Question

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. What is this type of contract called as

• A. Indemnity
• B. Guarantee
• C. Bailment
• D. Pledge

Hint:

The key elements of Bailment are: (1) \textbf{Delivery of possession} of goods (not ownership), (2) for a specific \textbf{purpose}, and (3) a promise to \textbf{return} the goods. If the purpose is security for a loan, it's a special bailment called a Pledge.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
The question provides a precise definition of a specific type of special contract under the Indian Contract Act, 1872. We need to identify which contract this definition corresponds to.
Step 2: Detailed Explanation:
The definition given in the question is a verbatim reproduction of the definition of "Bailment" as provided in Section 148 of the Indian Contract Act, 1872. Let's analyze the options: \begin{itemize} \item (A) Indemnity (S.124): A contract to save another from loss caused by the conduct of the promisor himself, or by the conduct of any other person. It involves two parties. \item (B) Guarantee (S.126): A contract to perform the promise, or discharge the liability, of a third person in case of his default. It involves three parties (creditor, principal debtor, surety). \item (C) Bailment (S.148): The delivery of goods from one person (bailor) to another (bailee) for a specific purpose, with the condition that the goods will be returned or disposed of as per the bailor's directions after the purpose is accomplished. This matches the definition perfectly. Examples include giving a cloth to a tailor, or parking a car in a paid lot. \item (D) Pledge (S.172): A specific type of bailment where goods are delivered as security for payment of a debt or performance of a promise. It is bailment for security. \end{itemize}
Step 3: Final Answer:
This type of contract is called a Bailment.