Define bailment and describes the essentials factors of bailment.
Bailment is a kind of special contract, caused
by the delivery of goods. However, it’s not a transfer of ownership of goods
rather it is the delivery of goods on a returnable basis.
NCA defines bailment as “A contract relating to bailment shall be deemed to have been concluded in case any person delivers any property to another person on a returnable basis or for handing it over to any other person or selling it as ordered by him."
For example: “A gives his house to B on rent for Rs. 2000 monthly,
it is the bailment of building for hire,” X gives his car to repair to Z. It is
the bailment of goods for repair."
The
essential factor of Bailment:
i) Delivery of goods:
Delivery
of goods can be defined as the change of possession of goods from one person to
another, but the ownership of the good remain same. It must be made on the
ground of free consent. The delivery of goods may be actual and constructive. A
gives his bike to B on hire for one day, B takes the bike immediately. It is an
actual delivery of goods, however constructive delivery is not a change of the
physical possession of goods. The goods remain in the same place but something
is done that causes a change of its possession to the bailee. For example
delivery of key of store or vehicles is constructive delivery.
ii) Delivery for some
special purpose:
Delivery
of goods must be made for some purpose through which the Bailee is bound to
return the goods when the purpose is achieved. If goods are delivered by mistake
then there is no contract of bailment.
iii) Creation of
Contract:
The
relationship between a bailor and a bailee is the creation of a contract. There
must be a written document if the delivery of goods worth more than 200. Thus
both bailee and bailor are bound to create a contract and also they should be
competent to create a contract.
iv) The good must be return.
v)
No transfer of ownership
vi) Consideration is
not necessary:
The
contract of bailment may be gratuitous or non- gratuitous. If the bailment is
made for the benefit of a bailor or of a bailee it is gratuitous. For example,
X lets his bike to A just for 10 minutes.
Reviewed by Bijay Munikar
on
September 28, 2020
Rating:
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