Question

Who among the following can exercise right to General Lien in the absence of any provision in the contract?
i. Factors
ii. Brokers
iii. Wharfingers
iv. Attorneys

• A. iv
• B. iv and ii
• C. i and iii
• D. All of them
• A. Particular Lien
• B. General Lien
• C. Particular Retention
• D. General Retention
• A. Has a right to a particular lien on fixed deposits
• B. Has a right to a general lien on fixed deposits
• C. Has a right to a general lien on savings account
• D. Has no right to a lien on a savings account or fixed deposits
• A. Physical delivery of goods
• B. Delivery of goods for some purpose
• C. After the purpose is accomplished, the goods must be returned
• D. Goods may be returned to the owner or otherwise disposed of according to the directions of the person delivering them
• A. iv
• B. iv and ii
• C. i and iii
• D. All of them

Answer 1

The Correct Option is C

The question asks who among the given groups can exercise the right to General Lien in the absence of any provision in the contract. According to Section 171 of the Indian Contract Act, 1872, the right to general lien applies to bankers, wharfingers, factors, attorneys of high courts, and policy brokers. This signifies that the right to lien can be exercised by those entities in general circumstances. Testing the options provided:

• Factors (i): Yes, they can exercise the right to general lien.
• Brokers (ii): Typically not included unless specifically mentioned, the policy brokers differ from general brokers.
• Wharfingers (iii): Yes, they have the right to general lien.
• Attorneys (iv): These are specified as attorneys of high courts, not in general.

Therefore, based on Section 171, only factors and wharfingers possess the general right to lien without specific provision in a contract. Thus, the correct answer is i and iii.

Answer 2

The correct answer to the question "The Bailee’s right to retain the goods until he receives due remuneration for the services, he has rendered in respect of them is known as:" is "Particular Lien".

The concept of a lien is rooted in The Indian Contract Act, 1872. Within this legal framework, the contract of bailment discusses the possession and obligations involving the handling of goods. A bailee, the party entrusted with the goods, has a specific right called the lien, which can be categorized as either general or particular.

A "Particular Lien" is the right of the bailee to retain possession of goods for which the payment is due until the remuneration for services concerning those very goods is paid. This applies when the bailee has provided a service on the goods and is due compensation for that specific service.

In contrast, a "General Lien" allows an entity (typically banks, wharfingers, or attorneys) to retain property until any debt or an account balance is settled, regardless of the specific service related to the goods. This general right to lien is acknowledged under Section 171 of the Indian Contract Act, providing a possessory right which banks leverage to hold onto goods temporarily until debts are cleared, as upheld in judgments like Syndicate Bank v. Vijay Kumar.

Understanding the difference between these two types of liens is crucial for legal studies, addressing the entitlement of individual rights on property contingent on service agreements or financial settlements.

Answer 3

In legal studies, particularly under the purview of the Indian Contract Act of 1872, understanding the banker’s right to lien in the context of bailment is crucial. A bailment involves the temporary transfer of possession of goods from one person (the bailor) to another (the bailee) for a specific purpose. Here, the right to lien comes into play under Section 171, which specifies the conditions under which a general lien can be exercised:

• A banker has a general lien allowing temporary possession of goods or securities to ensure repayment of debt.
• This right, however, does not apply to savings accounts or fixed deposits directly.
• Specifically, the lien gives banks power over belongings temporarily held rather than funds or fixed deposits, which are defined as creating a debt owed by the bank to the account holder.

The general lien recognized in the case of Syndicate Bank v. Vijay Kumar emphasizes its legal standing by affording banks a general custodianship over certain securities. However, fixed deposits and savings accounts are not directly covered, thus:

The correct answer is:
Has no right to a lien on a savings account or fixed deposits

Answer 4

The correct answer is that "Physical delivery of goods" is not an essential characteristic of Bailment. Let's break down why this is the case within the framework of the essential characteristics of Bailment in the context of the Indian Contract Act:

Bailment refers to the process where goods are delivered from one person to another for a specific purpose, with an agreement that the goods will be returned or otherwise dealt with after the purpose is achieved. The key characteristics of Bailment are as follows:

1. Delivery of Goods for a Purpose: In a bailment, goods must be delivered for some specific purpose upon a contract, whether express or implied. This is a fundamental requirement of bailment.
2. Return of Goods: After the purpose of the bailment is accomplished, the goods must either be returned to the owner or disposed of according to their directions. This implies that the bailee has the responsibility to care for the goods and then return them.
3. Goods Disposal Following Directions: The bailor's directions on how to handle the goods after the purpose is fulfilled must be followed, whether it involves returning the goods or disposing of them otherwise.
4. Lack of Necessity for Physical Delivery: It is important to note that while actual physical delivery of goods is common, it is not strictly necessary for the creation of a bailment relationship. For example, symbolic or constructive delivery may also suffice to establish a bailment.

Therefore, the statement "Physical delivery of goods" is not essential as bailment can occur without the need for actual physical delivery.

Answer 5

Bailment is a type of contract where the possession of goods is transferred from one party to another with the intent for a specific purpose, upon a contract. The party who delivers the goods is called the bailor, and the party to whom goods are delivered is called the bailee. Let's analyze the given scenarios to determine which constitute a bailment:

1. Hiring a Locker facility in a Bank: This is not considered a bailment as the bank does not take possession of any goods; it merely provides a space for storage. Therefore, the bank is not a bailee.
2. Taking a Gold loan from the Bank: This involves the borrower giving the bank possession of gold as security for the loan. Here, the gold acts as collateral, and the bank becomes the bailee, which qualifies this as a bailment.
3. Hypothecation of the vehicle for loan to the Bank: In hypothecation, the ownership and possession of the vehicle remain with the owner. Only the loan amount is secured against the vehicle. As physical possession is not transferred, it is not a bailment.
4. Giving car for valet parking: In this case, the car owner transfers possession of the car to the valet, making this a bailment as the valet is entrusted with the car for a specific purpose.

Thus, options ii (Taking a Gold loan from the Bank) and iv (Giving car for valet parking) are both cases of bailment.