Rights and duties of bailor in contract of bailment -2

In part 1 we have seen that the bailor has a duty to disclose faults in goods bailed and he also has a duty to bear expenses now lets look at other duties of bailor.

Indemnify Bailee
As per Section 159 of the Indian Contract Act 1872 the bailor can terminate bailment at any point of time if the bailment is gratuitous, even if the bailment was made for a specific time or purpose. But the bailor is required to indemnify the bailee if the losses incurred by him due to the premature termination exceed the benefits that he derived from bailment.

For example
X upon request of Y gave his bike to him without charging anything for one week. Y fills 5 litres of petrol in the car for driving it. Suddenly after 2 days, X calls Y to give his bike back. So, Y can demand from X value of petrol remaining in the car after 2 days.

Indemnify the bailee for defective title

As per section 164 of the Indian Contract Act 1872 “The bailor is responsible to the bailee for any loss which the bailee may sustain by reason that the bailor was not entitled to make the bailment, or to receive back the goods, or to give directions respecting them”. In simple words if the bailor makes bailment even after knowing that he is not entitled to the good than the bailor has to indemnify the bailee if loss is suffered by the bailee .

For example
X upon request of y gave his bike to him for period of two weeks and charged him Rs 5000 as rent. But after 2 days, the police seized the bike from Y as that bike didn’t belong to X and real owner of that bike was Z. Y had to arrange a new bike for the same purpose and has to pay extra charges . B can claim from the amount he has already paid and also the extra charges that he had to pay for the new bike.

•Receive back the goods

After the end of the term or fulfillment of the purpose of bailment It is the duty of the bailor to receive back the goods, when returned by bailee. But if the bailor refuses to take back the goods than he will be responsible to pay the bailee for the necessary expenses that were undertaken by bailee for custody and care.

Example: X gave his cow to Y for one month at the daily charge of Rs. 30 . But at end of 30 days X told Y that he will come after 10 days to take back his cow . X visited Y to receive his cow after 10 days . As it was a non-gratuitous bailment X has to pay the additional charges for 10 days and if there is an extraordinary expenses in those 10 days than X has to pay that also . However, if this had been a gratuitous bailment, X would have been required to pay the ordinary and extraordinary expenses for 10 extra days.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

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