Difference Between Bailment and Pledge - Legal Katta
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Difference Between Bailment and Pledge

difference between bailment and pledge,
Difference Between Bailment and Pledge

Difference Between Bailment and Pledge

The difference Between Bailment and Pledge has been given as below;

Bailment Pledge

Bailment has been defined under section 148 of the Indian Contract Act, 1872.

Pledge has been defined under section 172 of the Indian Contract Act, 1872.

Bailment is one of the types of contract.

Pledge is a subset of the bailment.

Bailment is defined as 'A bailment is a contract in which one person transfers goods to another person with a contract that he will return the goods after completion of the purpose for which contract takes place.'

Pledge is defined as 'the pawnor transfer/bailed his goods to the Pawnee as security against the amount he takes from the Pawnee.'

The person who delivers the bailed goods is referred to as a bailor and the person who receives the goods is referred to as a bailee.

The person who provides pledged goods to the other person is called a pawnor and the person who receives the sold goods is called a pawnee.

In the contract of bailment, the consideration is not mandatory.

In the contract of pledge, consideration is mandatory.

In bailment, the bailee is authorized to sell the bailed goods.

In pledge, the pawnee has the right to sell the pledged goods in the event of default.

The bailee has the right to the authorized users of the bailed goods.

The pawnee has not any right to use the pledged goods.

Contract of bailment is nothing but the term used to describe the transfer of goods from one person to another for specific reasons.

A contract of the pledge is the act of transferring goods from one person to another as security for debt repayment.

The bailment can be for a variety of purposes from reward to gratuity.

The pledge is a type of bailment used to secure the debt or fulfil the promise.

The bailee receives merely a lien on the bailed goods.

The pawnee receives a lien on the pledged goods and in addition, the pawnee obtains a retainer and a particular interest over the promised goods.

The bailee is not accountable for the bailed goods’ loss, destruction or degradation if the bailee uses them with reasonable care.

The pawnee is solely liable for the pledged goods’ maintenance

Illustration: A and B are the neighbours. One fine day A gave his jewellery to B to keep it safe because A is going out of town for some days. B return A’s jewellery to A when he came back. Here there is no benefit for B in keeping those goods i.e. B does not get anything in return. 

Illustration: A lend Rs. 1,000/- and gave his bicycle as security for repayment in the condition that if A repays the amount B will return the bicycle.

Akash is a YouTuber by Hobbie and Blogger by Passion. He Loves to spread information that helps others to live in this legal world.

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