Professional Documents
Culture Documents
Delivery of Goods:
In bailment, the possession of goods must be delivered by the bailer to the
bailee.
Delivery of Goods for Some Purpose: The delivery of goods must be for
some specific performance.
Return of Specific Goods: Goods are delivered to the bailee with the
condition that the same goods will be returned to the bailer after the
accomplishment of purpose.
Classification of Bailment:
Bailor
Bailee
Right of Termination: Bailer has right to terminate the
contrite of bailment, if the bailee does any inconsistent act
with regards to good
Right to Demand Return of Goods: Any time in case of
gratuitous bailment. The bailer can demand back goods
bailed at any time even if he had lend it for a specific
goods. Period or for a specified purpose.
Particular Lien: It is available to the bailee against such goods in respect of which he
has rendered some servicing involving the excise of labour or skills.
General Lien: It entitles a person to retain the position of goods belonging to another
for general balance of account.
Finder of Goods: A person who comes by an article is not obliged to pick it up, but if he
does so or take charge of it becomes a bailee. Such person is called finder of goods.
Finder of goods is in position of bailee & enjoys all the rights & duties of bailee.
Rights of Finder of Goods:
Right of Lien.
Right of sue of reward. Exp. The finder of goods can sue to real owner for
the reward, if any, has been offered by the owner of goods.
Right to Sale. Exp. The finder of goods generally cannot sell the goods, he
found but in following cases he can do so:
A contract of indemnity is one whereby a person promises
to save the other from loss caused to him by the
conduct of the promisor himself or of any third
person.For example,a shareholder executes an
indemnity bond favouring the company thereby
agreeing to indemnify the company for any loss caused
as a consequence of his own act.
The person who gives the indemnity is called the
'indemnifier' and the person for whose protection it is
given is called the 'indemnity-holder' or 'indemnified'.
A contract of indemnity is restricted to cover the loss
caused by the promisor himself or by a third person.
The loss must be caused by some human agency. Loss
arising from accidents like fire or perils of the sea are
not covered by a contract of indemnity
A contract of ‘Guarantee'
A contract of ‘Guarantee' is a contract, whether
oral or written, to perform the promise, or
discharge the liability, of a third person in case
of his default.
A contract of guarantee is a conditional promise by
the surety that if the principal debtor defaults he
shall be liable to the creditor.
A contract of guarantee involves three persons,viz.
a person who gives the guarantee is called the
'surety'; the person in respect of whose default
the guarantee is given called the 'principal
debtor'; and the person to whom the guarantee is
given is called the 'creditor'.
Difference between Indemnity and Guarantee:-
In a contract of indemnity there are two parties i.e. indemnifier and indemnified.
A contract of guarantee involves three parties i.e. creditor, principal debtor
and surety.
The indemnifier after performing his part of the promise has no rights against the
third party and he can sue the third party only if there is an assignment in his
favour. Whereas in a contract of guarantee, the surety steps into the shoes of
the creditor on discharge of his liability, and may sue the principal debtor.
Contracts of Bailment and Pledge
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