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Answer
The term bailment is derived from French word
'bailor' which means to deliver. Section 148 of ICA defines bailment as:
“A "bailment" is 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.
Here, the
person so delivering the goods is called bailer and to whom the delivery is
made, can be called as bailee.”
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Essential elements of bailment:
1.
Delivery
of possession of goods:
Delivery of
possession of goods from one person to another, for a specific purpose, is deemed
as essence of the concept of bailment.
According
to Section 149 of the Indian Contract Act, 1872 the delivery of possession can
either be actual or constructive.
I.
Actual
Delivery: When the bailor hands over to bailee the physical possession of
goods, it is called actual delivery.
II.
Constructive
Delivery: When there is no change of physical possession, goods remain where
they are, but something is done which has the effect of putting them in
bailee’s possession, it is called constructive delivery.
It is
important to note that mere custody of goods is not equivalent to the
possession of goods. In Reaves v. Capper, it was held that a servant can be in
the custody of the goods because of the nature of his job but that does not
mean he is in possession of the goods.
2.
Only
Movable goods can be bailed
It is
necessary that the property concern must be movable in nature. The important
thing to note here is that the money cannot be bailed to the other party, as the
same money cannot be returned back.
3.
There
must be a contract regarding the same:
There can
be no bailment without a contract. all conditions for valid contract are to be
satisfied, such as Competent parties, existence of a valid consideration,
lawful object etc. The contract can either be expressed or implied.
Exception
Finder of
goods is also considered as bailee, even though this condition cannot be
satisfied in this particular case.
4.
Condition
for return or dispose of goods according to the direction:
In bailment
the goods are delivered for specific purpose. after the purpose is accomplished
the goods may be returned to the bailor in the same or altered direction,
condition or maybe disposed of as directed by bailor. If the person to whom the
goods are delivered is not bound to restore them to the person delivering them
or to deal with them according to the mandate, their relationship will not be
that of bailor and bailee.
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