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1 Found helpful • 21 Pages • Complete Study Notes • Year: Pre-2021
Nature of Bailment Bailment is the term applied to the situation where goods are placed in the possession of another for a finite (limited) term upon agreement that the goods will be returned. ***What is bailment:*** A bailment is a delivery of goods from one person (bailor) to another (bailee) on a condition, either expressly or impliedly, that when the purpose for which the goods were bailed has been fulfilled, the goods will be returned to the bailor or delivered according to their instructions. (Hobbs v Petersham Transport Co Pty Ltd 1971). Therefore, to constitute a bailment there must be a transfer of possession of the goods from one person to another person without any intention on the part of the bailor to transfer the ownership of the goods to the bailee. Transferring goods from one area to another is considered a bailment for reward (Blower v The Great Western Railway Co 1872) A person who undertakes that he will carry goods is not a bailee of them unless they be actually delivered to and received by him (Hobbs).
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