2. 2
Bailment
⢠Means âTo Deliverâ.
⢠Derived from French word â Baillierâ.
⢠Two Parties
â Bailor.
â Bailee.
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Definition
⢠A Bailment is A delivery of Goods by one
person to another for some purpose,
⢠Upon the Contract they Shall Returned ,
⢠When the Purpose is Accomplished, be
returned as per Directions of. SEC-148.
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Illustrations
⢠A delivers Piece of Cloth to B make a Suit.
There is a Contract of Bailment.
⢠The Person Delivering the Goods is called
the Bailor.
⢠The Person to whom they are Delivered is
Called the Baillee.
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Contract
⢠Bailment based on Contract.
⢠Delivery of Goods should be made for
some Purpose
⢠Purpose Completed Returned the Goods
⢠Delivery without Contract no Bailment.
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Specific Purpose
⢠The Bailment must be made for some
specific purpose ,
⢠Shall returned the goods as per terms and
Conditions.
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Delivery of Goods
⢠Delivery of Movable Goods from one
person to another.
⢠Not Custody.
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No Change of Ownership.
⢠Possession Passes from the Owner
⢠Not Ownership.
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Return of Same Goods
⢠When Purpose is Accomplished ,
⢠The Goods must be Returned
⢠In Original form or
⢠As per directions of Bailor.
11. Kinds of Bailment
⢠Benefit
â For Bailor
â For Bailee
â For Bailor and Bailee
⢠Reward
â With reward
â Without reward
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Duties of Bailor
⢠To Disclose Faults.
⢠To pay necessary expenses
⢠To Pay Extra-ordinary Expenses
⢠Indemnify (âŤ)Űع؏اŮŰ⏠for Demanding Back
⢠Indemnify for Defective Title
⢠Receive back Goods
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Duties 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. Rights of Bailor
⢠Claim damages
⢠Demand return
⢠Claim increase
⢠Terminate bailment
⢠Right to Sue
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15. Termination of Bailment
⢠Expiry of time
⢠Accomplishment of purpose
⢠Unauthorized use
⢠On Death
⢠Termination by bailor
⢠Destruction of subject matter
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FINDER OF Lost Goods
⢠A Person who finds goods belonging to
another and takes them into his Custody
is subject to the same responsibility as a
baillee.
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Duties 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. Rights of Finder
⢠Right to retain
⢠To lien
⢠To sue third person
⢠To sue for reward
⢠When fail to find owner, finder can sell
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Pledge (âŤŘśŮ اŮت⏠âŤ)٠اŮ⏠/ Pawn
(âŤ)ŘąŰŮâŹ
⢠A Borrows Rs.1000 from B and Keeps his
watch as a Security for the Payment of the
Debt.
The Bailment of Watch is Called a Pledge.
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Definition
⢠The Bailment of Goods as Security for
Payment of a Debt or performance of a
promise 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.
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⢠In Pledge the Goods are deposited as
security to get a loan.
⢠If there is no transfer of possession of
goods , there is no pledge.
23. Rights of Pledgee
⢠Right to retain
⢠To retain for other debts
⢠Claim extra-ordinary expenses
⢠Right to sue to sell
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DIFFERENCE BETWEEN PLEDGE AND
BAILMENT
⢠PURPOSE
Delivery of Goods
â SECURITY FOR A LOAN
â Repairs and Safe Custody.
⢠RIGHTS
â Sale the Pledge Goods
â No right of Sale, Retain the Goods
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⢠USE OF GOODS
â No right of Using the Goods Pledge
â There is no such Restriction depends upon
the nature of Transactions.
⢠RETURN OF GOODS
â Not bound to Return the Goods Delivered
â Without Reward the Baillee is bound to return
the Goods on Demand by the Bailor
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Lien (âŤŘŮ⏠âŤ)ŮاŮŮŮŰâŹ
⢠Lien means the Right to retain Possession
of the Property or Goods Belonging to
another until the some debt or claim are
paid.
⢠A delivers rough diamond to B, a jeweler ,
for cutting and polishing. B can retain the
stone till he is paid for the Services.
27. Pledge by Non-Owners
Only 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-owners
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