Question

Point out an example not related to a contract of bailment

• A. Delivering a watch or radio for repair
• B. Leaving a car or scooter at a parking stand
• C. Leaving luggage in a cloak room
• D. A shareholder executes an agreement/bond favoring the company thereby agreeing to satisfy the company for any loss caused as a consequence of his own act.

Hint:

The defining feature of bailment is the transfer of *possession* of *movable goods*. If there is no delivery of goods, there can be no bailment. Always check for this essential element first.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
The question requires identifying which of the given scenarios does not fit the definition of a "bailment" under the Indian Contract Act, 1872.
Step 2: Key Formula or Approach:
Section 148 of the Indian Contract Act defines bailment as the "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 otherwise disposed of according to the directions of the person delivering them." The key elements are (1) delivery of possession of (2) movable goods (3) for a specific purpose, with an agreement to return them.
Step 3: Detailed Explanation:
- (A) Delivering a watch for repair: This is a classic example of bailment. Goods (watch) are delivered for a purpose (repair) and are to be returned.
- (B) Leaving a car at a parking stand: This is a bailment for safe custody. Possession of the car is transferred to the parking operator for the purpose of safekeeping.
- (C) Leaving luggage in a cloak room: This is also a bailment for safe custody.
- (D) A shareholder executing a bond to satisfy the company for loss: This is a promise to compensate for a potential future loss. There is no delivery of goods. This is a contract of indemnity (as defined in Section 124 of the Contract Act), not a contract of bailment.
Step 4: Final Answer:
The example not related to a contract of bailment is (D).