Types of Balminess and Nature of Business Order Instructions:
discuss the different ways in which a balminess may be created the duty on the various types of bailees. compare a bailee to a common carrier and to an innkeeper
Types of Balminess and Nature of Business Sample Answer
Introduction
Bailment is a type or nature of business arrangement where a bailor who lawfully owns some goods gives possession to another person known as bailee for certain specific purpose. Most businesses have similar arrangements where due to the nature of the business, the possession of goods is transferred to another person in a different location for the selling purposes of storage may be in a warehouse but the title of goods remains with the owner (Chandra, 2007).
The other examples of bailment are goods that have been left behind for repair services like in a garage where vehicles are left under someone else possession or other types of repair services.
There are several types of bailment. In some cases, a second bailment known as sub-bailment may again take place. This occurs where a person in possession of someone else’s goods as a bailee transfers them to the possession of another person to hold as a second bailee.
There are various types of bailment; Gratuitous bailment, bailment for reward and storage of goods. Common Carriers usually operate the business or trades in the carriage of goods and is compensated for the service undertaken. For example a railway company or a road transport company. They are largely insurers of the goods and are legally liable to any damages to the goods. The difference is that the bailment of goods for example, to a storage warehouse, is that whereas the warehouse may allow constant supervision from the bailor, a common carrier has absolute control over the goods hence the high standards of the duty of care.
The innkeepers are responsible for the goods that guests bring in their establishments. The relationship is not exactly bailment as the visitors have also control over their own goods.
However, the innkeepers are required by law to provide a place for safekeeping of valuables and where they would be responsible in case of any loss.
Types of Balminess and Nature of Business References
Chandra, G. (2007) Company Law, 3rd Edition; McGraw-Hill Education
