Law of Bailment & Pledge - Special Contracts, Business Law Video Lecture

hello friends in this part we shall
discuss about two most special types of
contacts that is contact of bailment and
contact of which we shall discuss about
what is a contact of bailment what are
legal rules related with the contract of
bailment the rights and duties of both
the parties that is Baylor and Bailey
then we shall discuss meaning of the
contact of pledge and then we will wind
up this discussion by understanding the
difference between contract of bailment
and contract of pledge so let's start
with contract of bailment its meaning
and various legal rules related with
contract of bill based section 148 of
the contract Act gives the meaning of
contact of bailment section says that
when a person deliver some goods to
another person for some purposes with
the understanding that goods shall be
either written to all disposed of
according to the instruction of the
person delivering those goods this is
called a contract of bailment so as per
Section 48 a bailment is delivery of
goods by one person to another for some
specific purposes under the contract
that these goods when the purpose is
accomplished shall be written or
otherwise disposed of according to the
directions of the person who is
delivering these goods
this is contract of Bill bit before
analyzing various legal aspects related
with the contact of bailment it would be
useful to have certain examples of this
kind
contract when I send my TV to service
centers was repeating I am entering into
a contract of bailment when somebody is
delivering old jewelry to goldsmith for
polishing purposes this is also a
contract of bailment handing over the
goods to the transporter for
transportation is a very common example
of contact of bailment giving clothes
for dry-cleaning is another example of
contract of bailment hiding of a taxi
for two purposes is also a contact of
bailment in all these cases one party
has delivered goods to another party
with a specific purpose and these goods
are to be returned back with the
pulposus complete this is what makes all
this contact as contact of bailment
and to make our basic ideas complete
about the contact of bailment let us
understand two terminologies related
with this type of contract that is
baylor baylor is the person who is
delivering the goods and another is
Bailey Bailey is the person to whom
goods are being delivered Bayliss and
Bailey these are two parties involved in
a contract of bailment after generating
a basic concept of the contract of
bailment
now let's discuss various legal rules
related with the contact of bailment
mainly what are the duties what are the
rights of both the parties involved in
the contract that is Baylor and Billy
the first rule is given by section 150
and it is regarding duty of the baler
for disclosure of false in goods section
says that the baler is bound to disclose
to the Bailey false in the goods build
however section further clarifies which
kind of false is required to be
disclosed those faults of which baler is
aware and
which either materially interferes with
the use of goods by the belly or which
falls which may expose the belly to some
extraordinary risks this is a duty of
Baylor to disclose all these kind of
falls to the belly
now what will happen if Baylor fails to
make this disclosure section further
says if the Baylor does not make such
disclosure he shall be responsible for
damages which are arising to the belly
directly from such faults so what is
required by the Act is that Baylor
should disclose false in the woods as
should be the responsibility for losses
however he is required to disclose only
those faults which he himself is avail
off he is not responsible for such
losses which were not in his knowledge
however in the case of a bailment for
hire the section puts an extra
responsibility on the baler regarding
disclosure of false section phase if
goods are billed for hire the Beller
shall be responsible for all kinds of
damages in the goods
even if he was not aware about the
existence of such force in the Gucci
belt so in case of a normal bill mate
Beeler is responsible for only such
damages which were in his knowledge at
the time of bill meant but then section
face if the bailment is for hire the
baler is responsible for any type of
fault in the good damages caused to the
belly due to any problem in the goods
even if baylor was not aware about such
faults in the goods bailed
he shall still be responsible in the
case the bailment is more higher
say for example mr. a higher surtax Rica
from be the car brakes wheels and a is
injured do mr. B was not aware about big
problems in the car B shall be still
responsible to a for this injury now
let's see the contact of bailment from
the angle of b-billy the party to whom
goods have been delivered what shall
happen in case the goods build here will
lost destructed or deteriorated what
kind of care a belly is required to take
of the goods build section 150 to
discuss this aspect of the context of
bailment
section says the belly is not
responsible for the loss destruction or
deterioration in the things bailed if
he has taken decade of goods billed to
him as a means of ordinary prudence
shall be taking care of his own good
so if Billy has taken proper care of the
goods then he shall not be responsible
for any loss destruction damage or
deterioration of the things built
however the contract of bailment may
provide otherwise if nothing has been
provided in the contract of bail bit
then this section 52 normal rule shall
be applicable section 153 discusses a
situation when Billy this is something
which is not consistent with the
contract of bailment section says a
contact of bailment is voidable at the
option of baler
if the Bailey does any act with regards
to the goods build which act is in a
consistent with the conditions of the
bailment say for example if the Bailey
puts the goods for some use not
contemplated by the contact the contact
of bailment is voidable at the option of
baylor baylor may if is who decides
cancel this contract for example well
mixer a let's to be for hire a halt
while his own riding be uses this horse
in a hostage a netted option may
terminate the contract of bailment in
this case section 154 tells us about the
liability of the Bailey if he makes any
unauthorized use of the goods built
according to the law if the Bailey makes
any use of the goods build and the fuse
is not according to the conditions of
bailment then the belly shall be liable
to compensate to the baler for any
damages which are arising to the goods
from the unauthorized used or during
this unauthorized use let's clarify this
with an example
mr. lay gives a horse to be for his own
riding now be allowed see to write this
horse though she rides with full care
but still has accidentally fails and
gets injured in this case B is liable to
make compensation to a for whatever
injury which has been done by horse this
was an unauthorized use of horse and a
reading lee Bailey shall be liable under
Section 154
section 158 gives the lool related with
repayment by the baler of necessary
expenses incurred by the belly this rule
is applicable in the case of a gracious
bailment that is where belly is not to
review any remuneration in such case
section fails that when under the
conditions of the bailment the goods are
to be kept or to be carried cause some
work is required to be done upon these
goods and the bailment is gracious the
belly is not to receive any remuneration
for this wealth it is the responsibility
of the baler to repay to the belly
whatever necessary expenses have been
incurred by the belly for the purpose of
filming section 159 talks about light of
baler to demand the goods back even
before completion of time of bailment
this rule is applicable only in case of
a gracious bailment where belly is not
to receive any remuneration section says
that the baler in case of a gracious
been rent has a right to demand the
goods back even before the expiry of
period of bailment the period of
bailment is still there
but in case of a gracious bailment baler
shall always have a right to demand the
goods back at any type from the bay
however
if in this process loss is caused to the
belly the baler is bound to compensate
for this
section 160 of the Act talks about duty
of Bailey regarding return of goods
build on expiration of time or on
accomplishment of purpose for which
goods have been built section says that
it is the duty of the Bailey to return
the goods or to deliver the goods
according to the bailiffs direction the
goods build without demand as soon as
the time for which the bailment has been
made is over or the purpose for which
the goods have been built has been
accomplished the key point here is the
duty of Bailey is to return the goods
without any demand by the baler the
baler is not required to make any demand
this is the duty of the Bailey to
written written the goods as soon as the
time is over or the purpose has been
accomplished without waiting for the
demand from Baylor and then section 161
gives us the provision regarding
responsibilities of the Bailey when he
has not written the goods to the baler
section says if due to the fault of the
belly the goods are not returned back to
the baler all they have not been
delivered as per the instructions of the
bailiffs at the proper time
then the Bailey shall be responsible to
the baler for any loss destruction or
deterioration of the goods from that
time
section 163 of the Act discusses a
situation when there is an increase to
the goods build or Billy has derived a
profit from the goods build section
phase that in this situation the belly
is bound to deliver to the baler
whatever increase or profit which may
have accrued from the goods build of
course parties may have a contracted to
the contrary but if the contact of
bailment is silent on this part then
Bailey shall be responsible to deliver
whatever increase whatever profit which
has been occurred which has been
excluded from the goods which have been
build a very simple example may be
blister a leaves a cow in the custody of
mr. B to be taken care of this is a
contact of bailment then the cow has
calf be is bound to deliver the calf as
well as cow to mr. a Section 164
discusses a situation of Baylor's
responsibility when the baler was not
entitled to either make the bailment or
to review back the goods section
provides that the baler is responsible
to the Bailey for any loss which Billy
may sustain due to the reason that
Baylor was not entitled either to make
the bailment
or to the few back the goods or to give
any directions with respect to the goods
the baler has done any of this thing
without being entitled to do so and
because of this Bailey has suffered any
loss the Bella shall be responsible to
the Bailey to make good these losses
another legal rule related with the
contact of bailment is given by section
166
which talks about responsibility of
Bailey when he returns the goods back to
the Baylor but Baylor has no title to
the goods section says if the Baylor has
no title to the goods but Billy in good
faith delivers them back to the Baylor
the owner of the goods the original
owner cannot have any claim against the
belly the belly shall not be responsible
to the owner in respect of such delivery
the section basically absolves the belly
from the work done in good faith after
discussing various legal rules related
with the contact of bailment analyzing
duties and rights of the Baylor and
Bailey in different situations let's
have some discussion about a particular
situation that has finders of goods if
somebody finds good belonging to others
what is his legal position section 168
discusses the site of finders of goods
the question which this section answers
is that a finder of good has to incur
certain expenditures and has to take
trouble to preserve the goods and to
find out the owner whether he can find a
code case for compensation in this
respective section phase that a finder
of goods has no right to sue the owner
for compensation for trouble taken and
expenses voluntarily incurred by him to
preserve the goods and to find out the
owner so law makes it very clear that
finder of goods cannot take help of code
to take any kind of compensation from
the owner
so if we cannot view how a finders of
good can enforce the compensation for
all the trouble he has taken and
expenditures he has incurred
the section for the thighs and face that
the finders of goods may retain the
goods against the owner until he
receives such compensation so the
situation is this he cannot see you
he cannot file a court case but he can
always retain the goods against the
owners until she receives compensation
for this trouble for his expenditure
incurred section 168 further covers
another situation that is when the owner
has offered a specific reward what shall
be the situation of finders of goods
with respect to this reward section says
that whereas the owner has offered a
specific reward for the return of goods
lost the finder may few for such reward
for this reward he may file a court case
against the owner and until he receives
the reward he may retain the goods with
him so in respect of any specific reward
offered by the owner the finder of goods
may file a court case and may retain the
goods until he receives this reward from
the others section 169 discusses another
situation related with the finders of
good that is when he may sale these
goods section says that when the thing
which is of such a nature that it is
commonly subject of a sale and this
thing has been lost and then the owner
cannot be found cannot be traced with
reasonable amount of effort all he
refuses to pay the lawful charges of the
finder then the finder may fail these
goods in the two
situation one when the thing is in
danger of say getting perished getting
damaged or losing the greater part of
its value or he may fail it when the
lawful charges of the finder in the
respect of things which have been found
amounted to at least two-thirds of its
value
now let's discuss another concept
related with the contact of bailment
that is concept of lien general and
particular lien lien means right to
retain the good section 170 talks about
particular lien of billy section says
that we have the bailey has an accord
ins with the contract of bailment in
accordance with the purpose of the
bailment has rendered any services in
respect of goods bailed then he shall
have a right to retain such good until
he received due remuneration for the
services he has rendered in respect of
these goods so until the bailey has been
paid for he may retain these goods this
was called Bailey's particular lien and
the section 173 for example mr. a has
delivered a rough diamond to mr. B who
is a jeweler this diamond has been
delivered to be cut and polished B has
done it accordingly now B is entitled to
retain the diamond till he is paid for
the services which he has rendered to
mr. a the point which needs to be
considered if the Bailey may retain the
goods only in respect of that contract
for which these goods have been
delivered to him if he has to receive
any other amount from the bailor
he cannot the good which have been
delivered to him under the different
checked off bailment because he only has
a particular lien in the matter as
against the particularly end of a Bailey
Section 171 gives the concept of general
lien of a banker it says that a banker
in the absence of any contract to the
contrary may retain as a security any
good which have been built to them
whether the bailment has been made
against that specific loan or against
any other loan after discussing various
aspects related with the contract of
bailment let's analyze another special
type of contract that is contract of
pledge section 172 defines the contract
of pledge and save that pledge is a
bailment of goods at security of payment
of a date or performance of a promise
say for example a basel rupees 200 from
B and keeps his watch a security for the
payment of date the bailment of watch is
a page so pledge is also a type of
bailment we may call it a special type
of contract of bailment the idea behind
this contract of bailment is to provide
a security for the payment of a date on
performance of a promise in the case of
contact of pledge the bailer of good is
called connell and the belly of the
birds is called pony in case of contact
of bail mate we have discussed the site
of retention of goods so far this a
belly is confronted now section 173
talks about right of the retailer of
goods by a pony in a contract of pledge
section says that the Pawnee may retain
the good
not only for the payments of date or the
performance of the promise but he may
also retain the goods in the respect of
interest on the date as well as in
respect of all necessary expenses
incurred by him in respect of the
position of birds and for the
preservation of goods which have been
pledged to him so in this case only
right of citation of goods is fairly
extended he may retain the good until
that date has been paid for or the
consideration for performance has been
given to him but he may also retain the
good until the interest on the date has
been paid and also any expenses incurred
by him in respect of goods have been
paid by the bailer by the burner however
section 174 of the Act provides a
restriction on the right of retailer of
the pony section says that the pony
shall not have a light in absence of a
contact to that effect to retain the
good placed for any date of promise
other than the date of promise for which
they have been placed through section
basically conveys the message that Pony
can retain the good only in respect of
debtor date or that promise for which
goods have been placed with him he
cannot retain the goods in respect of
other dates other promises after the
right of the retention of good another
right of Pony has been prescribed by
section 175 that is light to recover any
extraordinary expenditures incurred by
the Pony the section says that the pony
is in tight
tell to receive from the bother any
extra ordinary expenses incurred by him
for the preservation of goods placed
with hem what is important to see here
is only any extraordinary expenditure
incurred by pani may be recovered from
the panel expenditures of a routine
nature incurred by the pony for
preservation of goods can not be
recovered what will happen when panel
makes a default in a payment of date
what is the light of Pony in such case
section 176 deals with the situation and
mentions that if the panel makes a
default in payment of date in respect of
which the pledge has been made by the
burner
then the pony shall have to write he may
view the panel and retain the goods
placed as a collateral security pause
alternatively he may sell the goods
placed after giving a reasonable notice
of sale to the panel so these are two
alternative rights available with the
pony he may file a court case and retain
the goods as collateral security or he
may sell the goods which have been
staged to him the only requirement is
this for selling the goods he is
required to give a reasonable notice of
sale to the panel well the goods have
been sold by the pony to recover his
date section further says that if no
fields of such sale are less than the
amount due in respect of the date or in
respect of Thomas the panel shall still
be liable to pay the balance amount and
if these proceeds of sale are great
then the amount which is do the pony
shall pay the surplus to the panel and
finally let's do a comparative analysis
between a contract of pledge and a
contract of bailment we have seen
earlier that a contact of plate is also
a special type of contact of bailment
so what are the differences between
these two types of contracts
you
the purpose of contact of place is to
act as a security in respect of any date
or in respect of any promise to perform
whereas the purpose of contact of
bailment
is something else like repair safe
custody etc in case of pledge the plea G
the pawnee has a right to fail the good
place on default of Bonner in case of
bailment the Bailey does not have any
right to fill the quids in case of
pledge the play G does not have a right
to use the goods the pani cannot use the
goods for his own purposes in case of a
contract of place whereas in case of
contact of bailment the Bailey can use
the goods as per the terms of contract
and this is the end of our discussion
regarding contact of bailment and
contact of plate thank you
you