Lecture material

1. LEARNING OBJECTIVE
 TO UNDERSTAND SPECIAL TYPES
OF CONTRACT (BAILMENT &
PLEDGE)
 TO LEARN THEIR REQUIREMENT
AND USES
SPECIAL CONTRACTS

2. CONTRACT OF BAILMENT
What is Bailment?
Section 148 defines Bailment as:
“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.”

3. PARTIES OF BAILMENT
The person delivering the goods is
called the ‘Bailor’
and
the person to whom goods are
delivered is called the ‘Bailee’
However, if the owner continues to
maintain control over the goods, there
is no bailment.

4. Illustration: PARTIES OF
BAILMENT
If A gives his car to B his neighbor for
10 days, but at the same time he keeps
one key with himself and during this
period of 10 days he used to take the
car. Now this will not be a case of
bailment as A is keeping control over
the property bailed.

5. EXAMPLE OF BAILMENT
A has handed over his fan to B for the
purpose of repairs at a charge of Rs
200. It is bailment contract. A is bailer
and B is bailee.
Similarly Y has taken Scooter from X
who is his friend for 1 day. Here only
bailee is being benefited. It is also
bailment Contract where X is bailer
and Y is bailee.

6. Essentials of Contract of Bailment
 The existence of a valid
contract
 Temporary delivery of
goods
 Return of specific goods

7. Types of Bailments
1. Deposit:- It is the simple
bailment of goods by one man to
another for a particular use.
For example, A gives his computer
to B for 7 days, it will be a case of
a deposit

8. Types of Bailments
2. Hire:- It includes goods
delivered to the bailee for hire.
For example, A gives his car to
B for 7 days on rent of Rs. 700
per day, it will be a case of a
hire

9. CONTRACT OF PLEDGE OR PAWN
Section 172
“Pledge is the bailment of goods as
security for payment of debt or
performance of a promise.”
Bailment of goods as a security for
payment of debts or performance of
promise is called pledge.
The bailor is called pledgor or pawnor
and the bailee is called Pawnee.

10. EXAMPLE OF PLEDGE OR PAWN
Money taken by A as debt from
the money lender B for a period
of 2 years by pledging 100 gm.
gold as security @ interest of
15% per annum. It is an
example of Pledge.
Here A is Pawner and B is
Pawnee.

11. Duties and liabilities of a bailor
1 The bailor is bound to disclose to the
bailee, the faults in the goods bailed.
2 Bailor is also responsible to the bailee
for any loss which the bailee may
sustain by reason of the fact that
bailor was not entitled to make
3 to indemnify the bailee
4 Duty to claim back the goods