Bailment

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The document discusses the key aspects of bailment and agency under Indian contract law. It defines bailment as the delivery of goods by one person to another for a specific purpose, to be returned after. The essentials of a valid bailment are delivery of possession, delivery under a contract, delivery for a specific purpose, and return of goods. It outlines the duties of the bailee and bailor as well as the rights of the bailee. It also defines agency as a contract where one person appoints another to act on their behalf. The principal is the person appointing the agent, while the agent acts for the principal. Consideration is not necessary to create an agency relationship.

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Bailment describes a legal relationship in common law where physical possession of personal property, or a chattel, is transferred from one person (the "bailor") to another person (the "bailee") who subsequently has possession of the property. It arises when a person gives property to someone else for safekeeping and is a cause of action independent of contract or tort. Bailment is distinguished from a contract of sale or a gift of property, as it only involves the transfer of possession and not its ownership. To create a bailment, the bailee must both intend to possess, and actually physically possess, the bailable chattel. Bailment is a typical common law concept although similar concepts exist in civil law (Spain- Depósito). In addition, unlike a lease or rental, where ownership remains with the lessor but the lessee is allowed to use the property, the bailee is generally not entitled to the use of the property while it is in his possession. A common example of bailment is leaving your car with a valet. Leaving your car in an unattended parking garage is typically a license rather than a bailment, as the car park's intent to possess your car cannot be shown. However, bailments arise in many other situations, including terminated leases of property, warehousing (including store-it-yourself) or in a carriage of goods.

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Editor's Notes

Eg: A lends a horse
The right to take another's property if an obligation is not discharged
Gratuitous bailment : is one where the bailee keeps the goods for the bailor without reward . Non Gratuitous : some consideration passes b/w the parties

Bailment

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Editor's Notes