Step 1: Understanding the Concept:
Bailment, as defined in Section 148 of the Indian Contract Act, 1872, is the delivery of goods by one person (bailor) to another (bailee) 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. Bailments can be classified based on whether they are for a charge or free of cost.
Step 2: Detailed Explanation:
Bailments are traditionally classified based on Roman law categories:
- Deposit (Depositum): Delivery of goods for safekeeping, typically without charge. The benefit is for the bailor.
- Pledge (Pignus or Vadium): Delivery of goods as security for a debt.
- Hire (Locatio et conductio): Bailment for a reward or charge.
- Commodatum (Commodatum): This is a gratuitous loan of goods to be used by the bailee. The goods are lent free of cost for the exclusive use of the bailee. For example, lending a book to a friend to read. The Latin term for this is 'commodatum'.
The question describes a situation where goods are lent free of cost for the bailee's use. This perfectly matches the description of a commodatum. The term "Commodation" in the option is a direct anglicization of this term.