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Law group 2 final
1. CONTRACT
OF
BAILMENT
AND
PLEDGE
Presented by
1. Kirti Dhanawade - 17041220004
2. Komal Gupta - 17041220007
3. Mitali Sawant - 17041220014
4. Nikita Prasad - 17041220010
5. Nitendra Parab - 1704122000921-11-2020CONTRACT OF BAILMENT AND PLEDGE 1
2. CONCEPT AND ESSENTIAL FEATURES OF BAILMENT
Concept (Section 148)
The delivery of goods by one to another person
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.”
The person delivering the goods is called the
‘Bailor’, and the person to whom goods are
delivered is called the ‘Bailee’
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3. CONCEPT AND ESSENTIAL FEATURES OF BAILMENT
Essential Features of Bailment
Contract between the parties
Delivery of goods for a purpose
Delivery of goods for possession
Return or disposal of goods
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4. KINDS OF BAILMENT
Based on Benefits
Bailment for the exclusive benefit of the bailor
Bailment for the exclusive benefit of the bailee
Bailment for mutual benefit
Based on Rewards
Gratuitous bailment
Non-gratuitous bailment
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5. BAILORS AND BAILEES
Bailors
Owner
Delivers the goods
E.g. Customer
Bailees
Possessor
Receiver of the goods
E.g. Bank
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6. DUTIES OF BAILOR AND BAILEE
Duties of Bailor
Duty to Disclose fault in the goods bailed
Repayment of Necessary Expenses
To indemnify the bailee for the loss
Responsibility for any loss
Duty to receive back the goods
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7. DUTIES OF BAILOR AND BAILEE
Duties of Bailee
Take reasonable care of goods
Not to make unauthorized use of goods
Not to mix goods with his own goods
Duty to return goods
Duty to return increase or profit accrued
Not to set up an adverse title
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8. RIGHTS OF BAILORS AND BAILEES
Bailors
Enforcement of Rights
Avoidance of Contract (Termination - 153)
Return of Goods (Section – 159)
Compensation from Wrongdoer (Section – 180)
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9. RIGHTS OF BAILORS AND BAILEES
Bailees
Deliver Back the Goods
Claim Damages
Rights to recover charges
Rights to lien
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10. MEANING AND TYPES OF LIEN
Meaning
Lien means right to "retain"
the claim is paid of
satisfied. If possession in
lost, then right of lien is
also lost
Types of Lien
Particular Lien
General Lien
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11. TERMINATION OF LIEN
Specific Purpose
Limited Period
Death of the Bailor
Surrender of the Bailor
Fulfilment of debt
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12. TERMINATION OF CONTRACT OF BAILMENT
Bailee
Expiry of Time
Fulfilment of Purpose
Destruction of Subject Matter
Unauthorized Use of Goods
Death of any Party
Termination by the Bailor
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13. PLEDGE AND ITS ESSENTIAL ELEMENTS
Essential elements of Pledge or Pawn
Delivery of Goods
Security of payment for Debt
Movable property
Pledge
A pledge is only a special kind of bailment.
Where the object of delivery of goods is to
provide a security for a loan or a fulfillment of
an obligation, that kind of bailment is pledge.
The bailor in this case is a “Pawnor”. The Bailee
is called a “Pawnee”.
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14. COMPARISON OF BAILMENT AND PLEDGE
Meaning
Purpose
Section of the Act
Parties to Contract
Presence of consideration
Right to sell the goods
Use of goods
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15. RIGHT OF PAWNOR AND PAWNEE
Right of Pawnor
Pawnee has a right to retain the goods pledged
until payment of debt, interest and any other
expense incurred for maintenance of such goods.
He has a right to sue for the sale of goods
pledged and the payment of money due to him.
Pawnee has a right to seek reimbursement of
extraordinary expenses incurred.
Right of Redemption (right to regain
ownership), A pawnor has right of redemption
after depositing the dues.
If Pawnee makes unauthorized sale the Pawnor
has the right to file a suit against the “Pawnee”.
The Pawnor can enforce the Pawnee to do
proper care and maintain the pledged goods.
Right of Pawnee
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16. PLEDGE OF NON-OWNER OF GOODS
Ordinarily only a person who is the real owner of the goods can make a valid pledge, but in the
following cases pledge made by non-owners will also be valid.
Pledge by a mercantile agent- Where a mercantile agent is, with the consent of the owner, a
possession of goods or the documents of title to goods, any pledge made by him.
Shall be as valid as if he were expressly authorized by the owner of the goods to make the same.
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