Group members

1. Ritika sharma- 139

2. Payal gujar- 106
3. Vishakha rajawat- 128
4. Sunil
5. Nikita
Contents:
Bailment- 1.Introduction.
2. Essentials of bailment.
3.Types of bailment.
4.Bailor and bailee.
5.Rights of bailor.
Agency - 1.Introduction.
2. Agent.
3.Types of agent.
4.Ratification.
5.Estoppel.
6.Authority of agent.
7.Implied actual authority.
8.Duties of an agent.
9.case study.
Pledge - 1.Introduction.
2.Pledge v/s bailment.
3.Pledge by non-owners.
4.Right of pawnee.
5.Case study.
.
Bailment

Sec.148 defines bailment as the delivery
of goods by one person to another for
some purpose ,up on a contract ,that
they shall ,when the purpose is
accomplished ,be returned or otherwise
disposed of according to the direction of
the person delivering them.
The person delivering the goods is called
the bailor and the person to whom they
are delivered is called the bailee.

Eg: A delivers a piece of cloth to B ,a
tailor ,to be stitched in to a suit. there is a
contract of bailment between A and B.
Essentials of Bailment
Contract.
Delivery of goods
for some purpose.
Return of goods.
Change of
possession and
not the ownership.
Consideration. Purpose.
Bailment of
moveable goods.
Types of bailment
Gratuitous bailment
Non gratuitous bailment

Gratuitous bailment
It is a contract of bailment where no
consideration passes between the bailor
and the bailee.

For eg: x lends a horse to y for his riding
without any charge.

Non- gratuitous bailment
It is a contract of bailment where same
consideration passes between the
bailor and the bailee.

For eg: y hires a horse from x

Bailor
The person
delivering the
goods is called the
bailor.

Bailee
The person to
whom goods are
delivered is called
the bailee.
Rights of bailor
Bailor s right to on force bailee duties.
Bailors right to terminate the contract of
bailment.
Bailors right to demand return of goods
at anytime in gratuitous bailment.
Bailors right to sue a wrong doer.

Case study

X delivered a horse to Y for his own riding without
any charge. The horse runs away. Y is thrown and
injured. State the legal position in each of the
following alternative case:
(a) If X did know that the horse was vicious.
(b) If X disclosed the fact that the horse was vicious.
(c) If X did not disclose the fact known to him that
the horse was vicious.

Solution:
(a) X is not liable to Y for loss because he did
not know the defect.

(b) X is not to Y for such loss because he did
not disclosed the known defect.

(c) X is liable to Y for such loss because he
did not disclose the known defect.

Agency
By a contract of agency, a person
employees another person to do any act
for him or to represent him in dealing the
third persons so as to bind himself by the
acts of such another person.


Agent
An agent is a person employed to do any act for another
or to represent another in dealings with third persons.
Thus, an agent establishes a contract between such another
person and third person.

When people do business, they often deal with each other
directly
Buyer Seller

However, sometimes they deal with each other using a
middleman (or representative or intermediary)
Buyer Middleman Seller
Types of agents
General agent
Special agent
Universal agent
Broker
Factor
Auctioneer
Commission agent
Del-credere agent
Banker
Ratification
In this case, a person who does not have the
authority of the principal enters into a contract with a
third party on behalf of the principal.

Ratification occurs when the principal expressly
accepts the contract later

The effect of this is to make the earlier actions of
the agent valid

Estoppel
This form of agency is also know as agency by holding
out.

It occurs where there is no actual principal/agent
relationship, but the principal makes a third party think
that there is.

In this case the agent has apparent authority and the
principal is bound by any contract entered into by the
agent and a third party who thought there was a proper
principal/agent relationship.

Authority of the Agent
In order for the agent to create rights
and responsibilities for the principal in a
contract, the agent must act within the
authority given to him by the principal

An agent has two types of authority
Actual
Apparent

Implied Actual Authority
This authority covers the situation where a third
party is entitled to assume that the agent has been
given the power to do something by his principal, even
though the agent may not have been give that power
expressly.

In other words, a third party can assume that
someone has the powers which a person in the agents
position usually has, whether or not the agent has
been given those powers expressly.

Duties of an agent
Duty to act according
to directions or
custom trade.
Duty to act with
reasonable care and
skill.
Duty to render
account.
Duty to communicate
with principal and to
obtain principals
instructions.
Duty not to delegate.
Duty to protect and
preserve the interest
entrusted to him.
Case study
X instructed Y, a transporter, to send the
consignment of tomatoes to Calcutta. After covering
the half distance , Y found that tomatoes will not
bear the journey to Calcutta without spoiling and
sold at half the market price for good tomatoes. X
sued Y.
Solution: The sale by Y is binding
on X and Y is not liable to X.


Reason: Y a carrier acted as an
agent by necessity.


Pledge
The bailment of goods and security for payment of
a debt of performance of a promise is called pledge.

The bailor in this case called the pledger or
pawnor and the bailee is called pledge or pawnee
Distinction between Pledge and Bailment
Pledge
Pledge is bailment of goods for
a specific purpose, i.e
repayment of debt or
performance of a duty.

Pawnee cannot use the goods
pledged.

Pawnee can sell the goods
pledged after giving notice to
the pawnor in case of default
by the pawnor
Bailment
Bailment is for a purpose of
any kind

Bailee can use the goods as
per terms of bailment

Bailee can either retain the
goods or sue the bailor for
his dues.
Pledge by Non-owners
Pledge by
mercantile agent.
Pledge by person
in possession
under voidable
contract.
Pledge where
pawnor has a
limited interest.
Pledge by a co-
owner in
possession.
Pledge by seller or
buyer in
possession.
Rights of pawnee
Rights of retainer
Right to claim reimbursement of
extraordinary expenses
Right to sue pawnor
Right to sell




CASE STUDY
Subhash Ghai, a film producer, borrowed Rs 10,00,000
from Amitabh Bachchan, a financier distributor, and
agreed to deliver the final prints of the film when
ready. Was the agreement a pledge?

Decision: The agreement was not a pledge.

Reason: There was no actual transfer of possession.