All India Bar Examination (AIBE) 15-XV Previous Year Question Papers with Answers

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12.

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 disposed of according to the directions of the person delivering them. This process is termed as

A: Agency
B: Bailment
C: Guarantee
D: Contingency

The answer is: B

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Explanation

The correct option is B: Bailment.

According to Section 148 of the Indian Contract Act, 1872, 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. The person delivering the goods is called the bailor and the person to whom they are delivered is called the bailee. A bailment can be for the benefit of the bailor, the bailee, or both. Some examples of bailment are depositing money in a bank, lending a book to a friend, or giving a car to a mechanic for repair.