BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A gratuitous bailment exists for the sole benefit of the bailor.
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A gratuitous bailment exists for the sole benefit of the bailee.
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A mutual-benefit bailment exists for the benefit of both parties.
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No bailment has been created.
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Detailed explanation-1: -Leaving your car with a valet is a common form of bailment, while parking in an unattended garage is a lease or the license of a parking space, as the garage cannot show intent to possess the car. Bailment is distinct from leasing, where ownership remains with the lessor but the lessee is allowed to use the property.
Detailed explanation-2: -(For example, if a car is stored in a parking garage where the garageman will receive a fee for parking, this is a bailment for the mutual benefit of the bailor and bailee since it serves the purposes of both.
Detailed explanation-3: -The bailment of goods as security for payment of a debt or performance of a promise is called “pledge". The bailor is in this case called the “pawnor". The bailee is called the “pawnee".
Detailed explanation-4: -Broadly, the transfer of possession (and not ownership) of goods by the owner (the bailor) to another person (the bailee) so that they might be used for a specified purpose on condition that they are returned to, or in accordance with the instructions of, the bailor, or kept until he reclaims them.