Contract of Bailment

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Delivery of goods by one person to another -for some purpose -returned after accomplishment of purpose -or dispose of according to the direction Person delivering the goods: Bailor Person to whom it is delivered: Bailee Can be either constructive or actual

Duties of Bailor
To disclose faults in the goods bailed  To bear expenses in case of gratuitous bailment  To bear extraordinary expenses in case of non- gratuitous bailment  To indemnify bailee  To receive back the goods

Duties of Bailee
To take reasonable care of goods delivered to him  Not to make unauthorized use of the goods entrusted to him  Not to mix goods with his own goods  To return the goods  To deliver any accretion to the goods

Rights of Bailor
To enforce bailee’s duties  To terminate bailment if the bailee uses the goods wrongfully  To demand goods any time in case of gratuitous bailment

Rights of Bailee
Enforcement of bailor’s duty  To deliver goods to one of several joint bailors  To deliver goods,in good faith, to bailor without title  Right of Lien 1.Particular Lien -Must have rendered some service to the goods -Must be an addition in the value of the goods

2.General Lien Bankers, Factors, Policy brokers etc. Termination of Bailment -On the expiry of the stipulated period -On the accomplishment of the specified purpose -By bailee’s act , inconsistent with the terms of bailment -Any time in case of gratuitous bailment

Contract of Pledge
Bailment of goods as security for payment of a debt or performance.  Bailor: Pawnor  Bailee: Pawnee

Rights & Duties of Pawnor
Rights:-Enforcement of Pawnee’s duty -To claim back the security after repayment of debt -To receive notice in case of selling by pawnee •Duties:-To compensate pawnee for any extraordinary expenses -To meet his obligations on stipulated time

Rights of Pawnee
Right of retainer – for principal & interest  Right to extraordinary expenses  Right to sue the pawnor on default  Right to sell the goods after reasonable notice
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Other than all duties of a bailee , he should return goods after the payment of debts

Pledge by Non -owners
Mercantile agents  Pawnor having limited interest  Seller in possession of goods after sale  Buyer in possession of goods after an agreement to sell  Co- owner in possession  Person in possession under voidable contract

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