1. BAILMENT
Sec

2. Definition : Sec.148
“Bailment is the delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them”

3. Essential features of Bailment:
Delivery of goods
Contract
Return of goods in specie

4. Classification of Bailment
Bailment on the basis of benefits:
Bailment for the benefit of Bailor only
Bailment for the benefit of Bailee only
Bailment for the mutual benefit of both Bailor & Bailee

5. Bailment on the basis of rewards:
Non – Gratuitous bailment
Gratuitous bailment

6. Rights of Bailor: Right of termination
Right to demand restoration of goods lent gratuitously
Compensation from a wrong doer
Right to get an increase or profit from goods bailed
Right to sue the bailee for the enforcement of the duties imposed upon a bailee

7. Duties of Bailor : Duty to disclose faults in goods bailed (Sec.150)
Liability for breach of warranty as to title (Sec.164)
To bear expenses in case of gratuitous bailment (Sec.158)
In case of non-gratuitous bailment
Duty to indemnify the bailee for loss
Duty to receive back the goods

8. Rights of Bailee: Bailee can sue bailor for:
Claiming compensation for damage resulting from non disclosure of faults in the goods
For breach of warranty as to title & the damage resulting there from &
For extraordinary expenses

9. LIEN-(Sec ):
“Lien is the right of one person to retain that which is in his possession, belonging to another, until some debt or claim is paid”
Bailees particular Lien :Sec.170
Bailees general Lien :Sec.171
Right against wrongful deprivation or injury to goods: Sec

10. Duties of the Bailee : To take care of the goods bailed-Sec.151
Not to make unauthorized use of goods-Sec.154
Not to mix Bailors goods with his own-Sec
To return the goods bailed-Sec
To return any accretion to the goods bailed-Sec.163

11. Termination of Bailment :
On the expiry of the stipulated period
On the accomplishment of the specified purpose
By bailees act inconsistent with conditions-Sec.153
Termination of Gratuitous bailment-Sec.159
Section 162

12. Finder of lost Goods :
Finding is not keeping. A finder of lost goods is treated as the bailee of the goods found as such and is charged with the responsibilities of a bailee, besides the responsibility of exercising reasonable efforts in finding the real owner.

13. Rights :
Right to retain the goods-Sec.168
Right to sell-Sec.169

14. PLEDGE OR PRAWN (SEC.172)
The bailment of goods as security for payment of a debt or performance of a promise is called pledge.1

15. PARTIES:
Pawnor or Pledger:
Pawnee or Pledgee

16. Distinction between Pledge and Bailment:
Pledge is bailment of goods for a specific purpose where as Bailment is for a purpose of any kind
Pawnee cannot use the goods pledged where as bailee can use the goods as per terms of bailment