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Bailment and Pledge

Nov 19, 2014

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adohadwala

AILMENTAILMENT AND PLEDSEAND PLEDSE PRESENTED Y: PRESENTED Y:AT!F !RSHAD (3713) AT!F !RSHAD (3713)SYED SA]]AD (3128) SYED SA]]AD (3128)HASSAN AHNED (8S26) HASSAN AHNED (8S26)!NRAN AL! (4208) !NRAN AL! (4208)AILMENT AILMENTAILMENT AILMENTBailment is derived from a French wordBailment is derived from a French word baillter" which means to deliver or anybaillter" which means to deliver or any kind of handing over. !n legal sensekind of handing over. !n legal sense bailment is change of possession. Bailmentbailment is change of possession. Bailment is onlyis only change in possession of good change in possession of goodand does not account change inand does not account change in ownership. ownership.According toAccording to ontract Act 1872 hapter 3 ontract Act 1872 hapter 3section 148 section 148 Bailment is the delivery of goodsBailment is the delivery of goods by one person to another for some purpose,by one person to another for some purpose, upon a contract that they shall when theupon a contract that they shall when the purpose is accomplished, be returned orpurpose is accomplished, be returned or otherwise disposed of according to the directionsotherwise disposed of according to the directions of the person delivering them". The personof the person delivering them". The person delivering the goods is called delivering the goods is called BA!LOR BA!LOR" and" and whom they are delivered is called whom they are delivered is called BA!LEE BA!LEE""AILMENT AILMENTEXAMPLES EXAMPLES A lends a book to B to be returned afterA lends a book to B to be returned after the examination. There is a contract ofthe examination. There is a contract of bailment between A S B bailment between A S B A places his damaged car in possession ofA places his damaged car in possession of a repairer R. A is bailor and R is bailee ina repairer R. A is bailor and R is bailee in this case and there is a contract ofthis case and there is a contract of bailment between A S R bailment between A S RREQUISITES OF AILMENT REQUISITES OF AILMENT ONTRAT ONTRATDEL!vERY OF POSSESS!ON DEL!vERY OF POSSESS!ONDEL!vERY FOR SONE SPE!F! PURPOSE DEL!vERY FOR SONE SPE!F! PURPOSERETURN OR D!SPOSAL OF SPE!F!RETURN OR D!SPOSAL OF SPE!F! COODS COODSONTRAT ONTRATBailment is a special type of contract Bailment is a special type of contractBailment is usually created by an agreementBailment is usually created by an agreement between bailor S bailee. between bailor S bailee. The agreement may be expressed or implied The agreement may be expressed or implied !n certain exceptional cases bailment is!n certain exceptional cases bailment is implied by law. implied by law. All the essential of a valid contract areAll the essential of a valid contract are applied. applied.DELIVERY OF POSSESSION DELIVERY OF POSSESSION There must be transfer of possession ofThere must be transfer of possession of goods from bailer to bailee. goods from bailer to bailee.Possession means control over goods and anPossession means control over goods and an intention to exclude other. intention to exclude other. Delivery of possession should be of movableDelivery of possession should be of movable property other than money and actionableproperty other than money and actionable claims claims Delivery of possession may be actual orDelivery of possession may be actual or constructive. constructive.DELIVERY FOR SOME PURPOSE DELIVERY FOR SOME PURPOSE Delivery of goods should be for someDelivery of goods should be for some specific purpose, task or performance. specific purpose, task or performance. !f the goods are delivered by mistake it!f the goods are delivered by mistake it should not be considered as Bailment. should not be considered as Bailment.RETURN OF SPEIFI SOODS RETURN OF SPEIFI SOODS The goods shall be returned to the bailer asThe goods shall be returned to the bailer as soon the purpose is achieved. soon the purpose is achieved. !f in agreement disposal of goods is decided so!f in agreement disposal of goods is decided so they must be disposed of immediately afterthey must be disposed of immediately after completion of purpose according to thecompletion of purpose according to the directions of bailer directions of bailer There is no bailment if goods are not returnedThere is no bailment if goods are not returned or disposed or disposed There will be bailment even if the goods bailedThere will be bailment even if the goods bailed are in meantime altered are in meantime alteredLASSIFIATION OF AILMENT LASSIFIATION OF AILMENTBailment can be classified according toBailment can be classified according to two types two types According to benefit derived fromAccording to benefit derived from bailment bailment According to the involvement ofAccording to the involvement of consideration considerationAORDINS TO ENEFIT AORDINS TO ENEFIT For the exclusive benefit of bailerFor the exclusive benefit of bailer Example: Example: Delivery of some valuables to aDelivery of some valuables to a neighbor for safe custody without charges neighbor for safe custody without charges For the exclusive benefit of bailee For the exclusive benefit of baileeExample: Example: Lending of bicycle to a friend forLending of bicycle to a friend for his use without charges his use without chargesAORDINS TO ENEFITAORDINS TO ENEFIT (contd) (contd) For the mutual benefit of bailer andFor the mutual benefit of bailer and bailee baileeExample: Example:iving a watch for repair iving a watch for repairAORDINS TO INVOLVEMENTAORDINS TO INVOLVEMENT OF ONSIDERATION OF ONSIDERATION!n a contract of payment consideration is!n a contract of payment consideration is generally in the form of money paymentgenerally in the form of money payment by bailor or bailee by bailor or bailee Cratuitous Bailment Cratuitous Bailment Non Cratuitous Bailment Non Cratuitous Bailment0rofuifous 8oiImenf 0rofuifous 8oiImenf!t is a bailment where no consideration is!t is a bailment where no consideration is passed between bailor and bailee. passed between bailor and bailee.Example: Example: A lends a book to his friend B. A lends a book to his friend B.Non Srutuitous uiIment Non Srutuitous uiIment!t is bailment where consideration is!t is bailment where consideration is passed between bailor and bailee. passed between bailor and bailee.Example: Example: A hires a bicycle from B A hires a bicycle from BDUTIES OF AILOR DUTIES OF AILORTo disclose known fault To disclose known fault!t is the first and foremost duty of bailor to!t is the first and foremost duty of bailor to disclose known faults. !f he doe not do so he isdisclose known faults. !f he doe not do so he is responsible for any damage caused to baileeresponsible for any damage caused to bailee from such fault (Sec 1S0,para 1) from such fault (Sec 1S0,para 1)Example: Example: A lends a horse to B which he knows toA lends a horse to B which he knows to be vicious and does not disclose it. The horsebe vicious and does not disclose it. The horse runs away B is thrown and injured. A isruns away B is thrown and injured. A is responsible to B for damage sustained. responsible to B for damage sustained.DUTIES OF AILOR (contd) DUTIES OF AILOR (contd)To bear extraordinary expense of bailment To bear extraordinary expense of bailmentThe bailee is responsible to bear ordinaryThe bailee is responsible to bear ordinary expenses of bailment but for extraordinaryexpenses of bailment but for extraordinary expenses bailor is responsible. expenses bailor is responsible.Example: Example: A lends his horse to B. The feedingA lends his horse to B. The feeding charges are to be paid by B. !f horse meets ancharges are to be paid by B. !f horse meets an accident. A will have to repay medical expensesaccident. A will have to repay medical expenses to B. to B.To indemnify bailee for lossTo indemnify bailee for loss A gratuitous bailment can be terminated by theA gratuitous bailment can be terminated by the bailor at any time even the bailment was for specificbailor at any time even the bailment was for specific time. !n such case the loss to bailee should nottime. !n such case the loss to bailee should not exceed the benefit he has derived from bailment. !fexceed the benefit he has derived from bailment. !f loss exceeds benefit then bailor have to indemnifyloss exceeds benefit then bailor have to indemnify bailee. bailee.Example: Example: A lends an old bicycle to B for three monthsA lends an old bicycle to B for three months gratuitously. B incurs Rs 120 on its repair. A ask forgratuitously. B incurs Rs 120 on its repair. A ask for return of bicycle after one month. A has toreturn of bicycle after one month. A has to compensate B for expense incurred by B in excesscompensate B for expense incurred by B in excess of benefit derived by him. of benefit derived by him.DUTIES OF AILOR (contd) DUTIES OF AILOR (contd)DUTIES OF AILOR (contd) DUTIES OF AILOR (contd) To receive back the goods To receive back the goods!t is the duty of bailor to receive back the!t is the duty of bailor to receive back the goods when the bailee returns them aftergoods when the bailee returns them after the expiry of the term of the bailment. the expiry of the term of the bailment.RISHTS OF AILOR RISHTS OF AILOREnforcement of Rights Enforcement of RightsThe bailor can enforce by suit all the liabilities orThe bailor can enforce by suit all the liabilities or duties of the bailee as his rights duties of the bailee as his rightsAvoidance of contract (Sec 1S3) Avoidance of contract (Sec 1S3)The bailor can terminate the bailment, if theThe bailor can terminate the bailment, if the bailee does with regard to the goods bailed anybailee does with regard to the goods bailed any act which is inconsistent with the terms ofact which is inconsistent with the terms of bailment. bailment.RISHTS OF AILOR (contd) RISHTS OF AILOR (contd)Return of goods lent gratuitously (SecReturn of goods lent gratuitously (Sec 1S3) 1S3)when the goods are lent gratuitously the bailorwhe

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