Distinction between Bailment and Agency : 



No.

       Bailment

       Agency

1

Meaning:

The term bailment is derived from the French word ‘Bailor’, which means ‘to deliver’.



Meaning :

When a person appoints another to act on his behalf with a third party, it is called ‘Agency’.


2

Definition :

 Voluntarily Change of possession from one person to another is called contract of bailment.

Definition:  

‘Agency’ is the legal relationship between an agent and Principal; to bring the principal into legal relationship with the third party.  


3

Example:  

‘X’ delivers a cloth to ‘Y’, a Tailor for making a shirt. The contract between ‘X’ and ‘Y’ is bailment. ‘X’ is a Bailor and ‘Y’ is a Bailee.


Example :

‘X’ appoints ‘Y’ to purchase some property on his behalf. Here ‘X’ is Principal and ‘Y’ is Agent.


4

In bailment, the Bailee does not represent the Bailor. He does not derive any authority from the Bailor. 
  
The agent represents his principal, and derives certain power from his principal.




5

In Bailment, A Bailee cannot sell the property under bailment

In Agency,an agent can sell the property.  



6

A Bailee cannot transfer the ownership of the property. 

An agent can transfer the ownership of the property.  


7

A Bailee must have possession of the property

An agent may or may not have possession of the property. 


See also... Difference/ Distinction between Bailment and Contract of sale

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