What distinguishes bailment from a sale of goods?

Fill in the blank: A bailee must not use the bailed goods for ___ purposes.

Unauthorized

True or False: A bailor is responsible for the bailee's actions if the bailee uses the goods in an unauthorized manner.

False. The bailee is responsible for unauthorized use, not the bailor.

What is the essential purpose of a bailment agreement?

The essential purpose is to transfer possession of goods for a specific reason, which must be fulfilled before the goods are returned.

Fill in the blank: A bailee must take ___ care of the goods entrusted to them.

Reasonable

Identify the rights of a bailor when goods are lent without charge.

The bailor has the right to demand the return of the goods at any time, even before the agreed period ends.

True or False: A bailor can mix their goods with those of the bailee without any consequence.

False. Mixing the bailor's goods with the bailee's own can lead to confusion and potential loss or damage.

What is the requirement for a valid pledge?

A valid pledge requires certain conditions.

• Bailment for security exists.

• Subject matter must be goods.

• Goods delivered to the pledgee.