Define and distinguish between bailment

and pledge.
Sayan Biswas-LLM/18/35

Bailment- The term bailment refers to the transfer of personal property to another person for safekeeping,
or for the other person to control or use temporarily. A bailment is a form of contractual relationship,
even if no contract has been signed. The person receiving the property (the “bailee”) has possession and
control over the property for a specific period of time, during which he or she is responsible to take
reasonable care of the property. The original owner of the property (the “bailor”) retains ownership
interest during this time.

Because a bailment is often created without an actual written contract, there are many situations in which
the law recognizes a bailment exists. These include bailments created:

 For the mutual benefit of both the bailor and bailee – created when there is to be an exchange
of services or performances between the parties, such as when the bailor leaves his property with the
bailee to be repaired, after which the bailor will be paying for the repairs.
 For the sole benefit of the bailor – created when the owner of a valuable item, such as a TV, a
car, or a piece of jewelry, leaves the item with someone for safekeeping, with no expectation of
compensation being made to the friend or other party.
 For the sole benefit of the bailee – created when the owner of an item loans the property to
another person, with no expectation of receiving payment or compensation, but expecting that the
item will be returned to the owner.

Pledge- A pledge is only a special kind of bailment, and chief basis of distinction is the object of
the contract. Where the object of the delivery of goods is to provide a security for a loan or for
the fulfilment of an obligation, that kind of bailment is pledge. Under Indian Contract Act, 1872
the ‘Pledge’ has been defined in section 172 as:
S 172. “Pledge”, “pawnor”, and “Pawnee” defined.-
The bailment of goods as security for payment of a debt or performance of a promise is called
“pledge”. The bailor is in this case called the “Pawnor”. The Bailee is called the “Pawnee”.
Difference between bailment and pledge.
Bailment pledge
 It is a wider term and it includes pledge. If It is a kind of bailment where the goods are
goods are given for other purpose for example delivered by one person to another as a security
a watch is given for repair it is bailment. for payment of debt or performance of a
promise. It means that if the goods serve as
In this case if the bailor does not pay the lawful security it is pledge.
charges due to the bailee in respect of service, In this case the pledge has not only a right to
rendered by the baileee the bailee can exercise retain the goods pledged until the repayment of
lien over the goods bailed thus he may retain debt or performance of the promise, but in the
them until the necessary payment is made. event of default by the pawnor in payment of
the debt or performance of the promise at the
stipulated time he may even sell the goods after
giving a due notice of the sale to the pawnor.

Bibliography.
Dr. R. K. Bangia, Law of Contract-II, Allahabad Law Agency, Faridabad, 2007.
Avtar Singh, Law of contract, Eastern Book Company, Lucknow, 2005.