Distinction between Bailment and Agency :
See also... Difference/ Distinction between Bailment and Contract of sale
No. |
Bailment |
Agency |
1 |
Meaning:
The term
bailment is derived from the French word ‘Bailor’, which means ‘to deliver’.
|
Meaning :
When a person
appoints another to act on his behalf with a third party, it is called ‘Agency’.
|
2 |
Definition :
Voluntarily Change of possession from one
person to another is called contract of bailment.
|
Definition:
‘Agency’ is
the legal relationship between an agent and Principal; to bring the principal
into legal relationship with the third party.
|
3 |
Example:
‘X’ delivers a
cloth to ‘Y’, a Tailor for making a shirt. The contract between ‘X’ and ‘Y’ is
bailment. ‘X’ is a Bailor and ‘Y’ is a Bailee.
|
Example :
‘X’ appoints ‘Y’
to purchase some property on his behalf. Here ‘X’ is Principal and ‘Y’ is
Agent.
|
4 |
In bailment, the Bailee does not represent the Bailor. He does not derive any authority from the Bailor. |
The agent represents his principal, and derives certain power from his principal. |
5 |
In Bailment, A Bailee cannot sell the property under bailment |
In Agency,an agent can sell the property. |
6 |
A Bailee cannot transfer the ownership of the property. |
An agent can transfer the ownership of the property. |
7 |
A Bailee must have possession of the property |
An agent may or may not have possession of the property. |
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