What is bailment and its characteristics?

Answer

Bailment  is the delivery of goods by one person to another for some purpose, under a contract that the goods shall, when the purpose is  accordingly , be returned or otherwise disposed of according to the directions of the person delivering them.

The essential characteristics of bailment are as follows:

i)      Bailment is always based upon a contract.

ii)     There can be a bailment of movable properties only, but money is not included in the category of movable goods.

iii)    Delivery of goods is essential for a contract of bailment. Delivery means transfer of possession, actual or constructive (symbolic), from one person to another.

iv)    In bailment, ownership is not transferred, but only special right of retaining the goods for the security is passed on to the lender until payment of debt.

v)      Goods are delivered upon a condition that  on accomplishment of the purpose the very goods in their original form are to be returned by the bailee or are otherwise to be disposed of according  to the directions of the bailor.