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.
It is defined under section 148 of the Indian Contract Act, 1872.
It is defined under section 172 of the Indian Contract Act, 1872.
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.
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.
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.
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