Browse by Stream
QnA
Home
QnA
Go To Your Study Dashboard

Get Answers to all your Questions

header-bg qa
  • Home
  • Law
  • 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 i

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 :

Parth lends a horse to Prajwal for his own riding only. Prajwal allows Aryan, his younger brother to ride the horse. Aryan rides with care, but the horse accidentally falls and is injured.

Option: 1

Prajwal is liable to make compensation

 


Option: 2

Aryan is liable to make compensation


Option: 3

Nobody is liable because the horse accidentally fall


Option: 4

Parth is liable to suffer the expenses as he is the real owner of the horse


Answers (1)

best_answer

Bailee has the responsibility to use the goods only for the authorised purpose under a contract. If it is found that the goods are used for unauthorised purposes, the entire contract can be declared void by the bailor. Under Section 154 of ICA bailee has to make compensation to the bailor for any damage arising to the goods from or during unauthorised use of them.

Posted by

shivangi.bhatnagar

View full answer

Similar Questions

Trending Articles/News

anam-khan

Intend to complete CLAT UG hearing at earliest for results to be declared: Delhi HC
anam-khan

CLAT 2025 LIVE: Delhi High Court reserves UG verdict, PG hearing on April 21

Latest Question