Page 117 - DMGT102_MERCANTILE_LAWS_I

Unit 8: Contract of Bailment and Pledge

8.11 Review Questions Notes

1. Define bailment. What are the requisites of a contract of bailment? Explain.
2. Distinguish between ‘gratuitous bailment’ and ‘bailment for hire’.
3. “Bailee’s right of lien is a particular lien and does not extend to other goods of the bailor in
his possession.” Comment.

4. Discuss the characteristics of a pledge.
5. What are the respective rights and duties of a pawnor and a pawnee?
6. When is a pledge created by non-owners valid?
7. “Bailor is liable to the bailee for loss caused by faults in the goods bailed whether the bailor
was aware of the same or not.” Comment.
8. “Bailor must compensate the bailee for all expenses.” Comment.
9. “The finder of lost goods has no right to file a suit for recovery of expenses incurred by him

for finding out the true owner.” Discuss.
10. When a pledgor fails to redeem his pledge, what rights does the pledgee have in the
pledge?
11. „Every pledge is a bailment, but every bailment is not a pledge‰. Discuss.
Answers: Self Assessment

1. True 2. True
3. False 4. True
5. False 6. Gratuitous
7. Demands 8. Pledge
9. ‘Bailee’ 10. Lien

8.12 Further Readings

Books G. Vijayaragavan Iyengar (2007), Introduction to Banking, Excel Books, New Delhi,
India.
S.S Gulshan, Business Law, Third Edition, 2006, Excel Books, New Delhi.
S.S Gulshan, Mercantile Law, Third Edition, 2006, Excel Books, New Delhi.

Online links www.gyantonic.com/Articles/98374_Indian-Contract-Act
http://resources.lawyersnjurists.com/coursematerials/businesslaw/nsu/amu/
essential-books/a-k-sen/commercial-law-and-industrial-law/contract/chapter-
8-bailment-and-pledge/

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