Which of the Following Statements Is Correct with Respect to the Creation

question 140

Multiple Choice

Which of the following statements is correct with respect to the creation of a bailment?

• A) For a bailment to be created, the property must be given with the understanding that payment would be given for the service.
• B) A bailment is not created when the transfer of the property is only done incidentally, such as leaving a watch with a watchmaker for repair.
• C) For a bailment to be created, it is necessary for the parties to have anticipated that the property would be returned at the end of the bailment period.
• D) A bailment is the process provided for releasing people from jail before trial.
• E) Bailments can only be created through contracts.

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Definitions:

Discharge

In legal terms, the release or extinguishment of an obligation, debt, or charge.

Collateral Mortgage

A type of mortgage where the borrower provides collateral other than the purchased property to secure the loan.

Building Mortgage

A type of loan specifically used for the purchase, construction, or improvement of buildings, secured by the building itself.

Acceleration Clause

A contractual clause that allows a lender to demand immediate repayment of all outstanding loans if certain conditions are violated.