The correct answer is option 'C': Conditional delivery of the goods.

Explanation:
Bailment refers to a legal relationship in which one party (the bailor) temporarily transfers possession of personal property to another party (the bailee) for a specific purpose or period of time. The essential element of bailment is the conditional delivery of the goods, meaning that the bailor transfers possession of the goods to the bailee with certain conditions or restrictions.

The other options mentioned in the question are not essential elements of bailment. Let's discuss each option in detail:

a) Ownership transfer of the goods:
In bailment, ownership of the goods remains with the bailor. The bailor only transfers possession of the goods to the bailee but retains legal ownership. Therefore, the ownership transfer of the goods is not an essential element of bailment.

b) Permanent delivery of the goods:
Bailment involves temporary possession of goods, not permanent delivery. The bailee is entrusted with the goods for a specific purpose or period of time, after which the goods are returned to the bailor. Therefore, permanent delivery of the goods is not an essential element of bailment.

c) Conditional delivery of the goods:
This is the correct answer. Conditional delivery refers to the transfer of possession of the goods to the bailee with certain conditions or restrictions. These conditions can include the purpose of the bailment, the time period, and any specific instructions or limitations imposed by the bailor. The bailee must adhere to these conditions and return the goods in the same condition as received.

d) No contract required for delivery:
While it is common for a bailment to be established through a contract, the absence of a formal contract does not negate the existence of a bailment. Bailment can be created through various means, including implied agreements or legal obligations. Therefore, the absence of a contract is not an essential element of bailment.

In conclusion, the essential element of bailment is the conditional delivery of the goods, where the bailor transfers possession of the goods to the bailee with certain conditions or restrictions.