bailment & pledge 14
TRANSCRIPT
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