Difference between Bailment and Pledge
Bailment and Pledge are two legal concepts that involve the transfer of possession of an item from one person to another.
The main difference is that bailment involves temporary transfer of possession while pledge involves permanent transfer of possession as security for a debt or other obligation.
Before we move to the differences, let’s understand what are Bailment and Pledge:
- Bailment: Bailment is when someone lends an item to another person and they are responsible for returning it.
- Pledge: Pledge is when someone gives an item as security for a loan, and if the loan is not paid back, the lender can keep the item.
Now, let’s move to Bailment vs Pledge:
Major differences between Bailment and Pledge
| Bailment | Pledge |
|---|---|
| Bailment involves temporary transfer of possession. | Pledge involves permanent transfer of possession. |
| Bailment is for a specific purpose. | Pledge is for security for a debt or other obligation. |
| Bailment requires the bailee to take care of the item. | Pledge does not require the pledgee to take care of the item. |
| Bailment has a fixed term. | Pledge does not have a fixed term. |
| Bailment terminates when the purpose is fulfilled. | Pledge terminates when the debt or obligation is fulfilled. |
That’s it.
Note that sometimes, the question might also be asked as “distinguish between Bailment and Pledge”.
Also see:
- Difference between 2-Star Refrigerator and 3-Star Refrigerator
- Difference between 2-Star A.C. and 3-Star A.C.
- Difference between LED and Photodiode
Final words
Bailment and Pledge are two legal concepts that involve the transfer of possession of an item from one person to another.
Bailment is a temporary transfer of possession for a specific purpose, while Pledge is a permanent transfer of possession as security for a debt or other obligation. Both concepts have different legal requirements and consequences, it is important to understand the difference between them to use them properly and legally.
You can view other “differences between” posts by clicking here.
If you have a related query, feel free to let us know in the comments below.
Also, kindly share the information with your friends who you think might be interested in reading it.
