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 disposed of according to the directions of the person delivering them. What is this type of contract called as

All India Bar Examination (AIBE) 5-V Previous Year Question Papers with Answers

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47.

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 disposed of according to the directions of the person delivering them. What is this type of contract called as

A: Indemnity

B: Guarantee

C: Bailment

D: Pledge

The answer is: C

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Explanation

The correct option is C. Bailment.

This is the term used to describe the type of contract that involves the delivery of goods by one person to another for some purpose, upon a condition that they shall be returned or disposed of according to the directions of the person delivering them. The person who delivers the goods is called the bailor, and the person who receives them is called the bailee. This definition is given in Section 148 of the Indian Contract Act, 1872.

Some examples of bailment are:

- Giving a watch for repair
- Depositing goods in a locker
- Lending a book to a friend
- Hiring a car for a trip

In all these cases, there is a delivery of goods for some purpose, and an obligation to return or dispose of them as per the contract. The rights and duties of the bailor and the bailee are also specified in the Indian Contract Act, 1872, in Sections 149 to 171.