BBS 3rd year business law important Question | Unit 3 (Contract of Bailment and Pledge)

 

👉🏻CONTRACT OF BAILMENT AND PLEDGE

BAILMENT

Bailment and pledges are a special class of contract where some goods or cattle are delivered for some specified purpose or as security for the performance of a specific obligation. A bailment is a delivery of goods or movable property on the condition that the receiver shall ultimately return back them to the person from whom he may receive them.

👉🏻ESSENTIALS OF BAILMENT

1. Contract between Bailor and Bailee
2. Delivery of possession
3. Goods
4. For a purpose
5. To be returned

👉🏻TYPES OF BAILMENT

1. On the basis of benefit derived by the parties 1 a. Bailment for the exclusive benefit of the bailor. b. Bailment for the exclusive benefit of the bailee. c. Bailment for the mutual benefit of the bailor and bailee.
2. On the basis of charge fee or remuneration a. Gratuitous bailment b. Non-gratuitous bailment

👉🏻RIGHTS AND DUTIES OF BAILOR AND BAILEE

Rights of Bailee

1. The right to enforce the bailor's duty is his right.
2. Right to delivery of goods to one of the several joint bailors
3. Right to delivery of goods to bailor without title
4. Right of lien/ Bailee's lien

Duties of Bailee

1. To take care of the goods bailed
2. Duty to pay compensation
3. Duty not to make any unauthorized use of goods
4. Duty not to mix the goods bailed with his own goods.
5. Duty not to set up an adverse title
6. Duty to return the goods bailed.
7. Duty to return any accretion to the goods

Rights of Bailor

1. Right to enforce the bailee’s duty as his right.
2. Right to terminate the contract.
3. Right to return the goods lent gratuitously.
4. Right to sue for damages against wrongdoer.
5. Right to recover compensation for loss or destruction of the goods bailed or wrong delivery.

Duties of Bailor

1. Duty to disclose known defects in the goods bailed
2. Duty to bear extraordinary expenses of bailment
3. Duty to indemnity bailee
4. Duty to compensate Bailee for loss caused by premature termination
5. Duty to respect the bailee's lien
6. Duty to receive back goods when returned by Belle

👉🏻FINDER OF LOST GOODS

Where a person finds the lost goods of another and keeps it in his own charge, his position is compared with the position of a bailee in a bailment contract.

a. Right of finder of lost goods

1. Right to be indemnified.
2. Right of lien
3. Right to sue for reward.
4. Right of sale the found goods

b. Obligations of finder of lost goods

1. Duty to take reasonable care of the goods
2. Duty not to use the goods for his own purpose
3. Duty not to mix the goods found with his own goods
4. Duty to take reasonable steps to find out the true own.

👉🏻TERMINATION OF BAILMENT

1. On the expiry of the time
2. On the completion of the purpose
3. On unauthorized use of goods
4. On the destruction of the subject matter
5. On gratuitous bailment
6. On death of the bailor or bailee

👉🏻PLEDGE

Pledgethe is also called Pawn. This is a kind of bailment where a thing is delivered as security for the repayment of a debt. The bailment of goods as security for the payment of debt or performance of a duty is called a pledge.

👉🏻ESSENTIAL OF PLEDGE

1. It is a delivery of goods/ valuables/ documents of ide.
2. The delivery is made by the pledger/ pawnor to the pledgee/ pawnee.
3. There is a contract.
4. Delivery is made as security of debt or performance of a duty.
5. The pledge pawnee must return back the articles to the pledger/ pawnor after the payment of debt or performance of the promise.
6. In case of default of the pawnor, the pawnee can sell the goods.
7. The pledge pawnee cannot use the goods.

👉🏻RIGHTS AND DUTIES OF PAWNOR AND PAWNEE

Rights of Pawnor

1. Right to receive back goods.
2. Right to recover compensation.
3. Right to redeem the debt
4. Right to ask for the preservation and maintenance of the goods.
5. Right of an ordinary debtor