Hey,
Bailment refers to hand over or assignment the goods, which involves change in possession but not in the ownership of goods. It is the transfer of goods from one party to another party for some specific purpose. Pledge implies a contract, in which an article is delivered or say deposited with the money lender, as security for repayment of a debt owed by him/her or performance of promise.
Difference between pledge and bailment:
- Meaning: In bailment, the goods are temporarily handed over from one person to another person for a specific purpose while in pledge the goods are delivered to act as security against the debt owed by one person to another person.
- Provisions: Bailment has been defined under section 148 of the Indian Contract Act, 1872. Pledge comes under section 172 of the Indian Contract Act. 1872.
- Parties: In bailment the person who delivers the goods is known as the Bailor while the person to whom the goods are delivered is known as Bailee. In pledge The person who delivers the goods is known as Pawnor while the person to whom the goods are delivered is known as Pawnee.
- Consideration: May or not be present in bailment, but pledge always has consideration.
- Use of Goods: Under bailment, the party whom goods are being delivered can use the goods only, for the specified purpose. In pledge, the party whom goods are being delivered has no right to use the goods.
- Right to sell the goods: In bailment, the party whom goods are being delivered has no right to sell the goods. In pledge, the party whom goods are being delivered as security has the right to sell the goods if the party who delivers the goods fails to pay the debt.
Case for bailment: Hyman & Wife V/S Nye & Sons (1881) 6 QBD 685.
Case for pledge: Lallan Prasad v Rahmat Ali AIR 1967 SC 1322
Hope this clarifies your doubts!
Regards
Palak Singh
