Bailment vs. Pledge: What's the Difference?
Edited by Sumera Saeed || By Sawaira Riaz || Published on November 12, 2023
Bailment: temporary possession of property for a purpose; Pledge: goods as security for a debt.
Key Differences
Bailment involves a change of possession of personal property from the bailor to the bailee, who is obligated to return the property after the purpose is fulfilled. Conversely, in a Pledge, property is delivered as collateral for a loan or obligation, often not returned until the debt is paid.
Sawaira Riaz
Nov 12, 2023
The key characteristic of Bailment is that it's a lawful transaction wherein the actual ownership of the item doesn't change, only the possession does, for a specific purpose like safekeeping or repair. A Pledge, however, is specifically used as a security for a debt or performance of a promise, where the possession changes but ownership remains with the pledgor until the obligation is settled.
Sawaira Riaz
Nov 12, 2023
For a Bailment to be valid, the bailee must knowingly accept the item, but they don’t have rights of ownership. In a Pledge scenario, the pledgee gains the right to sell the pledged property if the pledgor defaults on their obligation.
Sawaira Riaz
Nov 12, 2023
Liability in Bailment is based on the agreed terms; the bailee is generally responsible for the item's care but not for uncontrollable losses. In contrast, in a Pledge, the pledgee holds the asset and has the right, in cases of default, to take ownership or sell the item to settle the debt.
Sawaira Riaz
Nov 12, 2023
While both Bailment and Pledge involve the transfer of possession, they serve different functions. Bailment is for a specific purpose like storage or transport, while a Pledge is explicitly tied to a financial agreement or debt security.
Harlon Moss
Nov 12, 2023
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Comparison Chart
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Bailment and Pledge Definitions
Bailment
A legal relationship in personal property possession.
Bailment was established when she loaned her dress.
Harlon Moss
Oct 21, 2023
Pledge
Assurance of payment or performance.
The Pledge was accepted, securing the contract.
Sawaira Riaz
Oct 21, 2023
Bailment
Temporary handing over of property for a purpose.
He left his car in Bailment while traveling.
Sawaira Riaz
Oct 21, 2023
Pledge
A tangible guarantee for an obligation.
Her Pledge ensured she received the necessary funds.
Sawaira Riaz
Oct 21, 2023
Bailment
Transfer of possession, not ownership, for a task.
They agreed to a Bailment for the artwork's exhibition.
Sara Rehman
Oct 21, 2023
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Pledge
Collateral that can be forfeited on default.
His Pledge was at risk when he missed two payments.
Sara Rehman
Oct 21, 2023
Bailment
A contractual holding of goods without ownership.
During the repair, the watch was in a state of Bailment.
Sawaira Riaz
Oct 21, 2023
Pledge
A solemn binding promise to do, give, or refrain from doing something
Signed a pledge never to reveal the secret.
A pledge of money to a charity.
Sawaira Riaz
Oct 13, 2023
Bailment
Possession shift with an obligation to return.
The expensive equipment was under Bailment for the event.
Sawaira Riaz
Oct 21, 2023
Pledge
Something given or held as security to guarantee payment of a debt or fulfillment of an obligation.
Sawaira Riaz
Oct 13, 2023
Bailment
The act of delivering goods or personal property to another in trust.
Sawaira Riaz
Oct 13, 2023
Pledge
The condition of something thus given or held
Put an article in pledge.
Sawaira Riaz
Oct 13, 2023
Pledge
Delivery of goods or personal property as security for a debt or obligation
A loan requiring a pledge of property.
Sawaira Riaz
Oct 13, 2023
Bailment
(legal) The handing over of control over, or possession of, personal property by one person, the bailor, to another, the bailee, for a specific purpose upon which the parties have agreed.
Sawaira Riaz
Oct 13, 2023
Bailment
The action of bailing a person accused.
Bailment . . . is the saving or delivery of a man out of prison before he hath satisfied the law.
Sawaira Riaz
Oct 13, 2023
Bailment
A delivery of goods or money by one person to another in trust, for some special purpose, upon a contract, expressed or implied, that the trust shall be faithfully executed.
Sawaira Riaz
Oct 13, 2023
Pledge
A person who has been accepted for membership in a fraternity or similar organization and has promised to join but has not yet been initiated.
Sawaira Riaz
Oct 13, 2023
Bailment
The delivery of personal property in trust by the bailor to the bailee
Sawaira Riaz
Oct 13, 2023
Pledge
A vow to abstain from alcoholic liquor
Ex-drinkers who have taken the pledge.
Sawaira Riaz
Oct 13, 2023
Pledge
To offer or guarantee by a solemn binding promise
Pledge loyalty to a nation.
Pledge that the duties of the office will be fulfilled.
Sawaira Riaz
Oct 13, 2023
Pledge
To bind or secure by a pledge or promise
Pledged themselves to the cause.
Sawaira Riaz
Oct 13, 2023
Pledge
To make a solemn promise (to do something).
Pledge allegiance to the flag
Sawaira Riaz
Oct 13, 2023
Pledge
(transitive) To give assurance of friendship by the act of drinking; to drink to one's health.
Sawaira Riaz
Oct 13, 2023
Pledge
An asset or person temporarily handed over to guarantee the fulfilment of something promised, under threat of permanent loss of the thing handed over; surety, security, hostage.
Sawaira Riaz
Oct 13, 2023
Pledge
(law) A bailment of personal property to secure payment of a debt without transfer of title.
Sawaira Riaz
Oct 13, 2023
Pledge
(college slang) A person who has taken a pledge of allegiance to a college fraternity, but is not yet formally approved.
Sawaira Riaz
Oct 13, 2023
Pledge
The transfer of possession of personal property from a debtor to a creditor as security for a debt or engagement; also, the contract created between the debtor and creditor by a thing being so delivered or deposited, forming a species of bailment; also, that which is so delivered or deposited; something put in pawn.
Sawaira Riaz
Oct 13, 2023
Pledge
A person who undertook, or became responsible, for another; a bail; a surety; a hostage.
Sawaira Riaz
Oct 13, 2023
Pledge
Anything given or considered as a security for the performance of an act; a guarantee; as, mutual interest is the best pledge for the performance of treaties.
Sawaira Riaz
Oct 13, 2023
Pledge
A promise or agreement by which one binds one's self to do, or to refrain from doing, something; especially, a solemn promise in writing to refrain from using intoxicating liquors or the like; as, to sign the pledge; the mayor had made no pledges.
Sawaira Riaz
Oct 13, 2023
Pledge
A sentiment to which assent is given by drinking one's health; a toast; a health.
Sawaira Riaz
Oct 13, 2023
Pledge
To deposit, as a chattel, in pledge or pawn; to leave in possession of another as security; as, to pledge one's watch.
Sawaira Riaz
Oct 13, 2023
Pledge
To give or pass as a security; to guarantee; to engage; to plight; as, to pledge one's word and honor.
We mutually pledge to each other our lives, our fortunes, and our sacred honor.
Sawaira Riaz
Oct 13, 2023
Pledge
To secure performance of, as by a pledge.
To pledge my vow, I give my hand.
Sawaira Riaz
Oct 13, 2023
Pledge
To bind or engage by promise or declaration; to engage solemnly; as, to pledge one's self.
Sawaira Riaz
Oct 13, 2023
Pledge
To invite another to drink, by drinking of the cup first, and then handing it to him, as a pledge of good will; hence, to drink the health of; to toast.
Pledge me, my friend, and drink till thou be'st wise.
Sawaira Riaz
Oct 13, 2023
Pledge
A deposit of personal property as security for a debt;
His saxophone was in pledge
Sawaira Riaz
Oct 13, 2023
Pledge
Someone accepted for membership but not yet fully admitted to the group
Sawaira Riaz
Oct 13, 2023
Pledge
A binding commitment to do or give or refrain from something;
An assurance of help when needed
Signed a pledge never to reveal the secret
Sawaira Riaz
Oct 13, 2023
Pledge
Pay (an amount of money) as a contribution to a charity or service, especially at regular intervals;
I pledged $10 a month to my favorite radio station
Sawaira Riaz
Oct 13, 2023
Pledge
Propose a toast to;
Let us toast the birthday girl!
Let's drink to the New Year
Sawaira Riaz
Oct 13, 2023
Pledge
Property as collateral for a loan.
He offered his jewelry as a Pledge for the loan.
Sawaira Riaz
Oct 21, 2023
Pledge
Goods promised against a debt.
They required a Pledge before considering his application.
Janet White
Oct 21, 2023
FAQs
Can anyone enter into a Bailment?
Yes, if both parties agree and it's lawful.
Sawaira Riaz
Nov 12, 2023
What happens if an item in Bailment is damaged?
Liability depends on the agreement terms.
Sawaira Riaz
Nov 12, 2023
What’s the difference between lending and Bailment?
Bailment involves specific tasks or care.
Sawaira Riaz
Nov 12, 2023
About Author
Written by
Sawaira RiazSawaira is a dedicated content editor at difference.wiki, where she meticulously refines articles to ensure clarity and accuracy. With a keen eye for detail, she upholds the site's commitment to delivering insightful and precise content.
Edited by
Sumera SaeedSumera is an experienced content writer and editor with a niche in comparative analysis. At Diffeence Wiki, she crafts clear and unbiased comparisons to guide readers in making informed decisions. With a dedication to thorough research and quality, Sumera's work stands out in the digital realm. Off the clock, she enjoys reading and exploring diverse cultures.
