Distinction/ Difference between Bailment and Pledge

Distinction/ Difference between Bailment and Pledge 

Sr. No	Bailment	Pledge
1	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.
2	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.
3	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)
4	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.
5	It is made for any purpose	It is made for specific purpose
6	The Bailee can use the goods	Pledgee cannot use the goods
7	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.
8	Bailee can exercise lien on goods only for labour and service	Pledgee can exercise lien even for nonpayment of interest.