Question

Delivery of goods from one person to another for a special purpose is called as

• A. Mortgage
• B. Pledge
• C. Contract
• D. Bailment

Answer 1

The Correct Option is D

In legal terms, the delivery of goods by one person to another for a specific purpose is known as "bailment." This concept is a crucial part of contract law and dealing with personal property. Here's a detailed breakdown:

• Definition: Bailment is the process whereby an individual (the bailor) transfers physical possession of personal property to another individual (the bailee) for a certain purpose, while still retaining ownership. This might be for safekeeping, repair, storage, or use.
• Key Characteristics:
  • Intent: The delivery is made for a predetermined purpose which both parties have consented to.
  • Possession: The bailee receives the possession of the goods but not their ownership. Ownership remains with the bailor.
  • Return: The goods should be returned to the bailor or disposed of as per the agreement upon fulfilling the intended purpose.
• Examples: Examples of bailment include leaving a car with a valet, depositing clothes at a dry cleaners, or renting a hotel room.
• Legal Obligations: The law places specific duties on the bailee and bailor to ensure the goods are handled as per the agreed terms. The bailee is typically expected to take reasonable care of the goods.

Given these points, the correct answer to the question regarding the delivery of goods for a special purpose is Bailment.