BUSINESS LAW- CONTRACT OF BAILMENT AND PLEDGE CONTRACT OF BAILMENT bailment. Kinds of bailment Kinds of Bailment BENEFIT Point of view Bailment for exclusive benefit of the bailor Bailment for exclusive benefit of the bailee Bailment for the mutual benefit of the bailor and the bailee REWARD Point of view Gratuitous bailment Non – Gratuitous bailment Contract of agency MODES OF CREATION OF AGENCY

1. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Affiliated Institution of G.G.S.IP.U, Delhi
B.COM(H)
BUSINESS LAW
888108
BY: MS. NAMRATA YADAV

2. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
CONTRACT
OF
BAILMENT AND PLEDGE

3. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
CONTRACT OF BAILMENT
Acc to Sec 148 of the Contract Act : “A bailment is the delivery of goods by
one person to another 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.”
Parties To Bailment
BAILOR
BAILEE

4. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
bailment
Essential features:
(1) It is delivery of movable goods by one person to another.
(2) The goods are delivered for some purpose.
(3) The goods are delivered subject to the condition that when
the purpose is accomplished the goods are to be returned in
their original form or disposed off according to the directions
of the bailor.

5. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Kinds of bailment
Kinds of
Bailment
BENEFIT Point of
view
Bailment for
exclusive benefit
of the bailor
Bailment for
exclusive benefit
of the bailee
Bailment for the
mutual benefit of
the bailor and the
bailee
REWARD Point
of view
Gratuitous
bailment
Non – Gratuitous
bailment

6. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
PLEDGE
• Acc to Sec. 172 of the Contract Act: “the bailment of goods
is called ‘pledge’.”
• The bailor in this case is called the ‘pawnor’.
• The bailee is called the ‘pawnee’.
• For example; A borrows Rs 100 from B and keep his watch
as security for payment of the debt . The bailment is called a
pledge.

7. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Contract of agency
AGENT: According to Section 182 of the Contract Act “An ‘agent’
is a person employed to do any act for another or to represent
another in dealings with third persons.”
PRINCIPAL: The person for whom such act is done ,or who is so
represented ,is called the ‘principal’.
AGENCY: The contract between an agent and principal is called
‘agency’.

8. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
MODES OF CREATION OF AGENCY
Modes of creation of agency
Express agreement Implied agreement
Ratification
By Estoppel By Holding Out By
Necessity

9. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Scope and extent of agent’s authority
(i) Actual Authority: Actual authority is created by agreement between
principal and the agent.
(ii) Apparent or Ostensible Authority: Sec 188 provides that an agent having
an authority to do an act has authority to do every lawful thing which is
necessary in order to do such act is called apparent authority.
(iii) Authority in Emergency: Sec 189 provides that an agent has authority, in
an emergency, to do all such acts for the purpose of protecting his
principal from loss as would be done by a person of ordinary prudence, in
his own case, under similar circumstances .

10. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Duties of an agent
 To conduct the business of agency according to the principal’s
direction.
 The agent should conduct the business with the skill and
diligence.
 To render proper accounts.
 In case of difficulty, to communicate with the principal.
 Not to make any secret profits.
 Not to deal on his own account.

11. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, Dwarka Institutional Area, New Delhi-75
Rights of an agent
Rights of an Agent
Right to remuneration
Right of retainer
Right of lien
Right of indemnification
Right to compensation