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Bailment is covered under the Indian contract act under special contracts. Bailment refers to when one party called the bailor hands over his goods to the other called the bailee for some purpose and the goods are to be disposed by the balilee as per the instructions of the bailor. The bailee does not become the owner of the goods rather he is in mere possession of the goods.



X gave a piece of cloths to Y, a tailor, for the purpose of stitching a shirt. The cloth would be provided by the customer and the buttons would be provided by the tailor. X promises to pay to Y a sum of ₹ 500. This is a contract of bailment and would not be covered by this act.

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