BAILMENT
(Covered in section 148-168)
(Contract Act)
Prepared by: Kumari Ranju Bala
H.O.D. & Assistant Professor (Law),
M.S. College, Motihari
B.R.A.Bihar University, Muzaffarpur
Contact:
[email protected] Definitions
“Bailment” (sec 148)
“A “Bailment” is
The delivery of goods by one person to another for some
purpose,
Upon a contract that they shall, when the purpose is
accomplished,
Be returned or otherwise be disposed of according to the
direction of the person delivering them”
“Bailor” (section 148)
The person delivering the goods is called the “bailor”
“Bailee” (section 148)
The person to whom they are delivered is called the “bailee”
Meaning
In case of bailment, the good are delivered by one
person to another for a specific purpose, on the
condition that after the purpose is accomplished, the
said goods shall either-
Be returned to the person who delivered them.
Be disposed off according to the direction of the
person who delivered them.
Examples-
A library giving books to its members for
reading;
Hiring of cycle or machinery.
If a person already in possession of the
goods of other contracts hold them as a bailee,
he thereby becomes the bailee, and the owner
becomes the bailor of such goods, although they
may not have been delivered by way of
bailment.
Essential characteristics of bailment
Bailment is mostly based on a contract
Sometimes it could be implied by law (e.x. - in a
case of finder
Kinds of bailment
Kinds of bilment based on benefit:
Bailment for the exclusive benefit of:
1. Bailor: leaving goods in safe custody without
paying,
2. Bailee: a loan of some article like a pen,
3. Mutual benefit: contracts for hiring, repair, etc
Kinds of bailment:
Based on reward:
1. gratuitous bailment: neither bailor nor
bailee is entitled for remuneration,
example: lending a book to a friend
2. non-gratuitous bailment: bailment of
reward: either bailee or bailor is entitled
to remuneration, example: hire tailor,
etc
Difference between sale &
bailment
Ownership transferred?
Buyer under no obligation to return goods?
Duties of bailee:
Take reasonable care of goods (s.151)
Not to make unauthorized use of goods
(s.154)
Not to mix goods with his own goods (s.155-
157)
Duty to return goods (s. 160& 161)
Not doing any act inconsistent with terms of
bailment (s.153)
Returning any profit (s.163)
Rights of bailee
Right to compensation for loss on account of
fault in goods bailed (s.150)
Right to receive necessary expenses (s.158)
Right against premature termination of
bailment (s.159)
Right to compensation in case of defective
title (s.164)
Delivery of goods to one of the joint
owners(s.165)
Right against third parties
Duties of bailor
To disclose faults in goods bailed (s.150)
To repay the necessary expenses (s.158)
To indemnity the bailee (s.164)
Liability on premature breach of bailment
(s.159)
Rights of bailor
Right of indemnity for losses due to
negligence by bailee(S.152)
Termination of bailment on inconsistent use
by the bailee (S.153)
Compensation for unauthorized use by the
bailee (S.154)
Compensation when the bailee mixes the
goods bailed with own goods (S.155)
Right of return of goods back ( S.160)
Right to profit from goods bailed (S.163)
Termination of bailment
Doing an act inconsistent with terms of
bailment(S.153)
At desire of the bailor in case of gratuitous
bailment(S.159)
On expiry of period (S.160)
On accomplishment of object(S.160)
Death of the bailor or bailee(S.162)
