Bailment and Pledge

1. CONTRACT
OF
BAILMENT
AND
PLEDGE
Presented by
1. Kirti Dhanawade - 17041220004
2. Komal Gupta - 17041220007
3. Mitali Sawant - 17041220014
4. Nikita Prasad - 17041220010
5. Nitendra Parab - 1704122000921-11-2020CONTRACT OF BAILMENT AND PLEDGE 1

2. CONCEPT AND ESSENTIAL FEATURES OF BAILMENT
Concept (Section 148)
 The delivery of goods by one to another person
for some purpose, upon a contract that they
shall, when the purpose is accomplished, be
returned or otherwise disposed of according to
the directions of the person delivering them.”
 The person delivering the goods is called the
‘Bailor’, and the person to whom goods are
delivered is called the ‘Bailee’
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3. CONCEPT AND ESSENTIAL FEATURES OF BAILMENT
Essential Features of Bailment
 Contract between the parties
 Delivery of goods for a purpose
 Delivery of goods for possession
 Return or disposal of goods
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4. KINDS OF BAILMENT
Based on Benefits
 Bailment for the exclusive benefit of the bailor
 Bailment for the exclusive benefit of the bailee
 Bailment for mutual benefit
Based on Rewards
 Gratuitous bailment
 Non-gratuitous bailment
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5. BAILORS AND BAILEES
Bailors
 Owner
 Delivers the goods
 E.g. Customer
Bailees
 Possessor
 Receiver of the goods
 E.g. Bank
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6. DUTIES OF BAILOR AND BAILEE
Duties of Bailor
 Duty to Disclose fault in the goods bailed
 Repayment of Necessary Expenses
 To indemnify the bailee for the loss
 Responsibility for any loss
 Duty to receive back the goods
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7. DUTIES OF BAILOR AND BAILEE
Duties of Bailee
 Take reasonable care of goods
 Not to make unauthorized use of goods
 Not to mix goods with his own goods
 Duty to return goods
 Duty to return increase or profit accrued
 Not to set up an adverse title
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8. RIGHTS OF BAILORS AND BAILEES
Bailors
 Enforcement of Rights
 Avoidance of Contract (Termination - 153)
 Return of Goods (Section – 159)
 Compensation from Wrongdoer (Section – 180)
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9. RIGHTS OF BAILORS AND BAILEES
Bailees
 Deliver Back the Goods
 Claim Damages
 Rights to recover charges
 Rights to lien
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10. MEANING AND TYPES OF LIEN
Meaning
 Lien means right to "retain"
the claim is paid of
satisfied. If possession in
lost, then right of lien is
also lost
Types of Lien
 Particular Lien
 General Lien
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11. TERMINATION OF LIEN
 Specific Purpose
 Limited Period
 Death of the Bailor
 Surrender of the Bailor
 Fulfilment of debt
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12. TERMINATION OF CONTRACT OF BAILMENT
Bailee
 Expiry of Time
 Fulfilment of Purpose
 Destruction of Subject Matter
 Unauthorized Use of Goods
 Death of any Party
 Termination by the Bailor
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13. PLEDGE AND ITS ESSENTIAL ELEMENTS
Essential elements of Pledge or Pawn
 Delivery of Goods
 Security of payment for Debt
 Movable property
Pledge
 A pledge is only a special kind of bailment.
Where the object of delivery of goods is to
provide a security for a loan or a fulfillment of
an obligation, that kind of bailment is pledge.
 The bailor in this case is a “Pawnor”. The Bailee
is called a “Pawnee”.
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14. COMPARISON OF BAILMENT AND PLEDGE
 Meaning
 Purpose
 Section of the Act
 Parties to Contract
 Presence of consideration
 Right to sell the goods
 Use of goods
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15. RIGHT OF PAWNOR AND PAWNEE
Right of Pawnor
 Pawnee has a right to retain the goods pledged
until payment of debt, interest and any other
expense incurred for maintenance of such goods.
 He has a right to sue for the sale of goods
pledged and the payment of money due to him.
 Pawnee has a right to seek reimbursement of
extraordinary expenses incurred.
 Right of Redemption (right to regain
ownership), A pawnor has right of redemption
after depositing the dues.
 If Pawnee makes unauthorized sale the Pawnor
has the right to file a suit against the “Pawnee”.
 The Pawnor can enforce the Pawnee to do
proper care and maintain the pledged goods.
Right of Pawnee
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16. PLEDGE OF NON-OWNER OF GOODS
 Ordinarily only a person who is the real owner of the goods can make a valid pledge, but in the
following cases pledge made by non-owners will also be valid.
 Pledge by a mercantile agent- Where a mercantile agent is, with the consent of the owner, a
possession of goods or the documents of title to goods, any pledge made by him.
 Shall be as valid as if he were expressly authorized by the owner of the goods to make the same.
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17. ANY QUESTIONS
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