BANKING AFFAIRS

Detailed explanation-1: -The legal relationship that arises in case of safe custody/deposit is that of bailment. The customer, who deposits the things in the box for safe custody with the bank, becomes the ‘bailor’, and the bank becomes the ‘bailee’.

Detailed explanation-2: -The person to whom they are delivered is called the “bailee’. Explanation : If a person already in possession of the goods of another contract to hold them as a bailee, he thereby becomes the bailee, and the owner becomes the bailor of such goods, although they may not have been delivered by way of bailment.

Detailed explanation-3: -The bailee, who is also called a custodian, is entrusted with the possession of the good or property by another individual known as the bailor. This relationship, referred to in legal terms as a bailment, is based on a contractual agreement between the bailor and the bailee.

Detailed explanation-4: –A ‘bailment’ is 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 disposed of according to the directions of the person delivering them. The person delivering the goods is called the ‘bailor’.

Detailed explanation-5: -Trustee and Beneficiary relationship-The banker assumes the position of a trustee when he accepts securities or valuables from the customer for safe custody. The articles deposited with the bank for safe custody continue to be owned by the customer.