This document discusses bailment and pledge under Indian contract law. It defines bailment as the delivery of goods by one person to another for a specific purpose, with an obligation to return the goods. A bailor delivers the goods, while a bailee receives them. Bailments can be for the exclusive benefit of the bailor or bailee, or for mutual benefit. They can also be gratuitous or for reward. The document outlines the duties of bailors and bailees, as well as their rights. It also discusses how bailments can be terminated. Finally, it defines a pledge as a bailment where goods are delivered as security for a debt, with the pawner delivering and the p

2. Bailment & pledge
 Section 148 of indian contract act 1872
 Delivery of goods by 1 person to another for some
purpose
 Contract to return after use or to dispose as asked by
the person who delivered the goods
 Bailor: who gives
 Bailee : who takes
 Bailment: transaction

3. Examples
 Hiring a bicycle
 Giving cloth to a tailor
 Delivering watch for repair

4. Kinds of bailment
Kinds of bailment Based on benefit:
Bailment for the exclusive benefit of :
1] bailor: leaving goods in safe custody without paying
2] bailee :a loan of some article like a pen
3] mutual benefit: contracts for hiring, repair ,etc

5. Kinds of bailment:
 Based on reward:
1] Gratuitous bailment: neither bailor nor bailee is
entitled for remuneration, example: lending a book to a
friend
2] Non-gratuitous bailment: bailment of reward: either
bailee or bailor is entitled to a remuneration , example:
hire, tailor, etc

6. Difference between sale &
bailment
 Ownership transferred?
 Buyer under no obligation to return goods?

7. Duties of bailee:
 Take reasonable care of goods[S.151]
 Not to make unauthorized use of goods[S.154]
 Not to mix goods with his own goods[S.155-157]
 Duty to return goods[S.160&161]
 Not doing any act inconistent with terms of
bailment[S.153]
 Returning any profit [S.163]

8. Rights of bailee
 Right to compensation for loss on account of fault in
goods bailed[S.150]
 Right to receive necessary expenses[S.158]
 Right against premature termination of
bailment[S.159]
 Right to compensation in case of defective title[S.164]
 Delivery of goods to one of the joint owners[S.165]
 Right against third parties

9. Duties of bailor
 To Disclose faults in goods bailed [S.150]
 To repay the necessary expenses [S.158]
 To indemnify the bailee [S.164]
 Liability on premature breach of bailment[S.159]

10. Rights of bailor
 Right of indemnity for losses due to negligence by
bailee[S.152]
 Termination of bailment on inconsistent use by the
bailee[S.153]
 Compensation for unauthorised use by the
bailee[S.154]
 Compensation when the bailee mixes the goods bailed
with own goods [S.155]
 Right of return of goods back[S.160]
 Right to profit from goods bailed[S.163]

11. Termination of bailment
 Doing an act inconsistent with terms of
bailment[S.153]
 At desire of the bailor in case of gratuitous
bailment[S.159]
 On expiry of period[S.160]
 On accomplishment of object[S.160]
 Death of the bailor or bailee [S.162]

12. PLEDGE OR PAWN :
 Bailment of goods as security for payment of debt or
performance of a promise :PLEDGE
 Bailor: PAWNER
 Bailee: PAWNEE
Example: A borrows Rs.100 from B & keeps his watch
as security : pledge

13. Difference between bailment &
pledge:
 PURPOSE: security? ; repairs?
 RIGHT OF SALE:
sale on default?
no right to sale?
 RIGHT OF USING THE GOODS: no right?

14. Rights of Pawnee:
 Right of retainer{S.173}: right to retain goods until dues
paid
 Right of transfer for subsequent advances:{S.174}: on
lending money to same debtor without further security
 right to retain earlier goods extends Right to
extraordinary expenses {S.175} Right to use the pawner
or sell the goods on default.

15. Rights of Pawner
Rights of Pawner:
Enforcement of pawnee’s duties Defaulting pawnor’s
right to redeem

16. ?

17. Thank you