Question

When goods are delivered by one person to another for some purpose upon a contract that they shall, when the purpose is accomplished, be returned according to the direction of the person delivering them, the transaction is called .

• A. Custody
• B. Pawn
• C. Mortgage
• D. Bailment

Hint:

Understanding bailment is important for legal clarity in transactions involving temporary custody of goods, like leasing or equipment rental.

Answer 1

The Correct Option is D

The scenario described is a classic example of 'Bailment', where goods are delivered temporarily under a contract for a specific purpose, with an obligation to return or dispose of them as directed once the purpose is fulfilled.