CAIIB · BRBL

Contract of Bailment

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Banking Regulations and Business Laws — CAIIB.

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Q

What is the legal definition of bailment under the Indian Contract Act, 1872?

A

Bailment is the delivery of goods by one person (bailor) to another (bailee) for some purpose, upon a contract that the goods shall be returned or disposed of according to the directions of the bailor when the purpose is accomplished.

Q

Under which Act is the contract of bailment governed in India?

A

Indian Contract Act, 1872.

Q

Which section of the Indian Contract Act, 1872 defines bailment?

A

Section 148 of the Indian Contract Act, 1872 defines the contract of bailment.

Q

What is the maximum standard of care required from a bailee for bailed goods?

A

Care of a reasonably prudent man over his own goods.

Q

Who is the bailor in a contract of bailment?

A

The bailor is the person who delivers the goods to another person under a contract of bailment; the bailor retains ownership of the goods throughout the bailment period.

Q

Which Section of the Indian Contract Act deals with the right of the pawnee to use pledged goods?

A

Section 173 restricts pawnee from using pledged goods.

Q

Who is the bailee in a contract of bailment?

A

The bailee is the person to whom goods are delivered by the bailor for a specific purpose under the contract of bailment, with an obligation to return them after the purpose is accomplished.

Q

What is the legal position when a bailee mixes the bailor's goods with his own without consent?

A

Bailor entitled to compensation for any damage caused.

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