IntroductionContracts of bailment and pledge are a special class of contracts. These are dealt with in chapter ІX (Secs. 148to181) of the Indian Contract Act 1872.
Bailment Sec.148 defines ‘bailment’ as the delivery ofgoods by one person to another for somepurpose ,up on a contract ,that they shall ,when thepurpose is accomplished ,be returned or otherwisedisposed of according to the direction of the persondelivering them.
The person delivering the goods is called the‘bailor’ and the person to whom they are delivered is called the ‘bailee’. Eg: A delivers a piece of cloth to B ,a tailor ,to be stitched in to a suit. there is a contract of bailment between A and B.
Requisites of bailment Contract Delivery of possession For some purpose Return of specific goods
PledgeThe bailment of goods and security for payment of adebt of performance of a promise is called ‘pledge’ The bailor in this case called the ‘pledger’or‘pawnor’and the bailee is called ‘pledge’or ‘pownee’.
Duties of bailor To disclose known faults To bear extraordinary expenses of bailment To indemnify bailee for loss in case premature termination of gratuitous bailment To receive back the goods To indemnify the bailee
Duties of bailee To take reasonable care of the goods bailed Not to make any unauthorised use of goods Not to mix the goods bailed with his own goods To return the goods