2.

Delivery should be upon contract Delivery of goods should be made for some purpose and upon a
contract that when the purpose is accomplished the goods shall be returned to the bailor. When a
person's goods go into the possession of another without any contract, there is no bailment within
the meaning of its definition in Section 148.

A well-known illustration is the decision of the Allahabad High Court in Ram Gulam v Govt of U.P."

The plaintiff's ornaments, having been stolen, were recovered by the police and, while in police
custody, were stolen again. The plaintiff's action against the State for the loss was dismissed.

Seth J said: "... the obligation of a bailee is a contractual obligation and springs only from the
contract of bailment. It cannot arise independently of a contract. In this case the ornaments were
not made over to the Government under any contract whatsoever The Government, therefore,
never occupied the position of bailee and is not liable as such to indemnify the plaintiffs.""

3. Delivery should be upon some purpose

Bailment of goods is always made for some purpose and is subject to the condition that when the
purpose is accomplished the goods will be returned to the bailor or disposed of according to his
mandate. If the person to whom the goods are delivered is not bound to restore them to the person
delivering them or to deal with them according to his directions, their rela tionship will not bethat of
bailor and bailee

71. Responsibility of finder of goods.—A person who finds goods belonging to another, and takes
them into his custody, is subject to the same responsibility as a bailee

151. Care to be taken by bailee.—In all cases of bailment the bailee is bound to take as much care of
the goods bailed to him as a man of ordinary prudence would, under similar circumstances, take of
his own goods of the same bulk, quality and value as the goods bailed

168. Right of finder of goods, may sue for specific reward offered.—The finder of goods has no right
to sue the owner for compensation for trouble and expense voluntarily incurred by him to preserve
the goods and to find out the owner; but he may retain the goods against the owner until he
receives such compensation; and, where the owner has offered a specific reward for the return of
goods lost, the finder may sue for such reward, and may retain the goods until he receives it.

169. When finder of thing commonly on sale may sell it.—When a thing which is commonly the
subject of sale is lost, if the owner cannot with reasonable diligence be found, or if he refuses, upon
demand, to pay the lawful charges of the finder, the finder may sell it— (1) when the thing is in
danger of perishing or of losing the greater part of its value

237. Liability of principal inducing belief that agent’s unauthorized acts were authorized.— When an
agent has, without authority, done acts or incurred obligations to third persons on behalf of his
principal, the principal is bound by such acts or obligations, if he has by his words or conduct induced
such third persons to believe that such acts and obligations were within the scope of the agent‟s
authority

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