A Case Study About Bailment in Business Following Delivery of Goods Essay

A bailment came into existence when Lionel delivered the computers into Alistairs possession upon the promise that Alistair would deliver them to Jeannie .It is essential to show the computers were in Alistairs actual possession, otherwise, there would be no bailment . In the ordinary course of business, it can be assumed that delivery of the goods occurs when the consignment note is signed. The clause which allows Alistair to sub-bail is indicative of the fact that possession also passed at that time.The duty to retain possession of the goods wasnt breached owing to the clause permitting Alistair to sub-contract the freight of the goods.With respect to his duty to take care of the goods and deliver them as directed, the exclusion clause operates to relieve Alistair of liability for damage to goods in transit. However, failure of the sub contractor to use due care in the carriage of goods can result in a breach by the bailee of their promise to the bailor . The onus lies on Lionel to demonstrate this, however, more details are needed. For example, was Alistair aware of FabFreight having a particular reputation? If Alistair had used FabFreight before and been satisfied, this would be evidence that he acted reasonably and wasnt negligent.On these facts, its likely Lionel has no cause of action against Alistair.If Sandy never has actual possession, a bailment from FabFreight cant exist. If he is found to be a licensor, there will be no obligation owed with respect to the computers being stored. Its important to look at whether actual possession was intended to pass.The test outlined in Zweeres is whether delivery by the bailor amounts to a relinquishment of exclusive possession and control over the property, so that the person upon whose premises it is left can exclude possession of all others . Alternatively, a licence amounts to no more than granting permission to leave chattel upon the licensors land .Compared with Wilmers ...