BAILMENT | LRAB STUDY MATERIAL | JAIIB NOV EXAM 2022
Bailment is an important topic of LRAB NOV 2022 EXAM. In this article, we will discuss BAILMENT Along with we will talk about the Study material for LRAB NOV 2022.
TABLE OF CONTENT
- JAIIB EXAM
- BAILMENT, BAILOR AND BAILEE
- HOW BAILMENT FUNCTIONS
- VARIETIES OF BAILMENT
- WHEN DOES A BAILMENT ENDS?
- JAIIB LRAB NOV 2022 STUDY MATERIAL
- BENEFITS OF CHOOSING LEARNING SESSIONS
- CONTACT US
The Junior Associate of Indian Institute of Bankers (JAIIB) flagship programme is only open to regular Institute members. The JAIIB Exam aims to provide the fundamental knowledge in banking and financial services, banking technology, customer service, basic accounting, and legal components necessary for conducting daily banking operations. Both personally and professionally, the applicant benefits from passing the JAIIB NOV 2022 Exam. This chance to take the Junior Associates exam is available to banking and financial industry employees who have signed up as members of the IIBF institution.
Read Also: JAIIB EXAM NOVEMBER 2022 NOTIFICATION
BAILMENT, BAILOR, AND BAILEE
Indian Contract Act, 1872, Section 148 defines bailment, bailor, and bailee. Delivering things to someone else pursuant to a contract is known as a bailment. The contract stipulates that the products must be returned or disposed of in accordance with the instructions of the person who delivered them once the intended purpose has been achieved. Both the individual delivering the commodities and the recipient of those items are referred to as bailees.
Banks acquire physical securities to protect their advances and loans. Banks occasionally have actual custody of pledged securities such as cash credits against inventories, valuables such as gold jewellery (gold loans), bonds, and shares (loans against shares and financial instruments) Banks hold the collateral securities in connection with these loans and advances, and their relationship with customers is that of a bailee (bank) and bailer. (Customer who borrows)
Bailments are a regular occurrence in a banker’s daily interactions. Bailments, in which the owner of securities transfers them to a third party for short sale, are also frequent in the financial industry. Failure to adhere to the terms and conditions of a bailment may result in legal challenges because they are contractual agreements.
HOW DOES BAILMENT FUNCTION?
- A bailment is a contract that takes effect in common law when someone entrusts an asset to another party for safekeeping.
- The owner of the asset is the bailor, who, as was already mentioned, temporarily transfers ownership to the bailee. Even if the bailor transfers ownership to the bailee, the bailor still holds the asset’s legal title. Only after the property is in the bailee’s possession do bailments begin.
- Generally speaking, the property is held by the bailee and the bailor is not permitted to utilise it. While parking in an unattended garage is a lease or the licence of a parking space because the facility cannot prove intent to own the car, leaving your car with a valet is a typical instance of bailment.
- Bailments are legal actions that can be taken without regard to a contract or a tort. The bailee must both intend to possess and really possess the chattel in question in order to constitute a bailment.
- If the item is damaged while it is in the bailee’s possession, there may be legal difficulties.
- Bailments are used in the finance industry, as was already noted. In order to perform short sales, bailiffs have the option of lawfully transferring their securities, such as stock shares, to third parties. Even if the borrowed shares are not the short seller’s own, they are borrowed on margin and sold by the short seller.
- Other bailment financial applications include:
- Appointing bailees to oversee investment portfolios on a temporary basis
- Keeping a guarantee for secured loans
- The delivery of goods
VARIETIES OF BAILMENT
Bailments have three types: those that benefit both parties equally, those that only benefit the bailor, and those that only benefit the bailee. The most crucial information of each is mentioned below.
- Benefit-Sharing Bailments for the Bailee and the Baiilor
- A service agreement bailment is the name for this kind of bailment. In service bailments, the bailee is responsible for any harm to the bonded items if they are careless in the performance of their obligations.
- Bailments That Are Only Beneficial to the Bailiff
- A gratuitous (free) bailment is what is used to describe this. If the bailee is severely negligent or acts in bad faith while protecting the asset, they may be held responsible for any damage to the bailed objects.
- Only the Bailee Benefits from Bailments.
- Constructive bailments are what these are known as. In this kind of bailout, the bailee is responsible for pretty much any harm to the item that was bailed. Out of the three categories, this one has the highest needed standard of care.
WHEN DOES A BAILMENT END?
- The asset is returned to the bailor by the bailee, and this is when a bailment typically expires.
- Some bailments include time limits that must be met. Examples that are frequently used in the financial sector include certificates of deposit (CDs). An investor makes a predetermined deposit with their financial institution for a predetermined amount of time. The bank gives the investor their money back at the end of that time frame, together with any interest that was promised when the investment was placed.
- Bailments may be terminated early if the property is destroyed or damaged, or if one of the parties to the relationship notifies the other in writing that they wish to cease the arrangement.
JAIIB LRAB NOV 2022 STUDY MATERIAL
Below is a list of the Contents & Features from the Learning Sessions Study Material.
- Questions from previous year exams for your practice.
- Mock tests to test your knowledge.
- Chapter-wise JAIIB November exam course 2022 Complete video lessons. These video lectures are made by top faculty. You can watch these video lessons anywhere and anytime.
- You also receive abundant concise study notes and revision notes for quick concept development and learning.
- Notes for every paper on the syllabus (free with JAIIB Video Courses).
- There are study resources available for iOS, Android, and web browsers.
- The official languages of the JAIIB video classes are either English or Hinglish.
BENEFITS OF CHOOSING LEARNING SESSIONS
- Use a browser or a mobile device to access lectures.
- The video is accessible around-the-clock (24/7).
- Most reasonable prices.
- It is available in video format rather than a written copy that needs to be read.
- Outstanding lectures produced by skilled instructors.
- Completes the JAIIB curriculum as soon as possible for NOV 2022.
Read Also: SARFAESI ACT, 2002 | JAIIB LRAB FREE NOTES
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