Unit 2: Contract of Bailment
2.1 Meaning of Bailment
Bailment = the delivery of goods by one person (the bailor) to another (the bailee) for some purpose, upon a contract that the goods shall be returned or disposed of according to the bailor’s directions once the purpose is accomplished. The word descends from the French bailler (to deliver); the Indian Contract Act 1872’s chapter on bailment is the codified South Asian model (name only). The essential movement is of possession, not ownership — and the same goods must return (distinguishing bailment from loans for consumption and from sale).
Instances: leaving a sari at the tailor’s; a scooter at the service centre; jewellery in a bank locker; parcels with a courier; stock with a commission agent; goods with a carrier (Unit 8) and securities with a pledgee (Unit 3) — bailment’s two commercial cousins.
Nepali frame: the Muluki Civil Code 2074, Part 5, Chapter 8 (Contracts of Bailment) — the dedicated chapter (verified from the Code’s official table of contents); before 2018 the Contract Act 2056’s bailment chapter did this work.
2.2 Difference of Contract of Bailment with Pledge, and Hypothecation vs Sale (2.2–2.3)
| Point | Bailment | Pledge |
|---|---|---|
| Purpose | Any lawful purpose (safekeeping, repair, use, carriage) | Security for a debt or performance |
| Parties |
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