BUSINESS LAW- CONTRACT OF BAILMENT AND PLEDGE

TRINITY INSTITUTE OF PROFESSIONAL STUDIES

Sector – 9, Dwarka Institutional Area, New Delhi-75Affiliated Institution of G.G.S.IP.U, Delhi

B.COM(H)BUSINESS LAW

888108

BY: MS. NAMRATA YADAV

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

CONTRACT OF

BAILMENT AND PLEDGE

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

CONTRACT OF BAILMENT Acc to Sec 148 of the Contract Act : “A bailment is the delivery of goods by one person to

another 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.”

Parties To Bailment

BAILOR

BAILEE

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

bailment

Essential features:(1) It is delivery of movable goods by one person to another.(2) The goods are delivered for some purpose.(3) The goods are delivered subject to the condition that when

the purpose is accomplished the goods are to be returned in their original form or disposed off according to the directions of the bailor.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Kinds of bailment

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

PLEDGE

• Acc to Sec. 172 of the Contract Act: “the bailment of goods is called ‘pledge’.”

• The bailor in this case is called the ‘pawnor’.• The bailee is called the ‘pawnee’.• For example; A borrows Rs 100 from B and keep his watch

as security for payment of the debt . The bailment is called a pledge.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Contract of agency

AGENT: According to Section 182 of the Contract Act “An ‘agent’ is a person employed to do any act for another or to represent another in dealings with third persons.”

PRINCIPAL: The person for whom such act is done ,or who is so represented ,is called the ‘principal’.

AGENCY: The contract between an agent and principal is called ‘agency’.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

MODES OF CREATION OF AGENCY

Modes of creation of agency

Express agreement Implied agreement Ratification

By Estoppel By Holding Out By Necessity

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Scope and extent of agent’s authority

(i) Actual Authority: Actual authority is created by agreement between principal and the agent.

(ii) Apparent or Ostensible Authority: Sec 188 provides that an agent having an authority to do an act has authority to do every lawful thing which is necessary in order to do such act is called apparent authority.

(iii) Authority in Emergency: Sec 189 provides that an agent has authority, in an emergency, to do all such acts for the purpose of protecting his principal from loss as would be done by a person of ordinary prudence, in his own case, under similar circumstances .

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Duties of an agent

To conduct the business of agency according to the principal’s direction.

The agent should conduct the business with the skill and diligence.

To render proper accounts. In case of difficulty, to communicate with the principal. Not to make any secret profits. Not to deal on his own account.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Rights of an agent

Rights of an Agent

Right to remuneration Right of retainer Right of lien Right of

indemnification Right to compensation