Business law

Presentation
TOPIC;Bailment
and Pledge
 Bailment
• According to section 172;
• The delivery of property into the temporary
custody and control of another for some
purpose.
• Goods should be return after the completion
of purpose.
• Example;
• ‘’x’’ gives her jewelry to ‘’y’’ for safe custody
and after the completion of purpose
‘‘y’’return ‘’x’’ jewelry.
 Parties of bailment;
• Bailor;The person who gives the bailed goods.
• Bailee;The person to whom bailed goods are
given.
 Essentials of bailment;
• There must be contract between parties.
• There must be the physical delivery of goods.
• There must be specific purpose for bailment.
• There must be change of possession, no
change of ownership.
 Kinds of bailment;
• According to benefit;
• For the benefit of bailer and bailee;
• When goods are delivered and it is beneficent
for both bailer and bailee.
• Bank provides locker facility under bailment.
• According to reward;
• Bailment with reward.
• When goods are delievered and bailee gets
reward for it.
• Bank provide locker and deliver charge.
• Bailment without reward;
• When goods re delivered and bailee does not get
any reward.
• ‘’X’’ gives her jewllery to’’ y’’ for safe custody.
 Pledge;
• According to section 172;
• Bailment of goods as the security for the
payment of debt or for fulfillment of
obligations.
• Purpose ;security for loan.
• Example;
• ‘’X’’ borrows Rs 1000 from ‘’y’’ and give his
watch as security for payment of debt.
 parties
• Pledger;The person who gives goods as
security.
• Pledgee;To whom goods are given.
 Bailment/Pledge;
Bailment;
• Goods delivered for use safe
custody .
• Goods can be retained but
can't be sold.
• Goods can be used if in
agreement.
• Goods should be return.
Pledge;
• Goods delivered as security
for payment of debt.
• Goods can be sold to
manage value of debt.
• Goods can not be used.
• Goods should return as the
debt or promise is
performed.