Distinction between Bailment and Agency : 






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’.


Definition :

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


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



‘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.


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.


In Bailment, A Bailee cannot sell the property under bailment

In Agency,an agent can sell the property.  


A Bailee cannot transfer the ownership of the property. 

An agent can transfer the ownership of the property.  


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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