Bailment And Pledge

Bailment And Pleadge

Bailment Definition :
Sec 148 of the Indian Contract Act defines a Bailment as
“A Bailment is the delivery of goods ,by one person to
another ,for some specified purpose ,and upon a contract that
they shall ,when the purpose is accomplished ,be returned or
other wise disposed of according to the direction of the
person delivering them .

The person delivering the goods is called the Bailor.The person to

whom they are delivered is called the Bailee.
 A Bailment is the delivery of goods ,

 by one person to another ,

 for some specified purpose ,

 and upon a contract that they shall ,

 when the purpose is accomplished ,

 be returned or other wise disposed of

 according to the direction of the person delivering them .

Characteristics of Bailment :

It is based upon a contract ,

The finder of an goods is an exception to this ,he is a bailer even

though no contract is arrived between the finder and the true

owner
It involves delivery of goods either actual or constructive

The possession of goods must changes ,though temporarily

Ownership over goods is retained by the owner

Delivery of goods here is for some purpose

May be safe custody security of debt ,repair Conversion

When the purpose for which the bailment is

create is accomplished ,the goods are to be returned or

disposed according to the instruction of the bailor ,The goods
returned should be the same ones which were bailed
Bailment is possible only for goods movables and not to
immovable's

Gratuitous and Non gratuitous Bailment

A Gratuitous bailment is that in which neither the bailor nor the
bailee is entitled to any remuneration
Non gratuitous B ailment here either the bailee or the bailor gets
remuneration
Rights of Bailor

Restoration of goods lent gratuitously

Entitled to increase the profit to goods bailed

Enforcement of rights

Claim damages

Right of termination

Right to share in the compensation received in any suit by the bailee

Duties of the Bailor

To disclose fault in the goods bailed

Repayment of the expenses

Responsibility for lack of title

To receive back the goods

Rights of Bailee

Right to Compensation

Right to Remuneration

Right to Particular lien

Right to general lien

Right to claim compensation in case of faulty goods

Right to Inter plead

Right to bailment by several owners

Right to sue against wrong doers

Duties of Bailee

Duty of reasonable care of goods bailed

Not to make unauthorized use of goods bailed

Duty not to mix goods bailed with other goods

Duty to return goods with out demand to retain the same

Duty not to set up adverse title

Termination of Bailment

Lapse of time

Accomplishment of purpose

Inconsistent use of goods (Sec153)

Death(sec162)

Gratuitous bailment (Sec159)

Pledge

Sec172 of Indian contract Act says Pledge is a bailment of goods as

security for payment of debt or performance of promise
 The person offering the security is called as the “Pawnor or
the pledger’,
 And The person who receives the goods is called as the
pawnee or the pledgee
 Here there should be bailment of goods
 The object of such bailment should be to hold the goods as a
security for payment of a debt or performance of promise and not
for safe custody or any other purpose
It must satisfy the essential requirement of a bailment i.e.

Delivery of goods

Delivery for specific purpose

Delivery with a condition that the goods shall be returned in

specific time when the purpose is over or disposed of according

to the direction of the bailor
Only the possession and not the ownership is transferred

Rights of the Pledgee

Right of retainer

Security for subsequent Advances\debts

To recover any extraordinary expenses

To bring civil suits for amount due

Sale after notice

Rights to damages

Right to indemnity

Right against deprivation

Duties of a Pledgee\Pawnee
Take reasonable care

Not to make any unauthorized use

Return on repayment

Return any increase or profit

Right to increase or profit

Duties of a Pledgor \Pawnor

Disclose the faults

Meet extraordinary expenses

Indemnify the pledgee