GROUP MEMBERS

Name Roll No.

Sheheryar Naseer (Leader)

MCE13307

Amina Zahid MCE13324

Ahmad Masood MCE13327

Javeria Mughal MCE13325

Hassan Tariq MCE13341

BAILMENT & PLEDGE

BAILMENT

Sec 148 of Indian Contract Act, 1872 provides

“Bailment is the delivery of goods by one person to

another for some purpose, upon a contract that they shall,

when the purpose accomplished, be return or otherwise

disposed of according to the directions of the person

delivering them.”

Examples

• Hiring a bicycle• Delivering watch for repair• Giving cloth to a tailor

Bailee: who takes

Bailment: transactions

Bailor: who gives

REQUISITES OF BAILMENT

Following are the requisites of bailment•Contract• Delivery of goods• For some specific purpose• For some specific period of time• Ownership not transfer• Return of specific goods

CLASSIFICATION OF BAILMENT

• On the basis of benefits

1 Exclusive for the benefit of bailor(leaving goods in safe custody without paying)

2 Exclusive for the benefit of bailee(a loan of some article like a pen )

3 Exclusive for the benefit of both(contracts for hiring, repair etc)

CLASSIFICATION OF BAILMENT

• On the basis of reward

1 Gratuitous bailment(Goods are delivered by bailor to bailee without any reward i.e lending a book to friend for reading)

2 Non-Gratuitous bailment(Where bailor & bailee is entitled to reward for bailment i.e a car let out for hire )

Duties of bailor

Duties of bailor are as under:

1-Duty to disclose faults

2-Duty to repay necessary expenses

3-Duty to indemnify the bailee

4-Liability on early breach of bailment

Duties of bailee

Duties of bailee are as under:

1-Duty to take reasonable care

2-Duty not to make unauthorized use

3-Duty to return goods

4-Duty to return increase

Rights of bailor

Rights of bailor are as under:

1-Right to claim damages

2-Right to Demand Return of Goods

3-Right to Claim Increase

4-Right to Terminate Bailment

Rights of bailee

Rights of bailee are as under:

1-Right to claim damages

2-Right to Recover Expenses

3-Right to Deliver Goods

4-Right to Sue

TERMINATION OF BAILMENT

A contract of bailment terminates under the following circumstances:

1-Expiry of time

2-Accomplished of purpose

3-Unauthorized use

4-Death of bailor or bailee

PLEDGE OR PAWN

Definition (Sec 172) “The bailment of goods as security for payment of a debt or performance of promise is called pledge.”

1-Pawner2-Pawnee

ExampleA borrows Rs.100 from B & keeps his watch as security

ESSENTIALS OF PLEDGE

The essentials of a pledge are as under:

1-Movable property

2-Limited Interest

3-Transfer of possession

4-No transfer of ownership

Rights of pawnee

Rights of pawnee are as under:

1-Right of retainer

2-Right of retainer for other debts

3-Right to extraordinary expenses

4-Right against true owner, when the pawnor’s title is defective

Rights of pawnor

Rights of pawnor are as under:

1-Right to get back goods

2-Right to redeem debt

3-Right to claim damages

4-Right to claim increase

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