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Monday, January 4, 2016

Bailment and Pledge

Image result for bailment and pledgeBailment and Pledge are those matters which are governed by the special types of contract. It is specific types of transaction between the parties that play significant role in the operation of business. Bailment is a border term under which pledge is also compromised one of special form. It is one of the important areas to be addressed by the contract law. Nepalese Contract Act, 2000 has dealt the general principles in relation to this contract under its chapter 5 and 6. They are mentioned separately as underneath:
A.      Bailment

A contract of bailment is one of the branch of general contract since it has to comply all the necessary elements of general contract. It is special in the sense that it comprises special matter under which party hands over certain movable goods to another party for certain purpose one returnable basis. This term bailment is received from the French term baillier. It means to deliver or handing over. A bailment is conditional delivery of goods by a person to another for definite purpose and after the fulfillment of purpose; the goods delivered have to be returned. The essence of bailment is to change the actual possession of goods; it does not comprise the transfer of ownership of goods like sale. Its common illustrations are hiring of goods, furniture cycle, delivering of cloth to a tailor for making suit, delivering a car or scooter for repairing, delivering dress to dry cleaner, etc.

Section 25 of Contract Act, 2000 defines: A contract relating bailment shall be deemed to have been concluded in case any person delivers any property to another person on a returnable basis or for handing it over to any other person or selling it as ordered by him/her. The same section has provided that a deed must be execute while bailing any property worth more than Five Thousand Rupees.

Some Examples of contract of bailment

1.       A hires 60 chairs from B for using in marriage ceremony
2.       A gives his suit to B, a dry cleaner for washing
3.       A gives his motorcycle to B for repairing
4.       A gives his watch to be for repairing
5.       A hand over his cow to B, a veterinary doctor, for treatment.



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