Rights and duties of bailor in contract of bailment -3

In last two parts we had a discussed about the duties of bailor in this part we have a look on rights of bailor. The rights of bailor are as follows

Right to enforce bailee’s performance

As the bailor delivers goods to the bailee for performance of some specific purpose, the bailor has the right to achieve that purpose or obtain the benefit through the bailee.

For example, if X delivers his shirt to Y, a dry cleaner , to dry clean his shirt . So X , the bailor has the right to get a dry cleaned shirt.

Terminate the bailment

As per section 153 of the contract act 1872 “A contract of bailment is avoidable at the option of the bailor, if the bailee does any act with regard to the goods bailed,inconsistent with the conditions of the bailment.” In simple words
if the bailee does anything which is not consistent with the terms of the bailment then, the bailment can be terminated by the bailor.

Example: X bailed his bike to Y for his own use only. But Y allowed Z to use the bike and thus violating the terms of bailment. So now X has the right to terminate bailment.

Demand back the goods

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 for a period of one week without charging anything. But X requires that bike for some purpose just after 2 days so he has a right to get back the bike by paying adequate compensation to Y if he suffers any loss

•File suit against wrongdoer
The bailor has the right to sue the third party who does any damages to the goods caused by them or a third party who deprives the bailee from using the goods.

For example X gave his car to Y for a period of one week. Z, a third party hit the car with a stone and the car got damaged. So here X has the right to sue Z for damages.

Right to claim Damages

When the bailor transfers goods to the possession of the bailee and if the latter fails to take the amount of care as described in section 151 of the Indian Contract Act 1872 then the bailor has the right to claim damages from the bailee. Section 151 stated that the bailee is bound to take as much care of the goods bailed to him as a man of ordinary prudence would, under similar circumstances, take of his own goods.

For example If X gave his bike to Y, for a period of one week . But due to the fault of Y the bike got damaged . So here Y is liable to pay compensation for damages and X has a right to claim damages.

Right to get back the the goods

A ‘bailment’ is the delivery of good by the bailor to the bailee for some purpose or for specified period of time so when the purpose is accomplished or time limit has been over the bailor has right to get back goods.


If X gave his cow toY till the time he returns from the trip. So here A has a right to demand his cow back when he returns from the trip.

•Right to increase or profit from goods bailed

As per section 163 of the Indian Contract Act 1872 the bailor has the right to receive from the bailee any increase or profit from the goods which were bailed.

For example X leaves a cow in the custody of Y to be taken care of for a period of six months. The dog gave birth to a puppy. So X has a right to demand the dog as well as puppy from Y.

In the three parts we have seen what are the rights and duties of bailor in contact of bailment with help of relevant examples . In this contemporary word it is very important to know what are our rights and duties in contracts we are entering into. We almost everyday enter in a contract of bailment so it becomes more essential too know about them.

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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