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‡ Definition ‡ No. of Persons ‡ Essential of Bailment ‡ Types of Bailment ‡ Duties & Rights of Bailee & Bailor ‡ Termination of Bailment ‡ Finder of goods ‡ Duties & Rights of Finder of goods. ‡ Pledge Definition ‡ Duties & Rights of Pledgor & Pledgee ‡ Pledge by Non-owner ‡ Differences

Definition U\S 148 Bailment is the delivery of goods by one person to another for some purpose. upon a contract that they shall. . be returned or otherwise disposed of according to the direction of the person delivering them. when the purpose is accomplished.

.Definition in layman language Any contract where by some movable goods are given by one person to another only for some purpose and the goods are to be return back or disposed off as per the desire of the giver is known as Bailment.

Bailor: The person delivering the goods is called the bailor. 1. 2.No. of Persons Involved ‡ There are two persons involved in the bailment contract. Bailee: The person to whom they are delivered is called the bailee. .

Delivery includes:  Physical delivery  Constructive delivery  Symbolic delivery . ‡ Delivery: Delivery of goods by one person to another is essential.Essentials of Bailment ‡ Goods: Bailment can be effected only with respect to goods.

‡ In Specie: The same goods are to be returned and not the equivalent. e.g. ‡ To be Returned: Without demand unless agreed otherwise. ‡ Ownership: Only the possession of the movable goods is transferred and not the ownership. Including any accretion. calf born to a cow. ..Cont .

Types of Bailment Types of Bailment Bailment on the bases of Reward Bailment on the bases of Benefits Gratuitous Bailment Non-Gratuitous Bailment Bailor Benefit Bailee Benefit Mutual Benefit Bailment Bailment Bailment .

Duties of Bailee (Rights of Bailor) ‡ Duty to take Care. ‡ Responsible of Damage. ‡ Duty to return the goods. ‡ Bailee should return any increment in goods. . ‡ Not to mix other goods with the goods of bailor. ‡ Not to make Unauthorized use. ‡ Not to create the adverse title (Ownership).

‡ If the bailee returns the goods to the bailor in good faith without having knowledge of his defective title then also he is not responsible. he as well as the bailor can sue for their rights.Rights of Bailee (Duties of Bailor) ‡ Right to receive the damages from the defect of the goods. ‡ Right to return the Goods. ‡ Right to protect the goods. ‡ If some third deprives the bailee from using having possession of goods. . ‡ Right to recover expense.

‡ By bailee s act inconsistent with conditions of bailment. ‡ A gratuitous bailment may be terminated at any time.Termination of Bailment ‡ On the expiry of the stipulated period. . ‡ On the accomplishment of the specified purpose.

The finder of the goods automatically becomes bailee even when there is no bailment from the bailor. . ‡ Here there is an unintended formation of the contract. ‡ A finder of the goods is a person who finds the goods belonging to some other person and keeps them under his protection till the actual owner of the goods is found.Finder of Goods ‡ Definition: ‡ Finder of goods is a special case of bailment.

‡ He also has the right to keep the goods in his possession till he gets the expenses and can sell the goods and recover the expense. ‡ Take a good care of the goods until they are returned back to the real owner. ‡ He has a right to be paid for the expenses which he has incurred to keep the goods safe as well as in searching the real owner. .Duties & Rights of Finder of Goods ‡ Search the real owner and return the goods back to him. if they are not paid by owner.

.Pledge \ Pawn ‡ Definition: ‡ Any contract where the goods are given by person to another only for the purpose of serving as security against some payment to be made is known as Contract of Pledge .

2. Pawnor \ Pledgor: The person. 1. who delivers the goods as security. is called the pawnor or pledgor .No. . of Persons Involved ‡ There are two persons involved in the bailment contract. Pawnee \ Pledgee: The person to whom the goods are so delivered is called the pawnee or pledgee .

. ‡ Right to extra ordinary expenses. ‡ Right in case of pawnor s default.Rights of Pawnee (Duties of Pawnor) ‡ Retainer ‡ Retention for subsequent advances.

‡ He has a right to receive a reasonable notice in case the pledgee intends to sell the goods. . ‡ In case of sale. ‡ In case he does not receive the notice he has a right to claim any damages that may results.Rights of Pawnor (Duties of Pawnee) ‡ The pledgor has a right to claim back the security pledged on repayment of the debt with interest and other charges. the pledgor is entitled to receive from the pledgee any surplus that may remain with him after the debt is completely paid off.

the pledgor has a right to claim the same. ‡ The pledgor has a right to claim any accruals to the goods pledged.Cont . . ‡ If any loss is caused to the goods because of mishandling or negligence on the part of the pledgee.

‡ Seller in possession of goods after sale. . ‡ Buyer in possession of goods under an agreement to sell ‡ Co-owner in possession.Pledge by Non-Owners ‡ Mercantile agents ‡ Person in possession under a voidable contract. ‡ Pledgor having limited interest.

‡ Here. ‡ Here. goods are surrendered as a security for the loan taken or for performance of a promise. the goods are to be returned in the same form. ‡ The bailee can not sell the goods. the goods may be returned in a changed from also according to the instructions of the bailor.Difference between Pledge and Bailment . Pledge ‡ Here. ‡ Here. the goods are to be returned only when pawnor returns money to the pawnee. one party surrenders goods to another party for specified period or purpose. the goods are to be returned after time is over or purpose is over. . ‡ The pawnee can sell goods after giving a due notice to the pawnor. Bailment ‡ Here. ‡ Here.

‡ Return: Buyer is in no obligation to return the goods. Bailment ‡ Ownership: Not transferred.Difference between Sale and Bailment . ‡ Return: Bailee is bound to return the goods in specie. Sale ‡ Ownership: Transferred. .

. License ‡ Delivery: Goods are not delivered to licenser. Bailment ‡ Delivery: Goods are delivered to bailee. ‡ Permission: Permission is give to only one person for the use. ‡ Permission: There is nothing like permission for use.Difference between License and Bailment .

Thank you DIPESH PATEL .

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