364 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
- An agent has no ownership in law in the goods entrusted to him. If an agent enters into a contract as agent, he is not personally liable. The contract is with the principal.
Trust distinguished from Condition
- Cases of condition differ from cases of trust in two respects—
First. A trust of property cannot be created by any one except the owner. But A may dispose of his property to B upon condition express or implied that B shall dispose of his own property in a particular way indicated by A.
Second. The obligation of the person on whom the condition is imposed is not limited by the value of the property he receives, e.g., if A makes a bequest to B, on condition of B paying A’s debts, and B accepts the gift, he will be compelled in equity to discharge the debts although the exceed the value of the property.
- But the words “upon condition” may create a real trust. Thus a gift of an estate to A on condition of paying the rents and profits to B constitutes a trust because it is clear that no beneficial interest was intended to remain in A.
A may dispose of his property to B upon condition express or implied that B shall dispose of his property to C. There is a condition in favour of C.
Is this a trust ?
Trust distinguished from Bailment
Bailment is a deposit of chattel and may in a sense be described as a species of trust. But there is this great difference between a bailment and a trust, that the general property in the case of a trust, is in the trustee, whereas a bailee has only a special property, the general property remaining in the bailor.
The result of this difference is that an unauthorized sale by a trustee will confer a good title upon a bona fide purchaser who acquires the legal interest without notice of the trust, whereas such a sale by a bailee confers as a rule no title as against the bailor.
Bailee does not become the owner of the property as a result of the bailment. But a trustee does in law become the owner