Exploring the Fine Line: A Comprehensive Study of Bailment and Pledge.

Bailment and pledge, under the Indian Contract Act, 1872, represent foundational legal arrangements involving the transfer of goods. While bailment is the transfer of possession for a specific purpose without transfer of ownership, pledge is a subtype of bailment where goods are delivered as security for repayment of debt or performance of a promise. The fine line separating these concepts lies in the parties’ rights, the nature of the purpose, and remedies available upon default. This paper examines the intricacies of these contracts, clarifies their distinctions, and explores the legal implications, highlighting the rights and duties of both parties involved.