Basis | Bailment | Pledge |
Meaning | Transfer of goods from one person to another for a specific purpose is known as the bailment | Transfer of goods from one person to another as security for repayment of debt is known as the pledge. |
Defined in | It is defined under section 148 of the Indian Contract Act, 1872. | It is defined under section 172 of the Indian Contract Act, 1872. |
Parties | The person who delivers the bailed goods is known as Bailor and the person receiving such goods is known as Bailee. | The person who delivers the pledged goods is known as Pledger or Pawnor and the person receiving such goods is known as Pledgee or Pawnee. |
Consideration | The consideration may or may not be present. | Consideration is always there |
Right to Sell | Bailee has no right to sell the goods bailed. | Pledgee or Pawnee has the right to sell the goods. |
Use of Goods | Bailee can use the goods only for a specific purpose only and not otherwise | Pledgee or Pawnee cannot use the goods pledged. |
Purpose | The purpose of bailed goods is for safekeeping or repairs etc. | The purpose of pledged goods is to act as security for repayment of debt or performance of the promise. |
