Law of Bailment & Pledge

OUTLINES

Law of BailmentEssential characteristicsKinds of BailmentRights, Duties & liabilities of Bailor & BaileePledge, Essential & Rights, Duties & liabilitiesLaw of AgencyClassification of Agency Rights, Duties & liabilities of AgentTermination of Agency

LAW OF BAILMENT

• “A bailment is delivery of the 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 off according to the directions of person delivering them.”

Example • A gives piece of cloth to B to stitched a suit. This is bailment.

A is Bailor (person who delivers the goods) B is Bailee (person to whom goods are delivered) Transaction: Bailment

BAILMENT

• Essential Characteristics :

1.Contract

2.Delivery of goods and change of possession

3.For specific purpose

4.Movable goods

5.Return of specific goods

BAILMENT

• Kinds of Bailments:

1.Gratuitous bailment

2.Bailment for reward or remuneration

3.Pawn or pledge

BAILMENT

Bailor

Rights

Termination Returns of goodsClaim compensation Enforcement of rights

Duties & liabilities

Put bailee into possessionDisclose faults in goodsBear risk for lossBear necessary expensesTake back goods

BAILMENT

Bailee

Rights

Particular lienKnow faults in goodsClaim necessary expensesIndemnity

Duties & liabilities

Take care of goodsUnauthorized use of goods bailedReturns of goodsPay damages

Lien

• Lien is a right of a person to retain that which is in his possession and which belongs to another, until the demands of the persons in possession are satisfied.

• Kinds of lien:

1. General lien

2. Particular or specific lien

Pledge

• The bailment of goods as security for payment of a debt or performance of a promise is called “Pledge”.

Bailor is called pawnorBailee is called pawnee

• E.g.: A borrows Rs. 4,000 against the security of his jewellery. The bailment of jewellery is a pledge.

Pledge

• Essentials:

1. Goods must be delivered as security

2. There must be actual or constructive delivery of goods

3. Only movable goods

4. Transfer of possession is essential

Pledge

Pawner

Rights, Duties & liabilities

MaintenanceReceive back the goodsRepay loan

Pawnee

Rights, Duties & liabilities

Receive paymentRecover extra expenses Owners default

Law of Agency

• What is Agent, Principal?

• “An agent is a person employed to do an act for another or to represent another in dealing with third persons.”

• Who can be appoint as agent?

Law of Agency

• How Agency constituted

1. Agent by agreement

2. Agent by necessity

3. Agency by estoppel or by holding out

4. Agency by operation of law

5. Agency by rectification

Law of Agency

• Classification of agent

1. Specific or particular agent

2. General agent

3. Mercantile agent

4. Sub agent

5. Co-agent

6. Substitute agent

Law of Agency

Agent

Rights

ClaimReceive remunerationParticular lien

Duties

Follow instructionDuty to act with skillRender accountCommunicate with principalDo not delegate his authority

Liability

Foreign principalPrincipal cannot be suedMisrepresentation or fraud

Law of Agency

Termination of Agency

By act of the parties

By agreement By revocation, renouncingBy completion

By operation of law

By deathBy insolvency of principal

Thank you

Babita BurdakHiranya PandyaKetan ShahPulok SahaSachin Katudia