Difference between bailment and pledge pdfBailment and Pledge Agreement • March 28th, 2021
Bailment and Pledge are two special contracts that are often confused. Every pledge is a bailment but every bailment is not pledge[1]. Bailment means a delivery of goods from one person to another for a special purpose. Whereas Pledge means delivery of goods as security for the payment of debt or performance of a promise. Therefore, Bailment & Pledge are two different contracts. Pledge is a special kind of bailment. Bailment A bailment is a special contract defined under section 148 of the Indian Contract Act, 1872. It is derived from a French word i.e. “bailer” which means “to deliver”[2]. The etymological meaning of bailment is “handing over”or “change of possession of goods”. By bailment, we mean delivery of goods from one person to another for a special purpose on the contract that they shall reimburse the goods on the fulfilment of the purpose or dispose of them as per the direction of the bailor. The person who delivers the goods is known as bailor. And the person to whom the goo
Bailment and pledge pdfBailment and Pledge Agreement • January 19th, 2021
Bail and bail are two special contracts that are often confused. Every promise is bail, but every bail is not bail. Bail means shipping goods from one person to another for special purpose. While collateral means the supply of goods as collateral to pay off the debt or fulfill the promise. Thus, bailment and bail are two different contracts. Bail is a special kind of bail. Bail is a special contract defined under section 148 of the Indian Contracts Act of 1872. It is derived from the French word i.e. bailer which means to deliver. The etymological value of bail is the transfer or change of ownership of goods. By bail, we mean the delivery of goods from one person to another with a special purpose under the contract stating that they must reimburse the goods when the purpose is met or disposed of on the instructions of the surety. The person who delivers the goods is known as bailor. And the man who's given the goods is known as Bailey. And the property on bail is known as bailed proper
TEXTBailment and Pledge Agreement • June 2nd, 2023
A contract, in general, is an agreement which is enforceable by law. Such enforceability is possible only if that agreement is formed after fulfilling general conditions such as offer and acceptance, age of majority, sound mind, free consent and lawful consideration and object. On the other hand, there are certain contracts, which are specific in nature due to their purpose and scope such as contract of indemnity, guarantee, bailment, pledge, agency etc. Apart from basic conditions, these specific contracts are formed after fulfilling various additional conditions. For example, in case of bailment, there must also be delivery of goods for some purpose, which is to be returned or otherwise disposed of after accomplishment of such purpose. Similarly, goods are delivered as security for payment of a loan in case of pledge. The Indian Contract Act, 1872 has recognized these specific contracts of bailment and pledge under the provisions contained under Sections 148-171 and Sections 172-179
