This document provides information about bailment and pledge under Indian contract law. It defines bailment as the delivery of goods by one person to another for a specific purpose based on a contract. A bailee takes possession of the goods while the bailor remains the owner. There are various duties and rights of both the bailor and bailee. Bailment can be classified based on benefit and whether a reward is provided. Pledge is a type of bailment where goods are provided as security for a debt, with the pawner retaining limited ownership rights over the pledged goods.

2. GROUP MEMBERS
Name Roll No.
Sheheryar Naseer (Leader) MCE13307
Amina Zahid MCE13324
Ahmad Masood MCE13327
Javeria Mughal MCE13325
Hassan Tariq MCE13341

3. BAILMENT & PLEDGE

4. BAILMENT
Sec 148 of Indian Contract Act, 1872 provides
“Bailment is the delivery of goods by one person to
another for some purpose, upon a contract that they shall,
when the purpose accomplished, be return or otherwise
disposed of according to the directions of the person
delivering them.”
Examples
• Hiring a bicycle
• Delivering watch for repair
• Giving cloth to a tailor

5. Bailee: who takes
Bailment: transactions
Bailor: who gives

6. REQUISITES OF BAILMENT
Following are the requisites of bailment
•Contract
• Delivery of goods
• For some specific purpose
• For some specific period of time
• Ownership not transfer
• Return of specific goods

7. CLASSIFICATION OF BAILMENT
• On the basis of benefits
1 Exclusive for the benefit of bailor
(leaving goods in safe custody without paying)
2 Exclusive for the benefit of bailee
(a loan of some article like a pen )
3 Exclusive for the benefit of both
(contracts for hiring, repair etc)

8. CLASSIFICATION OF BAILMENT
• On the basis of reward
1 Gratuitous bailment
(Goods are delivered by bailor to bailee without any
reward i.e lending a book to friend for reading)
2 Non-Gratuitous bailment
(Where bailor & bailee is entitled to reward for
bailment i.e a car let out for hire )

9. Duties of bailor
Duties of bailor are as under:
1-Duty to disclose faults
2-Duty to repay necessary expenses
3-Duty to indemnify the bailee
4-Liability on early breach of bailment

10. Duties of bailee
Duties of bailee are as under:
1-Duty to take reasonable care
2-Duty not to make unauthorized use
3-Duty to return goods
4-Duty to return increase

11. Rights of bailor
Rights of bailor are as under:
1-Right to claim damages
2-Right to Demand Return of Goods
3-Right to Claim Increase
4-Right to Terminate Bailment

12. Rights of bailee
Rights of bailee are as under:
1-Right to claim damages
2-Right to Recover Expenses
3-Right to Deliver Goods
4-Right to Sue

13. TERMINATION OF BAILMENT
A contract of bailment terminates under the following
circumstances:
1-Expiry of time
2-Accomplished of purpose
3-Unauthorized use
4-Death of bailor or bailee

14. PLEDGE OR PAWN
Definition (Sec 172)
“The bailment of goods as security for payment of a
debt or performance of promise is called pledge.”
1-Pawner
2-Pawnee
Example
A borrows Rs.100 from B & keeps his watch as
security

15. ESSENTIALS OF PLEDGE
The essentials of a pledge are as under:
1-Movable property
2-Limited Interest
3-Transfer of possession
4-No transfer of ownership

16. Rights of pawnee
Rights of pawnee are as under:
1-Right of retainer
2-Right of retainer for other debts
3-Right to extraordinary expenses
4-Right against true owner, when the pawnor’s title is defective

17. Rights of pawnor
Rights of pawnor are as under:
1-Right to get back goods
2-Right to redeem debt
3-Right to claim damages
4-Right to claim increase

19. ?