The distinction between Bailment and agency is that the term bailment is derived from the French word ‘Bailor’, which means ‘to deliver’ whereas when a person appoints another to act on his behalf with a third party, it is called ‘Agency’.
The distinction between Bailment and Agency
| No. | Bailment | Agency |
| 1 | Meaning: | Meaning : |
| The term bailment is derived from the French word ‘Bailor’, which means ‘to deliver’. | When a person appoints another to act on his behalf with a third party, it is called ‘Agency’. | |
| Definition : | Definition: | |
| 2 | Voluntarily Change of possession from one person to another is called contract of bailment. | ‘Agency’ is the legal relationship between an agent and Principal; to bring the principal into legal relationship with the third party. |
| Example: | Example : | |
| 3 | ‘X’ delivers a cloth to ‘Y’, a Tailor for making a shirt. The contract between ‘X’ and ‘Y’ is bailment. ‘X’ is a Bailor and ‘Y’ is a Bailee. | ‘X’ appoints ‘Y’ to purchase some property on his behalf. Here ‘X’ is Principal and ‘Y’ is Agent. |
| 4 | In bailment, the Bailee does not represent the Bailor. He does not derive any authority from the Bailor. | The agent represents his principal and derives certain power from his principal. |
| 5 | In Bailment, A Bailee cannot sell the property under bailment | In Agency, an agent can sell the property. |
| 6 | A Bailee cannot transfer the ownership of the property. | An agent can transfer the ownership of the property. |
Distinction between Bailment and Contract of sale
| No | Bailment | Sale |
| 1 | Meaning : Bailment means change of possession voluntarily from one person to another | Meaning : Sale literally means “transfer of absolute interest in property (it may be movable or immovable) from one person to another in lawful consideration of price paid. |
| 2 | Object : The object of Bailment is temporary possession of the goods in the hands of the Bailee | Object : The object of sale is permanent transfer to the purchaser. |
| 3 | In Bailment the ownership does not change. The Bailor is the owner of the goods before, during and after the period of Bailment. | In contract of sale, the Purchaser becomes owner. The seller does not possess any connection with the property sold. |
| 4 | In Bailment, the Bailor pays some nominal charges to the Bailee for the services rendered by him. Sometimes, he is not required to pay any charges. | In contract of sale, the transferee shall have to pay the full market value of the property to buy property. |
| 5 | The Bailee cannot appropriate the property bailed to him. | The purchaser can appropriate the property purchased by him. |
| 6 | In bailment, on certain occasions, the Bailee can exercise his right of lien over the goods bailed. | In contract of sale,The seller of the property has no such right of lien. However, an unpaid seller of goods can exercise lien or stoppage in transit |
Also Read: Difference between agreement and contract
Also Read: Best book for Evidence Act for judiciary
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