Examine whether the following constitute a contract of ‘Bailment’ under the provisions of the Indian Contract Act, 1872: (i) Vikas parks his car at a parking lot, locks it, and keeps the keys with himself. (ii) Seizure of goods by customs authorities.
As per Section 148 of the Indian Contract Act, 1872, bailment is the delivery of goods by one person to another for some purpose, upon a contract, that the goods shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them.\nFor a bailment to exist, the bailor must give possession of the bailed property and the bailee must accept it.\ni) No. Mere custody of goods does not mean possession. In the given case, since the keys of the car are with Vikas, Section 148, of the Indian Contract Act, 1872 shall not be applicable.\nii) Yes, the possession of the goods is transferred to the custom authorities. Therefore, bailment exists, and section 148 is applicable.
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When answering law questions in the CA Foundation exam, follow the "Provision -> Facts -> Conclusion" structure for maximum marks. Ensure to state the relevant sections where applicable to earn bonus marks from the evaluator.
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