Semester “Spring 2011”
“Business & labor Laws (MGT611)”
Assignment No. 02 Marks: 15
“Assignment Title”
Bailment & Pledge
5 Marks for Each Section.
Abstract:
There are laws relating to transfer of possession of goods one is "Bailment", it is a technical
term of the Law, it involves change of possession and other is “Pledge”, it is the bailment of
goods as security for payment of a debt or performance of a promise is called "pledge". Both
these concepts are similar but not identical at the same time.
Please Differentiate between the Law of Bailment and Pledge?
Case Study
Scenario.01
Husnain Car leasing Services delivered an automobile to Baqir Auto Repair Ltd. for repairs,
and Baqir Auto Repair, by way of a sub-bailment, placed the car with Mustafa Engineering
Services to have some specific work done on the automobile. If Mustafa Engineering Services
negligently damaged the automobile while it was in its possession.
Who will be liable to whom? and How? Explain Briefly.
Scenario.02
Ali has a PKR.300,000 National Savings Scheme Bond and wishes to borrow PKR.180,000
from his bank to purchase a 800 CC Mehran Car.
Is this a case of Bailment or Pledge?
Can Ali take his bond to the bank and use it as security for the loan?
If yes what can bank do in case of non-repayment?
The Requirement:
Keeping in view the above case and the abstract, you are required to write down the potentially
correct answers of both Bailment & Pledge case studies given above