Bailment and pledge


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Bailment and pledge

  1. 1. 1Bailment and Pledge
  2. 2. 2Bailment• Means ‘To Deliver’.• Derived from French word ‘ Baillier’.• Two Parties– Bailor.– Bailee.
  3. 3. 3Definition• A Bailment is A delivery of Goods by oneperson to another for some purpose,• Upon the Contract they Shall Returned ,• When the Purpose is Accomplished, bereturned as per Directions of. SEC-148.
  4. 4. 4Illustrations• A delivers Piece of Cloth to B make a Suit.There is a Contract of Bailment.• The Person Delivering the Goods is calledthe Bailor.• The Person to whom they are Delivered isCalled the Baillee.
  5. 5. 5Essentials Features• Contract.• Specific Purpose.• Delivery of Goods• No Change of Ownership.• Return of Same Goods.
  6. 6. 6Contract• Bailment based on Contract.• Delivery of Goods should be made forsome Purpose• Purpose Completed Returned the Goods• Delivery without Contract no Bailment.
  7. 7. 7Specific Purpose• The Bailment must be made for somespecific purpose ,• Shall returned the goods as per terms andConditions.
  8. 8. 8Delivery of Goods• Delivery of Movable Goods from oneperson to another.• Not Custody.
  9. 9. 9No Change of Ownership.• Possession Passes from the Owner• Not Ownership.
  10. 10. 10Return of Same Goods• When Purpose is Accomplished ,• The Goods must be Returned• In Original form or• As per directions of Bailor.
  11. 11. Kinds of Bailment• Benefit– For Bailor– For Bailee– For Bailor and Bailee• Reward– With reward– Without reward11
  12. 12. 12Duties of Bailor• To Disclose Faults.• To pay necessary expenses• To Pay Extra-ordinary Expenses• Indemnify (‫)ہرجانہ‬ for Demanding Back• Indemnify for Defective Title• Receive back Goods
  13. 13. 13Duties of Baillee• Duty to Take Reasonable Care,• Duty not to Make Unauthorized Use.• Duty not to Mix the Good.• Duty to Return Goods and Increase.
  14. 14. Rights of Bailor• Claim damages• Demand return• Claim increase• Terminate bailment• Right to Sue14
  15. 15. Termination of Bailment• Expiry of time• Accomplishment of purpose• Unauthorized use• On Death• Termination by bailor• Destruction of subject matter15
  16. 16. 16FINDER OF Lost Goods• A Person who finds goods belonging toanother and takes them into his Custodyis subject to the same responsibility as abaillee.
  17. 17. 17Duties of Finder• Duty to Find out the Owner.• Duty to Take Reasonable Care• Duty not to use the goods.• Duty not to mix the goods.
  18. 18. Rights of Finder• Right to retain• To lien• To sue third person• To sue for reward• When fail to find owner, finder can sell18
  19. 19. 19Pledge (‫ضمانت‬ ‫)مال‬ / Pawn(‫)رہن‬• A Borrows Rs.1000 from B and Keeps hiswatch as a Security for the Payment of theDebt.The Bailment of Watch is Called a Pledge.
  20. 20. 20Definition• The Bailment of Goods as Security forPayment of a Debt or performance of apromise is Called the Pledge. (SEC-172)• The Bailor in this case called the Pawnor,The Baillee is Called Pawnee.• A Pledge is a Special kind of Bailment.
  21. 21. 21• In Pledge the Goods are deposited assecurity to get a loan.• If there is no transfer of possession ofgoods , there is no pledge.
  22. 22. 22Essentials1. Movable Property2. Limited Interest3. Transfer of Possession4. No Transfer of Ownership5. Not Mere Custody
  23. 23. Rights of Pledgee• Right to retain• To retain for other debts• Claim extra-ordinary expenses• Right to sue to sell23
  24. 24. 24DIFFERENCE BETWEEN PLEDGE ANDBAILMENT• PURPOSEDelivery of Goods– SECURITY FOR A LOAN– Repairs and Safe Custody.• RIGHTS– Sale the Pledge Goods– No right of Sale, Retain the Goods
  25. 25. 25• USE OF GOODS– No right of Using the Goods Pledge– There is no such Restriction depends uponthe nature of Transactions.• RETURN OF GOODS– Not bound to Return the Goods Delivered– Without Reward the Baillee is bound to returnthe Goods on Demand by the Bailor
  26. 26. 26Lien (‫حق‬ ‫)قانونی‬• Lien means the Right to retain Possessionof the Property or Goods Belonging toanother until the some debt or claim arepaid.• A delivers rough diamond to B, a jeweler ,for cutting and polishing. B can retain thestone till he is paid for the Services.
  27. 27. Pledge by Non-OwnersOnly limited to following:• Mercantile agent• Possession under voidable contract• Pledgor with limited interest• Seller in possession after sale• Buyer in possession before sale• Pledge by co-owners27