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Law of Bailment and Pledge

Bailment involves the delivery of goods from one person to another for a specific purpose, with an agreement that the goods will be returned after the purpose is fulfilled. Pledge is a type of bailment where goods are delivered as security for a debt or promise. The document discusses the key elements of a valid bailment contract - agreement between the parties, delivery of goods, a specified purpose for the delivery, and return of the goods after the purpose is complete.

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19 views15 pages

Law of Bailment and Pledge

Bailment involves the delivery of goods from one person to another for a specific purpose, with an agreement that the goods will be returned after the purpose is fulfilled. Pledge is a type of bailment where goods are delivered as security for a debt or promise. The document discusses the key elements of a valid bailment contract - agreement between the parties, delivery of goods, a specified purpose for the delivery, and return of the goods after the purpose is complete.

Uploaded by

pawanithape1
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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C

Bailment and Pledge are two special contracts that are often
confused. ... Bailment means a delivery of goods from one
person to another for a special purpose. Whereas Pledge means
delivery of goods as security for the payment of debt or
performance of a promise.
LAW OF BAILMENT AND PLEDGE
LAW OF BAILMENT AND PLEDGE
LAW OF BAILMENT
• In law, the word bailment is used in its technical sense
which means the change in the possession of goods i.e.
one person transfers the goods to another person. On the
other hand, Pledge is a kind of bailment in which one
person bails his goods to another person as security
against loans. Both bailment and pledge are examples of
specific contracts. The contract of bailment can be
classified into three categories:
1.For the exclusive benefit of the bailor.
2.For the exclusive benefit of the bailee.
3.For the mutual benefit of both.
LAW OF BAILMENT
LAW OF BAILMENT
• The term ‘bailment’ is derived from the French word ‘bailer’ which
means to deliver a thing under a contract. The delivery of goods by
one person to another person for a specific purpose with a condition to
return the goods when the purpose is over or otherwise disposed off
according to the direction of the person.
• Receiver of Goods is Called Bailee
LAW OF BAILMENT AND PLEDGE
• Kinds of Bailment
• 1] Gratuitous Bailment
• Under this Bailment, anyone, either the bailor or the bailee gets the sole
benefit.
• For sole benefit of Bailor
• In this concept, the bailor transfer the goods to the bailee for some
specific purpose which result in the benefit of bailor only i.e. bailee has no
expectation in return.
• Illustration
• A and B are the neighbours. One fine day A gave his jewellery to B to keep
it safe because A is going out of town for some days. B return A’s jewellery
to A when he came back. Here there is no benefit of B in keeping those
goods i.e. B does not get anything in return.
LAW OF BAILMENT AND PLEDGE
• 2] For sole benefit of Bailee
• In this concept, the bailor transfers the goods to the
bailee for some specific purpose which result in the
benefit of bailee only i.e. bailor does not get anything in
return. The bailor only gets his goods back after
completion of the purpose.
• Illustration
• A gave his Car to B for 3 days , because B wants to go to
his parents home. Here A does not get anything in return
by giving his car to B, but he will get his car back to him
after the fulfilment of the purpose.
LAW OF BAILMENT AND PLEDGE
• 3] Non Gratuitous Bailment
• Under this concept, both the bailor and the bailee get some
rewards in return i.e. mutual benefit of both.
• When bailor transfers his goods to the bailee for some
specific purpose. After the completion of that specific
purpose, the bailee returns the goods back to the bailor and
in return gets the payment for his services.
• Illustration ( example )
• If A gives his car to B for repairing purpose. After the
complete repair, B returns A’s car to him and A will pay B for
his service.
LAW OF BAILMENT AND PLEDGE
• Essentials of Valid Bailment
1.Agreement
2.Delivery of Goods
3.Purpose
4.Return of Goods
LAW OF BAILMENT
• Agreement
• For a valid contract of bailment, both the bailor as well as
bailee have to enter into an agreement that the bailor will
transfer goods to the bailee for a specific purpose and after
the completion of the purpose bailee will return the goods to
the bailor and bailor will pay to the bailee for his services.
• Illustration ( Example )
• If A and B want to enter into the contract of bailment with
the purpose that B will repair A’s car, they have to enter into
an agreement, which includes all the instruction and orders
of A regarding the repairs and usage of his property etc.
LAW OF BAILMENT
• Delivery of Goods
• For a valid bailment, it is necessary that the bailor will transfer i.e. deliver his goods to the
bailee so that bailee can act towards completion of the purpose. The possession should
be voluntary i.e. not by force, coercion, undue influence etc.
• Delivery of possession of goods can be actual or constructive
• Actual delivery means when the bailor transfer the goods to the bailee that transfer should
be in physical nature.
• Illustration
• If A wants B to repair his car, so A has to transfer the physical possession of the car to B,
because without the physical possession B is unable to complete the purpose for which
bailment took place.
• Constructive delivery is the opposite of actual delivery. In constructive delivery, the
document which shows the title of goods gets transferred, due to which indirectly the
possession gets transferred.
• Illustration
• If A has a railways receipt i.e. document of title to goods, transfers
the receipt to B, here B indirectly has the possession of goods, as
LAW OF BAILMENT
• Purpose
• Bailment takes place when the bailor transfers
constructive to the bailee, the main reason why bailor
transfer his goods is the performance of a specific
purpose. And when that purpose gets completed the
bailor return the goods to the bailee.
• Illustration
• If A and B want to enter into the contract of bailment, A
should transfer his goods and provide some purpose to
B, so that B can act to complete that purpose.
LAW OF BAILMENT
• Return of Goods
• The contract of bailment comes to an end when the
bailee after fulfilment of the purpose return the goods
to the bailor or disposed of as per the direction of the
bailor.
• Illustration
• If Ram transfers his gold to Shaam so that Shaam can
make a ring from that gold. Shaam has to return the
gold ring to Ram after the purpose for which they enter
into an agreement gets accomplished.

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