This document discusses bailment and pledge under Indian contract law. It defines key terms like bailor, bailee and bailment. Bailment involves the delivery of goods by one person to another for a specific purpose, such as repair or safekeeping, with an obligation to return the goods. Pledge is a type of bailment where goods are delivered as security for a debt. The document outlines the duties of bailors and bailees in bailment contracts and the rights of pawners and pawnees in pledge agreements. It also distinguishes bailment from concepts like sale, license, and distinguishes bailment from pledge based on their different purposes and rights involved.

1. Bailment & pledge
 Section 148
 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

2. Examples:
 Hiring a bicycle
 Giving cloth to a tailor
 Delivering watch for repair

3. 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

4. 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

5. Difference between sale & bailment
 Ownership transferred?
 Buyer under no obligation to return
goods?
 Ownership not transferred?

6. Difference between bailment &
licence
 Permission to use place?
 No delivery of goods?
 Responsible for safety of goods?
 Goods delivered?

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
 Duty to return goods {A hires a
horse for 4 days, fails to return, horse
dies, has to pay price of horse}
 Duty to return any accretion to goods
{cow + calf}

8. Duties of bailor:
 Disclose faults in goods
 Repay necessary expenses in case of
gratuitous bailment.. feeding expenses for
the horse kept in safe custody
 Repay extraordinary expenses in case of
non-gratuitous bailment.. If horse falls ill
during bailment period then giving
expenses
 Duty to indemnify bailee.. If A gives his
neighbor's scooter to B
 Duty to receive back the goods

9. 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

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

11. 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 sue the pawner or sell the goods
on default.

12. Rights of Pawnor:
 Enforcement of pawnee’s duties
 Defaulting pawnor’s right to redeem