1. 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

2. Examples:
 Hiring a bicycle
 Giving cloth to a tailor
 Delivering watch for repair

3. 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

4. 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

5. Difference between sale & bailment
 Ownership transferred?
 Buyer under no obligation to return
goods?
 Ownership not transferred?

6. Difference between bailment &
licence
 Permission to use place?
 No delivery of goods?
 Responsible for safety of goods?
 Goods delivered?

7. 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}

8. 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

9. 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

10. Difference between bailment &
pledge:
 PURPOSE: security? ; repairs?
 RIGHT OF SALE: sale on default? ; no
right to sale?
 RIGHT OF USING THE GOODS: no
right?

11. 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.

12. Rights of Pawnor:
 Enforcement of pawnee’s duties
 Defaulting pawnor’s right to redeem