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Submitted To: Mr. Surinder Nath
Submitted By: Priyanka Singh Maitrei Gupta Sana Mansoor Jyoti Dahiya MBA-HR Section C
While the owner retains full rights to the assets. the bailee may also be granted certain powers of administration that are related to management of the assets. the legal documentation usually also contains specific instructions on how long the state of bailment will be in effect. At the same time. the bailor could revoke the bailment if there was evidence that the bailee was mismanaging the asset. the physical possession of the assets is granted to the recipient. The person who delivers the asset is usually known as the bailor. the bailee would be able to terminate the arrangement and return the property if there was a perception that the bailor is not living up to the terms of the agreement in some manner. Along with the physical possession of the property or assets. Generally. A legal state of bailment can be a great option when the owner will be unavailable to manage or oversee an asset for a short period of time. A bailee may be designated that can manage rental property in the absence of the owner. this type of transaction involves the owner of the assets choosing to temporarily place them in the control of another individual. while the recipient of the assets is known as the bailee. The idea behind 1 . Along with defining the rights of management during the time that the bailment is in effect. Bailment Contract (Sec 148) Bailment is the process of making delivery of an asset or other type of property.BAILMENT Introduction The Indian Contract Act. most bailment agreements also include some sort of out clauses that are related to both the bailor and the bailee. for example. or perhaps oversee a stock portfolio for a given period of time. 1925. For example. Part of the procedure with bailment it that a legal relationship is established between the owner and recipient. 1872 deals with the general rules relating to bailment but does not with all types of bailment for which separate acts have been enacted. The carriage of Goods by Sea Act. Typically. The Carrier Act 1865. The process of bailment is not a casual situation where an individual is asked to function as a caretaker for a short period of time.
3. It may be noted that the same goods must be returned in their original form or desired form. bailment between a finder of goods and owner of goods. mean every kind of movable property other than money and actionable claims. Bailment Is Concerned Only With Goods: Goods. 2(7) of the Sale Goods Act. a bailment may be implied by law also. whether as an owner granting temporary care of assets to another individual. goods must be returned in specie though they may undergo a change of form. Great care should be taken before entering into a bailment agreement. A great deal of trust must exist between the owner and the bailee in order for the business relationship to work. 1. or as the person who is being asked to serve as a bailee.the bailment is to ensure that the asset is in good hands. Delivery of assets into the possession of another person is nothing to be taken lightly. It means that the possession of goods must be transferred. as defined in sec. Agreement: There must be an agreement between the bailor and the bailee. Delivery may be actual or constructive. Purpose: The delivery of goods must be for some intended purpose. 2 . Examples of Bailment: A lends a car to B for his driving only without charge. Delivery of goods: There must be delivery of goods. However. 4. A sells a horse to B who leaves the horse in the possession of A. For Example. after the accomplishment of purpose or after the expiry of period of the bailment. Return of Specific Goods: The goods which form the subject matter of a bailment must be returned to the bailor or the bailor or otherwise dispose off according to the directions of the bailor. 1930. Thus. even if the owner is not in a position to manage the asset at the present time. This agreement may be either express or implied. 2.
and separate Sale of Goods Act was passed in 1930. apply to contract of Sale of Goods also. free consent. Compensation from a wrong-doer. this was part of Indian Contract Act itself in chapter VII (sections 76 to 123). Basic requirements of contract i. Basic provisions of Contract Act apply to contract of Sale of Goods also. The hospital authorities are liable for the loss. Right of action against trespassers. 3 . Both cow and calf to be returned back to A. Not to mix the goods bailed with his own goods. Not to set up an adverse title. Return of goods lent gratuitously. lawful object. parties competent to contract. Rights of Bailor and Bailee Enforcement of rights. Not to make any unauthorized use of goods. M was admitted to a hospital where her jewelry was handed over to hospital authorities for safe custody.e. mutual consent. The cow has a calf. Right to apply to court to stop delivery. Delivery of goods to bailor without title.g.g. Initially. legally enforceable agreement. consideration etc. Later these sections in Contract Act were deleted. Delivery of goods to one of several joint bailors of goods. To return any accretion to the goods. 1930 Sale of Goods Act is one of very old mercantile law. A leaves a cow in custody of B to be taken care of. The jewelry was stolen. The Sale of Goods Act is complimentary to Contract Act. Avoidance of contract. offer and acceptance. E. Sale of Goods is one of the special types of Contract. The Sale of Goods Act.Duties of Bailee To take reasonable care of goods bailed e.
transfer of „general property' is required to constitute a sale.if goods are handed over to transporter or godown keeper.“Goods” means every kind of movable property other than actionable claims and money. Similarly. money consideration. [section 4(2)]. and not merely a special property. and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale. grass. if goods remain in possession of seller after sale transaction is over. [Section 2(11)]. e. However. 4 .[section 2(13)]. . if joint owners distribute property among themselves as per mutual agreement. and includes stock and shares. in case of contract of sale of goods. Price . hire purchase or pledge.g. Transfer of possession does not mean transfer of property. If goods are given for hire. „General Property' means „full ownership'.“Property” means the general property in goods. There may be a contract of sale between one partowner and another. „general property' is not transferred and hence it is not a „sale'. A contract of sale may be absolute or conditional. Thus. Consideration is required for any contract. Essential Elements of Contract of Sale Seller and buyer Goods Transfer of general property Price Essential elements of valid contract Sells or agrees to sell goods.“Price” means the money consideration for a sale of goods. Transfer of property .Note that „property' and „possession' are not synonymous.Contract of Sale . A part owner can sale his part to another part-owner. [Section 2(7)]. Possession and property . the „possession' is with seller. [Section 2(10)]. it is not „sale' as there are no two parties.A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. lease. [section 4(1)]. the consideration should be „price' i.e. Goods . However. possession is transferred but „property' remains with owner. growing crops. but „property' is with buyer. In layman's terms „property' means „ownership'.
Similarly. namely. Federal Express. Bailment means only transfer of possession from the bailor to the bailee. Bailment Contract of A Transaction Of A Fedex Company Introduction: FedEx Corporation was founded as FDX Corporation in January 1998 with the acquisition of Caliber System Inc. carriage from one place to another. The provision available in Indian Sale of Act is as follows: 5 .Specific goods in a deliverable state . safe custody. FedEx also acquired World Tariff. FedEx started offering other services besides express shipping. Relating Fedex With The Provisions Available In Indian Sales Of Goods Act. FDX Corporation was founded to oversee all of the operations of those companies and its original air division. In January 2000. less-than-truckload freight carrier serving the Western United States. Caliber subsidiaries included RPS. FedEx acquired Tower Group International. is postponed. by Federal Express. A new subsidiary called FedEx Corporate Services was formed to centralize the sales. Viking Freight. a small-package ground service. Tower Group and World Tariff were rebranded to form FedEx Trade Networks. a provider of airfreight forwarding between the United States and the Caribbean. FDX Corporation changed its name to FedEx Corporation and rebranded all of its subsidiaries. With the purchase of Caliber. or both. marketing. a customs duty and tax Information Company. In February 2000. Roberts Express became FedEx Custom Critical. Caribbean Transportation Services. providers of logistics and technology solutions. Roberts Express. FedEx Express is the bailor and the person for whom courier is made is bailee. RPS became FedEx Ground. This may be for any one of the objects. the property in the goods passes to the buyer when the contract is made. and Caliber Logistics and Caliber Technology. and Caliber Logistics and Caliber Technology were combined to make up FedEx Global Logistics. an international logistics company. and it is immaterial whether the time of payment of the price or the time of delivery of the goods. etc. an expedited shipping provider.Where there is an unconditional contract for the sale of specific goods in a deliverable state. Federal Express became FedEx Express. customer service for all of the subsidiaries. use. [Section 20]. a regional.
During the period of TRANSFER OF PROPERTY FedEx is liable for the any act which may damage the good. FedEx will be one party and courier receiver will be a second party. Delivery of the goods might be immediate or after certain period of time. Property doesn't mean money. How Contract of sale is made Two parties to contract Contract of Sale includes agreement to sale Transfer of property Possession and property Goods Price Conditions and Warranties Acceptance of goods by buyer Auction sale Measure for compensation and damages How Contract Is Made By Fedex? Contract between FedEx and BAILEE is made by another party who has offered FedEx to deliver courier for the BAILEE. In case of FedEx. First person who gives and second person who receives. FedEx will transfer the property from sender to the receiver. A contract by conduct of the parties is only valid in case of FedEx. If goods are given for hire. lease. Two Parties To Contract: There are always two parties in BAILMENT CONTRACT. hire purchase or PLEDGE. Transfer of Property: “Property” means the general property in goods. Only in case of joint owners there might exceed the number of parties. agreed to transfer its possession to another person through the help of FedEx. „general property' is not transferred and hence it is not a „sale'. 6 . and not merely a special property. In this that party who has got the possession of good. They had a relation of BAILOR and BAILEE among them.
Acceptance of Goods By Buyer The duty of Fedex is only completed when the receiver of the courier accepts or receives the courier. growing crops. According to this if Fedex made any mistake and caused courier to be damaged it is the responsibility of the FedEx to pay for that.Possession and Property: Possession and property is two different things. Goods Every kind of MOVABLE PROPERTY comes under the contract of sale. except some special properties like stock and shares. FedEx charges money according to the weight of the courier. Fedex also delivers all kind of movable properties. It means checking the goods to ascertain whether they are as per contract. the Sale of Good act also supports this view. Conditions and Warranties CONDITIONS AND WARRANTIES is another provision provided by the sales of good act. Contract is not complete without the consideration so. Where goods are delivered to the buyer which he has not previously examined. „Acceptance' does not mean mere receipt of goods. Contract of Sale is completed not by mere delivery of goods but by acceptance of goods by buyer. grass. If the courier is damaged than it may lead to breach of contract until the compensation is paid. When FedEx get the goods to be delivered possession of good will be changed to the FedEx but not the property or the ownership is changed. Price Consideration for the DELIEVERY OF GOOD IS MONEY. 7 . he is not deemed to have accepted them unless and until he has had a reasonable opportunity of examining them for the purpose of ascertaining whether they are in conformity with the contract. sales of good act have declared money as a consideration for the work that FedEx does. and things attached to or forming part of the land.
All the provisions including duties of bailor and bailee has been related with provisions provided by the Sale of Good Act. while the recipient of the assets is known as the bailee. The person who delivers the asset is usually known as the bailor. Being a commercial company Fedex will provide compensation after examining the loss bared by the buyer/seller. It helps both bailor and bailee to solve problems which may arise during the course of fulfilment contract. FedEx is a courier company which deals with bailor and bailee. [Section 4(2)] are provision of contract which should be fallowed while dealing with bailment contract. Bailment is the process of making delivery of an asset or other type of property. Conclusion Indian sales of good act which mean a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. this type of transaction involves the owner of the assets choosing to temporarily place them in the control of another individual. Generally. Measure for Compensation and Damages According to the sale of good act there is no any special provision for measuring the compensation of the damages. [Section 4(1)]. There may be a contract of sale between one partowner and another.Auction Sale According to the sale of good act if the delivery was not successful because of without any fault of Fedex than Fedex have to try to return that good to it owner but owner is unknown or good is going to be damage than Fedex is legible to sale it through auction after making public announcement. The conclusion is some of the provision provided by Sale of Good Act is not followed by the FedEx company and it has also made it few additional provisions to attract customers. A contract of sale may be absolute or conditional. 1930. It helps to know basic requirement during the process of bailment contract. 8 .
had been receiving. Penfolds asserted that: (1) Elliott's activities described in (a) above involved an assumption of dominion over the bottles which amounted to conversion. Penfolds sought an injunction to have the practice stopped. Elliott was a licensed hotelier carrying on business at an hotel in NSW. collecting and handling their embossed bottles. Two of these filled bottles were delivered to Elliott's brother. using them in connection with his business and delivering to his customers liquids not manufactured or marketed by Penfolds. The bottles were not sold to Moon. Penfolds asserted that Elliott. Nicholas CJ found that (a) Elliott filled two of Penfolds' bottles with wine other than Penfolds' wine and delivered them to Moon for a sum of 8 shillings.Penfold Wines Pty Ltd v Elliott (1946) 74 CLR 204 Date of Judgment: 25 November 1946 Facts Penfolds Wines Pty Limited ("Penfolds") was a wine producer and seller. that they always remained the property of Penfolds. (c) Elliott did not sell Penfolds' bottles. and (2) Elliott's activities described in (b) above amounted to a use of the bottles inconsistent with the terms of delivery of the bottles. Through embossing on their bottles and notations on their invoices Penfolds informed all those in possession of its bottles that they were to be used only for the purposes of retailing and consumption of Penfold's wines and further. 9 . Trial Judge's Decision At the trial. (b) Elliott had for years and once subsequently filled Penfolds' bottles with non Penfolds' wine. without its consent.
and such a person has no right to authorize any other person to use them for any other purpose (at 213). By the terms of the bailment. The delivery of bottles by Elliott's brother to Elliott to have them filled with wine other than Penfolds' was in breach of the express terms of the bailment. the bailee was not entitled to use the bottles for another purpose than once only for retailing. 10 . The High Court The High Court comprised Latham CJ. and at that point the bailor has an immediate right to possession. His honour refused to order an injunction because there was inadequate evidence that Elliott intended to sell the bottles or to keep them if asked by Penfolds to return them. Latham CJ Penfolds' branded bottles were bailed to persons who received them. Issue/s on Appeal Penfolds appealed to the High Court seeking an injunction.The trial judge found that Elliott's conduct amounted to a trespass to goods. Dixon. A bailment is determined by any act of the bailee which is wholly repugnant to the holding as bailee. McTiernan and Williams JJ. consuming or using the plaintiff's wine contained in the bottles. This ended the bailment and Penfolds as bailor acquired an immediate right to possession of the bottles (at 214). Starke.
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