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  • 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 :

Amar bails his buffalo with Akbar for a week. The buffalo gives milk daily. Akbar sold this milk during the period of bailment.

Option: 1

The profit earned by Akbar must be kept by Akbar as he put work in selling so he should reap the benefit

 


Option: 2

It is the discretion of Akbar if he wishes to return the benefit he can


Option: 3

Akbar cannot keep the benefits plus he should also pay compensation to Amar for selling milk of Amar’s buffalo


Option: 4

The profit earned by Akbar during the sale of milk must be returned to Amar while returning the goods.


Answers (1)

best_answer

In the course of bailment, if any profit has arisen from the bailed goods, the same should be transferred to the bailor by the bailee. Hence, option (d) is the correct answer.

 

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Rishi

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