Distinction/ Difference between Bailment and Pledge 

Sr. No




Sections 148 to 171 of the Indian Contract Act 1872 deals with bailment

Sections 172 to 181 of the Indian Contract Act deals with Pledge.


Meaning: The term bailment is derived from the French word ‘Bailor’, which means ‘to deliver. It means possession voluntarily from one person to another.

Meaning:  Pledge is a special kind of bailment. If the goods are bailed as a security for payment of a debt or performance of a promise, it is called Pledge.


Definition: Delivery of goods by Bailor to Bailee for a definite purpose on condition of their return or disposal, when purpose is accepted. (Section.148, I.C.A)

Definition: The Bailment of goods as security for payment of a debt or performance of a promise is called pledge. (Section.178, I.C.A)


Example:  Sam delivers a cloth to John, a tailor making a shirt . The contract between Sam and John is bailment

Example: If a Farmer delivers to bank 50 bags of wheat as security for obtaining a loan, it is called pledge.

It is made for any purpose

It is made for specific purpose

The Bailee can use the goods

Pledgee cannot use the goods 


The Bailee has no right to sell the goods bailed

The Pledgee / Pawnee has a right to sell the goods pledged if the pledger could not redeem them within the stipulated period.


Bailee can exercise lien on goods only for labour and service

Pledgee can exercise lien even for nonpayment of interest.


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