Bailment and Pledge

Topics: Possession, Bailment, Contract Pages: 8 (1959 words) Published: July 8, 2010

1. Right to deliver goods to one incase of several joint owners
If the goods are bailed by multiple owners and the bailment contract does not specify specifically the owner to whom the goods must be delivered, in such case the bailee can deliver the goods to any owner without the consent of all.

2. Right not to be held responsible on redelivery of goods to the Bailor without title
If the bailor does not have a title to the goods and the bailee delivers the good to the good to the bailor in good faith then the bailee is not held responsible to the owner in such delivery.

3. Right to stop delivery of goods to bailor
If there is a conflict between the bailor and the other person ( third party) claiming the delivery of goods then the bailor has the right to stop the delivery of goods through court.

4. Right to file suit against the wrongdoers.
If the third party deprives the bailee of the possession , use of the goods or does any harm to the goods , the bailee is entitled to remedies and compensation by filing a case against the third party.

5. Right of “Particular Lien”
The bailee has the right to retain goods and not deliver the goods until and unless all the lawful charges are paid by the bailor.


Lien refers to the right of bailee to retain/avoid delivery of goods to bailor, owner of the goods, until and unless, the claims such as debts are settled. This proposes two things

A) The bailee is in righteous possession of goods or securities in the ordinary course of business.

B) The bailor is obliged to satisfy some legal claims such as debt to the bailee

Right of lien may be conferred through statue, contract or by a general course of dealings between two parties. There are two types of lien. One is “general” and the other is “specific”

A) General lien
It refers to the right to retain all goods or property to the bailee/owner until and unless all the legal claims are satisfied by the bailee. For example - X delivers his watch for repairs to Y. Y can retain the watch until and unless X does not pay fully for repair charges.

B) Specific lien
It refers to the right to retain only those goods upon which the bailee has a claim. Foe example - X delivers a cloth to the tailor for stitching a coat. Tailor promises to deliver the cloth to X and also give one month credit. In such a case, tailor cannot retain the goods until the tailor is paid.


The finder of the goods is subjected to same responsibilities as that of bailee. However, the ownership rests on the bailee. The finder is just in possession of the goods


1. Right of lien
If the finder has voluntarily incurred expenses related with finding the owner and preserving the goods, the finder has the right to retain the goods until and unless the compensation is provided by the bailee. However, if the owner of the goods has offered a specific reward with regards to lost goods the the finder has right to sue for such rewards and retain the goods until and unless the reward is provided to the finder.

2. Right of sale
If a good that is commonly subject of sale is lost, and the owner cannot be found out with a reasonable diligence or if owner refuses to pay all the lawful charges to the finders, the finder may see the goods if

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