Last Updated on: 16th January 2025, 03:25 pm
Bailment and Pledge- Multiple Choice Questions
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1. The term “Bailment” means
A. A delivery of a thing entrusted for some special purpose or object upon a contract
B. Delivery of goods free of cost
C. Delivery of goods without cost for welfare of public
D. None of above
Central Intent of the Question is : To understand the definition of bailment as per the Indian Contract Act.
Options Analysis:
A. Correct. Bailment involves the delivery of goods for a specific purpose under a contract, with an obligation to return them.
B. Incorrect. Delivery free of cost does not constitute bailment unless there is a purpose or a contract.
C. Incorrect. This option confuses bailment with charity or public welfare.
D. Incorrect. Option A is valid.
Correct Option is – A : Bailment fundamentally involves a contract for temporary delivery of goods for a specific purpose.
2. The delivery of goods by one person to another for some purpose upon a contract that they shall when the purpose is accomplished be returned or otherwise dispose of upon discretion of the delivering person the contract is called
A. Indemnity
B. Bailment
C. Contingent Contract
D. None of above
Central Intent of the Question is : To identify the nature of the contract involving delivery of goods for a purpose.
Options Analysis:
A. Incorrect. Indemnity is about compensation for losses, not delivery of goods.
B. Correct. Bailment involves temporary delivery for a specified purpose under a contract.
C. Incorrect. Contingent contracts depend on uncertain future events, unrelated to bailment.
D. Incorrect. Option B defines the term.
Correct Option is – B: Bailment is explicitly defined as delivery of goods for a purpose, under the Indian Contract Act.
3. In pledge contract, bailee is called
A. Pawnor
B. Pawnee
C. Pledger
D. None of above
Central Intent the Question is : To identify the party to whom goods are delivered as security under a pledge.
Options Analysis:
A. Incorrect. The pawnor is the bailor in a pledge, not the bailee.
B. Correct. The pawnee is the bailee in a pledge, who holds goods as security.
C. Incorrect. “Pledger” is not a formal legal term.
D. Incorrect. Option B correctly identifies the bailee.
Correct Option is – B : The pawnee holds possession of goods until the obligation is fulfilled.
4. In pledge, bailor is called
A. Pawnor
B. Pawnee
C. Both (a) and (b)
D. None of above
Central Intent of the Question is :To determine the correct term for the bailor in a pledge contract.
Options Analysis:
A. Correct. The pawnor is the bailor in a pledge, delivering goods as security.
B. Incorrect. The pawnee is the bailee in this context.
C. Incorrect. Both cannot apply simultaneously; the roles are distinct.
D. Incorrect. Option A defines the correct party.
Correct Option is – A : In a pledge, the bailor is legally referred to as the pawnor.
5. The Bailment of goods as security for payment of a debt or performance of a promise is called:
A. Pledge
B. Bailment
C. Contingent contract
D. Agreement
Central Intent of the Question is :To identify the type of bailment that involves goods as security.
Options Analysis:
A. Correct. A pledge is a specific bailment for securing payment or performance.
B. Incorrect. Bailment is the overarching concept; pledge is a subset.
C. Incorrect. Contingent contracts involve future events and are unrelated here.
D. Incorrect. Option A is specific and accurate.
Correct Option is – A : A pledge is defined as a bailment for security, under Indian Contract Act 1872.
6. Bailment means ………..
(a) temporary delivery of goods
(b) permanent delivery of goods
(c) part delivery of goods
(d) None
Central Intent of the Question is :To determine the nature of delivery in a bailment.
Options Analysis:
(a) Correct. Bailment involves temporary delivery of goods for a purpose under a contract.
(b) Incorrect. Permanent delivery negates the concept of bailment.
(c) Incorrect. Part delivery isn’t essential to bailment.
(d) Incorrect. Option A is precise.
Correct Option is – (a) : Bailment is always temporary and conditional.
7. In the contract of bailment the person delivering the goods is called ………
(a) bailor
(b) bailee
(c) seller
(d) agent
Central Intent of the Question is :To identify the person delivering goods in a bailment.
Options Analysis:
(a) Correct. The bailor is the party delivering goods.
(b) Incorrect. The bailee receives the goods.
(c) Incorrect. A seller transfers ownership, not possession.
(d) Incorrect. An agent acts on behalf of a principal.
Correct Option is – (a): The bailor delivers goods under the terms of a bailment contract.
8. Lien means ………..
(a) to retain goods in his possession
(b) rights to sell the goods
(c) right to purchase the goods
(d) right to destroy the goods
Central Intent of the Question is :To define the concept of lien under bailment.
Options Analysis:
(a) Correct. Lien is the right to retain goods until a debt or obligation is discharged.
(b) Incorrect. Selling goods falls outside the scope of lien.
(c) Incorrect. Purchasing goods is unrelated to lien.
(d) Incorrect. Destroying goods violates bailment terms.
Correct Option is – (a) : Lien secures the bailee’s interest until obligations are met.
9. When goods are lent to a person to be used by him on free of cost. That is ……….. contract.
(a) comodatum
(b) pawn
(c) hire
(d) gift
Central Intent of the Question is :To identify the type of contract where goods are lent free of cost.
Options Analysis:
(a) Correct. Commodatum refers to a type of gratuitous bailment where goods are loaned for temporary use without charge.
(b) Incorrect. A pawn (pledge) is bailment for security, not a free loan.
(c) Incorrect. A hire involves consideration, contrary to the scenario described.
(d) Incorrect. A gift does not involve the return of goods, unlike bailment.
Correct Option is – (a) : Commodatum is explicitly a gratuitous loan of movable property.
10. The person to whom goods are delivered temporally is ………
(a) baliee
(b) bailor
(c) purchaser
(d) user
Central Intent of the Question is :To identify the party receiving goods in a bailment.
Options Analysis:
(a) Correct. The bailee temporarily receives goods under the bailment agreement.
(b) Incorrect. The bailor is the deliverer, not the recipient.
(c) Incorrect. A purchaser acquires ownership, not temporary possession.
(d) Incorrect. A user is too generic to describe the legal relationship.
Correct Option is – (a): The bailee is legally defined as the recipient of goods in bailment.
11. When a transaction of Bailment comes to an end, the duty of transfer the goods lies upon:
(a) Bailee
(b) Bailor
(c) Bailment
(d) Person
Central Intent of the Question is :To determine who is responsible for returning goods when bailment concludes.
Options Analysis:
(a) Correct. The bailee is responsible for returning goods as per the terms of the bailment.
(b) Incorrect. The bailor is the owner and does not bear this responsibility.
(c) Incorrect. Bailment itself is not a person but a legal relationship.
(d) Incorrect. This option is too vague.
Correct Option is – (a) : The bailee has a statutory obligation to return goods upon fulfillment of the purpose of bailment.
12. Commodatum is a one type of Bailment in which ………..
(a) no consideration is charged
(b) consideration is charged
(c) reimbursement of severance of expenses is included behind the assets
(d) none of these
Central Intent of the Question is :To define a specific kind of bailment called commodatum.
Options Analysis:
(a) Correct. Commodatum involves no consideration, making it a gratuitous bailment.
(b) Incorrect. Charging consideration contradicts the concept of commodatum.
(c) Incorrect. Reimbursement of expenses does not define commodatum.
(d) Incorrect. Option A is correct.
Correct Option is – (a).: In law, commodatum is a legal contract that refers to a free loan of movable or immovable property to be used and returned by the borrower.
13. The bailor is bound to disclose to the bailee ……….
(a) faults of the goods
(b) price of goods
(c) weight of goods
(d) owner of goods
Central Intent of the Question is :To determine the obligations of the bailor under bailment.
Options Analysis:
(a) Correct. The bailor must disclose any faults in the goods that could impact the bailee’s use.
(b) Incorrect. Price is irrelevant to bailment unless it involves a sale.
(c) Incorrect. Weight is incidental and not a mandatory disclosure.
(d) Incorrect. Ownership may not always need disclosure in bailment.
Correct Option is – (a): disclosure of Faults protects the bailee and aligns with the bailor’s duty of care.
14. The finder of goods has right of ………
(a) lien
(b) purchase
(c) succession
(d) none
Central Intent of the Question is :To identify the legal rights of a finder of goods.
Options Analysis:
(a) Correct. The finder of goods has a lien, allowing them to retain goods until reasonable expenses are reimbursed.
(b) Incorrect. The finder does not have the right to purchase the goods.
(c) Incorrect. Succession rights are unrelated.
(d)Incorrect. Option A correctly identifies the finder’s right.
Correct Option is – (a) : Lien ensures fair treatment for the finder.
15. A finder of goods is subject to the same responsibility as that of a ……..
(a) bailee
(b) bailor
(c) surety
(d) purchaser
Central Intent of the Question is :To identify the finder’s responsibilities.
Options Analysis:
(a) Correct. The finder is treated as a bailee and must take reasonable care of the goods.
(b) Incorrect. The bailor delivers goods and has distinct obligations.
(c) Incorrect. Suretyship involves a guarantee, not possession of goods.
(d) Incorrect. A purchaser has ownership, unlike a finder.
Correct Option is – (a) : Contract Act equates the finder’s duties to those of a bailee.
16. The bailment of goods as security for payment of a debt is called ………
(a) pledge
(b) bailment
(c) mortgage
(d) none of these
Central Intent of the Question is :To identify the specific type of bailment related to debt security.
Options Analysis:
(a) Correct. A pledge is a bailment where goods are security for repayment.
(b) Incorrect. Bailment is for all general purpose, while pledge is specific for security for payment.
(c) Incorrect. Mortgage involves immovable property, unlike bailment.
(d) Incorrect. Option A is correct.
Correct Option is – (a) : Pledge is a security for payment of debt
17. The bailment of goods as security for performance of a promise is called
(a) pledge
(b) bailment
(c) mortgage
(d) None of these
Central Intent of the Question is :To determine the bailment type based on performance security.
Options Analysis:
(a) Correct. A pledge applies to securing debt repayment and promise performance.
(b) Incorrect. Bailment is the broader category.
(c) Incorrect. Mortgage pertains to immovable property.
(d) Incorrect. Option A is correct.
Correct Option is – (a) : Apart from security for payment of debt, pledge extends to promises.
18. The pledge is a contract of ………..
(a) bailment
(b) agency
(c) guarantee
(d) mortgage
Central Intent of the Question is :To classify a pledge within legal categories.
Options Analysis:
(a) Correct. Pledge is a specific type of bailment for security.
(b) Incorrect. Agency is unrelated to security or possession.
(c) Incorrect. Guarantee involves promises, not possession of goods.
(d) Incorrect. Mortgage involves immovable property.
Correct Option is – (a) : Pledge is legally defined as a contract of bailment.
19. An agreement reached between a bailer and a bailee is
a) Mortgage
b) Bailout
c) Bailment
d) Codicil
Central Intent of the Question is :To name the legal agreement between a bailor and a bailee.
Options Analysis:
(a) Incorrect. Mortgage pertains to immovable property.
(b) Incorrect. Bailout has no legal relevance here.
(c) Correct. Bailment describes the agreement between bailor and bailee.
(d) Incorrect. Codicil applies to wills.
Correct Option is – (c) : Bailment specifically governs such transactions.
20. In general all of the following are requirement for a bailment; except that the:
a) Bailor must be in possession of goods
b) Bailee must intent to possess goods
c) Bailee must return identical goods
d) Actual ownership of goods is necessary
Central Intent of the Question is :To identify non-essential elements of bailment.
Options Analysis:
(a) Correct. The bailor must possess the goods to deliver them.
(b) Correct. The bailee must intend to possess the goods.
(c) Correct. Identical goods must be returned, except in cases like fungibles.
(d) Incorrect. Ownership is not mandatory; possession suffices.
Correct Option is – (d) : Bailment only requires possession, not ownership.
21. A person who finds the goods belonging to others, and takes them into his possession is called
Intent of the Question: The question asks about the person who finds lost goods and takes possession of them. This involves identifying the correct legal term associated with such an individual.
Options Breakdown:
- a) Bailee: Incorrect. A bailee is someone who receives goods from the bailor (owner) to hold or deal with for a particular purpose, such as for storage, repair, or transportation.
- b) Bailor: Incorrect. A bailor is the person who delivers goods for a specific purpose (e.g., for storage, repair) but does not find lost goods.
- c) Pledgor: Incorrect. A pledgor is a person who pledges goods as collateral for a debt, not someone who finds lost property.
- d) Pawnee: Incorrect. A pawnee is someone who receives goods from a pawnor (borrower) as security for a loan.
Conclusion: The correct answer is a) Bailee, as the finder of goods temporarily takes possession of them for safekeeping, similar to how a bailee handles goods for a specific purpose.
22. Which are the rights of finder of goods ?
a) Rights of lien
b) Right to sue for reward
c) Right to sale
d) All of the above
Intent of the Question: The question seeks to identify the rights of a person who finds goods that belong to someone else.
Options Breakdown:
- a) Rights of lien: Correct. The finder has a right to a lien, meaning they can retain possession of the goods until a reward or compensation is paid.
- b) Right to sue for reward: Correct. If a reward is advertised for the return of the lost goods, the finder has the right to claim it.
- c) Right to sale: Correct. The finder has the right to sell the goods if they are not claimed within a reasonable period, especially if the goods are perishable.
- d) All of the above: Correct. All the options listed above are rights the finder of goods possesses.
Conclusion: The correct answer is d) All of the above, as all of these rights apply to the finder of lost goods.
23. The bailment of goods as security for payment of a debt or performance of a promise
a) Pledge
b) Lien
c) Agency
d) Bailment
Intent of the Question: This question is asking about the term used for the bailment of goods when they are used as security for a debt or promise.
Options Breakdown:
- a) Pledge: Correct. A pledge involves the transfer of possession of goods as security for a debt or performance of an obligation.
- b) Lien: Incorrect. A lien involves the right to retain possession of goods until a debt is settled, but it does not refer to the transfer of goods as security.
- c) Agency: Incorrect. Agency refers to a relationship where one person acts on behalf of another, not the use of goods as security.
- d) Bailment: Incorrect. Bailment refers to the transfer of goods for a specific purpose (like repair or storage) but does not specifically involve using them as security for a debt.
Conclusion: The correct answer is a) Pledge, as it specifically involves the transfer of goods for security purposes.
24. Pledgee is also known as
a) Pawnee
b) Pawnor
c) Principal
d) Agent
Intent of the Question: The question asks for the other name for the person who receives goods as security for a debt, i.e., the pledgee.
Options Breakdown:
- a) Pawnee: Correct. The pledgee is also known as the pawnee, as they are the party who receives goods as collateral in a pledge agreement.
- b) Pawnor: Incorrect. The pawnor is the person who pledges goods, not the one receiving them.
- c) Principal: Incorrect. The principal typically refers to someone who gives instructions to an agent in an agency relationship.
- d) Agent: Incorrect. An agent acts on behalf of another, but a pledgee is not an agent in this context.
Conclusion: The correct answer is a) Pawnee, as the person receiving the goods as collateral in a pledge is called the pawnee.
25. Pledgor is also known as
a) Pawnor
b) Pawnee
c) Bailor
d) Agent
Intent of the Question: The question asks for the alternative name for the person who pledges goods as security for a debt, i.e., the pledgor.
Options Breakdown:
- a) Pawnor: Correct. The pledgor is also called the pawnor, as they are the one who pledges goods as collateral.
- b) Pawnee: Incorrect. The pawnee is the person who receives the goods as security, not the one pledging them.
- c) Bailor: Incorrect. A bailor is the person who gives goods for a specific purpose (like storage or repair), not as collateral.
- d) Agent: Incorrect. An agent represents another person, but the pledgor does not represent anyone else in the context of a pledge.
Conclusion: The correct answer is a) Pawnor, as the person pledging the goods is known as the pawnor.
26. The term bailment is derived from a French word “bailor”, which means:
a) Depends
b) Deliver
c) Selling
d) Buying
Intent of the Question: The question asks for the meaning of the French word from which “bailment” is derived.
Options Breakdown:
- a) Depends: Incorrect. This is not the meaning of “bailor” in French.
- b) Deliver: Correct. “Bailor” comes from the French word “bailler,” which means “to deliver.”
- c) Selling: Incorrect. “Bailor” does not mean “selling.”
- d) Buying: Incorrect. “Bailor” refers to the act of delivering, not buying.
Conclusion: The correct answer is b) Deliver, as “bailor” is derived from the French word for “to deliver.”
27. The person delivering the goods for achieving some purpose and returned the same after completion is called
a) Bailee
b) Pledgee
c) Bailor
d) Agent
Intent of the Question: The question asks about the individual who delivers goods for a specific purpose and expects them to be returned after the purpose is fulfilled.
Options Breakdown:
- a) Bailee: Incorrect. The bailee receives the goods, not delivers them.
- b) Pledgee: Incorrect. The pledgee receives goods as security for a debt, not for a temporary purpose.
- c) Bailor: Correct. The bailor is the person who delivers the goods for a specific purpose (e.g., repair, storage), expecting them to be returned.
- d) Agent: Incorrect. An agent acts on behalf of another person, but they are not delivering goods for a specific purpose.
Conclusion: The correct answer is c) Bailor, as the person who delivers goods for a specific purpose is called the bailor.
28. The person who delivered the goods for bailment process is called
a) Bailee
b) Bailor
c) Pawnor
d) Pawnee
Intent of the Question: This question is asking about the person who delivers goods in a bailment relationship.
Options Breakdown:
- a) Bailee: Incorrect. The bailee is the one who receives the goods, not the one delivering them.
- b) Bailor: Correct. The bailor is the person who delivers the goods for a specific purpose.
- c) Pawnor: Incorrect. A pawnor is the person who pledges goods as collateral for a debt.
- d) Pawnee: Incorrect. A pawnee is the person who receives goods as security for a debt.
Conclusion: The correct answer is b) Bailor, as the person who delivers goods in a bailment relationship is called the bailor.
29. When No consideration passes between the bailor and bailee, it is called
a) Non gratuitous bailment
b) Gratuitous bailment
c) Special bailment
d) Conditional bailment
Intent of the Question: This question is asking about the term used to describe a bailment in which no payment or compensation (consideration) is exchanged between the bailor and bailee.
Options Breakdown:
- a) Non gratuitous bailment: Incorrect. Non-gratuitous bailment involves some form of consideration or payment for the services rendered.
- b) Gratuitous bailment: Correct. A gratuitous bailment occurs when there is no consideration, i.e., the goods are bailed for free, typically for the benefit of the bailor.
- c) Special bailment: Incorrect. Special bailment refers to specific types of bailment agreements, typically involving specific conditions, and not specifically about consideration.
- d) Conditional bailment: Incorrect. Conditional bailment involves the agreement being subject to certain conditions but does not necessarily imply the absence of consideration.
Conclusion: The correct answer is b) Gratuitous bailment, as this refers to a bailment where no consideration is exchanged between the parties.
30. Choose the correct one; Duties of bailor
a) To return the goods
b) To disclose known faults
c) Not to set up an adverse title
d) To return any accretion to the goods
Intent of the Question: This question is focused on identifying the duties of the bailor in a bailment relationship.
Options Breakdown:
- a) To return the goods: Incorrect. The duty to return the goods lies with the bailee, not the bailor.
- b) To disclose known faults: Correct. One of the key duties of the bailor is to disclose any known defects in the goods being bailed, to protect the bailee.
- c) Not to set up an adverse title: Incorrect. This duty is more related to the principle that the bailor should not interfere with the bailee’s possession of the goods, but it’s not a primary duty related to disclosure of faults.
- d) To return any accretion to the goods: Incorrect. While this is a duty of the bailee, it is not the primary duty of the bailor.
Conclusion: The correct answer is b) To disclose known faults, as this is a critical duty of the bailor to protect the bailee from harm.
31. Right of a person to retain possession of some goods belonging to another until some debts of the person in possession is satisfied
a) Pledge
b) Bailment
c) Lien
d) Guarantee
Intent of the Question: This question seeks to identify the legal term that describes the right of a person to hold onto goods to ensure a debt is paid.
Options Breakdown:
- a) Pledge: Incorrect. A pledge involves transferring possession of goods as security for a debt, but the question refers to retaining goods to satisfy a debt already owed, which is a lien.
- b) Bailment: Incorrect. Bailment refers to the temporary transfer of possession of goods for a specific purpose, not the right to retain goods for debt.
- c) Lien: Correct. A lien is the legal right to retain possession of goods until a debt owed by the owner of the goods is settled.
- d) Guarantee: Incorrect. A guarantee involves a promise to pay someone else’s debt, not a right to retain possession of goods.
Conclusion: The correct answer is c) Lien, as it refers to the right to retain goods until a debt is satisfied.
32. A gives B two suitcases to store for him while he is at a meeting. What is the correct relationship between A and B.
a) A is the bailee and B is the bailor
b) A is the bailor and B is the bailee
c) A and B are both bailees
d) A and B are both Bailor
Intent of the Question: This question seeks to identify the relationship between two parties involved in the storage of goods, which falls under the concept of bailment.
Options Breakdown:
- a) A is the bailee and B is the bailor: Incorrect. The bailee is the person who receives the goods, not the one who gives them.
- b) A is the bailor and B is the bailee: Correct. A is the bailor because A delivers the suitcases, and B is the bailee because B receives and stores them.
- c) A and B are both bailees: Incorrect. One must be the bailor and the other the bailee, not both.
- d) A and B are both Bailor: Incorrect. Only one party can be the bailor in a bailment relationship.
Conclusion: The correct answer is b) A is the bailor and B is the bailee, as A delivers the goods, and B stores them.
33. Which of the following is not an example of bailment
a) A coat check
b) Valet parking
c) Dry cleaning
d) A gift given on birthday
Intent of the Question: This question is asking to identify the scenario that does not involve bailment, i.e., the transfer of goods for a specific purpose.
Options Breakdown:
- a) A coat check: Incorrect. A coat check is a typical example of bailment, where goods are left in someone’s care for a specific purpose (in this case, safekeeping).
- b) Valet parking: Incorrect. This is an example of bailment, where a person’s car is entrusted to another for parking.
- c) Dry cleaning: Incorrect. When clothes are sent to dry cleaners, it is an example of bailment, as the cleaner temporarily possesses the clothes for a purpose (cleaning).
- d) A gift given on birthday: Correct. A gift does not involve a transfer of possession for a specific purpose, which is a defining characteristic of bailment.
Conclusion: The correct answer is d) A gift given on birthday, as a gift does not qualify as a bailment because it does not involve temporary possession for a specific purpose.
34. An example of bailment without a contract is ——
a) Giving a vehicle in a workshop for repair
b) Giving something in courier
c) Finder of the lost goods
d) None of these.
Intent of the Question: This question seeks to identify an example of bailment where there is no formal agreement (contract) between the parties involved.
Options Breakdown:
- a) Giving a vehicle in a workshop for repair: Incorrect. This typically involves a contract where the vehicle owner and the workshop agree on terms for the repair services.
- b) Giving something in courier: Incorrect. Sending goods via a courier typically involves a contract between the sender and the courier company.
- c) Finder of the lost goods: Correct. Finding and temporarily keeping lost goods involves a form of bailment that arises without any formal contract between the finder and the owner.
- d) None of these: Incorrect. An example exists where no contract is involved, as noted above.
Conclusion: The correct answer is c) Finder of the lost goods, as this situation involves bailment without any formal contract.
35. A finder of goods is
a) Entitled to retain the goods
b) Entitled to claim compensation when specific reward is offered
c) Not entitled to claim compensation and thus not entitled to retain the goods
d) Both (A) and (B)
Intent of the Question: The question is asking about the rights of a finder of lost goods in a bailment context.
Options Breakdown:
- a) Entitled to retain the goods: Incorrect. The finder is not automatically entitled to retain the goods without the possibility of returning them to the rightful owner or claiming a reward.
- b) Entitled to claim compensation when a specific reward is offered: Correct. The finder can claim compensation if a reward is specifically promised for returning the goods.
- c) Not entitled to claim compensation and thus not entitled to retain the goods: Incorrect. The finder does have a right to compensation in case of a reward being offered.
- d) Both (A) and (B): Correct. The finder of goods can retain possession of the goods under certain circumstances (e.g., if they are entitled to a reward), which aligns with both options (a) and (b).
Conclusion: The correct answer is d)implying Both the options (A) and (B), as the finder can retain goods if entitled to a reward, and may also claim compensation for returning the goods.
36. Which of the following are the rights of bailee?
a) Right of indemnity
b) Right of remuneration
c) Right of lien
d) All the above.
Intent of the Question: This question is asking about the legal rights that a bailee has in a bailment relationship.
Options Breakdown:
- a) Right of indemnity: Correct. The bailee has a right to indemnity if they incur any losses due to the bailor’s failure to provide proper instructions or safe goods.
- b) Right of remuneration: Correct. If there is an agreement for remuneration, the bailee has the right to be paid for their services.
- c) Right of lien: Correct. The bailee has the right to retain the goods until they are compensated for their services or expenses.
- d) All the above: Correct. All of these rights—indemnity, remuneration, and lien—are rights that a bailee possesses in a bailment arrangement.
Conclusion: The correct answer is d) All the above, as all listed rights are valid rights of a bailee.
37. Which of the following are the rights of bailor?
a) Right to demand restoration of goods
b) Right to get increase or profit from goods bailed
c) Right to sue the bailee for the enforcement of the duties imposed upon a bailee
d) All the above.
Intent of the Question: This question is focused on the rights of the bailor in a bailment relationship.
Options Breakdown:
- a) Right to demand restoration of goods: Correct. The bailor has the right to ask for the return of the goods once the purpose of the bailment is completed.
- b) Right to get increase or profit from goods bailed: Correct. The bailor is entitled to any increase or profit derived from the bailed goods unless agreed otherwise.
- c) Right to sue the bailee for the enforcement of the duties imposed upon a bailee: Correct. The bailor can take legal action against the bailee if the bailee does not fulfill their duties under the bailment contract.
- d) All the above: Correct. All of the listed rights are rights of the bailor in a bailment relationship.
Conclusion: The correct answer is d) All the above, as all the rights listed apply to the bailor.
38. Which of the following is not an example of bailment?
a) Giving clothes for dry-cleaning
b) Keeping property in mortgage
c) Giving clothes for tailoring
d) Giving book for reading
Intent of the Question: The question asks to identify which scenario is not a typical example of bailment, where goods are temporarily entrusted to another for a specific purpose.
Options Breakdown:
- a) Giving clothes for dry-cleaning: Incorrect. This is a common example of bailment because the clothes are entrusted to the cleaner for a specific purpose (cleaning).
- b) Keeping property in mortgage: Correct. A mortgage is not a bailment, as it involves the transfer of ownership interest as collateral for a debt, not a temporary transfer of possession.
- c) Giving clothes for tailoring: Incorrect. This is an example of bailment because the clothes are entrusted to the tailor for a specific purpose (alteration).
- d) Giving book for reading: Incorrect. Giving a book to someone to read can be an example of bailment as long as the person temporarily holds the book for a particular purpose.
Conclusion: The correct answer is b) Keeping property in mortgage, as a mortgage does not involve a bailment relationship.
39. ———- entitles the bailee to retain those goods of the bailor for a general balance of the account.
a) Particular lien
b) General lien
c) Ownership
d) Pledge
Intent of the Question: This question is asking about a legal right that allows a bailee to retain possession of goods in order to satisfy a general balance of account.
Options Breakdown:
- a) Particular lien: Incorrect. A particular lien gives the bailee the right to retain possession of specific goods to secure payment for a particular debt related to those goods.
- b) General lien: Correct. A general lien allows the bailee to retain all goods in their possession, regardless of the specific debt, until the general balance of accounts is paid.
- c) Ownership: Incorrect. Ownership involves the legal title to goods, but it does not give the right to retain goods for a balance of accounts.
- d) Pledge: Incorrect. A pledge involves goods being provided as security for a debt, but it is not related to retaining goods for a general balance of account.
Conclusion: The correct answer is b) General lien, as it allows a bailee to retain possession of goods to settle a general balance of accounts.
