Bailment vs. Pledge — What's the Difference?
By Tayyaba Rehman — Updated on September 22, 2023
Bailment refers to the temporary transfer of possession of personal property for a specific purpose without transferring ownership, while Pledge involves transferring possession as security for a debt or obligation.
Difference Between Bailment and Pledge
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Key Differences
Bailment is a legal concept wherein one party, the bailor, temporarily hands over possession of an item to another party, the bailee, without transferring ownership. The bailee is bound to return the item after the purpose is served. In contrast, Pledge is a type of bailment where the possession of an item is transferred to the pledgee as a security for a loan or obligation.
In Bailment, the item is returned after the specific purpose, such as repair or storage, is fulfilled. Whereas in a Pledge, the item serves as collateral and might be sold or retained by the pledgee if the debtor defaults.
While both Bailment and Pledge involve a transfer of possession without a change in ownership, the intent differs. Bailment is more for a service or specific purpose, while Pledge is for security against an obligation.
One can think of Bailment as a broader term that encompasses various temporary possession transfers, with Pledge being a subset specifically tied to security for debts or obligations.
Comparison Chart
Basic Definition
Transfer of possession for a specific purpose
Transfer of possession as security for a debt
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Return of Item
After specific purpose is served
Upon repayment of debt
Risk of Item Loss
Generally with bailee
Remains with the debtor (pledgor)
Example
Storage facility
Loan against jewelry
Nature of Agreement
For service or specific purpose
For security against obligation
Compare with Definitions
Bailment
A temporary transfer of personal property possession.
She left her dress for cleaning, creating a bailment with the dry cleaner.
Pledge
A bailment where the item serves as collateral.
The bank accepted the title deed as a pledge against the credit.
Bailment
A legal relationship between bailor and bailee.
The car rental established a bailment between the company and the customer.
Pledge
A tangible guarantee of obligation fulfillment.
The deed acted as a pledge, ensuring he'd complete the project.
Bailment
Handing over property for a specific purpose.
The bailment of the artwork was for exhibition only.
Pledge
A solemn promise or undertaking
The conference ended with a joint pledge to limit pollution
Bailment
A contract where care or service is applied to an item.
The watch repair created a bailment relationship.
Pledge
A thing that is given as security for the fulfilment of a contract or the payment of a debt and is liable to forfeiture in the event of failure
He had given the object as a pledge to a creditor
Bailment
No transfer of ownership, only possession.
The bailment of the tools did not mean he owned them.
Pledge
The drinking of a person's health; a toast.
Bailment
Bailment is a legal relationship in common law, where the owner transfers physical possession of personal property ("chattel") for a time, but retains ownership. The owner who surrenders custody to a property is called the "bailor" and the individual who accepts the property is called a "bailee".
Pledge
Commit (a person or organization) by a solemn promise
The government pledged itself to deal with environmental problems
Bailment
The act of delivering goods or personal property to another in trust.
Pledge
Give as security on a loan
The creditor to whom the land is pledged
Bailment
(obsolete) Bail.
Pledge
Drink to the health of
In his hand a sculptured goblet, as he pledged the merchant kings
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.
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.
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.
Pledge
Something given or held as security to guarantee payment of a debt or fulfillment of an obligation.
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.
Pledge
The condition of something thus given or held
Put an article in pledge.
Bailment
The delivery of personal property in trust by the bailor to the bailee
Pledge
Delivery of goods or personal property as security for a debt or obligation
A loan requiring a pledge of property.
Pledge
The contract or transaction stipulating or involving such delivery.
Pledge
A token or sign
"fair pledges of a fruitful tree" (Robert Herrick).
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.
Pledge
A vow to abstain from alcoholic liquor
Ex-drinkers who have taken the pledge.
Pledge
(Archaic) The act of drinking in honor of someone; a toast.
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.
Pledge
To bind or secure by a pledge or promise
Pledged themselves to the cause.
Pledge
To deposit as security; pawn.
Pledge
To promise to join (a fraternity or similar organization).
Pledge
To accept as a prospective member of such an organization.
Pledge
(Archaic) To drink a toast to.
Pledge
To make a solemn binding promise; swear.
Pledge
(Archaic) To drink a toast.
Pledge
To make a solemn promise (to do something).
Pledge allegiance to the flag
Pledge
To deposit something as a security; to pawn.
Pledge
(transitive) To give assurance of friendship by the act of drinking; to drink to one's health.
Pledge
A solemn promise to do something.
Pledge
A promise to abstain from drinking alcohol.
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.
Pledge
(law) A bailment of personal property to secure payment of a debt without transfer of title.
Pledge
The personal property so pledged, to be kept until the debt is paid.
Pledge
(college slang) A person who has taken a pledge of allegiance to a college fraternity, but is not yet formally approved.
Pledge
A drinking toast.
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.
Pledge
A person who undertook, or became responsible, for another; a bail; a surety; a hostage.
Pledge
A hypothecation without transfer of possession.
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.
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.
Pledge
A sentiment to which assent is given by drinking one's health; a toast; a health.
Pledge
To deposit, as a chattel, in pledge or pawn; to leave in possession of another as security; as, to pledge one's watch.
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.
Pledge
To secure performance of, as by a pledge.
To pledge my vow, I give my hand.
Pledge
To bind or engage by promise or declaration; to engage solemnly; as, to pledge one's self.
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.
Pledge
A deposit of personal property as security for a debt;
His saxophone was in pledge
Pledge
Someone accepted for membership but not yet fully admitted to the group
Pledge
A drink in honor of or to the health of a person or event
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
Pledge
Promise solemnly and formally;
I pledge that will honor my wife
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
Pledge
Propose a toast to;
Let us toast the birthday girl!
Let's drink to the New Year
Pledge
Give as a guarantee;
I pledge my honor
Pledge
Bind or secure by a pledge;
I was pledged to silence
Pledge
Offering property as security for a debt.
He gave his watch as a pledge for the loan.
Pledge
Promise to repay, backed by property.
The diamond ring served as a pledge for her debt.
Pledge
A commitment signified by an item.
The signed baseball was a pledge of his support.
Common Curiosities
Does a Pledge always involve physical items?
Most commonly, but it can also involve intangible assets like intellectual property.
Is every Pledge a Bailment?
Yes, a pledge is a specific type of bailment for security purposes.
Who bears the risk in case of damage in Bailment?
Generally, the bailee, but it depends on the agreement's terms.
Can a Bailment be for an indefinite period?
Typically, bailments have a set duration, but terms vary based on the agreement.
Can ownership be transferred in a Bailment?
No, only possession is transferred, not ownership.
What happens to the pledged item if a debt isn't repaid?
The pledgee has the right to sell or keep the item to satisfy the debt.
Can a Pledge be transferred to someone else?
Typically, unless specified, a pledge is not transferrable.
Is a mortgage similar to a Pledge?
Both involve assets as security, but mortgages are specifically tied to real estate.
What's the key difference between Bailment and rental?
Both involve temporary transfer of possession, but rental typically involves compensation.
In a Bailment, who is responsible for the care of the item?
The bailee has a duty to take care of the item as per the agreement's terms.
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Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
