Bailment

Masum, Ahmad and Arowosaiye, Yusuf Ibrahim and Ali Mohamed, Ashgar Ali and Ahmad, Muhamad Hassan (2025) Bailment. In: Business and Commercial law in Malaysia. LexisNexis Malaysia Sdn Bhd, Kuala Lumpur, pp. 383-412. ISBN 978-629-7669-88-5

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Abstract

[10-1] There are many cases of bailment in our day-to-day life. For example, in a case of a car repair in a car workshop, the owner of the car leaves his car with the mechanic to be repaired. Once the car is repaired, the mechanic returns the car to the owner after being paid for the cost of repairing the car. The owner of the car places the mechanic in temporary possession of his car for a specific purpose, and there is an express or implied understanding between the two to return the car once the purpose has been fulfilled. A bailment is a special contract defined under section 101 of the Contracts Act 1950 (Act 136). A bailment relationship can happen because of a variety of reasons. For example, giving a thing for repairing, leaving ornaments in the possession of a neighbour when you go somewhere else, delivering garments with dry cleaning, and even leaving a cycle or car in a privately owned stand are examples of bailment. The person who delivers the goods is known as the bailor. The person to whom the goods are given is known as bailee; and the property bailed is known as bailed property. Bailment is a special type of contract found in sections 101–134 of the Contracts Act 1950. This chapter intends to address the topic of bailment from the perspective of business law in Malaysia by mainly focusing on its operation as a concept in the business world. Therefore, it is crucial to note from the very beginning that bailment as a concept in the business world consists of the delivery of goods, ie, movable property, by one person, who is generally the owner thereof, to another person for some purpose. It would therefore suffice to note that bailment is a possessory relationship by which the bailor parts with possession of a chattel to a bailee. Hence, the bailor parts with possession of his goods, not his ownership thereof. Having said that, it is crucial to note that bailment of goods is different from the sale of goods, as bailment is involved with the transfer of possession while the sale is involved with the transfer of ownership.

Item Type:	Book Chapter
Uncontrolled Keywords:	BAILMENT
Subjects:	K Law > K Law (General) K Law > K1001 Commercial Law K Law > K600 Private Law
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Ahmad Ibrahim Kulliyyah of Laws > Department of Civil Law Ahmad Ibrahim Kulliyyah of Laws
Depositing User:	Dr Ashgar Ali Ali Mohamed
Date Deposited:	14 May 2025 16:46
Last Modified:	14 May 2025 16:46
URI:	http://irep.iium.edu.my/id/eprint/120920

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