Bailment and its essential Features: Meaning |business management

2 min readDec 24, 2020

Meaning of Bailment

It means the delivery of goods from one person to another person for some purpose, when the purpose is accomplished the goods are returned to the real owner of goods. it is made on the basis of the contract.

Definition;

According to section 148 of an Indian contract act, bailment may be defined as “the delivery of goods by one person another person from some purpose upon a contract. That they shall when accomplished the return or dispose of according to the direction to the person delivering then”.

The person who delivers the goods is called the bailor. The person to whom the goods are delivered is called bailee and the transaction between them is called bailment.

Example- S delivery a computer to M for repair. In this case, is the bailor and M is the bailee.

The following are the features..

1. Delivery:-

It is the delivery of goods by one person to another person.

2. Purpose:-

The goods are delivered for some purpose.

3. Return:-

It is agreed that when the purpose accomplished the goods are to be returned or disposed of according to the direction of the bailor.

4. Contract:-

Bailment raises from the express or implied contract. In case of the implication of law between the bailor and the bailee.

5. Ownership:-

In bailment, the bailor continues to be the owner of goods. Therefore bailment does not make any change in ownership.

6. Moveable goods:-

Bailment is a concern only moveable of goods money is not included in such a category. A deposit of money is not bailment, in such cases, the relationship is between the borrower and the lander.

7. Possession:-

A person already in the possession of goods maybe become a bailee by a subsequent agreement they express or implied.

Example- S is the dealer of the motor car having several cars in his possession M buys a car and leaves the car, the possession of the car. After the sale is complete S became a bailee and M is the bailor.

Originally published at https://ajinformer.com on December 24, 2020.