Business Law: Contract of Bailment and Pledge

What is a bailment?

The delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them.

Who is the bailor in a contract of bailment?

The person delivering the goods

Who is the bailee in a contract of bailment?

The person to whom the goods are delivered

What are the essential elements of a contract of bailment?

Delivery of Goods, Specific Purpose, Contract, Return of Same Goods Signup and view all the answers

What is the specific purpose of a bailment?

The delivery of goods by bailor to bailee is always for some specific purpose. Signup and view all the answers

What is necessary for a bailee in a contract of bailment?

To return the same goods to the bailor, although change of form of the goods may take place. Signup and view all the answers

What rights does the bailor have if there is any loss to the goods due to bailee’s negligence?

The bailor is entitled to recover the loss from the bailee. Signup and view all the answers

What is the main difference between possession and ownership in a contract of bailment?

Only possession of goods passes from bailor to bailee, not ownership. Signup and view all the answers

Under what conditions can a contract of bailment be voidable at the option of the bailor?

If the bailee does any act inconsistent with the conditions of bailment. Signup and view all the answers

What is the bailee liable for if they make an unauthorized use of the goods bailed?

The bailee is liable to make compensation to the bailor for any damage. Signup and view all the answers

What are the duties of the bailor regarding the disclosure of defects in the goods?

To disclose defects. Signup and view all the answers

How can a bailor terminate the contract of bailment if the bailee does any act inconsistent with the conditions of bailment?

The bailor can terminate the contract of bailment. Signup and view all the answers

What is the duty of the bailee regarding the return of the goods bailed?

To return the goods bailed without demand as soon as time has expired or the purpose has been accomplished. Signup and view all the answers

What are the different modes of termination of bailment?

Expiry of Time, Accomplishment of Purpose, Unauthorized Use, Death. Signup and view all the answers

What are the duties of the bailee in a contract of bailment?

To take reasonable care, not to make unauthorized use, to compensate loss, not to mix goods, to return the goods, to compensate loss after expiry, to return any increase or profit. Signup and view all the answers

What rights does the bailee have in a contract of bailment?

To recover loss due to non-disclosure of defects, to recover necessary expenses, to retain possession for the recovery of remuneration. Signup and view all the answers