This document defines bailment and pledge under Bangladesh law and summarizes their key characteristics. It discusses the definition of bailment as the delivery of goods by one person to another for a purpose, upon agreement that the goods will be returned or disposed of when the purpose is complete. The document outlines the duties of bailors and bailees. It also defines pledge or pawn as a bailment where goods are delivered as security for a debt or promise. The document distinguishes bailment from pledge based on their different purposes. It concludes by summarizing the definition and types of agency relationships under Bangladesh law.

1. BAILMENT AND PLEDGE
CHAPTER 14
Compiled by:
Nurun Nabi Mahmud
AIS 26th

2. DEFINITION
A bailment is the delivery of goods by one person to another 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 persons delivering them.
 Bailor
 Bailee
 Bailment

3. CHARACTERISTICS FEATURES OR REQUISITES OF BAILMENT
1. Delivery
2. Purpose
3. Return- when the purpose is accomplished
4. Contract- express or implied, Finder of goods bailment arises by implication of law
5. Ownership- does not cause any transfer of
6. Movable Goods- only with
7. Possession- a person already in possession of the goods may become a Bailee by a subsequent
agreement express or implied. i.e., Bill and Hold

4. KINDS OF BAILMENT
 Gratuitous Bailment- neither the Bailor nor the Bailee is entitled to any remuneration. Lending the book,
custody without charge
 Bailment for Rewards- goods carriage for price, hire a car

5. DUTIES OF THE BAILEE
1. Duty of reasonable care
2. Bailee’s liability for negligence of servants
3. Unauthorised use of goods- in that case he is responsible for all damages to the goods and must pay
compensation to the bailor
4. Mixture of bailor’s goods with the Bailee’s-
5. Duty of returning the goods
6. Accretion/increase to the goods bailed

6. DUTIES OF THE BAILOR
1. Duty to disclose faults in goods bailed
2. Payment of expenses in gratuitous bailment
3. Responsibility for breach of warranty of title

7. BAILEE’S RIGHTS
1. Enforcement of rights
2. Bailment by several joint owners
3. Bailee is not responsible on redelivery to Bailor without title
4. Particular Lien
5. General Lien

8. TERMINATION OF BAILMENT
1. Efflux of time/ period expire
2. Fulfilment of purpose
3. Act inconsistent with the terms
4. Goods lent gratuitously
5. Death

9. RIGHTS AND DUTIES OF FINDER OF GOODS
The finder of the goods is a bailee.
 Possession
 Compensation and Lien (retain or sell until due paid)
 Reward
 Sale
1. Danger of perishing or losing greater part
2. Cost two thirds of its value

10. DUTIES AND OBLIGATIONS OF FINDER
 Must make reasonable care of the goods
 Must not mix the finder’s goods with his own goods
 The goods must be returned to the real owner
 Any accretion must be returned to the owner
 Must not use the goods for his purpose
 Must try to find out the true owner of the goods

11. BAILMENTS BY THE WAY OF PLEDGE OR PAWN
The bailment of goods as security for payment of a debt or performance of a promise is called pledge or
pawn. The Baylor in this case is called the pledger or the pawnor and the the Bailee is called the pledgee or
the pawnee.

12. DIFFERENCE BETWEEN BAILMENT AND PLEDGE
 Pledge is a particular kind of bailment. The difference between pledge and other kinds of bailment lies in
the purpose or the objective of the transaction. The purpose of the pledge is to provide security for a
debt or the performance of a promise. In the other kinds of bailment there are other purposes for
example, repair, safe-custody, etc. They are different from the view point of the rights and duties.

13. LAW OF AGENCY
CHAPTER 15

14. DEFINITION AND NATURE OF AGENCY
 An agent is a person employed to do any act for another or to represent another in dealings with the
third persons.
 The person for whom such act is done or who is so represented is called the principal.
 And the relationship between them is called the agency.

15. POWER OF ATTORNEY
 An agent may be appointed by the principal executing a written and stamped document, such a
document is called power of attorney.
1. General Power- agent is given an opportunity to do certain general objectives, i.e., managing the business and
organisation
2. Special Power- to do a specific thing

16. AGENT VS SERVANT
1. Direct control or supervision
2. Employed to bring the principle into contractual relationship with the third parties
3. Can bind the principal to third parties
4. Commission vs Wage
5. Agent is liable vs Master is liable for wrongdoing
6. Work for several principals vs whole time serve only one master
7. A servant can however be appointed as an agent for some purposes

17. DIFFERENT CLASSES OF AGENTS
1. Broker
2. Factor- to whom goods are kept for sale, has legal powers to enter into contracts of sale with 3rd parties.
Has general ien
3. A Commission agent- take commission, may have possession or not, like broker
4. Auctioneer- sell by auction, has lien and possession
5. A Del Credere Agent- who, for extra remuneration guarantees the performance of the contract by the
other party, in case of that party’s failure he must pay compensation to the principal
6. General agent and Particular Agent

18. METHODS OF CREATING AGENCY
1. Agency by Express Agreement
2. By Implied/ Conduct Agreement
3. By Estoppel of Holding Out
4. Agency of Necessity - Husband and Wife
5. Agency by Ratification (subsequent acceptance)

19. SUB AGENT AND CO AGENT
The general rule is that an agent cannot appoint an agent. An agent cannot lawfully employ another to perform
acts which he has expressly or impliedly undertaken to perform personally. But two exception
1. when it is permitted by the custom of the trade with which the agency is concerned
2. when it is necessary because of nature of the agency
Sub Agent:
An agent appointed by an agent is called the sub agent. This agent is employed by and acting under the control
of the original agent
Recall the 5 consequence Mahmud!
Co Agent:
A co agent is a person appointed by the agent according to the express or implied authority of the principal to
act on behalf of the principal in the business of the agency.
Such a person is an agent of the principal and is responsible to him. A co agent is sometimes called a substituted
agent.

20. AGENT’S DUTIES TO PRINCIPALS
1. Agent’s duty in conducting principal’s business
2. Skill and diligence required from an agent
3. Agent’s duty to render accounts on demand or periodically
4. Agent’s duty to communicate to principal
5. Agent not to deal on his own account
6. Principal to get benefit of agent’s dealings
7. Agent’s duty to pay sums received for principal
8. All reasonable protection and steps in case of the death of principal
9. Miscellaneous

21. PRINCIPAL’S DUTIES TO AGENT
1. Agent to be indemnified against consequences of lawful acts
2. Agent to be indemnified against consequences of acts done in good faith- though it cause injury
3. No liability for criminal acts
4. Compensation for principal’s neglect

22. Thank You Mahmud !