This document discusses contracts of bailment and pledge under Indian law. It defines bailment as the delivery of goods by one person to another for some purpose according to a contract. The person delivering the goods is called the bailor and the person receiving them is called the bailee. Pledge is a type of bailment where goods are delivered as security for a debt or promise. The document outlines the requisites of a valid bailment, as well as the duties of bailors and bailees. These include the bailor's duty to disclose known faults and the bailee's duty to take reasonable care of goods and not mix them with their own goods.

1. BAILMENT AND PLEDGE
CHIPPY.R.S
MGT1005411

2. Introduction
Contracts of bailment and pledge are a special class of
contracts. These are dealt with in chapter ІX (Secs.
148to181) of the Indian Contract Act 1872.

3. Bailment
Sec.148 defines ‘bailment’ as the delivery of
goods by one person to another for some
purpose ,up on a contract ,that they shall ,when the
purpose is accomplished ,be returned or otherwise
disposed of according to the direction of the person
delivering them.

4. The person delivering the goods is called the
‘bailor’ and the person to whom they are delivered is
called the ‘bailee’.
Eg: A delivers a piece of cloth to B ,a tailor ,to be
stitched in to a suit. there is a contract of bailment
between A and B.

5. Requisites of bailment
 Contract
 Delivery of possession
 For some purpose
 Return of specific goods

6. Pledge
The bailment of goods and security for payment of a
debt of performance of a promise is called ‘pledge’
The bailor in this case called the ‘pledger’or
‘pawnor’and the bailee is called ‘pledge’or ‘pownee’.

7. Duties of bailor
 To disclose known faults
 To bear extraordinary expenses of bailment
 To indemnify bailee for loss in case premature
termination of gratuitous bailment
 To receive back the goods
 To indemnify the bailee

8. Duties of bailee
 To take reasonable care of the goods bailed
 Not to make any unauthorised use of goods
 Not to mix the goods bailed with his own goods
 To return the goods

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