Contract Act

Distinction between Bailment and Agency

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:
2Voluntarily 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.
4In 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

    • 2 years ago (Edit)

    […] the suspect may choose to pay the bail amount in exchange for their temporary release. The judge sets the bail amount and is based on a number of factors, such as the severity of the crime and the likelihood of the suspect […]

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