Read the following passage and answer the question.
Bailment and Pledge are two special contracts that are often confused. Every pledge is a bailment but every bailment is not a pledge. Bailment means the delivery of goods from one person to another for a special purpose. Whereas Pledge means delivery of goods as security for the payment of debt or performance of a promise. Therefore, Bailment & Pledge are two different contracts. The pledge is a special kind of bailment.
A bailment is a special contract defined under section 148 of the Indian Contract Act, 1872. It is derived from a French word i.e. “bailer” which means “to deliver”. The etymological meaning of bailment is “handing over” or “change of possession of goods”. By bailment, we mean delivery of goods from one person to another for a special purpose on the contract that they shall reimburse the goods on the fulfillment of the purpose or dispose of them as per the direction of the bailor. The person who delivers the goods is known as the bailor. And the person to whom the goods are given is known as Bailee. And the property bailed is known as Bailed Property.
The pledge is a kind of bailment. The pledge is also known as Pawn. It is defined under section 172 of the Indian Contract Act, 1892. By pledge, we mean bailment of goods as a security for the repayment of debt or loan advanced or performance of an obligation or promise. The person who pledges the goods as security is known as Pledger or Pawnor and the person in whose favour the goods are pledged is known as Pledgee or Pawnee.
Question :
Karan gave his dog to his friend Lovish when he had to go out for work trips. Karan will have to pay the expenses incurred in the dog’s food, shelter, etc. The dog fell ill after playing in the rain and Lovish had to take the dog for medical treatment. Here-
Karan has to pay only ordinary expenses
Karan is only liable to pay what they anticipated in the contractual terms
Karan has to pay extraordinary expenses along with ordinary expenses
Lovish is at fault for letting the dog play in the rain so Karan is not liable to pay extra
The bailor must pay to the bailee all the necessary and extraordinary expenses incurred by the bailee to safeguard the goods bailed. Any extraordinary expense like doctor’s bill, daycare, etc. if it was necessary to keep the dog safe must be paid by the bailor.