What is contract of bailment and pledge?

Introduction. 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.

What is contract of bailment and pledge?

Introduction. 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.

What is pledge in contract law PDF?

Where the object of the delivery of goods is to provide a security for a loan or for the fulfilment of an obligation, that kind of bailment is pledge. ACCORDING TO SECTION 172 OF INDIAN CONTRACT ACT, 1872. The bailment of goods as security for payment of a debt or performance of a promise is called “pledge”.

What is contract of bailment Slideshare?

Section 148

  • “ 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 accomplished, be returned or otherwise disposed of according to the directions of the person delivering them.

What are the 3 types of bailments?

There are three types of bailments—those that benefit both parties, those that benefit only the bailor, and those that only benefit the bailee. Although the burden depends on the type of bailment, the bailee must always treat the bailor’s property with a reasonable amount of care.

What is bailment PDF?

According to sec 14, a “Bailment’ is the delivery of goods by one person to another for some purpose, with a condition to return the goods when the purpose is over or otherwise disposed off according to the direction of the person delivering them.

What is a contract of bailment?

—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 accomplished, be returned or otherwise disposed of according to the directions of the person delivering them. The person delivering the goods is called the ‘bailor’.

What is bailment contract?

What is contract of bailment?

—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 accomplished, be returned or otherwise disposed of according to the directions of the person delivering them.

What is pledge contract?

—The bailment of goods as security for payment of a debt or performance of a promise is called ‘pledge’. The bailor is in this case called the ‘pawnor’. The bailee is called ‘pawnee’. —The bailment of goods as security for payment of a debt or performance of a promise is called ‘pledge’.

What is contract of pledge?

Contract of pledge is a subset of a contract of bailment. Here, the goods bailed are kept as a security for a debt or a performance of a promise. Pledge is defined in Section 172 of the Indian Contract Act,1872 as “The bailment of goods as security for payment of a debt or performance of a promise is called ‘pledge’.

What is pledge and its types?

A pledge is a bailment that conveys possessory title to property owned by a debtor (the pledgor) to a creditor (the pledgee) to secure repayment for some debt or obligation and to the mutual benefit of both parties. The term is also used to denote the property which constitutes the security.

What are characteristics of pledge?

Characteristics of Pledge Bailment of property for securing the payment of amount lent or performance of a promise. The asset is delivered to the pawnee by the pawnor as collateral, in pursuance of a contract and upon a condition to return on the realisation of debt or performance of the promise.

What bailment means?

What is bailment and pledge?

Bailment and Pledge According to Sec 148 of the Contract Act, 1872, ‘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 accomplished, be returned or otherwise disposed of according to the directions of the person delivering them.

What is a bailment in contract law?

BAILMENT Bailment (A change of possession of goods and not the change of ownership): A bailment is the delivery of goods by one person to another for some purpose under a contract that they (goods) shall [when the purpose is accomplished] be returned, or otherwise disposed of according to the directions of the person delivering them.

What are the essentials of bailment?

Essentials of Bailment: 1) Transfer of Possession (Delivery of goods): The delivery to the bailee may be made by doing anything which has the effect of putting the goods in the possession of the intended bailee or of any person authorized to hold them on his behalf.

What are the rights of bailor and pledgee?

The  The pledgee has right to bailee may either retain sale on default after the goods or the bailor giving notice thereof to for non-payment of his the Pledger. dues Distinction between Bailment & Pledge 9.