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    A bailment is defined as the delivery of goods by one person (the bailor) to another (the bailee) for a specific purpose upon agreement that the goods will be returned or disposed of according to the bailor's instructions. There are essential elements of a bailment including a contract, delivery of goods, a specific purpose for the delivery, and return of the goods. A pledge is a type of bailment where goods are delivered as security for payment of a debt or performance of a promise, with the pledgor delivering goods to the pledgee. The key parties in a pledge are the pledgor who delivers the goods and the pledgee who receives the goods. For a pledge to be valid

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    BAILMENT AND PLEDGE _1_

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    A bailment is defined as the delivery of goods by one person (the bailor) to another (the bailee) for a specific purpose upon agreement that the goods will be returned or disposed of according to the bailor's instructions. There are essential elements of a bailment including a contract, delivery of goods, a specific purpose for the delivery, and return of the goods. A pledge is a type of bailment where goods are delivered as security for payment of a debt or performance of a promise, with the pledgor delivering goods to the pledgee. The key parties in a pledge are the pledgor who delivers the goods and the pledgee who receives the goods. For a pledge to be valid

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    8 views3 pages

    Bailment and Pledge - 1

    Uploaded by

    celeinabodani
    A bailment is defined as the delivery of goods by one person (the bailor) to another (the bailee) for a specific purpose upon agreement that the goods will be returned or disposed of according to the bailor's instructions. There are essential elements of a bailment including a contract, delivery of goods, a specific purpose for the delivery, and return of the goods. A pledge is a type of bailment where goods are delivered as security for payment of a debt or performance of a promise, with the pledgor delivering goods to the pledgee. The key parties in a pledge are the pledgor who delivers the goods and the pledgee who receives the goods. For a pledge to be valid

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    © All Rights Reserved
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    of 3

    BAILMENT AND PLEDGE

    A Bailment is the delivery of goods by one person to another for some purpose,
    upon a contract that they shall when the purpose is completed be returned or
    otherwise disposed off according to the directions of the person delivering them.
    Bailor: The person delivering the goods
    Bailee: The person to whom the goods are being delivered.

    Essentials of Bailment:
    1. Contract
    2. Delivery of goods
    3. Specific purpose
    4. Return of goods

    Duties of Bailor: (rights of bailee)


     Disclose the faults in the goods bailed
     Repay the necessary exps
     Indemnify the bailee
     Receive back the goods

    Duties of Bailee (rights of bailor)


     To take reasonable care of the goods
     Not to make unauthorized use of the goods
     Not to mix bail goods with own goods
     To return the goods back

    Duty of one person=right of another person


    Kinds of bailment
    1. Bailment on the basis of reward
    a) Gratuitous bailment: is a bailment contract where no consideration passes
    between bailor and bailee. Eg A lends his horse to B for his riding without
    any charge.
    b) Non gratuitous bailment: it is a contract of bailment where some
    consideration passes between the bailor and the bailee .eg Y hires a horse
    from X.

    2. Bailment on the basis of benefit


    a) Bailment for the exclusive benefit of the bailor: eg giving anything for
    safekeeping.
    B) Bailment for the exclusive benefit of the bailee: eg A lends his horse to B
    for his riding without any charge.
    c) Bailment for mutual benefit of bailor and bailee: eg Y hires a horse from X.

    Termination of bailment
    1. Expiry of time period
    2. Achievement of objectives
    3. Inconsistent use of goods
    4. Death of bailor or bailee
    5. Termination by bailor

    PLEDGE
    The bailment of goods as security for payment of a debt or performance of a
    promise is called PLEDGE. (PAWN)

    Pawnor/pledgor: the person by whom the goods are delivered as security for
    payment of a debt or performance of a promise is called the pawnor or pledgor
    Pawnee/pledgee:the person to whom the goods are delivered as security for
    payment of a debt or performance of a promise is called a pawnee/pledgee.
    Essential features of a valid pledge
    1. Delivery of possession
    2. Contract
    3. Security
    4. Upon the condition being fulfilled the goods have to be returned

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