Contract law

• Offer and acceptance are essential elements of a valid contract.
• Contracts can be oral, written, or implied by conduct.
• Pledge in contract law
• A pledge is the delivery of goods to a bailee as security for payment of money owed by the bailor.
• The bailee has an equitable interest in the property until it is returned upon repayment of the debt.
• If the bailor fails to pay the debt, the bailee may sell the property at auction and apply the proceeds towards the outstanding amount.
• The bailee has an equitable interest in the property until the debt is paid off.
• Bailment occurs when one person (the bailor) entrusts another person (the bailee) with possession of their property for a specific purpose.
• In a gratuitous bailment, there is no consideration given by the bailee.
• There are two types of bailments: gratuitous and compensated.
• Compensated bailments involve some form of compensation or reward being provided to the bailee.
• In case of default, the bailee must take reasonable steps to notify the bailor and give them time to redeem the property.
• Bailors have no right to recover their property if they fail to pay the debt.
• An action for damages against the bailee will not lie unless there was negligence on his part.
• In case of default, the bailee must take all necessary steps to recover the property from third parties who hold it without knowledge of the pledge.
• Bailors have a right to reclaim their property if they pay off the debt within a reasonable time.
• In cases where there is no agreement on how long the property will remain with the bailee, the property must be returned immediately upon demand.
• Bailors have a right to reclaim their property if they make full payment within a reasonable time.
• There are two types of gratuitous bailments: non-negotiable and negotiable.
• An example of a gratuitous bailment is a car rental company allowing someone else to use their vehicle without receiving any compensation from them.
• A gratuitous bailment can be either temporary or permanent.