Section 148 of the Indian Contract Act defines bailment as the delivery of goods by one person to another:
AAs an outright sale with transfer of ownership
BAs a gift requiring no return or consideration
COnly against payment of consideration in cash
DFor some purpose, on a contract that they shall be returned or otherwise disposed of as directed when the purpose is accomplished
Answer & Solution
Correct answer: D. For some purpose, on a contract that they shall be returned or otherwise disposed of as directed when the purpose is accomplished
1. Section 148 of the Indian Contract Act 1872 defines bailment.
2. The bailor delivers goods to the bailee for a specific purpose.
3. After the purpose is served, goods are returned or disposed of per the bailor's directions.
_Source: ICMAI BoS CMA Foundation Paper 1 (Business Laws), Module 2 §2.7 (Indemnity/Guarantee/Pledge/Agent), p. 91-99_