercised if the services rendered involve the
exercise of labour or skill.

23. 
“ The bailment of goods as security for
payment of a debt or performance of a
promise is called a pledge”.

24. 
The bailor in this case is called a pledger and
the bailee is called the pledgee.

25. BAILMENT
PLEDGE
The delivery of goods may be for any
purpose.
The delivery is for specific purpose i.e. to
provide a security for a loan.
In case of default by a bailor, the bailee
may retain the goods or sue the bailor
for non-payment of the dues.
In case of default by the pledger, the
pledgee may retain the goods , he may
also sell the goods after giving a
reasonable notice of sale to the pledger.
The bailormay use the goods if the
contract of bailment so provides.
The pledgee can’t use the goods which are
pledged to him.

26. 
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1. Enforcement of pledgee’s duty.
2. Defaulting pledger right to redeem.
3. Preservation and Maintenance.
4. Protection of debtors

27. 
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1. To compensate pledgee for any extra
ordinary expenses incurred by him.
2. To meet his obligations on stipulated date
and comply with the terms of the contract.

28. 
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1. Right of Retainer
2. Right of retainer for subsequent advances
3. Right of extra ordinary expenses.
4. Pledgee’s right where the pledger makes
default.

29. 
1. To return the goods pledge on receipt of his
full due.