Contract of Bailment and Pledge- The Contract of Bailment and Contract of Pledge are legal agreements defined under the Indian Contract Act, 1872. They involve the transfer of possession of goods but differ in purpose, obligations, and rights. Here’s a comparison:
Contract of Bailment
- Definition:
A bailment is the delivery of goods by one person (bailor) to another (bailee) for a specific purpose under a contract, with the understanding that the goods will be returned after the purpose is fulfilled or disposed of according to the bailor’s directions.
(Section 148, Indian Contract Act, 1872) - Parties Involved:
- Bailor: The person delivering the goods.
- Bailee: The person receiving the goods.
- Purpose:
Goods are delivered for safekeeping, repair, transportation, or other purposes without transferring ownership. - Ownership:
Ownership remains with the bailor. - Consideration:
Can be gratuitous (without compensation) or for a fee. - Duties of Bailee:
- Take reasonable care of the goods.
- Return the goods after the purpose is achieved.
- Example:
Leaving a car at a valet parking service.
Contract of Pledge
- Definition:
A pledge is a specific type of bailment where goods are delivered by one party (pledgor) to another (pledgee) as security for a loan or debt, with the agreement that the goods will be returned once the debt is repaid.
(Section 172, Indian Contract Act, 1872) - Parties Involved:
- Pledgor: The person delivering the goods.
- Pledgee: The person to whom the goods are delivered as security.
- Purpose:
Goods are delivered to serve as collateral for a loan or obligation. - Ownership:
Ownership remains with the pledgor, but the pledgee has a right to retain the goods until the debt is repaid. - Consideration:
It is always for a loan or debt. - Duties of Pledgee:
- Retain the goods with reasonable care.
- Return the goods upon repayment of the debt.
- Right to sell the goods if the pledgor defaults.
- Example:
Pledging gold jewelry to a bank as security for a loan.
Key Differences
| Aspect | Bailment | Pledge |
|---|---|---|
| Purpose | General purposes like safekeeping or repair. | Security for a loan or debt. |
| Parties | Bailor and Bailee | Pledgor and Pledgee |
| Ownership | Remains with bailor | Remains with pledgor |
| Right to Sell | Bailee has no right to sell goods. | Pledgee can sell goods if pledgor defaults. |
| Consideration | May or may not involve consideration. | Always involves a loan or debt. |
Both contracts emphasize trust and responsibility, with bailment being more general and pledge specifically tied to loans or credit.
What is Required Contract of Bailment and Pledge
The requirements for a valid Contract of Bailment and Pledge are derived from the Indian Contract Act, 1872. Both require specific conditions to ensure legal validity. Below are the essential elements for each:
Requirements for a Valid Contract of Bailment
- Delivery of Goods:
There must be a transfer of possession of goods by the bailor to the bailee. This can be:- Actual delivery (physical handover of goods).
- Constructive delivery (symbolic handover, e.g., handing over keys to a warehouse).
- Purpose:
Goods must be delivered for a specific purpose (e.g., safekeeping, repair, transport). - Return or Disposal:
The bailee must return the goods after the purpose is fulfilled or dispose of them as directed by the bailor. - Consent:
Both parties must mutually agree to the contract. Consent can be express or implied. - Goods Only:
Bailment applies only to movable goods, not immovable property or money (unless the money is handed over in a specific form, like a sealed bag). - Lawful Purpose:
The purpose of the bailment must be legal. An unlawful purpose invalidates the contract. - Consideration (Optional):
Bailment can be:- Gratuitous: No consideration involved.
- For hire: Involves payment or compensation.
- Duties of the Parties:
- Bailor: Disclose known defects in the goods and compensate the bailee for extraordinary expenses.
- Bailee: Take reasonable care of the goods and return them in the agreed condition.
Requirements for a Valid Contract of Pledge
- Delivery of Goods:
Similar to bailment, a pledge involves delivery of movable goods (as security) by the pledgor to the pledgee. Delivery can be actual or constructive. - Security for Debt:
The goods must be delivered as security for a loan or debt. This is the primary purpose of a pledge. - Movable Property Only:
Pledge can only involve movable goods (e.g., gold, stocks, documents of title). - Ownership:
The ownership of the goods remains with the pledgor, but possession is temporarily transferred to the pledgee. - Right to Redemption:
The pledgor has the right to redeem the pledged goods by repaying the debt or fulfilling the obligation. - Right to Sell:
The pledgee has the right to sell the goods if the pledgor defaults, but only after giving reasonable notice. - Lawful Object:
The purpose of the pledge must be legal. A pledge made for an unlawful purpose is invalid. - Mutual Consent:
Both parties must consent to the pledge, whether express or implied. - Consideration:
A pledge always involves consideration in the form of a loan, credit, or debt.
Key Distinction in Requirements
While both contracts involve delivery of goods and lawful purpose, a bailment focuses on the temporary transfer of goods for general purposes, whereas a pledge is specifically for securing a debt.
Who is Required Contract of Bailment and Pledge
The parties required in a Contract of Bailment and Pledge are as follows:
In a Contract of Bailment
- Bailor:
- The person who delivers the goods.
- They retain ownership of the goods but transfer possession to the bailee.
- They are required to:
- Disclose any known defects in the goods.
- Compensate the bailee for extraordinary expenses incurred in maintaining the goods.
- Bailee:
- The person to whom the goods are delivered for a specific purpose.
- They are obligated to:
- Take reasonable care of the goods.
- Return the goods once the purpose is fulfilled.
- Follow the bailor’s directions regarding the goods.
In a Contract of Pledge
- Pledgor (Pawnor):
- The person who pledges their goods as security for a loan or debt.
- They retain ownership of the goods while transferring possession to the pledgee.
- They have the right to:
- Redeem the goods upon repayment of the loan or fulfillment of the obligation.
- Be notified in case of a sale by the pledgee (if there is a default).
- Pledgee (Pawnee):
- The person to whom the goods are pledged as security.
- They hold possession of the goods until the debt is repaid.
- They have the right to:
- Retain the goods until the debt is repaid.
- Sell the goods after providing reasonable notice to the pledgor in case of a default.
Summary of Roles:
- In Bailment: The roles are Bailor (owner) and Bailee (caretaker).
- In Pledge: The roles are Pledgor (debtor) and Pledgee (creditor).
Both contracts require mutual consent between the parties involved.
When is Required Contract of Bailment and Pledge
The Contract of Bailment and Contract of Pledge are required in specific situations where the possession of goods is temporarily transferred for specific purposes. Here’s when each is needed:
When is a Contract of Bailment Required?
A Contract of Bailment is required when one party (the bailor) needs to deliver goods to another party (the bailee) for a specific purpose under the condition that the goods will be returned or otherwise disposed of after the purpose is fulfilled. Common scenarios include:
- Safekeeping:
- Leaving your valuable goods in a bank locker or storage facility.
- Delivering jewelry or cash to a friend for safekeeping.
- Repair or Maintenance:
- Delivering a car to a garage for repairs.
- Giving clothes to a dry cleaner.
- Transportation of Goods:
- Handing over goods to a courier service or transporter.
- Loan of Goods for Use:
- Lending goods (e.g., equipment, tools) to another party for temporary use.
- Leasing of Movable Goods:
- Renting cars, furniture, or machinery under a bailment agreement.
When is a Contract of Pledge Required?
A Contract of Pledge is required when one party (the pledgor) delivers goods as collateral to another party (the pledgee) to secure a loan or fulfill an obligation. Scenarios where a pledge is needed include:
- Securing a Loan:
- Pledging gold jewelry to a bank to secure a loan.
- Pledging shares or stocks as collateral for a financial advance.
- Trade Financing:
- Pledging goods or merchandise as security for a loan to fund business operations.
- Warehouse Receipts:
- Using documents of title (like warehouse receipts) to pledge stored goods as security for credit.
- Borrowing Against Assets:
- Farmers pledging crops or agricultural produce for a loan.
- Small businesses pledging inventory for working capital loans.
Key Difference in Timing:
- A Contract of Bailment is required for temporary transfer of goods for purposes like safekeeping, transportation, or repair without the intent of creating a security interest.
- A Contract of Pledge is required when goods are delivered to act as security for repayment of a loan or performance of an obligation.
In essence, bailment focuses on the service or safekeeping, while pledge centers on securing credit or loans.
Where is Required Contract of Bailment and Pledge
The Contract of Bailment and Contract of Pledge are required in various legal, financial, and commercial settings. Their applicability depends on the purpose, the nature of the transaction, and the parties involved. Here’s an overview of where these contracts are typically required:
Where is a Contract of Bailment Required?
A Contract of Bailment is required in the following contexts:
- Commercial Settings:
- Warehousing: Storage of goods in warehouses or cold storage facilities.
- Transportation: Transfer of goods to carriers, such as logistics companies, for shipping.
- Consumer Services:
- Valet Parking: Handing over a vehicle to a valet service for parking.
- Repair Services: Delivering goods (e.g., appliances, cars, or clothing) to repair or service centers.
- Laundry and Dry Cleaning: Giving clothes to laundry or dry-cleaning services.
- Banking and Finance:
- Safe Deposit Lockers: Renting lockers in a bank to store valuables like jewelry or documents.
- Deposit of Goods: Depositing cash, jewelry, or documents with trusted individuals or institutions.
- Leasing or Renting:
- Renting cars, equipment, or other movable goods under temporary use agreements.
- Legal and Personal Transactions:
- Lending goods (e.g., tools, equipment) to another person for temporary use.
- Temporary custody of goods during court proceedings (e.g., evidence storage).
Where is a Contract of Pledge Required?
A Contract of Pledge is required in the following contexts:
- Banking and Finance:
- Loan Against Gold: Banks or financial institutions accept gold jewelry or bullion as collateral for loans.
- Loan Against Shares or Securities: Pledging stocks, bonds, or other financial instruments to secure credit.
- Loan Against Fixed Deposits: Pledging deposit receipts to secure short-term credit.
- Business and Trade:
- Trade Credit: Businesses pledge inventory, goods, or merchandise as security for working capital or loans.
- Agriculture Financing: Farmers pledge agricultural produce (e.g., crops) to secure loans for farming activities.
- Legal Proceedings:
- Pledging goods to secure bail or other legal obligations (in certain jurisdictions).
- Commodity and Warehouse Transactions:
- Pledge of Warehouse Receipts: Using documents of title (like warehouse receipts) to pledge goods stored in warehouses.
- Pawnshops:
- Individuals pledge valuable items (e.g., gold, jewelry, or electronic gadgets) to pawnshops in exchange for short-term loans.
Key Locations for These Contracts:
- Contracts of Bailment are common in service industries, transportation, banking, repair workshops, and warehousing facilities.
- Contracts of Pledge are commonly seen in banks, financial institutions, agricultural markets, warehouses, and pawnshops.
These contracts are typically governed by the Indian Contract Act, 1872 (in India) or equivalent contract laws in other countries.
How is Required Contract of Bailment and Pledge
The Contract of Bailment and Contract of Pledge are legally structured agreements, and their formation requires adherence to specific principles and procedures under the law. Here’s how these contracts are created and executed:
How is a Contract of Bailment Required?
A Contract of Bailment is created when the following steps and conditions are met:
- Offer and Acceptance:
- The bailor offers to deliver goods to the bailee for a specific purpose.
- The bailee accepts the goods for that purpose.
- Delivery of Goods:
- There must be a transfer of possession of the goods from the bailor to the bailee.
- Delivery can be actual (physical transfer) or constructive (symbolic transfer, such as handing over keys).
- Purpose:
- The contract must specify the purpose for which the goods are delivered (e.g., safekeeping, repair, transportation).
- Return of Goods:
- The bailee must agree to return the goods after the purpose is fulfilled or dispose of them as per the bailor’s instructions.
- Mutual Consent:
- Both parties must consent to the terms of the bailment. This consent can be expressed (written or spoken) or implied (from conduct or circumstances).
- Lawful Object:
- The purpose of the bailment must be legal. If the purpose is illegal, the contract is void.
- Consideration (Optional):
- Bailment can be gratuitous (without compensation) or for hire (with compensation).
- Compliance with Legal Provisions:
- The contract must comply with relevant provisions of the Indian Contract Act, 1872 (Section 148 to 171) or similar laws in other jurisdictions.
How is a Contract of Pledge Required?
A Contract of Pledge is formed when the following steps and conditions are satisfied:
- Delivery of Goods as Security:
- The pledgor delivers goods to the pledgee as security for a loan or debt.
- Delivery can be actual or constructive.
- Existence of Debt or Obligation:
- A pledge is always created to secure the repayment of an existing debt or the performance of an obligation.
- Right to Redeem:
- The pledgor retains ownership of the goods and has the right to redeem them by repaying the debt or fulfilling the obligation.
- Right to Retain:
- The pledgee has the right to retain the goods until the debt is repaid.
- Right to Sell in Case of Default:
- If the pledgor defaults, the pledgee has the right to sell the pledged goods after providing reasonable notice to the pledgor.
- Lawful Object:
- The pledge must be for a lawful purpose. Any pledge for an illegal purpose is invalid.
- Mutual Consent:
- Both the pledgor and pledgee must agree to the terms of the pledge.
- Consideration (Mandatory):
- A pledge always involves consideration, typically in the form of a loan, debt, or obligation.
- Compliance with Legal Provisions:
- The contract must adhere to the Indian Contract Act, 1872 (Section 172 to 181) or equivalent laws in other countries.
Practical Execution of These Contracts
- Written Agreement:
- While not always mandatory, a written contract helps clearly define the terms and protect the rights of both parties.
- For example:
- A warehouse receipt or a bank pledge agreement.
- Supporting Documentation:
- Delivery of goods may be accompanied by receipts, proof of possession, or security certificates (in the case of pledges).
- Legal Formalities (if required):
- In some cases (e.g., pledge of shares or stocks), compliance with regulatory requirements or registration may be necessary.
Summary
- A Contract of Bailment is created when goods are delivered temporarily for a specific purpose without transferring ownership.
- A Contract of Pledge is formed when goods are delivered as security for a loan or obligation, with ownership retained by the pledgor.
Both require mutual consent, lawful purpose, and adherence to the relevant legal provisions.
Case Study on Contract of Bailment and Pledge
Here are case studies to illustrate the concepts of Contract of Bailment and Contract of Pledge:
Case Study: Contract of Bailment
Case Title: Bailment for Repair – Coggs v. Bernard (1703)
Facts:
Mr. Bernard agreed to move casks of brandy belonging to Mr. Coggs to another location. During the transportation, Mr. Bernard failed to exercise due care, and the casks were damaged, resulting in the loss of brandy.
Issue:
Was Mr. Bernard liable for the damage caused to the goods during transportation?
Decision:
The court held that a Contract of Bailment was established. Even though the bailment was gratuitous (no consideration was paid), Mr. Bernard, as the bailee, was obligated to take reasonable care of the goods. His failure to do so made him liable for the loss.
Principle Established:
- In a contract of bailment, the bailee must exercise reasonable care to prevent damage to the goods, regardless of whether the bailment is for consideration or gratuitous.
Case Study: Contract of Pledge
Case Title: Lallan Prasad v. Rahmat Ali (1967)
Facts:
Rahmat Ali borrowed money from Lallan Prasad and pledged his sewing machines as security for the loan. Rahmat failed to repay the loan, and Lallan sued him to recover the money and retain the pledged goods.
Issue:
Did Lallan Prasad have the right to retain the sewing machines as security for the unpaid loan?
Decision:
The Supreme Court of India held that the pledge was valid under Section 172 of the Indian Contract Act, 1872. Lallan Prasad, as the pledgee, had the right to retain the sewing machines until the loan was repaid. However, since he did not exercise his right to sell the goods in case of default, he could not claim additional compensation for their storage.
Principle Established:
- A pledgee has the right to retain the pledged goods until the debt is repaid. If the pledgor defaults, the pledgee can sell the goods after providing reasonable notice.
Comparison of Lessons Learned
| Aspect | Contract of Bailment (Coggs v. Bernard) | Contract of Pledge (Lallan Prasad v. Rahmat Ali) |
|---|---|---|
| Nature of Contract | Transfer of goods for a specific purpose. | Transfer of goods as security for a debt. |
| Parties | Bailor and Bailee | Pledgor and Pledgee |
| Duties | Bailee must take reasonable care. | Pledgee has the right to retain and sell goods. |
| Remedy for Breach | Bailor can claim damages for negligence. | Pledgee can retain or sell goods for repayment. |
Summary of Case Studies:
- In Bailment: The bailee is responsible for taking reasonable care of the goods and returning them in good condition. Negligence leads to liability.
- In Pledge: The pledgee has the right to retain or sell pledged goods to recover the debt but must follow legal procedures.
These cases demonstrate the importance of fulfilling duties and adhering to legal provisions in both contracts.
White paper on Contract of Bailment and Pledge
Abstract
This white paper explores the legal framework, principles, and practical applications of Contracts of Bailment and Pledge, as defined under the Indian Contract Act, 1872. The paper outlines the fundamental concepts, the rights and duties of the involved parties, and their implications in commercial and personal transactions. It also discusses case laws that have shaped the understanding of these contracts, providing insights into their relevance in modern legal and business environments.
Introduction
Contracts are the backbone of commercial and personal transactions. Two specific types of contracts, bailment and pledge, are crucial in situations involving the transfer of goods, either for safekeeping, use, or as collateral for loans. Both contracts are regulated by Sections 148–171 (Bailment) and Sections 172–181 (Pledge) of the Indian Contract Act, 1872.
This paper aims to clarify the meaning, requirements, and key distinctions between bailment and pledge, emphasizing their practical importance.
Definition and Nature
Contract of Bailment
Under Section 148 of the Indian Contract Act, bailment is defined as the delivery of goods by one person (the bailor) to another (the bailee) for a specific purpose, under the agreement that the goods will be returned or disposed of as per the bailor’s directions after the purpose is fulfilled.
- Example: Giving clothes to a dry cleaner.
Contract of Pledge
Section 172 defines a pledge as a type of bailment where goods are delivered as security for a loan or performance of a promise. The ownership of the goods remains with the pledgor, but the possession is transferred to the pledgee.
- Example: Pledging gold jewelry to a bank for a loan.
Essential Elements
For Bailment:
- Delivery of Goods: Actual or constructive delivery of movable goods.
- Purpose: A specific reason for the delivery (e.g., safekeeping, repair).
- Return or Disposal: The bailee must return or dispose of the goods after the purpose is fulfilled.
- Mutual Consent: Express or implied agreement between the parties.
For Pledge:
- Delivery of Goods: The goods must be delivered as security for a loan.
- Debt or Obligation: The pledge arises from an existing debt or obligation.
- Right to Redeem: The pledgor retains ownership and has the right to redeem the goods by repaying the loan.
- Right to Sell: The pledgee can sell the goods in case of default, after giving reasonable notice.
Rights and Duties of Parties
In Bailment:
- Bailor’s Rights:
- Right to claim damages for negligence.
- Right to demand return of goods.
- Bailee’s Rights:
- Right to claim compensation for expenses incurred.
- Right to retain goods until dues are paid (lien).
- Bailee’s Duties:
- Duty to take reasonable care of goods.
- Duty to return goods upon fulfillment of purpose.
In Pledge:
- Pledgor’s Rights:
- Right to redeem goods after repaying the loan.
- Right to receive notice before sale of pledged goods.
- Pledgee’s Rights:
- Right to retain goods until the debt is paid.
- Right to sell goods in case of default (with notice).
- Pledgee’s Duties:
- Duty to take reasonable care of goods.
- Duty to return goods upon repayment.
Distinctions Between Bailment and Pledge
| Aspect | Bailment | Pledge |
|---|---|---|
| Purpose | General purpose (safekeeping, repair, etc.) | Specific purpose (security for a loan/debt). |
| Consideration | May or may not involve consideration. | Always involves consideration (loan or debt). |
| Ownership | Remains with the bailor. | Remains with the pledgor. |
| Right to Sell | Bailee has no right to sell the goods. | Pledgee can sell goods in case of default. |
Practical Applications
Bailment:
- Warehousing and storage agreements.
- Transportation of goods by carriers or logistics companies.
- Lending or renting of movable goods.
Pledge:
- Securing loans against gold, securities, or inventory.
- Financing through pledge of warehouse receipts.
- Agricultural financing where crops are pledged as security.
Case Laws
- Bailment:
- Coggs v. Bernard (1703): Established the duty of reasonable care in bailment contracts.
- Chaudhry v. Prabhakar (1967): Affirmed the liability of the bailee for negligence.
- Pledge:
- Lallan Prasad v. Rahmat Ali (1967): Defined the pledgee’s rights to retain and sell pledged goods.
- Bank of Bihar v. State of Bihar (1971): Reiterated the importance of providing notice before selling pledged goods.
Conclusion
The Contracts of Bailment and Pledge play a pivotal role in both personal and commercial transactions. While bailment ensures the safekeeping or use of goods, a pledge serves as collateral to secure loans. Both contracts are rooted in trust, mutual consent, and legal obligations. Understanding their framework is essential for businesses, lenders, and individuals involved in such transactions.
Recommendations
- Ensure that bailment and pledge agreements are documented in writing to avoid disputes.
- Parties should understand their rights and duties, especially regarding care, return, and legal notices.
- Businesses must comply with the applicable legal framework to uphold the validity of these contracts.
Keywords: Bailment, Pledge, Indian Contract Act, Movable Goods, Collateral, Mutual Consent
Industrial Application of Contract of Bailment and Pledge
Courtesy: Padhaku Log
The Contract of Bailment and Contract of Pledge have significant applications in various industries due to their ability to facilitate the temporary transfer of goods or create a security interest in goods. Below is an exploration of their industrial applications:
Industrial Applications of Bailment
A Contract of Bailment is commonly used in industries where the temporary possession of goods is required for storage, transportation, repair, or other purposes. Here are some key applications:
1. Logistics and Transportation Industry
- Application: Goods are handed over to carriers (e.g., shipping companies, trucking firms) for transportation from one location to another.
- Example: A manufacturer delivers raw materials to a logistics company for transport to a production facility.
2. Warehousing and Storage
- Application: Companies store goods in third-party warehouses or cold storage facilities. The warehouse acts as the bailee.
- Example: Agricultural produce, pharmaceuticals, or perishable items stored in cold storage facilities.
3. Repair and Maintenance Services
- Application: Goods are delivered to repair or maintenance service providers (e.g., electronics, automobiles).
- Example: Delivering a vehicle to an auto-repair shop for maintenance.
4. Rental Services
- Application: Leasing or renting movable goods (e.g., vehicles, machinery, furniture). The owner is the bailor, and the renter is the bailee.
- Example: Renting construction equipment for a project.
5. Banking Industry (Safe Deposit Lockers)
- Application: Banks act as bailees when customers store valuables (e.g., jewelry, documents) in safe deposit lockers.
- Example: A bank providing locker facilities for customers’ valuables.
6. Film and Media Industry
- Application: Equipment like cameras, lighting, and props are often leased for short-term use, involving a contract of bailment.
- Example: Renting high-end cameras for film production.
Industrial Applications of Pledge
A Contract of Pledge is extensively used in industries where goods or assets are pledged as collateral to secure loans or obligations. Here are its key applications:
1. Banking and Financial Institutions
- Application: Borrowers pledge movable assets (e.g., gold, securities, inventory) to secure loans.
- Example: Pledging gold jewelry to a bank to obtain a loan.
2. Agriculture Sector
- Application: Farmers pledge agricultural produce (e.g., crops, grains) or tools as security to obtain credit for farming activities.
- Example: Pledging stored grains in a warehouse to secure working capital.
3. Stock Market and Securities
- Application: Shares, bonds, or other financial securities are pledged to secure loans or as collateral in trading activities.
- Example: Pledging shares to a brokerage firm for margin trading.
4. Trade and Commerce
- Application: Businesses pledge inventory, raw materials, or finished goods as security to obtain trade credit or working capital loans.
- Example: A wholesaler pledges inventory to secure a loan for expansion.
5. Warehousing and Commodity Markets
- Application: Warehouse receipts (documents of title) are used to pledge stored goods for loans or financing.
- Example: Pledging stored wheat in a warehouse using a warehouse receipt as collateral.
6. Pawnshops and Small-Scale Financing
- Application: Individuals pledge personal belongings (e.g., gold, electronics) to pawnshops to obtain small loans.
- Example: Pledging a laptop to secure short-term credit.
7. Shipping and Maritime Industry
- Application: Bills of lading or goods in transit are pledged to secure financing or loans.
- Example: Pledging a shipment of goods as security for trade credit.
Comparison of Applications
| Aspect | Bailment | Pledge |
|---|---|---|
| Purpose | Temporary possession for safekeeping, use, or repair. | Creation of security for loans or obligations. |
| Examples | Warehousing, logistics, repair services. | Banking loans, trade credit, securities financing. |
| Ownership | Remains with the bailor. | Remains with the pledgor. |
| Possession | Transferred to the bailee temporarily. | Transferred to the pledgee as collateral. |
Conclusion
Both contracts play critical roles across industries by enabling transactions based on trust and legal obligations. While bailment facilitates temporary possession for specific purposes like storage, transport, or repair, pledge serves as a cornerstone for financing by leveraging movable assets. Their industrial applications demonstrate their relevance in modern commerce, agriculture, banking, and beyond.
References
- ^ Joseph Story, Story on Bailments, 286.
- ^ Black, Henry C. (1990). Black’s Law Dictionary. St. Paul, Mn.: West Publishing. pp. 1153. ISBN 978-0314151995.
- ^ Jump up to:a b c d e f g
One or more of the preceding sentences incorporates text from a publication now in the public domain: Chisholm, Hugh, ed. (1911). “Pledge“. Encyclopædia Britannica. Vol. 21 (11th ed.). Cambridge University Press. p. 835. - ^ “Security Interests under Pledge Agreements” (PDF). The Yale Law Journal Editorial Board. 51 (3): 431–447. 1942. doi:10.2307/792194. JSTOR 792194 – via Yale Database.
- ^ “Pledge”. LII / Legal Information Institute. Retrieved 2022-03-17.
- “BAILMENT Definition & Legal Meaning”. Black’s Law Dictionary (2nd ed.). Retrieved March 10, 2023.
- ^ Merrill, Thomas W. (2010). Property. Smith, Henry E. New York: Oxford University Press. ISBN 978-0-19-971808-5. OCLC 656424368.
- ^ Jump up to:a b c d e f Gordon, Noah J.; Surette, Eric C. “Bailments”. American Jurisprudence. Vol. 8A (2d ed.).
- ^ Gordon, Noah J.; Surette, Eric C. “Bailments § 5. Transactions constituting bailments”. American Jurisprudence. Vol. 8A (2d ed.).
- ^ U.C.C. §§ 2A-101 to 2A-604. As to the regulation of personal property leases under U.C.C. §§ 2A-101 et seq., see §§ 269 to 343.
- ^ See Mark Singleton Buick, Inc. v. Taylor, 194 Ga. App. 630, 391 S.E.2d 435, 12 U.C.C. Rep. Serv. 2d 84 (1990).
- ^ Contracts (Malay States) Ordinance of 1950, sections 104-105, quoted in Privy Council, Port Swettenham Authority v TW Wu & Co (M) Sdn Bhd, reported 19 June 1978, accessed 21 September 2023
- ^ “Bailment”. uk.practicallaw.thomsonreuters.com. Retrieved 2017-09-18.[failed verification]
- ^ Privy Council, Port Swettenham Authority v TW Wu & Co (M) Sdn Bhd, reported 19 June 1978, accessed 21 September 2023
