Bailment & Pledge

BAILMENT

Sec.148 defines Bailment as 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

BAILMENT
Person delivering the goods is called the Bailor Person to whom they are delivered is called the Bailee

A delivers a piece of cloth to B, a tailor, to be stitched into a suit X sells certain goods to Y who leaves them in the possession of X

Requisites of Bailment
Contract Delivery of possession For some purpose Return of specific goods

Classification of Bailment

May be classified according to the benefit

For the exclusive benefit of the bailor For the exclusive benefit of the bailee For the mutual benefit of the bailor & bailee

May also be classified into

Gratuitous bailment Non-gratuitous bailment or bailment for reward

Duties of Bailor
To disclose known faults To bear extraordinary expenses of bailment To indemnify bailee for loss in case of premature termination of gratuitous bailment To receive back the goods To indemnify the bailee

Duties of Bailee
To take reasonable care of the goods bailed Not to make any unauthorized use of goods Not to mix the goods bailed with his own goods Not to set up an adverse title To return any accretion to the goods To return the goods

Rights of Bailor
Enforcement of rights Avoidance of contract Return of goods lent gratuitously Compensation from a wrong-doer

Rights of Bailee
Delivery of goods to one of several joint bailors of goods Delivery of goods to bailor without title Right to apply to Court to stop delivery Right of action against trespassers Bailees lien

Law relating to Lien

Lien the right of a person to retain possession of some goods belonging to another until some debt or claim of the person in possession is satisfied A lien may be

Particular Lien General Lien

Particular Lien

It is one which is available to the bailee against only those goods in respect of which he has rendered some service involving the exercise of labour or skill

General Lien
It is a right to retain all the goods or any property of another until all the claims of the holder are satisfied. This is a right to retain the property of another for a general balance of account

Finder of Goods

Rights of finder of goods

Right of lien Right to sue for reward Right of sale

Termination of Bailment
On the expiry of the period On the achievement of the object Inconsistent use of goods Destruction of subject-matter Gratuitous bailment Death of the bailor or bailee

PLEDGE
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 pledger or pawnor and the bailee is called the pledgee or pawnee [Sec.172] A pledge is a bailment for security

Rights of Pawnee
Right of retainer Right of retainer for subsequent advance Right to extraordinary expenses Right against true owner, when the pawnors title is defective Pawnees rights where pawnor makes default

Suit against the pawnor Right of sale

Rights of Pawnor
Right to get back goods Right to redeem debt Preservation and maintenance of the goods

Pledge by Non-Owners
The general rule is that it is the owner who can ordinarily create a valid pledge But in the following cases pledge even by a non-owner is valid

Pledge by mercantile agent Pledge by seller or buyer in possession after sale Pledge where pawnor has limited interest Pledge by co-owner in possession Pledge by person in possession under a voidable contract