Bailment

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Presentation Transcript

Bailment & pledge : 

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: : 

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

Kinds of bailment : 

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: : 

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 : 

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

Difference between bailment & licence : 

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

Duties of bailee: : 

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: : 

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 : 

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: : 

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: : 

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: : 

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