Bailment – A contract of bailment is one in which a specific property, and the rights to it, of one person is transferred to another for a specific period. The ownership of such property or goods remains with the person owning the property, but the right of possession is transferred to the other person.
Pledge – The bailment of goods as security for payment of a debt or performance of a promise is called pledge’. The bailor is, in this case, called the ‘pawnor’ or ‘pledger’ and the bailee is called the ‘pawnee’ or ‘pledgee’.
Difference Between Bailment And Pledge
A contract of pledge is a type of a bail contract. Both arise from an agreement between the parties to the contract and, after the object of the contract and the time period have been met, the goods handed over under the contract have to be returned. But, in spite of these similarities, there are important differences between the two, which are listed hereunder:
|1||Object||The goods are generally delivered for care-taking or maintenance,or for a specific usage.||The goods are delivered to the pawnee as a security for the payment of a debt or the performance of a promise.|
|2||Right To Use||There is no restriction on the bailee from using the goods.||The pawnee does not have a right to use the goods.|
|3||Consideration||The bailee can get only particular or general lien on the goods in return for his lawful demands.||The pawnee has the right to sell the goods in case of non-payment of a debt.|
|4||Scope||Pledge is not included in bailment.||Bailment is included in a pledge.|
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