Bailment & pledge Section 148 Delivery of goods by 1 person to

another for some purpose …contract: to return after use or to dispose as asked by the person who delivered the goods

Bailor: who gives Bailee : who takes Bailment: transaction

Examples:

Hiring a bicycle Giving cloth to a tailor Delivering watch for repair

Kinds of bailment Based on benefit: Bailment for the exclusive benefit

of :1] bailor: leaving goods in safe custody without paying

2] bailee :a loan of some article like a pen

3] mutual benefit: contracts for hiring, repair ,etc

Kinds of bailment: Based on reward: 1] gratuitous bailment: neither bailor

nor bailee is entitled for remuneration, example: lending a book to a friend

2] non-gratuitous bailment: bailment of reward: either bailee or bailor is entitled to a remuneration , example: hire, tailor, etc

Difference between sale & bailment

Ownership transferred? Buyer under no obligation to return

goods? Ownership not transferred?

Difference between bailment & licence

Permission to use place? No delivery of goods? Responsible for safety of goods? Goods delivered?

Duties of bailee: Take reasonable care of goods[S.151] Not to make unauthorized use of

goods[S.154] Not to mix goods with his own goods Duty to return goods {A hires a horse

for 4 days, fails to return, horse dies, has to pay price of horse}

Duty to return any accretion to goods {cow + calf}

Duties of bailor: Disclose faults in goods Repay necessary expenses in case of

gratuitous bailment.. feeding expenses for the horse kept in safe custody

Repay extraordinary expenses in case of non-gratuitous bailment.. If horse falls ill during bailment period then giving expenses

Duty to indemnify bailee.. If A gives his neighbor's scooter to B

Duty to receive back the goods

PLEDGE OR PAWN

Bailment of goods as security for payment of debt or performance of a promise :PLEDGE

Bailor: PAWNER Bailee: PAWNEE Example: A borrows Rs.100 from B & keeps his

watch as security : pledge

Difference between bailment & pledge:

PURPOSE: security? ; repairs? RIGHT OF SALE: sale on default? ; no

right to sale? RIGHT OF USING THE GOODS: no

right?

Rights of Pawnee:

Right of retainer{S.173}: right to retain goods until dues paid

Right of transfer for subsequent advances:{S.174}: on lending money to same debtor without further security ;right to retain earlier goods extends

Right to extraordinary expenses {S.175} Right to sue the pawner or sell the goods

on default.

Rights of Pawnor:

Enforcement of pawnee’s duties Defaulting pawnor’s right to redeem