CHIPPY.R.SMGT1005411

BAILMENT AND PLEDGE

Introduction

Contracts of bailment and pledge are a special class of contracts. These are dealt with in chapter ІX (Secs. 148to181) of the Indian Contract Act 1872.

BailmentSec.148 defines ‘bailment’ as the

delivery of goods by one person to another for some purpose ,up on a contract ,that they shall ,when the purpose is accomplished ,be returned or otherwise disposed of according to the direction of the person delivering them.

The person delivering the goods is called the ‘bailor’ and the person to whom they are

delivered is called the ‘bailee’. Eg: A delivers a piece of cloth to B ,a tailor ,to

be stitched in to a suit. there is a contract of bailment between A and B.

Requisites of bailmentContractDelivery of possessionFor some purposeReturn of specific goods

PledgeThe bailment of goods and security for payment of a debt of performance of a promise is called ‘pledge’

The bailor in this case called the ‘pledger’or ‘pawnor’and the bailee is called ‘pledge’or ‘pownee’.

Duties of bailorTo disclose known faultsTo bear extraordinary expenses of bailmentTo indemnify bailee for loss in case

premature termination of gratuitous bailmentTo receive back the goodsTo indemnify the bailee

Duties of baileeTo take reasonable care of the goods bailedNot to make any unauthorised use of goodsNot to mix the goods bailed with his own

goodsTo return the goods

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