Difference between Bailment and Pledge
Bailment is the act of delivering goods for a special purpose.The person who is delivering the goods is called a bailor while the person who receives the goods is referred top as a bailee in the contract.Pledge or pawn is a special type of bailment where you promise to pay the money a money lender gives in exchange for your valuable goods that act as a security.
Bailment Vs Pledge
S.No. | Bailment | Pledge |
| 1. | When the goods are temporarily handed over from one person to another person for a specific purpose, it is known as bailment. | When the goods are delivered to act as security against the debt owed by one person to another person, it is known as the pledge. |
| 2. | It is defined in Section 148 of the Indian Contract Act, 1872. | It is defined in Section 172 of the Indian Contract Act, 1872. |
| 3. | The parties involved in bailment are bailor (person who delivers the goods) and Bailee (person to whom the goods are delivered). | The parties involved in Pledge are Pawnor (person who delivers the goods) and Pawnee(person to whom the goods are delivered). |
| 4. | Bailment is either profit oriented or non-profit oriented. | Pledge is always profit oriented. |
| 5. | In bailment, bailee has right to use the goods for temporary period if mentioned in the contract. | In Pledge, the pledgee has no right to use the goods. |
| 6. | In bailment, bailee has right to claim damage or loss , if any ,but cannot sell the goods. | In Pledge, pledgee has right to sell the goods in case of pledger default . |
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