Bailment

Aravind Reg No:1005108 IMK-ICM, Poojappura

Law for Business

Meaning...!
derived from the French word Baillior which means to deliver. Voluntary change of possession of goods from one person to another for some purpose.

Ownership cannot change.

Definition...!
Sec.148 of the Contract Act defines 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 person delivering them

Important terms...!
Bailor - Ther person who delivered the goods. Bailee - The person to whom they are delivered. Bailmet - The delivery of goods.

Characteristics of a Bailment
There must be a delivery of goods. Actual or constructive delivery. Delivery should be for some purpose. Return of goods. Ownership is not transfered.

Types of Bailment
Gratuitous bailment- where no remunaration is given to the bailee... eg, A lends books to B. B promises to return after some time Non- Gratuitous bailment-where the bailee gets remunaration. eg, X gives his radio to Y for repair & pays a certain amount to the latter.

Duties of the bailee

To take reasonable care of the goods bailed. Not to mix the goods bailed with his own goods. Not to make any unauthorised use. Not to set up adverse title. To return the goods. Retain addition or profit.

Rights of the Bailee

Right to enforce the duties of the bailor. Right to reimbursement. Right to remunaration. Right to compensation. Right to sue.

Duties of Bailor
Duty to disclose known defects. Duty to bear extraordinary expenses of bailment. Duty to indemnify bailee. Duty to receive back the goods. Duty to bear the risk.

Rights of the Bailor

Entitled to get back the goods. Entitled to claim any increase in value or profit (sec.163). Right of termination (sec.153). Right to recall goods at any time in a gratuitous bailment. To enforce the duties of bailee (claiming damages) Right to file a suit against third person.