CONTRACTS OF BAILMENT
• According to section 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
disposed of according to the directions of the person delivering them.
• The person delivering the goods is called the ‘Bailor’. The person to
whom they are dlivered is called the ‘Bailee’.
• In bailment only the possession of the goods is given to the bailee and
the ownership rights remain with the bailor.
• Examples : 1. A hands over a piece of cloth to B, a tailor, for making a
shirt. 2. Delivery of wrist watch for repairing; 3. A gives his book to his
friend for preparing lessons of an examination; 4. A gives his car to B
on hire; 5. Goods sold but delivery not yet taken by the buyer; 6. A
sends a TV set to B on hire-purchase basis.
• ESSENTIAL FEATURES OF BAILMENT :
1. Delivery of Goods :
2. Delivery of goods must be for some purpose
and upon a contract
3. Return of goods
4. Movable goods
• CLASSIFICATION OF BAILMENT
Gratuitous Bailment
Non-gratuitous Bailment
DUTIES & RIGHTS OF BAILOR
• Duties of Bailor
1. To disclose defects in the goods
2. To bear ordinary expenses
3. To bear extra-ordinary expenses in case of non-gratuitous
bailment
4. To indemnify bailee
5. To receive back the goods
• Rights of Bailor
1. To enforce bailee’s duties
2. To terminate the contract of bailment
3. To demand back goods
4. To claim increase or profit from goods bailed
DUTIES & RIGHTS OF BAILEE
• Duties of Bailee :
1. To take reasonable care of goods bailed
2. Not to make unauthorised use of goods bailed
3. Not to mix goods bailed with his own goods
4. Duty to return the goods
5. To return any accretion to the goods
6. Not to set up any adverse title against the bailor.
• Rights of Bailee :
1. To enforce bailor’s duties
2. To deliver goods to one of several joint owners
3. Delivery of goods to bailor without title
4. Right of action against third parties
5. Right of lien