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Lecture 12.
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Lecture 12.


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  • 1. 1
    Bailment &Pledge
  • 2. 2
  • 3. 3
    Case: Goods and Contracts
    A person gives his furniture to a person to transport to his new house in another town.
    A person gives his jacket to a drycleaner.
    A company hires out public address system to a person organising a music function.
    What is common to the contracts?
  • 4. 4
    Owner gives the custody and possession of his goods to another person as a part of the contract. The goods would need to be returned back to him.
    The owner who gives his goods is called Bailor
    The person receiving the goods is called Bailee
    The giving of goods is called Bailment
  • 5. Essentials of Bailment:
    Delivery of goods
    Delivery for some purpose
    Movable goods
    Return of goods
  • 6. Kinds of Bailment:
    Voluntary and Involuntary Bailment
    Gratuitous and non- gratuitous Bailment
    On the basis of benefit
  • 7. Rights of Bailor
    Enforcement of Bailee’s duties
    Right to claim compensation for loss caused to the goods by the negligence of the bailee
    Right to claim compensation for unauthorized mixing of goods with the bailee’s own goods
    Right to claim damages for unauthorised use of goods
  • 8. (iv) Right to demand goods back after the expiry of purpose or period
    (v) Right to claim any accretion to the goods bailed
    2. Right to termination: Inconsistent act
    3. Restoration of goods lent gratuitously
    4. Right to file a suit against any wrongdoer and claim compensation
  • 9. Duties of Bailor
    Duty to disclose known defects
    (a) Gratuitous Bailment: Known defects
    (b) Bailment for reward: Known & unknown
    2. Duty to bear extraordinary expenses of bailment
    3. Duty to indemnify bailee: loss due to imperfect title
    4. Duty to receive back goods
    5. Duty to bear normal risks
  • 10. Rights of Bailee
    Enforcement of rights
    Bailment by several joint owners
    Right to compensation: imperfect title
    Right to remuneration:extraordinary damages
    Right to claim damages: defects
    Right to sue
    Right of lein
  • 11. Duties of Bailee
    Duty of reasonable care
    Duty not to make unauthorised use of goods
    Duty not to mix bailor’s goods with his own
    Section 155
    Section 156
    Section 157
  • 12. 4. Duty not set up any adverse title against the bailor
    5. Duty to return any accretion to the goods
    6. Duty to return the goods
  • 13. 13
    Case: Washing for Repair
    A person gave his washing machine for repairing to a shop. As the shop did not have space inside, it left the washing machine outside in its corridor. There was no security or attendant for guarding the premises. The washing machine was stolen.
    Is the shop responsible for the loss of the washing machine to the owner?
  • 14. 14
    … Cond
    A person gave his washing machine for repairing. The shop had stored it properly and safely. However, an unprecedented rain created a deluge and all the washing machines in the shop as well as all the expensive testing equipment of the shop got damaged.
    Is the person responsible for the loss of the washing machine?
  • 15. 15
    R. S. Deboo: Drycleaner- M/s Leach and WaBomy
    Customer: Hindlekar and family
    There was a fire in the factory and the clothes got destroyed.
    The drycleaner offered to pay 20 times the drycleaning charges as this was stipulated on the back of the receipt limiting the liability of the drycleaner.
  • 16. 16
    Judgement: High Court
    Terms and conditions printed on the reverse of a receipt issued by the owner of the laundry or any other bailee do not necessarily form part of the contract of bailment in absence of the signature of the bailer on the document relied upon. In absence of signature of the bailer on the document relied upon, the onus is on the bailee to prove that the attention of the bailer was drawn by the bailee to the alleged special conditions before the contract was concluded and the bailee had consented thereto expressly or by necessary implication as a contractual term.
  • 17. Bailee’sLein
    Particular Lein:
    General Lein: Bankers, factors, wharfingers, attorney, policy brokers
  • 18. Finder of Lost Goods
    Rights of finder of goods
    Right of lien
    Right to sue for reward
    Right of sale
    If owner can not be found
    If charges are 2/3 rd of value of goods and owner refuses to pay
    If goods are perishable in nature
  • 19. Obligations of finder of lost goods
    Take reasonable care of goods
    Not to use for his own purpose
    Not to mix goods with his own goods
    Try to find out the true owner of goods
    Termination of Bailment
  • 20. Pledge
    • Special kind of bailment
    • 21. Bailment for security
    • 22. Bailor is known as pledger or pawner and bailee is known as pledgee or pawnees
  • Rights of Pawnee
    Right of retainer
    Right of retainer for subsequent advances
    Right to extraordinary expenses
    Pawnee’s rights where pawnor makes default
  • 23. Rights of Pawnor
    Right to get back goods
    Right to redeem debt
    Preservation or maintenance of the goods
    Rights of an ordinary debtor
  • 24. Pledge by Non-Owners
    Pledge by mercantile agent
    Pledge by seller or buyer in possession after sale
    Pledge where owner has a limited interest
    Pledge by co-owner in possession
    Pledge by person to possession under a voidable contract
  • 25. Pledge v/s Bailment
    Right to sell
    Right to use
    Rights and duties of pawner and pawnee
  • 26. THANK YOU