WHAT IS BAILMENT ?
According to section 148 of Indian Contract Act 1872, Bailment is delivery of goods by one person to another person for some purpose, by signing a contract. After accomplishment of the purpose the good is to be returned to the owner or disposed of according to the directions of the person delivering them.
PARTIES TO THE BAILMENT
There are two parties in the bailment They are –
- Bailor – The person who delivers the goods to another person is called bailor.
- Bailee – The person to whom the goods are delivered is called bailee.
Foe example – A gives his dog to B, as A has to go out of station. But the dog was to be returned when A comes back. Here A is bailor and B is bailee.
ESSENTIAL FEATURES OF BAILMENT
- Delivery of possession – Section 149 of Indian Contract Act 1872 deals with the delivery of possession. This is of two types –
- Actual Delivery – When bailor delivers the physical possession of goods to bailor.
- Constructive Delivery – In there is no change in the physical possession of the, goods remain where they were, but something is done which has the effect of putting them in the possession of bailee.
- Delivery Upon Contract – There should be a contract between the bailor and bailee regarding transfer and return of goods. IF there is absence of contract, then there is no bailment.
- There must be Some Purpose – The bailment should be done for some purpose. IF there is no purpose then their is no bailment.
- Return of Goods -When the purpose of delivery of good has been completed then the goods are to be returned to bailor.
DUTIES OF THE BAILOR
- Disclose Known faults – The bailor has duty to disclose the faults of the goods to the bailee. If the bailor does not do so then he had to indemnify the bailee from all the damages caused to him by the goods.
- Bear expenses of bailment – In case of non- gratuitous bailment, the bailer has to bear all the extraordinary expenses but the bailee is bound to bear all the ordinary and reasonable expenses of the bailment.
In case of gratuitous bailment the bailer has to pay all the necessary expenses incurred by the bailee for the purpose of bailment for the delivered goods.
- According to the section 159 of Indian Contract ACT 1872, when there is gratuitous bailment then the bailer can terminate the bailment at any time.
According to section 164 of Indian Contract Act 1872, the bailer has to indemnify the bailee even after knowing that he is not entitled to the good and makes bailment due to which the bailee suffers losses.
- Receive back the good – After the purpose is completed the bailer has a duty to receive the goods back.
DUTIES OF BAILEE
- According to section 151 the bailee has duty to take reasonable care of the goods bailed.
- Section 154 states that there should be no unauthorized use of goods by the bailee.
- The bailee must not mix the bailed goods with his own goods.
- If there is any profit from the goods bailed then it must be delivered to bailer.
- After the purpose is completed the goods must be returned to bailer.
RIGHTS OF A BAILER
- Enforcement of a right – the bailer can enforce all the liabilities or duties of a bailee.
- Avoidance of a contract – if the bailee does anything which is inconsistent with the terms of bailment, then the bailer can terminate the bailment.
- Return of goods lend gratuitously.
- Compensation from wrong doer.
RIGHTS OF A BAILEE
- Delivery of goods to bailer without title
- Section 167 can apply to court to stop delivery.
- Section 180 Right against trespass
- Bailee’s lean.
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