BAILMENT
(Secs. 148 to 181)
A "bond" is the delivery of goods by one person to another for some purpose, under a contract that, when the purpose is fulfilled, will be delivered or removed in any other accounting way to the address of the person delivering them. The person who delivers the goods is called a "bond." The person to whom they are released is called the "bailee".
Explanation: If a person, who is already in possession of another person's assets, contracts to keep them as an assignee, he / she thus becomes the assignee, and the owner becomes the guarantor of said assets, although they may not have been released for release on bail.
Main Features
The main characteristics of the deposit are:
(1) It consists of the delivery of goods. Delivery of possession is essential if there is a transfer of ownership, the transaction may be a sale or exchange, but not a bond
(2) delivery possession is temporary but has some purpose. The Trust reserves the right to claim a new delivery of the deposited assets. As long as there is a delivery or property in a contact for a money equivalent or some other valuable product and not for the return of the identical item in its original form, it is a sale.
(3) The goods are delivered to be returned in kind or discarded according to the agent's address when the purpose is fulfilled.
Classification or Types of Bailment
There are five Kinds of Bailment are as under
1) Bailment Gratuitous
A bond without consideration is called a free bond or Bailment Gratuitous. In this type of bond, neither the bond nor the depositary are entitled to any remuneration or reward. Said bond may be for the exclusive benefit of either party, that is, the bond or the depositary, as described below.
Deposit for the exclusive benefit of the deposit
In this case, the agent delivers the goods for the exclusive benefits and the depositary does not obtain any benefit from it.
For example, "A" leaves his pets with "B", his neighbor, to take care of him during A's physical absence. In this case, only A is receiving bail. Or, if you park your car at your neighbor's facility to be cared for in your absence, you, as a bond, will get the exclusive benefit of the bond.
2) Bailment Non-Gratuitous:
Contrary to the free bond, a non-gratuitous bailment or non-free bond or a reward bond is one that involves some consideration that passes between the bond and the depositary. Obviously, in this case, the delivery of the goods is made for the mutual benefit of both parties.
For example, "A" hires car "B". Here B is the agent and receives the rental charges and A is the depositary and enjoys the use of the car. Similarly, when you repair your PC or laptop to a technician, both you and the computer technician will benefit from this contract. While you repair your computer, he receives his fees or charges.
3) Deposit for the benefit of the deposit
In this case, the agent delivers your goods to a dealership for safekeeping without any benefit / reward. It is called "the bond for the benefit of the bond."
4) Bail for the exclusive benefit of the Bailee
In this case, Bailor delivers its goods to a concessionaire without any benefit for its use, it is called "the guarantee for the exclusive benefit of the beneficiary"
5) Deposit for the the Benefit of the Bailor and Bailee
In this case, the goods are delivered for your consideration, both the bail agent and the beneficiary receive a benefit and is therefore called the bailment for the benefit of the bailor and bailee.
In cog. Vs. Burnard, (1704) I Sm. I.C. (12th ELD), 191 Lord Holt mentioned six types of bail as low.
1) Deposit: a simple deposit of goods from one man to another to keep for the use of the deposit.
2) Commodatun: the goods loaned to a friend for free to be used by him.
3) Rent: when the goods are delivered to bailee for rent.
4) Pawn.- When the goods are delivered to another for security by borrowed money.
5) When the goods are delivered to be transported or something must be done about it for its reward, to be paid to the depositary.
6) When the goods are delivered to be transported or there is something to be done about the rewards.
Elements of Bailment or Bond
Generally three elements are necessary for the existence of a bond: delivery, acceptance and consideration.
The actual ownership or control of the property must be turned over to a dealer to create a bond. The delivery of the actual possession of an item allows the beneficiary to fulfill his duties towards the property without interference from others. Control over property is not necessarily the same as physical custody of property, but is a type of constructive delivery. The bond gives the assignee the means of access to take custody of it, without its actual delivery. The law interprets said action as the equivalent of the physical transfer of the article. Handing over the keys to a safe deposit box is constructive delivery of their contents.
A requirement for the creation of a bond is the express or implicit acceptance of possession or control over the property by the creditor. A person cannot unintentionally become a bandit. Because a bond is a contract, knowledge and acceptance of its terms are essential for its fulfillment.
Consideration, the exchange of something of value, must be present for a bond to exist. Unlike the consideration required for most contracts, as long as one party gives up something of value, such action is considered good consideration. It is sufficient that the rescue agent suffers the loss of the use of the property when transferring his control to the transferee; Bail has given up something of value: the immediate right to control property.
