Bailment

BAILMENT
Contents
(A) Commentary
A: INTRODUCTION AND GENERAL PRINCIPLES
1 Bailment as voluntar !ossession
" Deliver an# $ontra$t or a%reement inessential
& T'e s$o!e o( t'e ne$essar $onsent
) T'e i#entit o( t'e *ailor
+ Bailments an# li$en$es
, Bailment un#er $ontra$ts o( em!loment
,-1 Em!loees
,-" In#e!en#ent $ontra$tors
,-& O!erators
,-) Treatment o( *ailees
. Attornment
/ T'e re0uirement o( re#eliver
1 Bailee2s ri%'t o( a$tion a%ainst t'ir# !arties
1-1 T'e $ommon la3 !osition
1-" T'e statutor !osition
14 Bailments an# insuran$e
11 T'e *ailee2s esto!!el: !lea#in% 5us tertii
B: GRATUITOUS BAILMENTS AND BAILMENTS 6OR RE7ARD
1" T'e relevan$e o( t'e #istin$tion
1"-1 T'e 'istori$al !osition
1"-" Mo#ern stan#ar# o( $are
1"-& Mo#ern si%ni(i$an$e
1& Ma8in% t'e #istin$tion
C: GRATUITOUS BAILMENT
1: GENERAL
1) General
": DEPOSIT
1+ Dut o( $are
1, Bur#en o( !roo(
1. Costs o( sa(e8ee!in%
1/ Su!era##e# !romises
11 Deviation
&: MANDATE
"4 General
"1 Bur#en o( !roo(
"" En(or$ement o( t'e tas8
): GRATUITOUS LOAN
9a: General
"& General
9*: Duties o( t'e len#er
") In5ur or loss
"+ 7it'#ra3al o( $'attel *e(ore e;!ir o( a%ree# term
9$: Duties o( t'e *orro3er
", Dut o( $are
". A##e# !romises
"/ Dut to a*stain (rom #eviation
"1 Dut to return $'attel
D: BAILMENTS 6OR RE7ARD
1: LOCATIO CUSTODIAE< OR T=E SA6E>EEPING O6 GOODS 6OR RE7ARD
&4 De(inition
&1 Duties o( t'e *ailor
&" Duties o( t'e *ailee
&"-1 Dut o( $are
&"-" A$ts o( em!loees
&"-& Bur#en o( !roo(
&"-) Deviation
&"-+ Lien
": LOCATIO OPERIS 6ACIENDI< OR T=E PER6ORMANCE O6 S>ILL AND LABOUR 6OR RE7ARD
&& General
&) Duties o( t'e *ailor
&+ Duties o( t'e *ailee
&+-1 Care an# $usto#
&+-" Bur#en o( !roo(
&+-& Dele%ation an# #eviation
&+-) ?ualit o( servi$es
&+-+ ?ualit o( %oo#s an# materials
&, Lien
&: LOCATIO CONDUCTIO REI< OR =IRE O6 GOODS
&. General
&/ Duties o( t'e lessor
&1 Duties o( t'e lessee
&1-1 Custo# an# sa(e8ee!in%
&1-" Bur#en o( !roo(
&1-& Deviation
&1-) Return o( %oo#s
&1-+ O3ners'i! o( !ro#u$e
&1-, Pament
E: SUB@BAILMENT AND SIMILAR RELATIONS=IPS
)4 De(inition o( su*@*ailment
)1 Duties o( t'e su*@*ailee
)" Relie( o( t'e su*@*ailee
)& Su*stitutional *ailments
)) ?uasi@*ailment
6: INAOLUNTARB BAILMENT AND BAILMENT BB CONCEALMENT
1: INAOLUNTARB BAILMENT
)+ De(inition
), Dut to %uar# a%ainst loss an# #ama%e
). Dut on #eliver to t'ir# !art
)/ Dis!osal o( %oo#s
)1 Re$over o( $osts
+4 Ot'er (eatures o( *ailment
+1 Pro!ert in unsoli$ite# %oo#s
": UNCOLLECTED GOODS
9a: Dut o( $are< an# $ommon la3 #is!osal o( %oo#s
+" General
+& Stan#ar# o( $are #iminis'in%
+) Bailment no3 involuntar
++ Brea$' o( *ailment
+, A*an#onment
9*: Statutor #is!osal
+. T'e Torts 9Inter(eren$e 3it' Goo#s: A$t 11..
+/ S$o!e
+1 6orms o( #is!osal
,4 Sale 3it'out $ourt aut'orit
,4-1 A$tivatin% t'e !o3er
,4-" Im!osin% a #ut to $olle$t
,4-& Givin% noti$e o( intention to sell
,4-) Con#u$tin% t'e sale
,4-+ Le%al e((e$ts o( sale
,1 Sale 3it' $ourt aut'orit
9$: Re$over o( e;!enses
," Re$over o( e;!enses
&: BAILMENT BB CONCEALMENT
,& General
(B) Forms and Precedents
A: 6ORMS RELATING TO T=E TORTS 9INTER6ERENCE 7IT= GOODS: ACT
1 Do$ument see8in% 3ritten aut'orit o( a !erson $laimin% to 'ave or 'avin% an interest in %oo#s to
$ommen$e a$tion (or 3ron%(ul inter(eren$e 3it' %oo#s
" Do$ument !rovi#in% aut'orit o( a !erson $laimin% to 'ave or 'avin% an interest in %oo#s
& Noti$e to *ailor t'at %oo#s are rea# (or re@#eliver
) Noti$e o( intention to sell %oo#s
+ Noti$e o( *ailee a$$ountin% to t'e *ailor (ollo3in% sale o( %oo#s
B: UNSOLICITED GOODS AND SERAICES
, Noti$e un#er t'e Unsoli$ite# Goo#s an# Servi$es A$t 11.1
C: 6ORMS RELATING TO SALE O6 GOODS
. Deliver or#er
/ 7are'ouse@8ee!er2s $erti(i$ate
1 7are'ouse@8ee!er2s $erti(i$ate 9not #o$ument o( title:
14 7are'ouse@8ee!er2s $erti(i$ate: *on#e# 3are'ouse
11 Do$8 3arrant
1" 7arrant issue# * manu(a$turer
D: LIEN CLAUSES
1& General an# !arti$ular lien
1) General an# !arti$ular lien 3it' !o3er o( sale: $arria%e * sea
1+ Po3er o( sale atta$'e# to %eneral an# !arti$ular lien
1, General an# !arti$ular lien 3it' !o3er to $laim stora%e $'ar%es
1. Noti$e see8in% $on(irmation t'at %oo#s 3ill *e release# on ten#er o( amount o3e# not amount
$laime#
1/ Noti$e (rom o3ner o( %oo#s to 3'ar(in%er or 3are'ouseman to e;er$ise lien (or (rei%'t an# ot'er
$'ar%es
11 Noti$e o( sale un#er t'e Mer$'ant S'i!!in% A$t 1/1) Se$tion )1.
E: RETENTION O6 TITLE CLAUSES
"4 Sim!le retention o( title $lause
"1 Current a$$ount $lause
"" E;ten#e# or $ontinuin% $lause
"& Tra$in% $lause
") A%%re%ation 9or enlar%e#: $lause
(A) Commentary
A: INTRODUCTION AND GENERAL PRINCIPLES
1 Bailment as voluntary possession
A *ailment
1
arises 3'enever one !erson is !ut voluntaril an# 8no3in%l in !ossession o( %oo#s 3'i$' *elon% to
anot'er
"
- In %eneral terms< *ailment si%ni(ies a #istri*ution o( o3ners'i! an# !ossession *et3een #i((erent !ersons
&
-
T'e *ailee 'as !ossession an# t'e *ailor 'as o3ners'i! 9or some ot'er reversion in t'e %oo#s:
)
- O$$asionall t'e
#istin$tion is e;!resse# as one *et3een s!e$ial an# %eneral !ro!ert
+
- T!i$al *ailments involve t'e #eliver o( %oo#s
(or !ur!oses o( 'ire< loan< stora%e< $leanin%< re!air< a%istment< !u*li$ation< salva%e< sale on $ommission< $arria%e<
!le#%e or title retention un#er a $ontra$t (or t'e sale o( %oo#s- Provi#e# t'e $on#itions o( *ailment are satis(ie#< a
*ailment $an *e (or an le%itimate !ur!ose an# (or an #uration- A *ailment ma *e (or t'e *ene(it o( *ot' !arties
9sometimes 8no3n as a *ailment (or re3ar#: or (or t'e e;$lusive *ene(it o( one !art 9sometimes 8no3n as a %ratuitous
*ailment:-
[3001]
1
As to *ailment %enerall see Palmer Bailment 9"n# E#n< 1111:C Paton Bailment in the Common Law 911+": an# " =als*ur2s
La3s 9)t' E#n: !ara 1/41 et se0-
"
The Pioneer Container D111)E " All ER at ",1F","< PC< !er Lor# Go(( o( C'ieveleC an# see Morris v CW Martin & Sons Ltd
D11,,E 1 ?B .1,< D11,+E " All ER ."+< CA-
&
It is not !ossi*le at $ommon la3 (or an o3ner o( %oo#s to *ail t'em to 'imsel(- C( Harding v Commr of Inland Revenue D11..E 1
NGLR &&. 3'ere it 3as 'el# t'at un#er Ne3 Gealan# la3 !ro!ert $oul# *e *aile# * t'e o3ner to 'imsel( an# anot'er 5ointl-
See also Para%ra!' ) D&44.E !ost 9re@*ailment * *ailee to *ailor:-
)
See Para%ra!'s ) D&44.E< / D&41/E !ost-
+
Re Bond Worth Ltd D11/4E C' ""/ at ").< D11.1E & All ER 111 at 1&. !er Sla#e HC an# see Donald v Su!ling 91/,,: LR 1 ?B
+/+ 9a $ase o( !le#%e:- 7'ere a $'attel is *aile# to t3o or more *ailees< t'ere ma *e a 5oint *ailment< in 3'i$' event ea$' *ailee
must ans3er (or t'e $on#u$t o( 'is $o@*ailees 3it'in t'e s$o!e o( t'eir aut'orit: Dave" v Cham#erlain 91/4&: ) Es! ""1C Cou$e
Co v Maddi! D1/11E " ?B )1& at )1+< DC< !er Cave H- It a!!ears t'at a 5oint *ailee is not res!onsi*le (or 'is $o@*ailees 3'en
t'e are ne%li%ent not in t'e !er(orman$e o( t'e #uties im!ose# * t'e *ailment *ut t'rou%' an a$t or omission 3'oll outsi#e
t'e *ailment- 7'ere a $'attel *elon%in% to several $o@o3ners is *aile#< t'ese ma *e 5oint *ailors- See (urt'er Palmer Bailment
9"n# E#n< 1111: $' & !! ",4F",)-
[3002]
2 Delivery and contract or areement inessential
Most *ailments arise (rom a #ire$t !'si$al #eliver * one !art to anot'er< an# (rom a $ontra$t or ot'er a%reement-
Neit'er o( t'ese elements is< 'o3ever< essential- A *ailment $an arise 3'ere a seller remains in !ossession o( %oo#s
a(ter !ro!ert 'as !asse# to t'e *uer
1
< or 3'ere %oo#s are ta8en into t'e !ossession o( a (in#er
"
< or 3'ere %oo#s are
!ossesse# * a su*@*ailee
&
or 0uasi@*ailee
)
- A %ratuitous *ailment %ives rise to no $ontra$t
+
an# et $reates a *ailment-
[3003]
1
%nion Trans$ort &inane Ltd v Ballardie D11&.E 1 >B +14< D11&.E 1 All ER )"4C an# see 'arli! v W & H R"roft Ltd D11/"E
CA Trans$ri!t "..-
"
Morris v CW Martin & Sons D11,,E 1 ?B .1, at .&1F.&"< .&/< D11,+E " All ER ."+ at .&)F.&+< CA< !er Dennin% MRC Cia
Portorafti Commeriale S( v %ltramar Panama In) The Ca$tain 'regos *+o ,- D1114E " Llo#2s Re! &1+ at )4+< CA< !er
Bin%'am LHC Southland Hos$ital Board v Per!ins .state D11/,E 1 NGLR &.& at &.+F&., !er Coo8 HC an# see Thom$son v +i/on
D11,,E 1 ?B 14&< D11,+E " All ER .)1C Par!er v British (irwa"s Board D11/"E ?B 144) at 141.< D11/"E 1 All ER /&) at /)&<
CA< 3'ere Donal#son LH sai# t'at t'e (in#er must ta8e reasona*le ste!s to a$0uaint t'e o3ner o( t'e %oo#s o( 'is (in# an# must
ta8e reasona*le $are o( t'e %oo#s mean3'ile-
&
The Pioneer Container D111)E " All ER "+4< PCC Morris v CW Martin & Sons D11,,E 1 ?B .1,< D11,+E " All ER ."+< CAC Cia
Portorafti Commeriale S( v %ltramar Panama In) The Ca$tain 'regos *+o ,- D1114E " Llo#2s Re!ort &1+< CAC His$ania de
Petroleos S( v 0enedora 1eania +avegaion S() The 2a$etan Mar!os +L *+o ,- D11/.E " Llo#2s Re!ort &"1< CA- Su*@
*ailment is #is$usse# *elo3: see Para%ra!' )4 D&1&1E et se0 !ost-
)
Metaalhandel 3( Magnus B0 v (rdfields Trans$ort Ltd D11//E 1 Llo#2s Re!ort 11.C an# see The Pioneer Container D111)E "
All ER "+4 at ",)F",.< PC< !er Lor# Go(( o( C'ieveleC Palmer Bailment 9"n# E#n< 1111: $' "4- ?uasi@*ailment is #is$usse#
*elo3: see Para%ra!' )) D&1&1E !ost-
+
Wal!er v Watson D11.)E " NGLR 1.+- See also Para%ra!' 1) D&4+1E et se0 !ost-
[300!]
3 "#e scope o$ t#e necessary consent
T'e *ailee must $onsent to t'e !ossession o( t'e %oo#s
1
- In %eneral< t'is means t'at 'e must 8no3 t'at t'e $'attel is 'is
!ossession
"
- =is $onsent ma *e e;!ress or im!lie#
&
< an# must e;ten# *ot' to t'e nature o( t'e %oo#s an# t'e i#entit
o( t'eir o3ner
)
- 7'ere no e;!ress $onsent is %iven 9as 3'ere a $ontainer is *aile# an# t'e *ailee is una3are o( t'e
$ontents: t'e 0uestion is 3'et'er t'e $ontents are o( a $lass t'at $an reasona*l *e e;!e$te# to 'ave *een in t'e
$ontainer
+
- I( so< t'e *ailee $an reasona*l *e ta8en to 'ave $onsente# to !ossession o( t'em
,
- 7'ere t'e o3ner o( a
$ontainer on #eliverin% it to anot'er 3arns t'at it $ontains valua*le $'attels< an# t'e !ossessor (ails to in0uire (urt'er<
$onsent to !ossession o( t'e $ontents 3ill %enerall *e im!lie#
.
-
I( a !erson in !ossession 'as not $onsente# to 'ol# !ossession on *e'al( o( t'at !arti$ular o3ner< t'e
!ossessor is not a *ailee o( t'at o3ner an# t'at o3ner is not a *ailor
/
- But i( t'e ne$essar $onsent on t'e !art o( t'e
!ossessor *e !rove#< a *ailment $an arise 3it'out t'e $onsent o( t'e *ailor
1
- T'us< t'ere $an *e a *ailment 3'ere a
!erson (in#s %oo#s
14
< or seiIes an# ta8es into !ossession t'e %oo#s o( anot'er
11
< 3'et'er 3it' 'onest or #is'onest
intentions
1"
-
[300%]
1
The Pioneer Container D111)E " All ER "+4< PC- C( Leth#ridge v Philli$s 91/11: " Star8 +))C +euwith v 1ver Darwen
Industrial Co4o$erative Soiet" 91/1): ,& LH?B "14< DCC an# see t'e #is$ussion o( involuntar *ailment Para%ra!' )+ D&1+1E et
se0 !ost-
"
See 2owal v .llis 911..: ., DLR 9&#: +), at +).F+)/ !er O2Sullivan HA 9lan#o3ner not a *ailee o( o*5e$ts lin% 3it'out
8no3le#%e on 'is lan#:- But $( Par!er v British (irwa"s Board D11/"E ?B 144) at 141.< D11/"E 1 All ER /&) at /)&< CA< !er
Donal#son LH 9lan#o3ner ma o3e #ut to (in# lost $'attels:-
&
As to im!lie# $onsent * a su*@*ailee see Para%ra!'s )4 D&1&1E< )" D&1&+E !ost-
)
The Pioneer Container D111)E " All ER "+4 at ","< PC< !er Lor# Go(( o( C'ieveleC $( (05 Ltd v .'M Solders Ltd 911/":
Times< . Hul-
+
Martin v LCC D11).E >B ,"/< D11).E 1 All ER ./&C Mou!ataff v B1(C D11,.E 1 Llo#2s Re! &1,C Brown v Toronto (uto Par!s
Ltd D11++E " DLR +"+C Heffron v Im$erial Par!ing Co Ltd 911.): ), DLR 9&#: ,)"- See %enerall Palmer Bailment 9"n# E#n<
1111: $' ,-
,
Mou!ataff v B1(C D11,.E 1 Llo#2s Re! &1, 9s!e$ial mail*a%s $ontainin% *an8notes:-
.
Martin v LCC D11).E >B ,"/C Minihiello v Devonshire Hotel *6789- Ltd 911..: .1 DLR 9&#: ,+,C a((irme# 911./: ) 77R
+&1- See also Mendelssohn v +ormand Ltd D11.4E 1 ?B 1..< CA-
/
The Pioneer Container D111)E " All ER "+4 at ",1F","< PC< !er Lor# Go(( o( C'ieveleC $( (wad v Pillai D11/"E RTR ",,-
1
The Pioneer Container D111)E " All ER "+4 at ",1F","< PC< !er Lor# Go(( o( C'ievele-
14
See Para%ra!' " D&44&E ante-
11
R v Leigh 91/44: " East PC ,1)C MCowan v MCulloh 911",: 1 DLR &1"C Ma:ullah 2han v M+amara 91111: 1& 7ALR
1+1C an# see Burns v Roffe" 91, Mar$' 11/"< unre!orte#: En%lis' =Ct-
1"
C( (urt'er R v Rig#e" 91/,&: " SCR 9NS7: 1., 9no *ailment 3'ere 3allet ta8en (rom ti!s man:-
[300&]
! "#e identity o$ t#e 'ailor
T'e *ailor nee# not *e t'e o3ner< alt'ou%' t'is is $ommonl so- A *ailor ma *e an !erson 3it' a su!erior
reversionar interest in t'e %oo#s
1
- T'us< an o3ner o( %oo#s ma *e$ome t'eir *ailee * ta8in% !ossession (rom an
e;istin% *ailee (or a !erio# s'orter t'an t'e ori%inal *ailment
"
- T'e ori%inal *ailee2s reversion ena*les 'im to *e $ast
*ot' as *ailor an# a *ailee o( t'e o3ner- An ri%'t o( !ossession a%ainst t'e !ossessor 3ill !ro*a*l su((i$e (or a
relations'i! o( *ailor an# *ailee
&
< as 3'ere a *ailee su*@*ails to a t'ir# !art *ut retains a ri%'t o( !ossession a%ainst t'e
su*@*ailee
)
- T'e *ailor is t'en simultaneousl a *ailor o( t'e !ossessor an# a *ailee o( t'e o3ner- But a mere
$ontra$tual ri%'t o( !ossession a%ainst t'e o3ner ma *e insu((i$ient to 0uali( one as a *ailor
+
- 7'ere $ar%o 3as ta8en
into !ossession * salvors an# store# * t'eir #e!ositaries< an# t'e s'i! o3ner 3as $ontra$tuall entitle# a%ainst t'e
$ar%o o3ner to resume !ossession an# $ontinue t'e voa%e on$e t'e %oo#s 3ere release# (rom stora%e< t'e s'i! o3ner
3as not a *ailor o( t'e salvors or t'eir #e!ositaries< an# t'e sole *ailments 3ere *et3een $ar%o o3ners an# salvors an#
salvors an# #e!ositaries res!e$tivel
,
- A !erson 3'o 'as t'e ne$essar o3ners'i! or ri%'t o( !ossession ma *e a *ailor
alt'ou%' 'e 'as a$0uire# no !'si$al !ossession o( t'e %oo#s *e(ore t'eir $omin% into t'e !ossession o( t'e *ailee
.
-
[300(]
1
See t'e #is$ussion in Palmer Bailment 9"n# E#n< 1111: !! 11"F1""-
"
An o3ner o( %oo#s ma also *e$ome a *ailee 3it'out an !'si$al trans(er o( !ossession * means o( a sale an# lease@*a$8
$ontra$t-
&
Transontainer ./$ress Ltd v Custodian Seurit" Ltd D11/+E 1 Llo#2s Re! 1"/ at 1&+< CA< !er Sla#e LHC The Ham#urg Star
D111)E 1 Llo#2s Re! &11 at )4) !er Clar8e H 9!ro!osition t'at an imme#iate ri%'t to !ossession is su((i$ient !ossessor title to
(oun# a $laim 'el# ar%ua*le:- See also t'e Australian $ases o( RM Cam$#ell *0ehile Sales- Pt" Ltd v Mahnig 9"" Ma 11/1<
unre!orte#: Su!reme Court o( Ne3 Sout' 7ales< Common La3 DivisionC Bolwell &i#reglass Pt" Ltd v &ole" D11/)E AR 1.<
Su!reme Court o( Ai$toria-
)
Morris v CW Martin & Sons Ltd D11,,E 1 ?B .1,< D11,+E " All ER ."+C an# see Para%ra!' )4 D&1&1E !ost-
+
China4Paifi S( v &ood Cor$n of India) The Winson D11/"E AC 1&1< D11/1E & All ER ,//< =L-
,
.
Transontainer ./$ress Ltd v Custodian Seurit" Ltd D11/+E 1 Llo#2s Re! 1"/< CAC Belvoir &inane Co Ltd v Sta$leton D11.1E
1 ?B "14< D11.4E & All ER ,,)< CAC 3ohnson Matthe" & Co Ltd v Constantine Terminals Ltd D11.,E " Llo#2s Re! "1+
9#isa!!rove#< *ut not on t'is !oint< in The Pioneer Container D111)E " All ER "+4< PC< at ",4F"," !er Lor# Go(( o( C'ievele:C
.dwards v +ewland & Co D11+4E " >B +&)< D11+4E 1 All ER 14."< CA-
[300)]
% Bailments and licences
T'e re0uirement o( !ossession means t'at *ailments must *e #istin%uis'e# (rom li$en$es
1
- T'e !ro*lem $ommonl
arises 3it' re%ar# to $ar !ar8s
"
< restaurant $loa8room (a$ilities
&
an# ot'er situations
)
3'ere o*5e$ts are le(t on lan# or
!remises 3it' t'e o$$u!ier2s $onsent-
7'ere an o$$u!ier o( lan# !ermits anot'er to leave %oo#s on t'e lan# in $ir$umstan$es 3'i$' #o not trans(er
to t'e o$$u!ier t'e !ossession o( t'e %oo#s< t'e relations'i! is merel one o( li$ensor an# li$ensee- T'e o$$u!ier o3es
no %eneral #ut to %uar# t'e %oo#s a%ainst t'e(t
+
an# $annot sue t'ir# !arties (or 3ron%s $ommitte# u!on t'e %oo#s
,
- In
5u#%in% 3'et'er !ossession 'as !asse#< re%ar# is !ai# to all t'e $ir$umstan$es: t'e laout o( t'e site
.
< t'e t!e o(
%oo#s
/
< t'e #istan$e 3'i$' t'e o3ner moves (rom 'is %oo#s an# t'e ease 3it' 3'i$' 'e $an retrieve t'em
1
< t'e !arties2
e;!e$tations
14
< an !revious #ealin%s *et3een t'e !arties
11
< 3'et'er 8es or ot'er means o( $ontrol are #elivere# to t'e
o$$u!ier
1"
< 3'et'er t'ere are em!loees o( t'e o$$u!ier on 'an# to oversee t'e %oo#s or assist in t'eir re#eliver
1&
<
3'et'er t'e o3ner is $'ar%e# (or t'e servi$e
1)
< an# t'e 3a in 3'i$' t'e $'ar%e is en(or$e#
1+
-
[300*]
1
T'e su*5e$t is #is$usse# in #etail in Palmer Bailment 9"n# E#n< 1111: $' +-
"
Lea#in% $ases are (sh#" v Tolhurst D11&.E " >B ")"< D11&.E " All ER /&.< CAC Tinsle" v Dudle" D11+1E " >B 1/< D11+1E 1 All
ER "+"< CAC an# see B' Trans$ort Servie Ltd v Marston Motor Co Ltd D11.4E 1 Llo#2s Re! &.1C BRS *Contrats- Ltd v
Colne" Motor .ngineering Co Ltd 911+/: Times< ". Novem*er< CAC &red Cha$$el Ltd v +ational Car Par!s Ltd 911/.: Times<
"" Ma-
&
See e% %lt:en v +iols D1/1)E 1 ?B 1"< DCC Samuel v Westminster Wine Co 911+1: Times< 1, MaC Davies v .duated &ish
Parlours Ltd D11,,E CLB +&1-
)
E% $aravan !ar8s an# *oat moorin%s: see Hal#auer v Brighton Cor$ D11+)E " All ER .4.< D11+)E 1 7LR 11,1< CAC Hin!s v
&leet 911/,: Times< . O$to*er< CA-
+
(sh#" v Tolhurst D11&.E " >B ")"< D11&.E " All ER /&.< CAC Tinsle" v Dudle" D11+1E " >B 1/< D11+1E 1 All ER "+"< CAC
De"ong v Shen#urn D11),E 1 >B "".< CAC .dwards v West Herts 'rou$ Hos$ital Management Committee D11+.E 1 All ER +)1<
D11+.E 1 7LR )1+< CAC an# see %enerall Smith v Littlewoods 1rganisation Ltd D11/.E AC ")1< D11/.E 1 All ER .14< =L-
,
C( t'e !osition o( t'e *ailee< 3'o $an t'us sue: see Para%ra!' 1 D&4"1E !ost-
.
See e% 3ames Buhanan Ltd v Ha";s Trans$ort Servies Ltd D11."E " Llo#2s Re! +&+C B' Trans$ort Servie Ltd v Marston
Motor Co Ltd D11.4E 1 Llo#2s Re! &.1C BRS *Contrats- Ltd v Colne" Motor .ngineering Co Ltd 911+/: Times< ". Novem*erC
(sh#" v Tolhurst D11&.E " >B ")"< D11&.E " All ER /&.< CAC Tinsle" v Dudle" D11+1E " >B 1/< D11+1E 1 All ER "+"< CA-
/
Maritime Coastal Containers Ltd v Shel#urne Marine Ltd 911/": +" NSR 9"#: +1-
1
%lt:en v +iols D1/1)E 1 ?B 1"< DCC Davies v .duated &ish Parlours Ltd D11,,E CLB +&1-
14
3ames Buhanan Ltd v Ha";s Trans$ort Servies Ltd D11."E " Llo#2s Re! +&+-
11
3ames Buhanan Ltd v Ha";s Trans$ort Servies Ltd D11."E " Llo#2s Re! +&+-
1"
B' Trans$ort Servie Ltd v Marston Motor Co Ltd D11.4E 1 Llo#2s Re! &.1 an# see 1lle" v Marl#orough Court Ltd D11)1E 1
>B +&"< D11)1E 1 All ER 1".< CAC +ahhas v Pier House *Che"ne Wal!- Management 911/): ".4 EG &"/-
1&
S"dne" Cit" Counil v West 911,+: 11) CLR )/1< =C o( AC Shorters Par!ing Station Ltd v 3ohnson 911,&: NGLR 1&+-
1)
But $( (sh#" v Tolhurst D11&.E " >B ")"< D11&.E " All ER /&.< CA-
1+
See Palmer Bailment 9"n# E#n< 1111: !! )4,F)41-
[3010]
& Bailment under contracts o$ employment
&+1 ,mployees
Un#er ol# aut'orit< 3'i$' 'as not *een #ire$tl #isa!!rove#< an em!loee 3'o %ets $'ar%e an# $ontrol o( t'e
em!loer2s %oo#s in t'e $ourse o( em!loment 'as no !ossession an# is not a *ailee< *ut 'as mere $usto#
1
- T'e
em!loee o3es a #ut o( $are
"
*ut #oes not< it seems< $arr t'e *ailee2s *ur#en o( !roo(
&
- T'e rule 93'i$' 'as little to
$ommen# it:
)
%ives 3a 3'ere t'e #istan$e o( t'e em!loee (rom t'e em!loer< an# t'e $orres!on#in% la$8 o( $ontrol
over t'e em!loee< is so %reat as to 3arrant a $ontrar $on$lusion
+
- 7it' mo#ern $ommuni$ations< su$' $ases are li8el
to *e rare
,
- An em!loee ma also %et !ossession 3'ere 'e re$eives %oo#s (rom a t'ir# !art (or #eliver to t'e
em!loerC in t'at $ase t'e em!loee ma %et an in#e!en#ent !ossession *et3een t'e moment o( #eliver to 'im an# t'e
moment o( 'is !er(ormin% some une0uivo$al a$t o( a!!ro!riation to t'e em!loer
.
- An em!loee to 3'om an
em!loer2s $'attel is loane# (or a !ur!ose un$onne$te# 3it' t'e em!loment ma also %et !ossession
/
-
[3011]
1
Mires v Sole#a" 91,..: " Mo# ")" Re!C (le/ander v Southe" 91/"1: + B J Al# ").C (ssoiated Portland Cement
Manufaturers *676<- Ltd v (shton D111+E " >B 1< CAC R v Harding 911"1: 1)" LT +/&< CCAC see %enerall Palmer Bailment
9"n# E#n< 1111: $' .-
"
Su$erlu/ v Plaisted D11+/E CLB 11+< CA-
&
Wie#e v Le$$ 911.): ), DLR 9&#: ))1C an# see Rowell v (le/ander Ma!ie College of (dvaned .duation 911//: Aust Torts
Re!ort ,.< .".-
)
Palmer Bailment 9"n# E#n< 1111: ! )+, et se0-
+
The 3u$iter *+o =- D11".E P 1"" at 1&1 !er =ill H< a((irme# D11".E P "+4C Boson v Sandford 91,14: 1 S'o3 141C Moore v
Ro#inson 91/&1: " B J A# /1.-
,
The 3u$iter *+o =- D11".E P 1"" at 1&1 !er =ill H< a((irme# D11".E P "+4-
.
Pollo$8 an# 7ri%'t< Possession in the Common Law 91///: ,4< an# $ases $ite# t'ereinC Marshall v Di##le D11"4E NGLR )1.<
SC-
/
Haira v (ttorne"4'eneral D11,"E NGLR +)1-
[3012]
&+2 -ndependent contractors
In#e!en#ent $ontra$tors to 3'om tas8s involvin% t'e $are o( %oo#s are #ele%ate# 9su$' as su*@$arriers: %et !ossession
on$e t'e %oo#s are #elivere# to t'emC t'e are not mere $usto#ians o( t'e (irst !ossessor
1
- 7'ere a $arrier #ele%ates t'e
$arria%e to a su*si#iar $arrier< t'e (irst $arrier %ives u! !ossession
"
< t'ou%' 'e ma retain a !ossessor reversion-
1
Palmer Bailment 9"n# E#n< 1111: $' "4- C( Transontainer ./$ress Ltd v Custodian Seurit" Ltd D11/+E 1 Llo#2s Re! 1"/< CA-
"
As to su*@*ailment an# 8in#re# $on$e!ts see Para%ra!' )4 D&1&1E et se0 !ost-
[3013]
&+3 .perators
7'ere $'attels are tem!oraril su!!lie# 3it' o!erators or ot'er %uar#ians< t'e 0uestion 3'et'er t'ere is a *ailment
#e!en#s on all t'e $ir$umstan$es
1
- T'e (a$t t'at t'e o!erator remains an em!loee o( t'e su!!lier
"
is a si%ni(i$ant< *ut
not #e$isive< (a$tor a%ainst a *ailment o( t'e $'attel
&
- Nor is it #e$isive t'at t'e o!erator *e$omes a tem!orar
em!loee o( t'e 'irer- Ot'er material (a$tors are t'e #is$retion %iven to t'e em!loee in 3or8in% t'e $'attel< t'e
!'si$al $ir$umstan$es o( t'e !la$e o( use< t'e i#entit o( t'e !arties res!onsi*le (or $olle$tion< #eliver an# overni%'t
stora%e< t'e allo$ation o( ris8 an# t'e %eneral nature an# terms o( t'e $ontra$t
)
-
1
T'ese are #is$usse# at len%t' in Palmer Bailment 9"n# E#n< 1111: $' .< !! ).4F)1&-
"
See %enerall as to t'e test (or esta*lis'in% t'is Merse" Do!s and Har#our Board v Coggins and 'riffith *Liver$ool- Ltd D11).E
1 AC 1< D11),E " All ER &)+< =L-
&
See e% British Crane Hire Cor$ Ltd v I$swih Plant Hire Ltd D11.+E 1 ?B &4&< D11.)E 1 All ER 14+1< CA- C( Dean v Hogg
91/&): 14 Bin% &)+-
)
See (llison Conrete Ltd v Canadian Paifi Ltd 911.): )4 DLR 9&#: "&.C Coast Crane Co v Dominion Bridge Co 911,1: "/
DLR 9"#: "1+C an# see %enerall Palmer Bailment 9"n# E#n< 1111: ! ).4 et se0-
[301!]
&+! "reatment o$ 'ailees
Bailees are not treate# as em!loees (or t'e !ur!oses o( e0uatin% t'eir $on#u$t 3it' t'at o( t'e *ailor- A *ailor is not
vi$ariousl lia*le (or t'e mis$on#u$t o( 'is *ailee to3ar#s t'ir# !arties< an# $onversel a *ailor2s #ama%es a%ainst a
t'ir# !art are not to *e re#u$e# on a$$ount o( t'e $ontri*utor ne%li%en$e o( t'e *ailee
1
- T'e !osition ma *e
ot'er3ise 3'ere t'e $ase is one o( a%en$ * $asual #ele%ation< as 3'ere a $ar is *ein% #riven to a #estination at t'e
o3ner2s re0uest
"
-
1
Wellwood v 2ing Ltd D11"1E " IR ".)< CAC &rane v Par!inson D11+)E 1 All ER .&1< D11+)E 1 7LR +/1< CAC 'i#son v
1;2eene" D11".E NI ,,< CA-
"
1rmrod v Crossville Motor Servies Ltd D11+&E " All ER .+&< D11+&E 1 7LR 11"4< CA-
[301%]
( Attornment
A *ailment ma arise * attornment
1
< as 3'ere a *ailor o( %oo#s in store sells t'em an# t'e *ailee a$8no3le#%es to t'e
*uer t'at 'e no3 'ol#s t'e %oo#s on t'e *uer2s *e'al(
"
< or 3'ere a !le#%or o( %oo#s in store !le#%es t'em an# t'e
!le#%or2s *ailee ma8es a similar a$8no3le#%ement
&
- In t'at event t'e *ailee *e$omes t'e *ailee o( t'e *uer or
!le#%ee< an# it a!!ears t'at t'e terms o( t'e ori%inal *ailment %overn t'e *ailment * attornment
)
- A seller o( %oo#s
3'o remains in !ossession a(ter t'e sale ma also attorn< * a$8no3le#%in% t'at 'e no3 'ol#s t'em on t'e *uer2s
*e'al(
+
-
An attornment $an *e easil ma#e
,
< *ut re0uires some overt a$t o( re$o%nition o( t'e in$omin% !art2s interest
.
- T'ere
$an *e no attornment 3'ere t'e *ailee sim!l alters 'is o3n re$or#s 3it'out $ommuni$atin% t'at (a$t
/
< or re$eives
#eliver or#ers 3it'out o*5e$tion
1
-
7'ere t'e %oo#s $om!rise# in t'e attornment are i#enti(ie#< t'e attornment $an !ass !ro!ert to t'e attornee
an# ma< (or e;am!le< $onstitute an a$t o( un$on#itional a!!ro!riation * t'e seller (or t'e !ur!oses o( Se$tion 1/ rule
+91: o( t'e Sale o( Goo#s A$t 11.1
14
- 7'ere t'e %oo#s are not i#enti(ie# 9as 3'ere t'e *ailee attorns in res!e$t o( a
un#ivi#e# !ortion o( a lar%er *ul8: an attornment $annot !ass !ro!ert *ut ma esto! t'e attornee (rom #enin% t'at
t'is 'as o$$urre#
11
- Su$' esto!!el #oes not< 'o3ever< $on(er a !ro!rietar interest on t'e attornee e;i%i*le a%ainst t'ir#
!arties
1"
< even 9it seems: 3'ere su$' t'ir# !arties are a3are o( t'e $ir$umstan$es %ivin% rise to t'e esto!!el
1&
-
An attornment to t'e a%ent o( an un#is$lose# !rin$i!al $an !ass !ro!ert to t'e !rin$i!al< or $reate an
esto!!el in t'e !rin$i!al2s (avour< a$$or#in% to 3'et'er t'e %oo#s are i#enti(ie# or un#ivi#e#< an# su*5e$t to t'e ma8in%
o( an ele$tion
1)
-
[301&]
1
Palmer Bailment 9"n# E#n< 1111: $' "1-
"
Du#lin Cit" Distiller" Ltd v Dohert" D111)E AC /"&< =L-
&
Madras 1ffiial (ssignee v Merantile Ban! of India Ltd D11&+E AC +& at +/F+1< PCC Ma"negrain Pt" Ltd v Com$afina Ban!
D11/"E " NS7LR 1)1< on a!!eal< 3it'out re(eren$e to t'is !oint 911/): +/ ALHR &/1< D11/)E 1 NS7LR "+/C (s!rigg Pt" Ltd v
Student 'uild of the Curtin %niversit" of Tehnolog" 911/1: 1/ NS7LR .&/-
)
HM& Hum$hre" Ltd v Ba/ter) Hoare & Co Ltd 911&&: 1)1 LT ,4&C Britain and 1verseas Tradings *Bristles- Ltd v Broo!s Wharf
and Bull Wharf Ltd D11,.E " Llo#2s Re! +1C Cremer v 'eneral Carriers S( D11.)E 1 All ER 1< D11.)E 1 7LR &)1C Leigh and
Sillivan Ltd v (lia!mon Shi$$ing Co Ltd) The (lia!mon D11/,E AC ./+< D11/,E " All ER 1)+< =LC Cia Portorafti Commeriale
S( v %ltramar Panama In) The Ca$tain 'regos *+o ,- D1114E " Llo#2s Re! &1+< CA-
+
'amer;s Motor Centre *+ewastle- Pt" Ltd v +atwest Wholesale (ustralia Pt" Ltd 911/.: 1,& CLR "&,-
,
Laurie and Morewood v 3ohn Dudin & Sons D11",E 1 >B ""& at "&.< CA< !er S$rutton LH-
.
See e% 'osling v Birnie 91/&1: . Bin% &&1C Seton) Laing & Co v Lafone 91//.: 11 ?BD ,/< CAC Re London Wine Co *Shi$$ers-
Ltd D11/,E PCC 1"1C Woodle" v Coventr" 91/,&: " = J C 1,)C 1+1 ER ,/C 2nights v Wiffen 91/.4: LR + ?B ,,4-
/
Laurie and Morewood v 3ohn Dudin & Sons D11",E 1 >B ""&< CA-
1
Laurie and Morewood v 3ohn Dudin & Sons D11",E 1 >B ""&< CA-
14
Ma"negrain Pt" Ltd v Com$afina Ban! Ltd D11/"E " NS7LR 1)1-
11
Ma"negrain Pt" Ltd v Com$afina Ban! Ltd D11/"E " NS7LR 1)1-
1"
Re London Wine Co *Shi$$ers- Ltd D11/,E PCC 1"1C Simm v (nglo4(merian Telegra$h Co 91/.1: + ?BD 1//< CAC Re
'oldor$ ./hange Ltd D111)E " All ER /4, at /1,F/11< PC !er Lor# Mustill-
1&
Re 'oldor$ ./hange Ltd D111)E " All ER /4, at /1,F/11< PC !er Lor# MustillC Re Sta$"lton &lether Ltd D111)E 1 7LR
11/1 at 1"4& !er Hu#%e Ba8er ?C-
1)
Ma"negrain Pt" Ltd v Com$afina Ban! D11/"E " NS7LR 1)1C on a!!eal< 3it'out re(eren$e to t'is !oint< 911/): +/ ALHR &/1<
D11/)E 1 NS7LR "+/< PC-
[301(]
) "#e re/uirement o$ redelivery
A *ailment re0uires t'at t'e %oo#s remain i#enti(ia*le as t'e !ro!ert o( t'e *ailor t'rou%'out t'e !erio# t'at t'e are
in t'e ot'er !art2s !ossession
1
- No #eliver 3'i$' $on(ers %eneral !ro!ert on t'e #eliveree $an %ive rise to a
*ailment< *e$ause it is o( t'e essen$e o( *ailment t'at %eneral !ro!ert remains 3it' t'e *ailor
"
- An outri%'t %i(t is not a
*ailment< an# neit'er is an outri%'t sale or e;$'an%e< or a transa$tion o( mutuum
&
- It (ollo3s t'at a #eliver o( %eneri$
%oo#s in return (or t'e #eliveree2s !romise to su!!l t'e #eliveror 3it' e0uivalent %oo#s at a later time $reates no
*ailment
)
- Su$' #eliveries are normall analse# as !assin% !ro!ert to t'e #eliveree an# as %ivin% t'e #eliveror a mere
$ontra$tual ri%'t to t'e su*stitute %oo#s< ine((e$tive in t'e event o( t'e #eliveree2s insolven$
+
- But in $ases o( $lear
intention< t'ere ma *e a 5oint o3ners'i! o( t'e overall *ul8 on t'e !art o( all t'e #eliverors in !ro!ortion to t'eir
$ontri*utions
,
- T'ere ma t'en *e a 5oint *ailment< t'e interests o( t'e 5oint *ailors *ein% entruste# to a sin%le *ailee- In
t'at event< t'e #eliverors are !rote$te# on an insolven$-
[301)]
Alt'ou%' an outri%'t sale an# #eliver is in$om!ati*le 3it' a *ailment< t'e t3o transa$tions $an arise
$onse$utivel on a sin%le $'attel- Goo#s su!!lie# on 'ire !ur$'ase are *aile# until t'e 'irer e;er$ises t'e o!tion to *u
or until t'e lessor re!ossesses t'em
.
- A seller $an remain in !ossession as a *ailee a(ter !ro!ert 'as !asse# to t'e
*uer
/
< an# ma un#erta8e a##itional *ailment res!onsi*ilities su$' as t'e #es!at$' o( t'e %oo#s * $arrier
1
- Goo#s
#elivere# to a *uer on title retention terms< 3'ere* t'e seller retains !ro!ert until !ament< are *aile# until t'e seller
re!osseses t'em< or until t'e *uer resells t'em or $auses t'eir i#entit to *e lost in t'e manu(a$turin% !ro$ess
14
- T'e
mere (a$t t'at su$' resale or $onsum!tion is $ontem!late# at t'e time o( #eliver #oes not * itsel( !revent t'e #eliver
(rom *ein% one o( *ailment
11
- But i( no realisti$ ri%'t o( re!ossession is reserve# to t'e su!!lier 9as 3'ere a seller
8no3s t'at %oo#s su!!lie# to t'e !arti$ular *uer are al3as resol# or $onsume# *e(ore t'e !ament #ate: a $ourt ma
$on$lu#e t'at t'ere is no *ailment< even *e(ore $onsum!tion or sale
1"
-
It (ollo3s (rom t'e (ore%oin% t'at re#eliver o( t'e !re$ise %oo#s to t'e #eliveror is not essential to *ailment-
I( re#eliver to t'e #eliveror is $ontem!late#< it must *e t'e e;a$t %oo#s 3'i$' are to *e re#elivere# or t'eir $lear
!'si$al su$$essors 9as 3'ere mone is *aile# to *u %ol#
1&
< or %ra!es are #elivere# to *e !resse# into 3ine:
1)
- But a
*ailment $an $ontem!late some !ur!ose ot'er t'an #eliver< su$' as t'e ultimate transmission o( !ro!ert to t'e
#eliveree< or t'e #eliveree2s ultimate #eliver o( t'e %oo#s to a t'ir# !art< !rovi#e# t'ere is an intervenin% !erio#
#urin% 3'i$' t'e #eliveree 'as !ossession an# t'e #eliveror retains !ro!ert- 7'ere a $arrier o( mone is instru$te# to
!a it into a *an8 a$$ount 9so ren#erin% (urt'er i#enti(i$ation o( t'e e;a$t $urren$ im!ossi*le: t'e $arrier is
nevert'eless a *ailee o( t'e mone *et3een re$ei!t an# !ament in
1+
-
[301*]
1
South (ustralian Insurane Co Ltd v Randell 91/,1: LR & PC 141< PC-
"
Re Bond Worth Ltd D11/4E C' ""/ at ").< D11.1E & All ER 111 at 1&. !er Sla#e H-
&
Ie< t'e len#in% o( (un%i*le t'in%s (or re!ament in t'e (orm o( e0uivalent t'in%s: see Parastatidis v 2otaridis D11./E AR ))/C
Coleman v Harve" D11/1E 1 NGLR ."&-
)
South (ustralian Insurane Co Ltd v Randell 91/,1: LR & PC 141< PC-
+
See (urt'er Cha$man Bros v 0ero Bros & Co Ltd 911&&: )1 CLR &4,-
,
Re Sta$"lton &lether Ltd D111)E 1 7LR 11/1C Merer v Craven 'rain 9Mar$' &1 111)< unre!orte#:< =L- C( Re 'oldor$
./hange Ltd D111)E " All ER /4,< PC-
.
Motor Mart Ltd v We## D11+/E NGLR ..&- 'amer;s Motor Centre *+ewastle- Pt" Ltd v +atwest Wholesale (ustralia Pt" Ltd
911/.: ,1 ALHR )1+< =C Aust-
/
See Para%ra!'s " D&44&E ante 9#eliver unne$essar: an# . D&41,E ante 9attornment:-
1
CCC &ilms *London- Ltd v Im$at >uadrant &ilms Ltd D11/)E & All ER "1/-
14
(luminium Industrie 0aassen *B0- v Romal$a (luminium Ltd D11.,E " All ER ++"< D11.,E 1 7LR ,.,< CAC Re (ndra#ell Ltd
D11/)E & All ER )4.C Borden *%2- Ltd v Sottish Tim#er Produts Ltd D11/1E C' "+< D11.1E & All ER 1,1< CAC Re Peahdart
Ltd D11/)E C' 1&1C Com$a? Com$uters Ltd v (#erorn 'rou$ Ltd D1111E BCC )/)C Hend" Lenno/ *Industrial .ngines- Ltd v
'rahame Putti! Ltd D11/)E " All ER 1+"C Clough Mill v Martin D11/)E & All ER 1/" at 1/.< CA< !er Go(( LH-
11
Clough Mill v Martin D11/)E & All ER 1/"< D11/+E 1 7LR 111< CA-
1"
Borden *%2- Ltd v Sottish Tim#er Produts Ltd D11/1E C' "+< at &/< CA< !er Bri#%e LH-
1&
1riental Ban! Cor$n v Hewitt 91/,": 1 SCR 9NS7: ""4-
1)
Wine 'ra$es Mar!eting Board for the Cit" of 'riffiths v 'riffiths 0intners Pt" Ltd 911/1: 1 ACSR //< NS7 Su!reme Court
E0uit Division< !er Co'en H 9sem*le:-
1+
Bram#les Seurit" Servies Ltd v Bi4lo Pt" Ltd D111"E ACL Re! )4 NS7 1-
[3020]
* Bailee0s ri#t o$ action aainst t#ird parties
*+1 "#e common la1 position
At $ommon la3< t'e *ailee2s !ossession $ounts as title
1
- In t'e a*sen$e o( t'e *ailor< t'e *ailee $an re$over (rom an
t'ir# !art 3'o $ommits a 3ron% a%ainst t'e %oo#s t'e (ull value o( t'e %oo#s or 9in t'e event o( #ama%e: t'e (ull $ost
o( re!air
"
- T'is ri%'t o( re$over #oes not #e!en# on t'e $onsent o( t'e *ailor or on t'e *ailee2s *ein% lia*le to t'e
*ailor (or t'e misa#venture
&
< an# a!!ears to e;ten# to !ersons 3'o 'ave no a$tual !ossession *ut an imme#iate ri%'t to
t'e !ossession o( t'e %oo#s
)
- It arises irres!e$tive o( 3'et'er t'e *ailee 'as su((ere# !ersonal loss< alt'ou%' t'e *ailee
must 'ol# t'e sum re$overe# (or t'e *ailor on$e t'e value o( 'is !ersonal interest is #e#u$te#
+
- 7'ere t'e *ailee
re$overs (ull #ama%es (rom t'e t'ir# !art< t'e t'ir# !art is release# (rom (urt'er lia*ilit to t'e *ailor
,
- Conversel<
3'ere t'e *ailor is t'e (irst to re$over (ull #ama%es< t'e *ailee $annot t'en sue t'e t'ir# !art in res!e$t o( t'e same
3ron%
.
- But 3'ere t'e $ommer$ial interests o( *ailor an# *ailee are #ivi#e# 9as 3'ere %oo#s are lease# an# t'e lease
'as some ears to run: an# one o( t'em re$overs onl t'e value o( 'is limite# interest< t'e t'ir# !art is not release#C t'e
ot'er !art to t'e *ailment $an re$over t'e outstan#in% value o( 'is o3n interest-
T'e $ommon la3 rule #oes not a!!l 3'ere:
1-1-1 t'e 3ron%#oer 'as a $ross $laim or ri%'t o( set@o(( a%ainst t'e *ailee
/
< or
1-1-" an a3ar# o( (ull #ama%es to t'e *ailee 3oul# !ro#u$e $ir$uit o( a$tions
1
< or
1-1-& t'e 3ron%#oer 'as an interest in t'e %oo#s
14
< or
1-1-) t'e 3ron%(ul a$t is !er(orme# * aut'orit o( t'e true o3ner
11
< or
1-1-+ t'e 3ron%#oer #e(en#s 3it' t'e true o3ner2s aut'orit
1"
< or
1-1-, t'e 3ron%#oer 'as< sin$e t'e time o( t'e 3ron%(ul a$t< *e$ome t'e o3ner o( t'e %oo#s
1&
-
In su$' $ases< it a!!ears t'at t'e *ailee $an re$over onl t'e value o( 'is !ossessor interest an#Kor an ot'er !ersonal
loss-
[3021]
1
The Win!field D114"E P )"< CAC (or a (ull #is$ussion< see Palmer Bailment 9"n# E#n< 1111: $' )-
"
As to t'e $ate%ories o( loss re$overa*le< see Palmer Bailment 9"n# E#n< 1111: !! &1/F&)4-
&
The Win!field D114"E P )"< CAC The (l#a:ero D11..E AC ..)< D11.,E & All ER 1"1< =LC 'lenwood Lum#er Co Ltd v Philli$s
D114)E AC )4+C .astern Constrution Co Ltd v +ational Trust Co Ltd D111)E AC 11.C China4Paifi S( v &ood Cor$n of India)
The Winson D11/"E AC 1&1< D11/1E & All ER ,//< D11/1E & All ER ,//< =L-
)
Cha##ra Cor$n Pte Ltd v 3ag Sha!ti *owners- D11/,E AC &&.< D11/,E 1 All ER )/4< PCC se# 0uaereC $( Palmer Bailment 9"n#
E#n< 1111: !! &)4@&+1C Butler v Ho#son 91/&/: ) Bin% NC "14C Lea!e v Loveda" 91/)": ) Man J G 1."C 'adsden v Barrow
91/+): 1 E;$' +1)-
+
The Win!field D114"E P )"< CA-
,
The Win!field D114"E P )"< CA-
.
1;Sullivan v Williams D111"E & All ER &/+< CA-
/
Cha##ra Cor$n Pte Ltd v 3ag Sha!ti *owners- D11/,E AC &&. at &)+F&),< &)/< PC< !er Lor# Bran#on o( Oa8*roo8< 3'o
#es$ri*e# t'is as Lt'e onl e;$e!tion2 to t'e rule in The Win!field D114"E P )"< CA-
1
Ma"negrain Pt" Ltd v Com$afina Ban! D11/"E " NS7LR 1)1 at 1+,F1+. !er =utle HA< reverse# 3it'out re(eren$e to t'is !oint
911/): +/ ALHR &/1< PC-
14
Brierle" v 2endall 91/+": 1. ?B 1&.C an# see (urt'er Standard .letroni ($$aratus La#oratories Pt" Ltd v Stenner D11,4E
NS7R )).C Ma"negrain Pt" Ltd v Com$afina Ban! D11/"E " NS7LR 1)1 at 1+,F1+. !er =utle HA 9sem*le: reverse# 3it'out
re(eren$e to t'is !oint 911/): +/ ALHR &/1< D11/)E 1 NS7LR "+/< PC- Palmer Bailment 9"n# E#n< 1111: ! &1, note 1+-
11
The Win!field D114"E P )" at +)< CA-
1"
The Win!field D114"E P )" at +)< CA-
1&
.astern Constrution Co Ltd v +ational Trust Co Ltd and Shmidt D111)E AC 11.< PC< at "14-
[3022]
*+2 "#e statutory position
T'e $ommon la3 !osition is overlai# * statute< 3'i$' see8s to *rin% all intereste# !arties *e(ore t'e $ourt< an# to
#istri*ute lia*ilit (or mis$on#u$t to3ar#s *aile# %oo#s in a sin%le !ro$ee#in%- Un#er t'e statutor !rovisions< a
#e(en#ant in an a$tion (or 3ron%(ul inter(eren$e 3it' %oo#s
1
is entitle# to s'o3< in a$$or#an$e 3it' rules o( $ourt
"
< t'at
a t'ir# !erson 'as a *etter ri%'t t'an t'e !lainti(( as res!e$ts all or an !art o( t'e interest $laime# * t'e !lainti((< or in
ri%'t o( 3'i$' t'e !lainti(( sues
&
- Rules o( $ourt un#er t'is !rovision re0uire t'e !lainti(( to %ive !arti$ulars o( 'is title
an# to i#enti( an !erson 3'o< to 'is 8no3le#%e< 'as or $laims an interest in t'e %oo#s
)
- T'e #e(en#ant ma a!!l
(or #ire$tions
+
as to 3'et'er an !erson s'oul# *e 5oine# 3it' a vie3 to esta*lis'in% 3'et'er 'e 'as a *etter ri%'t t'an
t'e !lainti((< or 'as a $laim as a result o( 3'i$' t'e #e(en#ant mi%'t *e #ou*l lia*le
,
- 7'ere a !art (ails to a!!ear on
t'e 'earin% o( t'e summons or to $om!l 3it' an #ire$tion %iven * t'e $ourt on su$' an a!!li$ation< t'e $ourt ma
#e!rive 'im o( an ri%'t o( a$tion a%ainst t'e #e(en#ant (or t'e 3ron%< eit'er un$on#itionall or su*5e$t to su$' terms
an# $on#itions as ma *e s!e$i(ie#
.
-
It a!!ears t'at t'ese !rovisions 9*ein% limite# to $ases o( 3ron%(ul inter(eren$e 3it' %oo#s: are ina!!li$a*le
3'ere a *ailee sues a t'ir# !art (or *rea$' o( $ontra$t rat'er t'an in tort
/
-
[3023]
1
T'is !rovision a!!lies to all !ro$ee#in%s (or 3ron%(ul inter(eren$e as #e(ine# in t'e Torts 9Inter(eren$e 3it' Goo#s : A$t 11.. s
1 9)+ =als*ur2s Statutes 9)t' E#n: TORT:< ie tres!ass to %oo#s< ne%li%en$e so (ar as it results in #ama%e to %oo#s or to an
interest in %oo#s< an# an ot'er tort so (ar as it results in #ama%e to %oo#s or to an interest in %oo#s: see also i*i# s /91:- As to
t'e %eneral s$o!e o( t'e A$t see )+ =als*ur2s La3s 9)t' E#n: !ara 1)11-
"
Po3er to ma8e rules o( t'e $ourt is $on(erre# * t'e Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. s /9":< 3it'out !re5u#i$e to an
ot'er !o3er o( ma8in% rules o( $ourt: i*i# s /9&:-
&
I*i# s /91:< 3'i$' also states t'at an rule o( la3 to t'e $ontrar 9sometimes $alle# 5us tertii: is a*olis'e#- A #e(en#ant is entitle#
to invo8e t'e statutor ri%'t to !lea# a su!erior ri%'t in a t'ir# !art even t'ou%'< at t'e #ate o( t'e 5oin#er a!!li$ation or
'earin%< t'e t'ir# !art2s ri%'t 'as *een #is!ose# o(: De &rano v Commr of Polie of the Metro$olis 911/.: Times / Ma< CA-
)
RSC Or# 1+ r 14A91:< 3'i$' a!!lies 3'en t'e !lainti(( is one o( t3o or more !ersons 'avin% or $laimin% an interest in t'e
%oo#s- T'e statement o( !arti$ulars o( title must *e in#orse# on t'e 3rit or ori%inatin% summons * 3'i$' t'e a$tion 3as *e%un
unless t'e !lainti(( 'as t'e 3ritten aut'orit o( ever su$' ot'er !erson to sue on t'e latter2s *e'al(: Or# 1+ r 14A91:< 3'i$' #oes
not a!!l to an a$tion arisin% out o( an a$$i#ent on lan# #ue to a $ollision or a!!re'en#e# $ollision involvin% a ve'i$le-
+
=e $an a!!l an time a(ter %ivin% noti$e o( intention to #e(en#< an# *e(ore a 5u#%ment or or#er on t'e !lainti((2s $laim: RSC
Or# 1+ r 14A9":-
,
RSC Or# 1+ r 14A9":- T'is #oes not a!!l to a !erson 3'o 'as aut'orise# t'e !lainti(( in 3ritin% to sue on 'is *e'al(- T'e
a!!li$ation (or #ire$tions must *e * summons< an# t'e summons must *e serve# !ersonall on ever !erson name# in it as 3ell
as *ein% serve# on t'e !lainti((: Or# 1+ r 14A9&:-
.
RSC Or# 1+ r 14A9):-
/
6or $ases 3'ere a *ailee 3as allo3e# to re$over (ull #ama%es in $ontra$t un#er t'e rule in The Win!field D114"E P )" at +)< CA<
see Tanen#aum v W3 Bell Pa$er Co 911+,: ) DLR 9"#: 1..C Terminal Warehouses Ltd v 3H Lo! and Sons Ltd 911+/: 1" DLR
9"#: 1"-
[302!]
10 Bailments and insurance
T'e *ailee 'as an insura*le interest in t'e *aile# %oo#s
1
- T'e insura*le interest e;ten#s *eon# t'e value o( t'e *ailee2s
o3n lia*ilit to t'e *ailor an# t'e loss 3'i$' t'e *ailee ma !ersonall su((er on t'e o$$urren$e o( a s!e$i(ie# !eril
"
- I(
t'e insuran$e $ontra$t is a!!ro!riatel !'rase#
&
< t'e *ailee $an re$over t'e (ull value o( t'e %oo#s 9or t'e (ull $ost o(
re!air: (rom t'e insurer- T'e *ailee 'ol#s t'e resi#ue o( t'e insuran$e mone< a(ter #e#u$tin% 'is !ersonal loss< (or t'e
*ailor
)
-
1
He$#urn v ( Tomlinson *Hauliers- Ltd D11,,E AC )+1< D11,,E 1 All ER )1/< =LC Waters and Steel v Monarh &ire and Life
(ssurane Co 91/+,: + E J B /.4C Castellain v Preston 91//&: 11 ?BD &/4< CAC The (l#a:ero D11..E AC ..)< D11.,E & All ER
1"1< =L-
"
He$#urn v ( Tomlinson *Hauliers- Ltd D11,,E AC )+1< D11,,E 1 All ER )1/< =LC Waters and Steel v Monarh &ire and Life
(ssurane Co 91/+,: + E J B /.4C Castellain v Preston 91//&: 11 ?BD &/4-
&
T'e usual re(eren$e is to %oo#s 'el# in trust or on $ommission-
)
?uaere as to 3'et'er t'e *ailor 'as a !ro!rietar interest in t'e insuran$e mone- Re .H Di##ens & Sons Ltd *in li?- D1114E
BCLC +.. su%%ests t'at %enerall 'e #oes not< *ut $( Mathew v TW Sutton 9111): Times< Hune "" 9!le#%e:C Lord +a$ier v
.ttri! and =unter D111&E AC .1&< D111&E 1 All ER &/+< =L 9e0uita*le lien or su*ro%ation:- In $ases li8e He$#urn v (
Tomlinson *Hauliers- Ltd D11,,E AC )+1< D11,,E 1 All ER )1/< =L< it is assume# t'at t'e mone are 'el# on trust< *ut t'e
!re$ise nature o( t'e *ailor2s relations'i! 3it' t'e mone #i# not re0uire #e$ision-
[302%]
11 "#e 'ailee0s estoppel2 pleadin 3us tertii
At $ommon la3< t'e *ailee is esto!!e# (rom #enin% t'e *ailor2s title
1
< unless 'e #e(en#s t'e *ailor2s a$tion 3it' t'e
aut'orit o( t'e true o3ner
"
or is evi$te# o( t'e %oo#s * a !erson 'avin% title !aramount
&
- T'e latter #oes not re0uire
(or$i*le evi$tion
)
< *ut merel a la3(ul #eman# a%ainst 3'i$' t'e *ailee 'as no #e(en$e- It is un$ertain 3'et'er t'e
*ailee $an avoi# t'e esto!!el * sim!l returnin% t'e %oo#s to a t'ir# !art o3ner 3'o 'as not #eman#e# t'em
+
-
T'e *ailee ta8es t'e ris8 t'at t'e t'ir# !art is not t'e o3ner an#< in $ases o( rival $laims< is 3ell a#vise# to
inter!lea#
,
- In %eneral< t'e *ailee2s esto!!el e;ten#s onl to a !lea o( 5us tertii 9viI< t'at title lies 3it' some t'ir#
!art:
.
- It #oes not normall !re$lu#e 'im (rom !lea#in% t'at 'e 'as !ersonall a$0uire# !ro!ert (rom a t'ir# !art
sin$e t'e $reation o( t'e *ailment
/
- But a *ailee2s $laim to 'ave #erive# title (rom a t'ir# !art is in essen$e a $laim t'at
a t'ir# !art 'a# title< 3'i$' t'e $ommon la3 esto!!el ostensi*l !re$lu#es-
T'e *ailee2s esto!!el is a((e$te# * statute< 3'i$' see8s in $ases o( 3ron%(ul inter(eren$e 3it' %oo#s to *rin%
all intereste# !arties *e(ore t'e $ourt an# to #istri*ute lia*ilit in a sin%le !ro$ee#in%- T'ese !rovisions< as 3e 'ave
seen
1
< a*olis' t'e rule t'at< as a%ainst a !lainti(( in !ossession o( %oo#s at t'e time o( t'e 3ron%< t'e #e(en#ant $annot
#e(en# on t'e %roun# t'at title resi#es in some t'ir# !erson un#er 3'om 'e #oes not $laim
14
- T'ese rules a!!ear also to
a*olis' t'e rule t'at a *ailee is esto!!e# (rom #enin% 'is *ailor2s title
11
< alt'ou%' t'e esto!!el ma *e !reserve# 3'ere
t'e *ailor sues ot'er3ise t'an in tort
1"
- A$a#emi$ o!inion is #ivi#e# as to 3'et'er t'ese !rovisions $an *e avoi#e# *
suin% in $ontra$t or *ailment rat'er t'an in tort
1&
-
[302&]
1
Cheesman v ./all 91/+1: , E;$' &)1C Biddle v Bond 91/,+: , B J S ""+C Rogers Sons & Co v Lam#ert & Co D1/11E 1 ?B &1/<
CAC Ross v .dwards & Co 91/1+: .& LT 144< PCC The (l#a:ero D11..E AC ..)< D11.,E & All ER 1"1< =LC China4Paifi S( v
&ood Cor$n of India) The Winson D11/"E AC 1&1< D11/1E & All ER ,//< =L-
"
Thorne v Til#ur" 91/+/: & = J N +&)C Biddle v Bond 91/,+: / B J S ""+C Re Sadler) e/ $ Davies 91//1: 11 C' D /,< CAC
Rogers Sons & Co v Lam#ert & Co D1/11E 1 ?B &1/< CA-
&
Biddle v Bond 91/,+: , B J S ""+-
)
Biddle v Bond 91/,+: , B J S ""+-
+
Palmer Bailment 9"n# E#n< 1111: !! ".+F".,-
,
RSC Or# 1.C as to inter!lea#er see "+ =als*ur2s La3s 9)t' E#n: !aras 1441F1414-
.
C( We## v Ireland and (4' D11//E IR &+&C The (l#a:ero D11..E AC ..) at /)1< D11.,E & All ER 1"1 at 1&"< =L-
/
We## v Ireland and (4' D11//E IR &+&-
1
See Para%ra!' 1-" D&4"&E ante-
14
Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. s / 9)+ =als*ur2s Statutes 9)t' E#n TORTS: an# see Para%ra!' 1-" D&4"&E ante-
11
As to t'e !rin$i!le t'at a *ailee is esto!!e# (rom #enin% 'is *ailor2s title see China Paifi S( v &ood Cor$n of India) The
Winson D11/"E AC 1&1 at 1+1< D11/1E & All ER ,// at ,1)< =L< !er Lor# Di!lo$8C Redler 'rain Silos Ltd v BICC Ltd D11/"E 1
Llo#2s Re! )&+ at )&/< CA< !er >err LH< an# at ))4 !er Ste!'enson LH-
1"
Palmer Bailment 9"n# E#n< 1111: !! "/+F"/,-
1&
C( Cler8 an# Lin#sell< Torts 91.t' E#n: $' ""-
[302(43030]
B: GRATUITOUS BAILMENTS AND BAILMENTS 6OR RE7ARD
12 "#e relevance o$ t#e distinction
12+1 "#e #istorical position
In (ormer times< t'e #istin$tion *et3een %ratuitous an# re3ar#e# *ailments 3as im!ortant< lar%el *e$ause t'e lo$ation
o( *ene(it un#er a *ailment 3as $onsi#ere# a material element in #e(inin% t'e *ailee2s #ut o( $are
1
- A *ailee (or re3ar#
9su$' as a !ai# $usto#ian: 3as 'el# to o3e a #ut o( reasona*le $are< 3'ile an un!ai# *ailee 9su$' as a #e!ositar or a
man#atar: 3as 'el# lia*le onl (or %ross ne%li%en$e
"
- At t'e ot'er en# o( t'e s$ale a *orro3er< 3'o #erive# t'e sole
*ene(it (rom t'e *ailment< 3as res!onsi*le even (or sli%'t ne%le$tC mere !roo( o( reasona*le $are 3as not enou%'
&
-
1
E% Coggs v Bernard 91.4&: " L# Ram 141-
"
E% 'i#lin v MMullen 91/,/: LR " PC &1.-
&
Coggs v Bernard 91.4&: " L# Ram 141-
[3031]
12+2 5odern standard o$ care
T'e %ra#ations o( $are 'ave no3 vanis'e#< to *e re!la$e# * a sin%le stan#ar# o( reasona*le $are a$$or#in% to all t'e
$ir$umstan$es
1
- T'e (a$t t'at a *ailee %ains a *ene(it (rom t'e *ailment ma still *e relevant in 5u#%in% 3'et'er a %iven
a$t or omission meets t'e stan#ar# o( reasona*le $are
"
< *ut it no lon%er a((e$ts t'e a*stra$t #e(inition o( t'e #ut itsel(
&
-
Even in its limite# area o( relevan$e< t'e 0uestion 3'et'er a *ailee is a !ro(essional or a !rivate $usto#ian< a$tin% in t'e
$ourse o( a *usiness or !er(ormin% a Lone@o((2 (avour (or a (rien#< a!!ears more im!ortant t'an t'e sim!le 0uestion o(
re3ar# as su$'
)
- In t'e event o( loss or #ama%e to t'e %oo#s an unre3ar#e# *ailee< li8e a *ailee (or re3ar#< $arries t'e
*ur#en o( #is!rovin% (ault
+
-
[3032]
1
Houghland v RR Low *Lu/ur" Coahes- D11,"E 1 ?B ,1)< D11,"E " All ER 1+1< CAC 'riffiths v (rh .ngineering Co *+ew$ort-
Ltd D11,/E & All ER "1.C an# see (05 Ltd v .'M Solders Ltd 911/": T'e Times< . Hul-
"
C( 'arli! v W & H R"roft Ltd D11/"E CA Trans$ri!t "..-
&
See e% t'e #e(inition o( t'e %ratuitous #e!ositar2s stan#ar# o( $are in China4Paifi S( v &ood Cor$n of India) The Winson
D11/"E AC 1&1 at 1,4F1,1< =L< !er Lor# Di!lo$8-
)
Port Swettenham (uthorit" v TW Wu & Co *M- Sdn Bhd D11.1E AC +/4< D11./E & All ER &&.< PCC *ut see China4Paifi S( v
&ood Cor$n of India) The Winson D11/"E AC 1&1< =L-
+
Port Swettenham (uthorit" v TW Wu & Co *M- Sdn Bhd D11.1E AC +/4< D11./E & All ER &&.< PC-
[3033]
12+3 5odern sini$icance
6or t'e reasons state# a*ove< 3'et'er a *ailment is %ratuitous or (or re3ar# is o( re#u$e# si%ni(i$an$e- Pra$ti$all t'e
onl areas 3'ere it is li8el to remain an issue are:
1"-&-1 t'e a*ilit o( t'e *ailee to *in# 'imsel( * a##itional !romises im!osin% a stri$ter lia*ilit t'an 'is normal
$ommon la3 res!onsi*ilit
1
<
1"-&-" t'e lia*ilit o( t'e *ailee (or t'e t'e(t< #is'onest or ot'er #eli*erate 3ron%#oin% o( 'is em!loees
"
< an#
1"-&-& t'e a*ilit o( t'e *ailor to #eman# t'e re#eliver o( t'e %oo#s *e(ore e;!ir o( t'e a%ree# !erio# o( t'e *ailee2s
!ossession
&
-
In t'e se$on# o( t'ese $ases< t'ere is su*stantial in#ire$t aut'orit su%%estin% t'at t'e *ailee2s res!onsi*ilit is
$om!ara*le to t'at o( a *ailee (or re3ar#
)
- In t'e (irst an# t'ir# $ases t'ere is no #ire$t mo#ern aut'orit< alt'ou%'
Australian #i$ta su%%est t'at !romises a##e# to %ratuitous *ailments are unen(or$ea*le< 3'et'er t'e relate to t'e
*ailee2s level o( res!onsi*ilit or to t'e !erio# o( loan
+
-
T'e ans3er !ro*a*l #e!en#s on 3'et'er $ourts are 3illin% to a#mit t'e e;isten$e a se!arate 'ea# o( lia*ilit
in *ailment< $a!a*le o( %eneratin% o*li%ations 3'i$' are not re(le$te# in t'e la3 o( $ontra$t an# tort< or 3'et'er t'e
insist t'at all !romises a##e# to *ailments satis( $ontra$tual stan#ar#s
,
- I( t'e latter !osition is ta8en< t'e !romise 3ill
normall (ail (or 3ant o( $onsi#eration
.
- It is su*mitte# t'at t'e (ormer !osition is !re(era*le-
In s!ite o( t'ese #3in#lin% !oints o( #i((eren$e< t'e 0uestion 3'et'er a *ailment is %ratuitous or (or re3ar#
$an still a((e$t lia*ilit- Bot' t'e Priv Coun$il
/
an# t'e Court o( A!!eal o( t'e Su!reme Court o( Ne3 Sout' 7ales
1

'ave 'inte# t'at !ra$ti$al #i((eren$es ma survive *et3een t'e #uties o( ea$' $lass o( *ailee- In t'e Priv Coun$il $ase<
Lor# Salmon sai# t'at t'e line *et3een t'e stan#ar# o( $are re0uire# o( a *ailee (or re3ar# an# t'at re0uire# o( a
%ratuitous *ailee is La ver (ine line< #i((i$ult to #is$ern an# im!ossi*le to #e(ine2
14
- 6or t'at reason< t'ere (ollo3s some
a$$ount o( t'e $riteria * 3'i$' t'e t3o $lasses o( *ailment are #istin%uis'e#-
[303!]
1
See Para%ra!'s 1/ D&4+.E< "" D&4,"E !ost-
"
See Para%ra!' 1+ D&4+&E !ost-
&
See Para%ra!' "+ D&4,+E !ost-
)
Most re$entl< Port Swettenham (uthorit" v TW Wu & Co *M- Sdn Bhd D11.1E AC +/4< D11./E & All ER &&.< PCC an# t'e
%eneral lo%i$ o( t'e Court o( A!!eal2s #e$ision in Morris v CW Martin & Sons Ltd D11,,E 1 ?B .1,< D11,+E " All ER ."+< CA-
+
Parastatidis v 2otaridis D11./E AR ))1 at )+)F)++ !er =arris H-
,
Palmer Bailment 9"n# E#n< 1111: $'s 1< 1-
.
Wal!er v Watson D11.)E " NGLR 1.+C Parastatidis v 2otaridis D11./E AR ))1-
/
Port Swettenham (uthorit" v T W Wu & Co *M- Sdn Bhd D11.1E AC +/4< D11./E & All ER &&.< PC-
1
Bram#les Seurit" Servies Ltd v Bi4lo Pt" Ltd D111"E ACL Re! )4 NS7 1-
14
Port Swettenham (uthorit" v TW Wu & Co *M- Sdn Bhd D11.1E AC +/4 at +/1< PC-
[303%]
13 5a6in t#e distinction
A *ailment (or re3ar# 9or mutual a#vanta%e: is one 3'i$' eit'er $on(ers or $an reasona*l *e e;!e$te# to $on(er a
*ene(it on *ot' !arties
1
- Normall one !art %ets a monetar !ament 3'ile t'e ot'er %ets t'e *ene(it o( some servi$e
to t'e %oo#s- T'e servi$e is usuall !rovi#e# * t'e *ailee to t'e *ailor< as 3'ere a *ailor *ails %oo#s (or stora%e
"
or to
*e 3or8e# on (or !ament
&
< *ut it ma *e !rovi#e# * t'e *ailor to t'e *ailee< as 3'ere %oo#s are *aile# on 'ire
)
-
T'ere $an *e a *ailment (or re3ar# 3it'out a mone !ament to or * eit'er !art
+
< !rovi#e# ea$' $an
reasona*l *e ta8en to 'ave inten#e# to #erive an a#vanta%e (rom t'e *ailment- A %ara%e 3'i$'< on a$$e!tin% a
$ustomer2s $ar (or re!air< *ails to t'e $ustomer a su*stitute ve'i$le (or use 3it'out se!arate !ament till t'e re!air is
#one< is !art to a *ailment (or mutual *ene(itC t'e su*stitute $ar is !art o( t'e servi$e (rom 3'i$' t'e %ara%e ma8es its
!ro(it
,
- 7'ere a restaurateur ta8es $are o( a #iner2s $oat
.
< or allo3s a %uest to leave 'is $ar in t'e $ar !ar8
/
< t'e
*ailment 9i( an:
1
is (or mutual a#vanta%e *e$ause t'e (a$ilit is one (rom 3'i$' t'e !ro!rietor $an *e e;!e$te# to
#erive %oo#3ill- 7'ere %oo#s are #elivere# to an a%ent to *e sol# on $ommission< t'e a%ent is a *ailee (or re3ar#
3'et'er t'e %oo#s are sol# or not< *e$ause 'e 'as a !ros!e$t o( remuneration
14
- A !ro(essional $arrier le(t in !ossession
o( %oo#s 3'i$' 'e 'as $arrie# (or re3ar#< 3'o 'as 3arne# $ustomers * noti$e t'at un$olle$te# %oo#s ma *e sol#
a(ter t'ree mont's to #e(ra stora%e an# ot'er $osts< is li8el to *e a *ailee (or re3ar#
11
-
[303&]
A *ailee 3'o ta8es $usto# 3it'out s!e$i(i$ re3ar#< *ut e;!e$tin% remuneration i( t'e o3ner later en%a%es
'is servi$es< ta8es (rom t'e *e%innin% as a *ailee (or re3ar#
1"
- But a #e$ision o( t'e =ouse o( Lor#s a!!ears to 'ol#
t'at an ori%inal *ailee (or re3ar# 9in t'is $ase< a salvor: 3'o retains !ossession 3'en t'e $ontra$t $eases to e;ist
*e$omes a %ratuitous *ailee
1&
-
T'e *ailment 3'i$' arises 3'ere a seller a%rees to retain !ossession o( %oo#s a(ter !ro!ert !asses to t'e *uer is
!ro*a*l one (or mutual *ene(it< at least 3'ere t'e seller is a $ommer$ial !art an# t'e a%ree# $olle$tion #ate 'as not
et arrive#
1)
- A%ain< t'e *ailment ma *e vie3e# as !art o( t'e seller2s servi$e- A(ter e;!ir o( t'e $olle$tion #ate< i( t'e
*uer 'as (aile# to ta8e !ossession t'e *ailment ma *e$ome %ratuitous or even involuntar in e;treme $ases
1+
- T'e
!osition is< 'o3ever< un$ertain
1,
-
A *ailment (or mutual a#vanta%e ma arise t'ou%' re3ar# #oes not !ass #ire$tl *et3een *ailor an# *ailee- A
lan#lor# 3'o< (or reasons *ene(i$ial to 'imsel(< allo3s a tenant to store 'is 3i(e2s trun8 in a room o$$u!ie# * t'e
lan#lor# o3es t'e 3i(e t'e #uties o( a *ailee (or re3ar#< t'ou%' t'e stora%e a%reement is 3it' 'er 'us*an#
1.
- A su*@
*ailee 3'o re$eives 'is re3ar# #ire$tl (rom t'e mi##le *ailee rat'er t'an (rom t'e 'ea# *ailor o3es t'e 'ea# *ailor t'e
#uties o( a *ailee (or re3ar#
1/
-
[303(]
1
See %enerall Palmer Bailment 9"n# E#n< 1111: $' /-
"
See Para%ra!' &4 D&4/1E et se0 !ost-
&
See Para%ra!' && D&41"E et se0 !ost-
)
See Para%ra!' &. D&14)E et se0 !ost-
+
As< (or e;am!le< 3'ere t3o o3ners tem!oraril e;$'an%e !ossession o( t'eir $'attels- An illustration is Br"e v Horn#" 911&/:
/" Sol Ho "1,-
,
Sanderson v Collins D114)E 1 >B ,"/ at ,&4< ,&&< CA< !er Collins MR an# Romer LH-
.
Mur$h" v Hart 91111: +" NSR .1-
/
Martin v Town +; Countr" Deliatessen Ltd 911,&: )" DLR 9"#: ))1 at )+/ !er S$'ultI HA-
1
C( Para%ra!' + D&441E ante 9*ailments an# li$en$es:-
[303)]
14
3a!son v Cohrane D11/1E " ?# R "&-
11
Cairns v Ro#ins 91/)1: / M J 7 "+/-
1"
Port Swettenham (uthorit" v TW Wu & Co *M- Sdn Bhd D11.1E AC +/4< D11./E & All ER &&.< =L- In t'is $ase t'ere 3as a
(urt'er !ossi*ilit o( *ene(it to t'e *ailee *e$ause %oo#s not $olle$te# 3it'in t'ree #as (rom t'e Aut'orit2s 3'ar(si#e s'e#s
3ere ta8en to its 3are'ouse< 3'ereu!on e;tra #uties 3ere !aa*le- T'e %oo#s 'ere 3ere stolen *e(ore su$' removal 'a#
o$$urre#-
1&
China4Paifi S( v &ood Cor$n of India) The Winson D11/"E AC 1&1< es! at 1,4 !er Lor# Di!lo$8-
1)
Palmer Bailment 9"n# E#n< 1111: !! +1/F+11- C( CCC &ilms *London- Ltd v Im$at >uadrant &ilms Ltd D11/)E & All ER "1/ at
&4" !er =ut$'ison H 9seller 3as *ailee (or re3ar# 3'ere ma8in% se!arate $ontra$t (or mailin% o( %oo#s to *uer:-
1+
See Para%ra!' +" D&1,"E et se0 !ost-
1,
See Wiehe v Dennis Bros 9111&: "1 TLR "+4C Dem#" Hamilton & Co Ltd v Barden D11)1E 1 All ER )&+C an# $( (llied Mills Ltd
v 'w"dir 0alle" 1ilseeds Pt" Ltd D11./E " NS7LR ", 9#eliver #elae# * seller:- T'e Sale o( Goo#s A$t 11.1 s "4 9&1
=als*ur2s La3s 9)t' E#n: SALE O6 GOODS AND CONSUMER PROTECTION: %ives no s!e$i(i$ %ui#an$e on t'is !oint-
1.
(ndrews v Home &lats Ltd D11)+E " All ER ,1/< CA- As to em!loers 3'o *e$ome *ailees o( t'eir em!loees2 3or8 tools< see
MaDonald v Whitta!er Te/tiles *Mar"sville- Ltd 911.,: ,) DLR 9&#: &1.-
1/
The Pioneer Container D111)E All ER "+4 at "+/F",4 !er Lor# Go(( o( C'ievele< $itin% Morris v CW Martin & Sons Ltd D11,,E
1 ?B .1,< D11,+E " All ER ."+< CA-
[303*430%0]
C: GRATUITOUS BAILMENT
1: GENERAL
1! 7eneral
T'ere are t'ree t!es o( %ratuitous *ailment: #e!ositum< or %ratuitous $usto#C man#atum< or %ratuitous 3or8 an#
la*ourC an# $ommo#atum< or %ratuitous loan- In ea$' $ase< onl one !art #erives a *ene(it (rom t'e transa$tion- In t'e
(irst t3o $ases t'e sole *ene(itin% !art is t'e *ailor< 3'ile in t'e t'ir# $ase t'e sole *ene(itin% !art is t'e *ailee-
Earlier #e$isions treat %ratuitous *ailments as $ontra$ts
1
- T'is analsis is no3 outmo#e#< an# mo#ern $ourts
seem li8el to a$$e!t t'e vie3 t'at %ratuitous *ailment 'as not'in% to #o 3it' $ontra$t
"
- It (ollo3s< (or e;am!le< t'at a
*ailee * 3a o( loan $an !lea# $ontri*utor ne%li%en$e in #e(en$e to an a$tion (or ne%li%ent #ama%e * t'e *ailor
&
-
T'e (a$tor 3'i$' !revents %ratuitous *ailments (rom *ein% $ontra$ts is< o( $ourse< t'e a*sen$e o( $onsi#eration: in t'e
(irst t3o $ases no $onsi#eration is su!!lie# * t'e *ailor< 3'ile in t'e t'ir# $ase no $onsi#eration is su!!lie# * t'e
*ailee-
T3o reservations ma< 'o3ever< *e note#- 6irst< it is o$$asionall 'inte# t'at %ratuitous *ailments are a sort
o( 'onorar mem*er o( t'e $ontra$tual (amil< a#mitte# to mem*ers'i! * a !ra%mati$ rela;ation o( one o( t'e
te$'ni$al rules o( $ontra$t
)
- Se$on#l< it #oes not ne$essaril (ollo3 (rom a re5e$tion o( t'e $ontra$tual analsis t'at t'e
ri%'ts an# #uties o( t'e !arties to a %ratuitous *ailment su*sist solel in tort- In !arti$ular $ases< t'ere ma *e room (or
t'e a!!li$ation o( s!e$ial rules o( *ailment
+
-
[30%1]
1
Coggs v Bernard 91.4&: " L# Ram 141C Bla!emore v Bristol and ./eter Rl" Co 91/+/: / E J B 14&+-
"
Wal!er v Watson D11.)E " NGLR 1.+C $( +ew @ealand Shi$$ing Co Ltd v (M Satterthwaite & Co Ltd) The .ur"medon D11.+E
AC 1+) at 1.+< PC< !er Lor# 7il*er(or$e-
&
Wal!er v Watson D11.)E " NGLR 1.+C $(< as to t'e availa*ilit o( t'e #e(en$e in a$tions (or *rea$' o( $ontra$t<
&orsi!ringsa!tiesels!as$et 0esta v But$'er D11//E " All ER )&< CA< u!'el# D11/1E 1 All ER )4"< =L-
)
E% +ew @ealand Shi$$ing Co Ltd v (M Satterthwaite & Co Ltd) The .ur"medon 9a*ove:-
+
Palmer Bailment 9"n# E#n< 1111: $' 1
[30%2]
": DEPOSIT
1% Duty o$ care
1
T'e %ratuitous #e!ositar must ta8e reasona*le $are o( t'e %oo#s< su$' $are *ein% #e(ine# * re(eren$e to all t'e
$ir$umstan$es
"
- T'e (a$t t'at t'e servi$e is %ratuitous ma *e a (a$tor in #e(inin% t'e stan#ar# o( $are
&
< *ut is !ro*a*l
less !ersuasive t'an ot'er (a$tors< su$' as t'e value o( t'e %oo#s an# t'e a!!arent !ro(essional stan#in% an# $a!a*ilities
o( t'e *ailee
)
- Alt'ou%' ol#er aut'orities su%%est ot'er3ise< t'e *ailee $annot es$a!e lia*ilit merel * s'o3in% t'at
'e 'as a*staine# (rom %ross ne%li%en$e
+
< or t'at 'e 'as ta8en t'e same #e%ree o( $are o( t'e %oo#s as 'e too8 o( 'is
o3n %oo#s
,
< i( t'e $are 'e too8 o( 'is o3n 3as not o*5e$tivel reasona*le
.
-
T'e #ut o( $are ma re0uire t'e *ailee to !er(orm !ositive a$ts< su$' as $'e$8in% t'e %oo#s or a#visin% t'e
*ailor o( an loss or #eterioration-
T'e normal #ut o( $are ma *e rela;e# i( t'e *ailor is a3are o( s!e$ial $ir$umstan$es 9su$' as #e(e$tive
!remises or !ersonal in$om!eten$e: ren#erin% it more #i((i$ult (or t'e !arti$ular *ailee to e;er$ise an o*5e$tive #e%ree
o( $are an# s8ill- Su$' rela;ation ma *e more easil esta*lis'e# un#er %ratuitous *ailments t'an un#er *ailments (or
re3ar#
/
< *ut remains 'ar# to !rove- Clear !roo( o( an e;!ress or im!lie# $onsent * t'e *ailor to t'e re#u$e# stan#ar#
still a!!ears ne$essar
1
-
T'e *ailee is ans3era*le (or an 3ant o( $are s'o3n * 'is em!loees in t'e $ourse o( t'eir em!loment
14
<
or * an t'ir# !art to 3'om 'e 'as su*@*aile# t'e %oo#s 3it' t'e *ailor2s aut'orit
11
- T'e *ailee must also< it is
su*mitte#< ans3er (or an t'e(t or ot'er #eli*erate #e!re#ation $ommitte# * an em!loee or ot'er !erson to 3'om 'e
'as entruste# t'e %oo#s an# #ele%ate# t'e !er(orman$e o( an !art o( 'is #ut o( $are
1"
- Mo#ern aut'orit on t'is !oint
is s$ar$e< 'o3ever< an# Lor# Dennin% MR 'as #enie# t'at t'e %ratuitous *ailee is ans3era*le (or t'e #is'onest o( 'is
em!loees< even t'ose to 3'om t'e %oo#s 'ave *een entruste#
1&
- But t'e vie3 3e 'ave state# a!!ears $onsistent 3it'
!rin$i!le-
[30%3]
1
"
Port Swettenham (uthorit" v TW Wu & Co *M- Sdn Bhd D11.1E AC +/4< D11./E & All ER &&.< =L< !er Lor# SalmonC China4
Paifi S( v &ood Cor$n of India) The Winson D11/"E AC 1&1 at 1)&F1))< =L< !er Lor# Di!lo$8C Mithell v .aling London
Borough Counil D11.1E ?B 1< D11./E " All ER ..1C 3ames Buhanan & Co Ltd v Ha";s Trans$ort Servies Ltd D11."E "
Llo#2s Re! +&+C 'arli! v W & H R"roft Ltd D11/"E CA Trans$ri!t "..C Houghland v RR Low *Lu/ur" Coahes- Ltd D11,"E 1
?B ,1)< D11,"E " All ER 1+1C Blount v War 1ffie D11+&E 1 All ER 14.1< D11+&E 1 7LR .&,-
&
'arli! v W & H R"roft Ltd D11/"E CA Trans$ri!t "..-
)
Port Swettenham (uthorit" v TW Wu & Co *M- Sdn Bhd D11.1E AC +/4< D11./E & All ER &&.< =L-
+
E% 'i#lin v MMullen 91/,/: LR " PC &1.-
,
Doorman v 3en!ins 91/&): " A# J El "+,C *ut $( Morris v CW Martin & Sons Ltd D11,,E 1 ?B .1,< D11,+E " All ER ."+ at .&1
!er Lor# Dennin% MR-
.
Doorman v 3en!ins 91/&): " A# J El "+,-
/
See Para%ra!'s 1& D&4&,E ante< &"-1 D&4/&E !ost-
1
S!"wa" Servie Station Ltd v MDonald D11/,E 1 NGLR &,,-
14
Morris v CW Martin & Sons Ltd D11,,E 1 ?B .1, at ."&F."+< D11,+E " All ER ."+ at .&1F.&"< CA< !er Lor# Dennin% MR-
11
See %enerall Palmer Bailment 9"n# E#n< 1111: $' "4 an# Para%ra!' )1 D&1&&E !ost 9su*@*ailment:C British Road Servies Ltd v
(rthur 0 Cruthle" & Co Ltd D11,/E 1 All ER /11< CA- C( 3ames Buhanan & Co Ltd v Ha";s Trans$ort Servies Ltd D11."E "
Llo#2s Re! +&+ 9'ea# *ailment (or re3ar#< %ratuitous su*@*ailmentC su*@*ailee o3e# 'ea# *ailor #uties o( %ratuitous *ailee:-
1"
Palmer Bailment 9"n# E#n< 1111: !! ++)F+,4-
1&
Morris v CW Martin & Sons Ltd D11,,E 1 ?B at .1,< D11,+E " All ER ."+ at .&1F.&"< CA-
[30%!]
1& Burden o$ proo$
In t'e event o( an esta*lis'e# loss or in5ur a((e$tin% t'e %oo#s 3'ile t'e are in t'e *ailee2s !ossession< t'e *ailee
$arries t'e *ur#en o( !rovin% t'at t'e misa#venture #i# not result (rom an (ailure * 'im or 'is #ele%ates to attain t'e
ne$essar stan#ar# o( $are o( t'e %oo#s
1
- A similar *ur#en o( !roo( a!!ears to a!!l in re%ar# to t'e #eli*erate a$ts o(
em!loees or in#e!en#ent $ontra$tors
"
< assumin% t'at lia*ilit (or su$' a$ts $an atta$' to t'e *ailee in !rin$i!le
&
-
1
Port Swettenham (uthorit" v TW Wu & Co *M- Sdn Bhd D11.1E AC +/4< D11./E & All ER &&.< PCC Mithell v .aling London
Borough Counil D11.1E ?B 1< D11./E " All ER ..1C Houghland v RR Low *Lu/ur" Coahes- Ltd D11,"E 1 ?B ,1)< D11,"E " All
ER 1+1< CA-
"
C( Para%ra!' &"-" D&4/,E anteK!ost- It is su*mitte# t'at *ailments * 3a o( #e!ositum (ollo3 *ailments * 3a o( lo$atio
$usto#iae on t'is !oint< as on *ur#en o( !roo( %enerall-
&
See Para%ra!' 1+ D&4+&E ante-
[30%%]
1( Costs o$ sa$e6eepin
In man $ases< t'e *ailee $annot $laim t'e normal $osts o( storin% t'e %oo#s< *e$ause res!onsi*ilit (or t'ese $osts 3ill
'ave *een im!lie#l un#erta8en * 'is a$$e!tan$e o( t'e %oo#s as #e!ositar
1
- An a%reement to !a t'e reasona*le
$osts o( stora%e mi%'t< 'o3ever< *e in(erre# in !arti$ular $ases- In a##ition< t'e *ailee ma *e entitle# to re$over t'e
$osts o( sa(e%uar#in% t'e %oo#s a%ainst e;traor#inar 'aIar#s< !rovi#e# t'at in so a$tin% 'e is #is$'ar%in% 'is #ut o(
$are
"
- It is un$ertain 'o3 (ar t'is result #e!en#s on t'e $ommer$ial nature o( t'e *ailment or t'e *ailor2s (ore8no3le#%e
o( t'e *ailee2s $on#u$t< or 'o3 (ar t'e la3 o( a%en$ o( ne$essit a((or#s t'e *ailee an alternative %roun# o( restitution
&
-
1
Palmer Bailment 9"n# E#n< 1111: ! +/+-
"
China4Paifi S( v &ood Cor$n of India) The Winson D11/"E AC 1&1< D11/1E & All ER ,//< =LC Palmer Bailment 9"n# E#n<
1111: ! +/) et se0-
&
C( on t'ese !oints t'e s!ee$'es o( Lor# Di!lo$8 9(or t'e ma5orit: an# Lor# Simon o( Glais#ale in The Winson 9a*ove:-
[30%&]
1) 8uperadded promises
T'e a*sen$e o( $onsi#eration movin% (rom t'e #e!ositor un#er a %ratuitous *ailment * 3a o( #e!osit su%%ests t'at
a##itional !romises * t'e *ailee< $ommittin% 'im to t'e !er(orman$e o( a$ts or t'e enlar%ement o( lia*ilit *eon# t'at
or#inaril im!ose# at $ommon la3< are unen(or$ea*le- In (a$t< t'ere are #e$isions (avourin% t'e en(or$ement o( su$'
!romises< 3'i$' ma *e as$ri*e# to t'e le%all #istin$tive nature o( t'e *ailment relation- 6or e;am!le< a #e!ositar
mi%'t *e ans3era*le (or *rea$' o( a !romise to #eliver t'e %oo#s to a !arti$ular !erson
1
or at a !arti$ular time
"
< or
mi%'t * a%reement *in# 'imsel( to a stri$t lia*ilit (or an loss or #ama%e a((e$tin% t'e %oo#s
&
-
1
Treftt: v Canelli 91/.": LR ) PC "..< PC-
"
Mithell v .aling London Borough Counil D11.1E ?B 1< D11./E " All ER ..1-
&
2ettle v Bromsall 91.&/: 7illes 11/-
[30%(]
1* Deviation
Su*5e$t to an e;!ress term< t'e #e!ositar must #is$'ar%e 'is $usto#ial o*li%ations !ersonall #urin% t'e !erio# o( t'e
*ailment< an# restore t'e %oo#s to t'e *ailee on t'e e;!ir o( t'e *ailment
1
- Alt'ou%' mo#ern aut'orit is s$ar$e< it
a!!ears t'at t'e *ailee 3'o #eviates (rom t'ese or ot'er (un#amental o*li%ations in$urs a stri$t lia*ilit as an insurer-
T'e im!osition o( su$' lia*ilit< 3'i$' is in$urre# in $ommon 3it' t'e *ailee (or re3ar#
"
< a!!ears to in#i$ate t'at
$ertain #uties o( t'e %ratuitous *ailee are in#e!en#ent o( eit'er $ontra$t or tort
&
- Stri$t lia*ilit 3as im!ose# on a
'ousin% aut'orit (or t'e loss o( %oo#s *elon%in% to evi$te# s0uatters< a(ter t'e aut'orit 'a# (aile# to 8ee! an
a!!ointment to 'an# over t'e %oo#s
)
- B *rea8in% t'e a!!ointment< t'e aut'orit as #e!ositar 'a# #eviate# (rom t'e
terms o( t'e %ratuitous *ailment< an# $oul# no lon%er es$a!e lia*ilit * !roo( t'at it 'a# ta8en reasona*le $are- 7'ere
it is un$ertain 3'et'er t'e %oo#s 3ere #ama%e# or lost *e(ore< #urin% or a(ter a !erio# o( #eviation< t'e onus lies on t'e
*ailee to i#enti( t'e time o( #ama%e or loss
+
-
[30%)]
1
"
See Para%ra!' &"-) D&4/1E !ost- An e;am!le< 3'ere t'e *ailee 3as in mora< is Shaw & Co v S"mmons & Sons D111.E 1 >B .11C
$( Mithell v .aling London Borough Counil 9a*ove:-
&
Palmer Bailment 9"n# E#n< 1111: !! +./F+/4-
)
Mithell v .aling London Borough Counil D11.1E ?B 1< D11./E " All ER ..1C $( Ronnen#urg v &al!land Islands Co 91/,): 1.
CBNS 1-
+
[30%*]
&: MANDATE
20 7eneral
1
T'e o*li%ations o( t'e man#atar resem*le t'ose o( t'e #e!ositar an# #o not< (or t'e most !art< re0uire se!arate
e;!osition- Several !oints o( #istin$tion nevert'eless merit e;amination-
1
Palmer Bailment 9"n# E#n< 1111: $' 14-
[30&0]
21 Burden o$ proo$
T'e *ur#en o( !roo( o!erates #i((erentl< a$$or#in% to 3'et'er t'e *ailor sues (or *rea$' o( t'e man#atar2s #ut o(
$are or (or *rea$' o( t'e s!e$i(i$ !romise to !er(orm t'e man#ate# a$t- In t'e (irst $ase< t'e *ur#en rests on t'e
man#atar to s'o3 t'at t'e loss or in5ur o$$urre# in#e!en#entl o( an la!se (rom t'e man#atar2s re0uire# stan#ar#
o( $areC ie< eit'er t'at t'e man#atar too8 t'e ne$essar $are< or t'at 'is (ailure to #o so 3as $ausall un$onne$te# 3it'
t'e #ama%e or loss
1
- In t'e se$on# $ase< t'e *ur#en is on t'e man#ator to esta*lis' t'e *rea$' a((irmativel
"
- In t'is
res!e$t< t'e evi#ential rule a!!ears to *e t'e normal rule t'at 'e 3'o asserts must !rove-
1
Port Swettenham (uthorit" v TW Wu & Co *M- Sdn Bhd D11.1E AC +/4< D11./E & All ER &&.< PC-
"
As 3it' *ailments * 3a o( lo$atio o!eris (a$ien#i: see Para%ra!' &+-" D&41,E !ost-
[30&1]
22 ,n$orcement o$ t#e tas6
Man#ates *rin% into !arti$ular !rominen$e t'e en(or$ea*ilit o( an unre3ar#e# *ailee2s !romises- Alt'ou%' a stri$t
a!!li$ation o( t'e #o$trine o( $onsi#eration 3oul# su%%est ot'er3ise
1
< it is su*mitte# t'at t'e man#atar2s !romise to
!er(orm t'e servi$e is en(or$ea*le on$e 'e 'as entere# into !ossession o( t'e $'attel
"
-
1
E% Heaton v Rihards 91//1: " NS7LR .&C Parastatidis v 2otaridis D11./E AR ))1-
"
See t'e aut'orities $ite# a*ove< Para%ra!' 1/ D&4+.E ante 9#e!ositum: an# Roufos v Brewster and Brewster 911.1: " SASR "1/
at ""&F"") !er Bra CHC 1riental Ban! Cor$n v R 91/.,: , NS7SCR 1"" at 1"+ !er 6au$ett H-
[30&2]
): GRATUITOUS LOAN
9a: General
23 7eneral
1
T'is (orm o( *ailment arises 3'ere %oo#s are *aile# to a !erson 3'o is allo3e# to use t'em (or 'is e;$lusive *ene(it<
no re3ar# a$$ruin% to t'e len#er- In $ommon 3it' %ratuitous *ailments %enerall< loans 3ere (ormerl treate# as
$ontra$ts
"
< #es!ite t'e (a$t t'at t'e *orro3er is t'e sole !art to *ene(it- It seems inevita*le t'at En%lis' $ourts 3ill
(ollo3 t'ose o( Ne3 Gealan# in re5e$tin% t'e $ontra$tual analsis o( %ratuitous loans (or 3ant o( $onsi#eration
&
-
1
"
Coggs v Bernard 91.4&: " L# Ram 141C Bla!emore v Bristol and ./eter Rl" Co 91/+/: / E J B 14&+-
&
Wal!er v Watson D11.)E " NGLR 1.+- Note< 'o3ever< t'e o$$asional su%%estion t'at %ratuitous *ailments are 'onorar mem*ers
o( t'e $ontra$t (amil: +ew @ealand Shi$$ing Co Ltd v (M Satterthwaite & Co Ltd) The .ur"medon D11.+E AC 1+) at 1.+< PC<
!er Lor# 7il*er(or$eC Roufos v Brewster and Brewster 911.1: " SASR "1/ at "&&F"&) !er Bra CH-
[30&3]
9*: Duties o( t'e len#er
2! -n3ury or loss
A$$or#in% to ol#er aut'orit< t'e len#er o3es no lia*ilit (or in5ur< #ama%e or loss $ause# * a #e(e$t in t'e $'attel
unless 'e 8ne3 o( t'e relevant #e(e$t at t'e time o( t'e loan
1
- Almost $ertainl< t'e res!onsi*ilities o( t'e len#er (or t'e
sa(et an# (itness o( t'e o*5e$t no3 lie in sim!le ne%li%en$e rat'er t'an in some %reater or lesser #e%ree o( $are
"
-
1
Bla!emore v Bristol and ./eter Rl" Co 91/+/: / E J B 14&+C Coughlin v 'illison D1/11E 1 ?B 1)+< CA-
"
6ollo3in% Donoghue v Stevenson D11&"E AC +,"< =LC see 'riffiths v (rh .ngineering Co *+ew$ort- Ltd D11,/E & All ER "1.C
Wheeler v Co$as D11/1E & All ER )4+C Cam$#ell v 1;Donnell D11,.E IR "",C Palmer Bailment 9"n# E#n< 1111: ! ,&1 et se0-
[30&!]
2% 9it#dra1al o$ c#attel 'e$ore e:piry o$ areed term
Consistentl 3it' t'e re5e$tion o( t'e $ontra$tual vie3 o( loans
1
< t'ere is #ou*t as to 3'et'er a len#er is *oun# * an
su!era##e# !romise< su$' as a !romise to allo3 t'e *orro3er to use t'e $'attel (or a set term
"
- T'e ort'o#o; vie3 is
t'at t'e len#er2s !romise is unen(or$ea*le *e$ause t'e *orro3er %ives no $onsi#eration (or it
&
- T'is vie3 ma *e
0uestione#< *e$ause it im!lies a re5e$tion o( t'e t'eor t'at %ratuitous *ailments are a le%all #istin$t $on$e!t< $a!a*le
o( %ivin% rise to #uties 3'i$' $annot *e rationalise# * re(eren$e to $ontra$t or tort- But mo#ern aut'orit is la$8in%-
1
See Para%ra!'s 1) D&4+1E< "& D&4,&E ante-
"
Parastatidis v 2otaridis D11./E AR ))1 at )+)F)++ !er =arris H< o*iter-
&
Parastatidis v 2otaridis D11./E AR ))1-
[30&%]
9$: Duties o( t'e *orro3er
2& Duty o$ care
T'e *orro3er must ta8e reasona*le $are o( t'e $'attel- =e is not 9su*5e$t to an e;!ress !romise: ans3era*le (or
or#inar 3ear an# tear
1
< *ut 'e is res!onsi*le (or its reasona*le #a@to@#a maintenan$e
"
- I( t'e *ailor !roves loss or
#ama%e 3'ile t'e %oo#s 3ere in t'e *orro3er2s !ossession< t'e *orro3er $arries t'e *ur#en o( ne%ativin% (ault< an# is
lia*le unless 'e $an s'o3 t'at t'e misa#venture o$$urre# in#e!en#entl o( an *rea$' o( 'is #ut o( $are
&
-
1
Moorhouse v (ngus & Ro#ertson *+o 6- Pt" Ltd D11/1E 1 NS7LR .44 at .4/ !er Samuels HA 9*ailment (or re3ar#:-
"
Handford v Palmer 91/"4: " Bro# J Bin% &+1-
&
6or a mo#ern Cana#ian e;am!le< see Wilmot Hathewa" Motors Ltd v Degrae 911,1: 1 NBR 9"#: /+/-
[30&&]
2( Added promises
T'e *orro3er is *oun# * an a##itional !romise 3'i$' 'e %ives as to t'e $are 'e 3ill ta8e o( t'e $'attel or as to t'e
level o( 'is res!onsi*ilit (or it
1
-
1
Williams Mahiner" Co v Muttart Builders Ltd 911,1: &. 77R ).-
[30&(]
2) Duty to a'stain $rom deviation
Alt'ou%' #ire$t aut'orit is s$ar$e< it a!!ears t'at a *orro3er 3'o #e!arts (rom one o( t'e (un#amental limitations
im!ose# * t'e len#er on 'is !ossession 9(or e;am!le< * usin% it (or a #i((erent !ur!ose or on a #i((erent route (rom
t'at !ermitte#
1
< or *ailin% it to a t'ir# !art 3it'out aut'orit:
"
*e$omes stri$tl lia*le as an insurer an# $annot es$a!e
on !roo( o( reasona*le $are
&
-
1
Coggs v Bernard 91.4&: " L# Ram 141 !er =olt CH-
"
Cha$man v Ro#inson and &erguson 911,1: .1 77R +1+-
&
C( t'e similar rule un#er $ontra$ts o( 'ire: see Para%ra!' &1-& D&111E !ost-
[30&)]
2* Duty to return c#attel
T'e *orro3er must ma8e t'e $'attel availa*le (or $olle$tion * t'e len#er on t'e e;!ir o( t'e *ailment- 7'et'er 'e
must ta8e a$tive ste!s to re#eliver to t'e len#er2s a##ress #e!en#s on t'e s!e$ial terms 9i( an: an# %eneral
$ir$umstan$es o( t'e loan
1
-
1
Palmer Bailment 9"n# E#n< 1111: !! ,.)F,.,
[30&*430)0]
D: BAILMENTS 6OR RE7ARD
1: LOCATIO CUSTODIAE< OR T=E SA6E>EEPING O6 GOODS 6OR RE7ARD
30 De$inition
A *ailment * 3a o( lo$atio $usto#iae
1
arises 3'ere a *ailee a%rees to store %oo#s o( anot'er in return (or some
a#vanta%e- T'e *ailee2s a#vanta%e ma *e monetar or ma $om!rise some ot'er *ene(it
"
- 7'ere< (or e;am!le< a
restaurant !rovi#es (a$ilities (or t'e leavin% o( $ustomers2 $ars
&
or t'e #e!osit o( %arments
)
< in $ir$umstan$es 3'i$'
!la$e t'e restaurant in !ossession
+
< t'e restaurant is a *ailee (or re3ar#-
1
See Palmer Bailment 9"n# E#n< 1111: $' 1&-
"
C( t'e !osition o( t'e seller 3'o remains in !ossession a(ter !ro!ert 'as !asse# to t'e *uer: see Para%ra!'s " D&44&E< 1& D&4&,E
ante-
&
Martin v Town +; Countr" Deliatessen Ltd 911,&: )" DLR 9"#: ))1C an# see %enerall Para%ra!'s + D&441E< 1& D&4&,E< 1)
D&4+1E et se0 ante-
)
Mur$h" v Hart 91111: +" NSR .1-
+
C( Para%ra!' + D&441E ante 9*ailments an# li$en$es:-
[30)1]
31 Duties o$ t#e 'ailor
T'e *ailor must !a t'e a%ree# $'ar%e (or stora%e or< 3'ere none is a%ree#< a reasona*le sum
1
- T'e *ailor is not stri$tl
lia*le (or t'e sa(et o( t'e %oo#s or t'eir (itness to *e store#
"
< *ut 'e is lia*le (or ne%li%en$e
&
- T'e *ailor ma *e in
*rea$' o( t'e *ailment * (ailin% to $olle$t t'e %oo#s at t'e e;!ir o( t'e *ailment or 93'ere no term is a%ree#: on
reasona*le noti$e
)
-
1
Su!!l o( Goo#s an# Servi$es A$t 11/" s 1+91: 9&1 =als*ur2s Statutes 9)t' E#n: SALE O6 GOODS AND CONSUMER
PROTECTION:- 7'at is a reasona*le sum is a 0uestion o( (a$t: i*i# s 1+9":-
"
C( t'e $onsi%nor o( %oo#s to *e $arrie#: The 'iannis +2 D111)E " Llo#2s Re! 1.1-
&
Palmer Bailment 9"n# E#n< 1111: ! ...C t'ere is no #ire$t aut'orit in !oint-
)
See Para%ra!' +" D&1,"E et se0 !ost-
[30)2]
32 Duties o$ t#e 'ailee
32+1 Duty o$ care
T'e $usto#ian must ta8e reasona*le $are o( t'e %oo#s< t'at is< su$' $are as a reasona*l $om!etent $usto#ian o( 'is
stan#in% 3oul# ta8e o( e0uivalent %oo#s o( ot'ers in similar $ir$umstan$es
1
- T'e *ailee is not 9unless 'e #eviates:
"
an
insurer o( t'e %oo#s
&
< an# 'e #oes not 3arrant t'e sa(et o( 'is !remises
)
-
Onl rarel 3ill t'e *ailor2s 8no3le#%e o( t'e $on#ition o( t'e !remises or o( t'e *ailee2s la$8 o( $om!eten$e
relieve t'e *ailee (rom t'at stan#ar# o( $are
+
- 6or t'at result to (ollo3< t'e *ailee must s'o3 a $onsent * t'e *ailor to a
lo3er #e%ree o( $are t'an 3oul# ot'er3ise *e re0uire#
,
-
In assessin% t'e !re$autions to *e ta8en< all t'e $ir$umstan$es must *e ta8en into a$$ount
.
< in$lu#in% t'e
nature< value< !orta*ilit an# #is!osa*ilit o( t'e %oo#s
/
< t'e $ir$umstan$es in 3'i$' t'e are 8e!t
1
< t'e surroun#in%
nei%'*our'oo#
14
< t'e !ra$ti$e o( ot'er $usto#ians in a similar !osition
11
an# t'e e;!e$tations o( a reasona*le *ailor
1"
-
S!e$ial terms ma en'an$e or re#u$e
1&
t'is o*li%ation- T'e $ommon la3 #ut re0uires t'e *ailee to ta8e reasona*le
ste!s to %uar# a%ainst all (oreseea*le misa#ventures< even t'ose resultin% (rom t'e mis$on#u$t o( in#e!en#ent t'ir#
!arties
1)
- It o*li%es t'e *ailee to ta8e reasona*le $orre$tive a$tion in t'e event o( an a$tual or imminent mis(ortune
arisin% in#e!en#entl o( t'e *ailee2s (ault< as 3'ere %oo#s are stolen
1+
< or e;!ose# to t'e elements * *om*in%
1,
< or
$laime# * t'ir# !arties
1.
- T'e #ut o( $are #oes not< 'o3ever< or#inaril re0uire t'e *ailee to insure t'e %oo#s
1/
<
unless $ustom
11
< s!e$ial a%reement
"4
or 9!er'a!s: t'e e;$e!tional value o( t'e %oo#s
"1
#i$tate ot'er3ise-
[30)3]
1
Port Swettenham (uthorit" v TW Wu & Co *M- Sdn Bhd D11.1E AC +/4< D11./E & All ER &&.< PCC Morris v CW Martin & Sons
Ltd D11,,E 1 ?B .1,< D11,+E " All ER ."+< CAC British Road Servies Ltd v (rthur 0 Cruthle" & Co Ltd D11,/E 1 All ER /11<
CAC Lo!s$eiser (irraft Ltd v Broo!lands (irraft Ltd 91114: Times< . Mar$'C Houghland v RR Low *Lu/ur" Coahes- Ltd
D11,"E 1 ?B ,1)< D11,"E " All ER 1+1< CAC Morris) Polle/fen and Blair v Walton 91141: unre!orte#< =LC Broo!;s Wharf and
Bull Wharf Ltd v 'oodman Bros D11&.E 1 >B +&)< D11&,E & All ER ,1,< CAC Coldman v Hill D1111E 1 >B ))&< CA- Aut'orit
o$$asionall re(ers in t'is $onne$tion to t'e $are t'at a $om!etent $usto#ian 3oul# ta8e o( 'is o3n %oo#s< *ut it is su*mitte# t'at<
in so (ar as t'is *eto8ens a #i((erent stan#ar#< t'e !osition state# in t'e te;t is to *e !re(erre#-
"
See Para%ra!' &"-) D&4/1E !ost-
&
'le#e Island Terminals Pt" Ltd v Continental Seagram Pt" Ltd< The (ntwer$en D111)E 1 Llo#2s Re! "1& 9NS7 CA:-
)
Searle v Laveri! 91/.): LR 1 ?B 1""-
+
Bra#ant & Co v 2ing D1/1+E AC ,&"< PCC .dwards v +ewland & Co D11+4E " >B +&)< D11+4E 1 All ER 14."< CAC see %enerall
Palmer Bailment 9"n# E#n< 1111: !! /1/F/"&-
,
S!"wa" Servie Station Ltd v MDonald D11/,E 1 NGLR &,,- 6or a!!arent e;am!les< see Har$er v 3ones 91/./: ) ALR +&,C
Saunders *Ma"fair- &urs Ltd v Chas WM Davies Ltd D11,,E 1 Llo#2s Re! ./C Idnani v .lisha D11.1E RTR )//< CAC Mur$h" v
Hart 91111: +" NSR .1C Reid v Calderwood 91111: )+ ILT 1&1-
.
Houghland v RR Low *Lu/ur" Coahes- Ltd D11,"E 1 ?B ,1)< D11,"E " All ER 1+1< CA-
[30)!]
/
S$riggs v Sothe#" Par!e Bernet & Co Ltd D11/,E 1 Llo#2s Re! )/.< CAC 'arnham) Harris and .lton Ltd v (lfred W .llis
*Trans$ort- Ltd D11,.E " All ER 1)4< D11,.E 1 7LR 1)4C Swiss Ban! Cor$n v Brin!;s4Mat Ltd D11/,E " Llo#2s Re! .1C 'arli!
v W & H R"roft Ltd D11/"E CA Trans$ri!t "..-
1
British Road Servies Ltd v (rthur 0 Cruthle" & Co Ltd D11,/E 1 All ER /11< CA- But $( Bra#ant & Co v 2ing D1/1+E AC ,&"<
PC-
14
British Road Servies Ltd v (rthur 0 Cruthle" & Co Ltd D11,/E 1 All ER /11< CA-
11
British Road Servies Ltd v (rthur 0 Cruthle" & Co Ltd D11,/E 1 All ER /11< CA-
1"
C( 3ames Buhanan Ltd v Ha";s Trans$ort Servies Ltd and Dunan Bar#our & Son Ltd D11."E " Llo#2s Re! +&+-
1&
Su*5e$t to t'e Un(air Contra$t Terms A$t 11.. 911 =als*ur2s Statutes 9)t' E#n: CONTRACT:-
1)
Pitt) Son & Badger" Ltd v Preulefo SA 911/): +" ALR &/1C an# see %enerall Smith v Littlewoods 1rganisation Ltd D11/.E AC
")1< D11/.E 1 All ER .14< =LC $( 'arli! v W & H R"roft Ltd D11/"E CA Trans$ri!t "..-
1+
Coldman v Hill D1111E 1 >B ))&< CA-
1,
1.
Ranson v Platt D1111E " >B "11< CAC an# see Hes!ell v Continental ./$ress Ltd D11+4E 1 >B 14&&< D11+4E 1 All ER 144&-
1/
Lo!s$eiser (irraft Ltd v Broo!lands (irraft Ltd 91114: Times< . Mar$'C Mason v Morrow;s Moving & Storage Ltd D11./E )
77R +&)C Palmer Bailment 9"n# E#n< 1111: !! .//F.14-
11
2a" v Shuman 911+): Times< "" Hune-
"4
Lo!s$eiser (irraft Ltd v Broo!lands (irraft Ltd 91114: Times< . Mar$'-
"1
.astman Chemial International (' v +MT Trading Ltd and .agle Trans$ort Ltd D11."E " Llo#2s Re! "+C Punh v Savo";s
3ewellers Ltd 911/,: ", DLR 9)t': +),-
[30)%]
32+2 Acts o$ employees
T'e *ailee is ans3era*le (or t'e ne%li%en$e o( 'is em!loees in t'e $ourse o( t'eir em!loment
1
< an# (or an #eli*erate
3ron% $ommitte# * an em!loee to 3'om t'e *ailee 'as entruste# t'e %oo#s an# #ele%ate# an !art o( 'is #ut o(
$are
"
- Su$' 3ron%s in$lu#e mali$ious #ama%e< an# t'e(t or $om!li$it in t'e(t- But t'e *ailee is not res!onsi*le (or a
t'e(t * an em!loee to 3'om t'e %oo#s 3ere not entruste#< 3'ose em!loment merel a((or#e# t'at em!loee t'e
o!!ortunit to $ommit t'e t'e(t
&
-
1
3ose$h Travers & Sons Ltd v Coo$er D111+E 1 >B .&< CAC Morris v CW Martin & Sons Ltd D11,,E 1 ?B .1,< D11,+E " All ER
."+< CA-
"
Morris v CW Martin & Sons Ltd D11,,E 1 ?B .1,< D11,+E " All ER ."+< CAC an# see Port Swettenham (uthorit" v TW Wu & Co
*M- Sdn Bhd D11.1E AC +/4< D11./E & All ER &&.< PCC Photo Produtions Ltd v Seurior Trans$ort Ltd D11/4E AC /".< D11/4E
1 All ER ++,< =LC +ahhas v Pier House *Che"ne Wal!- Management 911/): ".4 EG &"/C Swiss Ban! Cor$ v Brin!;s4Mat Ltd
D11/,E " Llo#2s Re! .1-
&
Morris v CW Martin & Sons Ltd D11,,E 1 ?B .1,< D11,+E " All ER ."+< CAC Swiss Ban! Cor$ v Brin!;s4Mat Ltd D11/,E "
Llo#2s Re! .1C Leesh River Tea Co Ltd v British India Steam +avigation Co Ltd) The Ch"e#assa D11,.E " ?B "+4< D11,,E & All
ER +1&< CAC an# see De Parrell v Wal!er 911&": )1 TLR &.-
[30)&]
32+3 Burden o$ proo$
T'e *ur#en rests on t'e *ailor to s'o3 t'at t'e %oo#s $ame into t'e !ossession o( t'e *ailee in $ir$umstan$es %ivin%
rise to a *ailment
1
< an# t'at t'e %oo#s 3ere lost< stolen< #estroe# or #ama%e# 3'ile in t'e *ailee2s !ossession
"
- On$e
t'at is s'o3n< t'e *ailee must s'o3 eit'er t'at t'e !ro!er #e%ree o( $are 3as ta8en< or t'at an (ailure to ta8e su$' $are
3as un$onne$te# 3it' t'e in5ur
&
-
T'e latter #e(en$e is #i((i$ult to esta*lis'< an# is li8el to su$$ee# onl i( t'e *ailee s'o3s t'at 'is la!se (rom
t'e #ut o( $are !lae# no !art in t'e later misa#venture
)
- It 'as rarel i( ever su$$ee#e# in a $ase o( loss * t'e(t
+
- A
similar *ur#en a!!lies 3it' re%ar# to #eli*erate 3ron%s * em!loees- T'e *ailee must s'o3 t'at t'e %oo#s 3ere not
stolen or #ama%e# * an em!loee to 3'om 'e entruste# t'em
,
- T'is *ur#en o!erates alt'ou%' #eli*erate 3ron%#oin%
'as not *een !lea#e# * t'e *ailor
.
-
[30)(]
1
The Rua$ehu 911"+: "1 Ll L Re! 111 an# &14< CAC $( 3 Lowenstein & Co Ltd and 'eneral Metal %tilisation Co Ltd v Dura#le
Wharfage Co Ltd D11.&E 1 Llo#2s Re! ""1C an# see t'e $ases in 3'i$' *ailments an# li$en$es are #istin%uis'e#< Para%ra!' +
D&441E ante-
"
' Merel & Co Ltd v Chessher D11,1E 1 Llo#2s Re! +&)-
&
See t'e $ases $ite# in Para%ra!' &"-1 note 1 D&4/)E ante< an# 3ose$h Travers and Sons Ltd v Coo$er D111+E 1 >B .&< CAC
Lo!s$eiser (irraft Ltd v Broo!lands (irraft Co Ltd 91114: Times< . Mar$'C 0itoria &ur Traders Ltd v Roadline *%2- Ltd
and British (irwa"s Board D11/1E 1 Llo#2s Re! +.4C Pitt) Son & Badger" Ltd v Preulefo S( 911/): +" ALR &/1-
)
3ose$h Travers and Sons Ltd v Coo$er D111+E 1 >B .&< CA-
+
Palmer Bailment 9"n# E#n< 1111: !! ./&F./)-
,
Ltd D11,,E 1 ?B .1,< D11,+E " All ER ."+< CA-
.
Transmotors Ltd v Ro#ertson Bu!le" & Co Ltd D11.4E 1 Llo#2s Re! "")-
[30))]
32+! Deviation
T'e *ailee 3ill o3e a stri$t lia*ilit in t'e event o( a #eviation< t'at is< 3'ere t'e *ailee $ontravenes one o( t'e
(un#amental restri$tions on 'is !ossession
1
- =e ma #o so * 8ee!in% t'e %oo#s in a !la$e ot'er t'an t'at a%ree#
"
< or
#ele%atin% $usto# o( t'em to a t'ir# !art 3it'out s!e$i(i$ aut'orit
&
< or 8ee!in% t'em *eon# t'e !erio# o( t'e
*ailment
)
- T'e *ailee 3'o #eviates is lia*le (or t'e %oo#s as an insurer
+
< an# $an avoi# lia*ilit onl * s'o3in% t'at
t'e in5ur 3as t'e *ailor2s (ault or 3oul# 'ave 'a!!ene# re%ar#less o( t'e #eviation
,
- T'e *ailee also loses t'e ri%'t o(
$ontinue# !ossession an# %enerall (or(eits t'e !rote$tion o( an e;$lusion or limitation $lause
.
- B t'e a$t o( #eviation<
t'e *ailee2s status as su$' is e;tin%uis'e# an# t'e *ailor2s ri%'t o( !ossession revives
/
- Ea$' o( t'ese $onse0uen$es ma
*e #is!la$e# * e;!ress terms-
[30)*]
1
Davis v 'arrett 91/&4: , Bin% .1,-
"
Lille" v Dou#leda" 91//1: . ?BD +14C an# see .dwards v +ewland & Co D11+4E " >B +&)< D11+)E 1 All ER 14."< CA-
&
.dwards v +ewland & Co D11+4E " >B +&)< D11+)E 1 All ER 14."< CAC an# see Metaalhandel 3( Magnus B0 v (rdfields
Trans$ort Ltd and .astfell Ltd D11//E 1 Llo#2s Re! 11. 9#eviation< i( an< later $on#one# * *ailor:-
)
Shaw & Co v S"mmons & Sons Ltd D111.E 1 >B .11-
+
Lille" v Dou#leda" 91//1: . ?BD +14C Hain Steamshi$ Co Ltd v Tate & L"le Ltd D11&,E " All ER +1.< =L-
,
Lille" v Dou#leda" 91//1: . ?BD +14C Hain Steamshi$ Co Ltd v Tate & L"le Ltd D11&,E " All ER +1.< =L-
.
As to 3'et'er t'is $onse0uen$e (ollo3s automati$all or on t'e $onstru$tion o( t'e !arti$ular a%reement< see Palmer Bailment
9"n# E#n< 1111: !! +1F,1-
/
C( %nion Trans$ort &inane Ltd v British Car (utions Ltd D11./E " All ER &/+< CAC +orth Central Wagon & &inane Co Ltd v
'raham D11+4E " >B .< CA< 9$ases o( 'ire !ur$'ase:-
[30*0]
32+% ;ien
At $ommon la3< a $usto#ian 'as no !arti$ular lien on t'e %oo#s< *e$ause t'e mere a$t o( $usto# #oes not im!rove
t'em
1
- T'ere is also< a (ortiori< no %eneral lien
"
- Eit'er a !arti$ular or a %eneral lien ma *e $on(erre#< 'o3ever< *
$ustom or e;!ress a%reement
&
-
1
As to $ommon la3 !arti$ular liens< see Para%ra!' &, D&14"E !ost-
"
MaAeau Carr"ing Co Pt" Ltd v Coastal Rutile Ltd 911.&: 1"1 CLR )/-
&
General liens are #isli8e# * t'e $ourts an# 3ill not< it seems< *e #is$overe# ot'er t'an in t'e most $om!ellin% $ir$umstan$es:
Rushforth v Hadfield 91/4,: . East "")-
[30*1]
": LOCATIO OPERIS 6ACIENDI< OR T=E PER6ORMANCE O6 S>ILL AND LABOUR 6OR RE7ARD
33 7eneral
1
T'is variet o( *ailment arises 3'ere a *ailee a%rees< in return (or a re3ar#< to !er(orm 3or8 an# e;er$ise s8ill on
"

anot'er2s $'attel- As in t'e $ase o( $usto# (or re3ar#
&
< t'e re3ar# nee# not *e monetar- T'e *ailee must re#eliver t'e
$'attel to t'e *ailor on $om!letion o( t'e 3or8< or #eal ot'er3ise 3it' it on t'e *ailor2s instru$tions- T'e $'attel ma *e
altere# * t'e arti(i$er2s 3or8 9as 3'ere leat'er is ma#e into s'oes: *ut t'at (a$t alone #oes not !re$lu#e 'is *e$omin% a
*ailee o( t'e ori%inal %oo#s or t'eir !ro#u$t
)
-
1
See Palmer Bailment 9"n# E#n< 1111: $' 1)-
"
Or< rarel< 3it'-
&
See Para%ra!' &4 D&4/1E et se0 ante-
)
Clough Mill Ltd v Martin D11/)E & All ER 1/"< D11/+E 1 7LR 111 an# see Para%ra!' / D&41/E ante-
[30*2]
3! Duties o$ t#e 'ailor
T'e *ailor2s o*li%ations are strai%'t(or3ar# an# mat$' t'ose un#erta8en * t'e *ailor * 3a o( $usto# (or re3ar#
1
-
=e must !a t'e a%ree# (ee (or t'e servi$e or< 3'ere none is a%ree# or ot'er3ise as$ertaina*le< a reasona*le sum
"
- T'e
*ailor ma o3e to t'e *ailee an im!lie# o*li%ation to $olle$t t'e %oo#s * t'e a%ree# #ate or< 3'ere no #ate is a%ree#<
on reasona*le noti$e
&
- Brea$' o( t'is o*li%ation to t'e *ailee ma re#u$e t'e *ailee2s #ut o( $are
)
< an# ma entitle 'im
to ri# 'imsel( o( t'e %oo#s in or#er to miti%ate t'e e((e$ts o( t'e *rea$'
+
-
1
See Para%ra!' &1 D&4/"E ante-
"
Su!!l o( Goo#s an# Servi$es A$t 11/" s 1+91: 9&1 =als*ur2s Statutes 9)t' E#n: SALE O6 GOODS AND CONSUMER
PROTECTION:- 7'at is a reasona*le $'ar%e is a 0uestion o( (a$t: i*i# s 1+9":-
&
Pedri! v Morning Star Motors Ltd 91) 6e*ruar 11.1< unre!orte#:< CAC Rid"ard v Ro#erts 91, Ma 11/4< unre!orte#:< CAC
Davis v Henr" Bir! and Sons Ltd D11/&E 1 77R .+)-
)
See Para%ra!' +& D&1,&E et se0 !ost-
+
See Para%ra!' +. D&1,/E et se0 !ost-
[30*3]
3% Duties o$ t#e 'ailee
3%+1 Care and custody
T'e o*li%ations o( t'e *ailee (or 3or8 an# la*our $orres!on# lar%el to t'ose o( t'e re3ar#e# $usto#ian
1
- T'e *ailee
must ta8e reasona*le $are o( t'e %oo#s
"
< 3'i$' o*li%ation 3ill *e measure# * all t'e $ir$umstan$es
&
- T'e *ailee2s #ut
is not lessene# * t'e (a$t t'at no se!arate $'ar%e is e;a$te# (or stora%e
)
- T'e %eneral #ut in$lu#es a #ut to ta8e
reasona*le $are in re#eliverin% t'e %oo#s to t'e *ailor
+
< an# to a$t res!onsi*l in t'e event o( an emer%en$< even 3'ere
t'is is not $ause# * t'e *ailee2s (ault
,
- T'e a#ministration an# monitorin% o( t'e *ailee2s se$urit sstem are as
im!ortant as its settin% u!< so t'at a *ailee 3'o (ails to o!erate a %oo# sstem $om!etentl is ans3era*le re%ar#less o(
t'e a*stra$t merits o( t'e sstem
.
- Even momentar inattention ma ma8e t'e *ailee lia*le
/
- T'e *ailee is ans3era*le<
on similar !rin$i!les to t'e re3ar#e# $usto#ian< (or t'e mis#ee#s o( 'is em!loees
1
< an# $an onl rarel es$a!e lia*ilit
* s'o3in% t'e *ailor2s a3areness o( #e(i$ien$ies in t'e *ailee2s !ersonnel or se$urit sstem
14
-
[30*!]
1
See Para%ra!' &" D&4/&E ante-
"
&
S$riggs v Sothe#" Par!e Bernet & Co D11/,E 1 Llo#2s Re! )/.< CA-
)
Sinlair v 3uner 11+" SC &+-
+
Be!er v Lavender Ltd 911),: ," TLR +4)C an# see Coo$er v Dem$se" 911,1: 14+ Sol Ho &"4< CA-
,
Coldman v Hill D1111E 1 >B ))&< CAC .dwards v +ewland & Co D11+4E " >B +&)< D11+4E 1 All ER 14."< CA-
.
Port Swettenham (uthorit" v TW Wu & Co *M- Sdn Bhd D11.1E AC +/4< D11./E & All ER &&.< PCC S$riggs v Sothe#" Par!e
Bernet & Co D11/,E 1 Llo#2s Re! )/.< CA-
/
S$riggs v Sothe#" Par!e Bernet & Co D11/,E 1 Llo#2s Re! )/.< CA-
1
See Para%ra!' &"-" D&4/,E ante-
14
See Para%ra!' &"-1 D&4/&E ante-
[30*%]
3%+2 Burden o$ proo$
In t'e event o( loss o( or #ama%e to t'e %oo#s #urin% t'e !erio# o( !ossession 93'i$' (a$ts must *e !rove# * t'e
*ailor:
1
t'e *ailee must s'o3 t'at reasona*le $are 3as ta8en or t'at its a*sen$e 3as irrelevant to t'e o$$urren$e o( su$'
loss or #ama%e
"
- But t'e *ur#en o( !rovin% t'e *rea$' o( some ot'er instru$tion un#erta8en * t'e *ailee 9su$' as t'e
manner o( t'e 3or8 or t'e t!e o( materials use#: rests on t'e *ailor
&
- As a %eneral rule< t'e *ailee2s *ur#en o( !roo(
e;ten#s onl to t'e $usto#ial as!e$ts o( 'is o*li%ations
)
-
1
See Para%ra!' &"-& D&4/.E ante-
"
&
&an!hauser v Mar! D"!es Pt" Ltd D11,4E AR &.,-
)
Palmer Bailment 9"n# E#n< 1111: ! /". et se0-
[30*&]
3%+3 Deleation and deviation
T'e *ailee2s #uties are normall !ersonal to 'im an# $annot *e #ele%ate# to a t'ir# !art 3it'out t'e *ailor2s $onsent
1
-
Su$' $onsent ma o$$asionall *e im!lie#< *ut in most $ases it must *e e;!ress
"
- It ma *e %iven *e(ore or a(ter
&
t'e
*ailment arises- In #eterminin% 3'et'er a #ele%ation is !ermitte#< t'e nature< lan%ua%e an# o*5e$t o( t'e $ontra$t an# its
atten#ant $ir$umstan$es ma *e ta8en into a$$ount
)
- A *ailee 3'o #eviates (rom t'e essential terms o( t'e *ailment 9as
* entrustin% t'e tas8 to a t'ir# !art< or (ailin% to return t'e %oo#s at t'e en# o( t'e *ailment: su((ers t'e same
$onse0uen$es as a $usto#ian (or re3ar#
+
-
1
.dwards v +ewland & Co D11+4E " >B +&)< D11+4E 1 All ER 14."< CA< 9stora%e:C Morgan v Maurer & Son 911,4: &4 Ir Hur Re!
&1 9re!air o( 3at$':C 'arnham) Harris & .lton Ltd v (lfred W .llis *Trans$ort- Ltd D11,.E " All ER 1)4< D11,.E 1 7LR 1)4
9$arria%e:C an# see Davies v Collins D11)+E 1 All ER ").< CAC Martin v + +egin & Co 911)+: 1." LT ".+< CA< 9terms o(
*ailment $ontra$t:C British Waggon Co and Par!gate Waggon Co v Lea & Co 91//4: + ?BD 1)1 9assi%nment * lessor o( #ut
to re!air 'ire# 3a%%ons 'el# !ermitte#:C $( Ro#son v Drummond 91/&1: " B J A# &4&C Southwa" 'rou$ Ltd v Wolff and Wolff
91111: +. BLR &&< CA< es!e$iall !er Bin%'am LH-
"
Palmer Bailment 9"n# E#n< 1111: !! 14"F14+C an# see 2 Chellaram & Sons *London- Ltd v Butlers Warehousing and
Distri#ution Ltd D11./E " Llo#2s Re! )1"< CA-
&
Or %iven e; !ost (a$to: Metaalhandel 3( Magnus B0 v (rdfields Trans$ort Ltd D11//E 1 Llo#2s Re! 11.-
)
Southwa" 'rou$ Ltd v Wolff and Wolff 91111: +. BLR &&< CA-
+
See Para%ra!' &"-) D&4/1E ante-
[30*(]
3%+! <uality o$ services
Certain im!lie# o*li%ations ma %overn t'e 0ualit o( t'e *ailee2s 3or8< an# t'e *ailee2s res!onsi*ilit (or its (itness to
a$'ieve a !arti$ular o*5e$tive re0uire# * t'e *ailor
1
- 7'ere no ot'er stan#ar# is !res$ri*e# * t'e $ontra$t< t'e *ailee
must !er(orm t'e 3or8 3it' reasona*le $are an# s8ill
"
an# 3it'in a reasona*le time
&
- T'e *ailee also un#erta8es t'at
t'e 3or8 3ill *e $om!lete#
)
< an# ma *e lia*le (or *rea$' o( t'is o*li%ation alt'ou%' t'e 3or8 is im!ossi*le< 3'et'er
* t'e met'o# $'osen or * an met'o#
+
- A$$or#in% to $ir$umstan$es< t'e *ailment ma su!!ort an im!lie# o*li%ation
t'at t'e servi$es !rovi#e# are reasona*l (it (or t'e *ailor2s !ur!ose
,
< or t'at an !ro#u$t o( t'e *ailee2s servi$es is
similarl (it (or its inten#e# !ur!ose
.
- Su$' o*li%ations< in !arallel to t'e similar o*li%ations im!lie# into $ontra$ts o(
sale
/
an# ot'er $ontra$ts (or t'e su!!l o( %oo#s
1
< a!!ear to #e!en# on t'e *ailor2s 'avin% relie# on t'e *ailee2s s8ill
an# 5u#%ment to a$'ieve t'e o*5e$tive in 0uestion
14
-
[30*)]
1
Palmer Bailment 9"n# E#n< 1111: ! 14, et se0-
"
Su!!l o( Goo#s an# Servi$es A$t 11/" s 1& 9&1 =als*ur2s Statutes 9)t' E#n: SALE O6 GOODS AND CONSUMER PROTECTION:
93'i$' a!!lies to servi$es su!!lie# in t'e $ourse o( a *usiness< *ut is re(le$te# * a %eneral $ommon la3 rule a!!li$a*le to all
$ontra$ts (or servi$es: see Smith v .ri S Bush D11/1E " All ER +1) at +11F+"4< =L< !er Lor# Tem!lemanC Harmer v Cornelius
91/+/: + CBNS "&,C Metaalhandel 3( Magnus B0 v (rdfields Trans$ort Ltd D11//E 1 Llo#2s Re! 11.-
&
Su!!l o( Goo#s an# Servi$es A$t 11/" s 1)91:- 7'at is a reasona*le time is a 0uestion o( (a$t: i*i# s 1)9":-
)
(lderslade v Hendon Laundr" Ltd D11)+E >B 1/1< D11)+E 1 All ER "))< CAC '2 Serigra$his Ltd v Dis$ro Ltd D11/4E CA
Trans$ri!t 11,< CA-
+
'2 Serigra$his Ltd v Dis$ro Ltd D11/4E CA Trans$ri!t 11,< CAC Peare v Tu!er 91/,": & 6 J 6 1&,-
,
Manawatu (s$halts Ltd v Rae D11+4E NGLR .41-
.
'reaves & Co *Contrators- Ltd v Ba"nham Mei!le & Partners D11.+E & All ER ,,,< D11.+E 1 7LR 141+C 0i!ing 'rain Storage
Ltd v TH White Installations Ltd 911/+: && BLR 14&-
/
Sale o( Goo#s A$t 11.1 s 1) 9&1 =als*ur2s Statutes 9)t' E#n: SALE O6 GOODS AND CONSUMER PROTECTION:-
1
Su!!l o( Goo#s an# Servi$es A$t 11/" s 1-
14
Palmer Bailment 9"n# E#n< 1111:C an# see Inde$endent Broadasting (uthorit" v .MI .letronis Ltd and BICC Constrution
Ltd 911/4: 1) BLR 1< =LC %niversit" of Warwi! v Sir Ro#ert M(l$ine 911//: )" BLR 1-
[30**]
3%+% <uality o$ oods and materials
7'ere t'e *ailee su!!lies %oo#s as 3ell as servi$es< an# et t'e *ailment remains one o( s8ill an# la*our rat'er t'an
one o( sale< $ertain o*li%ations ma *e o3e# in relation to t'ose %oo#s- A$$or#in% to $ir$umstan$es< t'e must
$orres!on# 3it' #es$ri!tion
1
< *e o( mer$'anta*le 0ualit
"
< *e reasona*l (it (or t'eir !ur!ose
&
an# $orres!on# 3it' an
sam!le %iven
)
- T'ese are terms o( stri$t o*li%ation< an# t'eir s$o!e an# $ontent is su*stantiall in#istin%uis'a*le (rom
t'e e0uivalent statutor terms 3'i$' are im!lie# into sales o( %oo#s
+
- Statute ma8es limite# !rovision (or t'e e;$lusion
o( t'ese im!lie# terms
,
-
[3100]
1
Su!!l o( Goo#s an# Servi$es A$t 11/" s & 9&1 =als*ur2s Statutes 9)t' E#n: SALE O6 GOODS AND CONSUMER PROTECTION:-
"
I*i# s ) an# see Boung and Marten Ltd v MManus Childs Ltd D11,1E 1 AC )+)< D11,/E " All ER 11,1< =LC 'louestershire
Count" Counil v Rihardson D11,1E 1 AC )/4< D11,/E " All ER 11/1< =LC Helio$ter Sales *(ustralia- Pt" Ltd v Rotor4Wor!
Pt" Ltd 911.): 1&" CLR 1C Stewart v Reavell;s 'arage Ltd D11+"E " ?B +)+< D11+"E 1 All ER 1111C 'H M"ers & Co Ltd v Brent
Cross Servie Co Ltd D11&)E 1 >B ),C Dodd and Dodd v Wilson and MWilliam D11),E " All ER ,11-
&
Su!!l o( Goo#s an# Servi$es A$t 11/" s )C an# see Boung and Marten Ltd v MManus Childs Ltd D11,1E 1 AC )+)< D11,/E "
All ER 11,1< =LC Helio$ter Sales *(ustralia- Pt" Ltd v Rotor Wor! Pt" Ltd 911.): 1&" CLR 1C Stewart v Reavell;s 'arage Ltd
D11+"E " ?B +)+< D11+"E 1 All ER 1111C 'H M"ers & Co Ltd v Brent Cross Servie Co Ltd D11&)E 1 >B ),-
)
Su!!l o( Goo#s an# Servi$es A$t 11/" s +-
+
See vol &) SALE O6 GOODS-
,
Un(air Contra$t Terms A$t 11.. s . 911 =als*ur2s Statutes 9)t' E#n: CONTRACT:-
[3101]
3& ;ien
7'ere a *ailee 3'o 'as la3(ul !ossession o( %oo#s im!roves t'em * t'e e;ertion o( s8ill an# la*our< an# t'e $ontra$t
$ontains no term to t'e $ontrar
1
< t'e *ailee 'as a $ommon la3 lien (or 'is $'ar%es
"
- T'e lien entitles t'e *ailee to
retain !ossession until t'e $'ar%es are !ai# *ut #oes not $on(er a ri%'t o( sale
&
- It is a !arti$ular lien< entitlin% t'e *ailee
to retain !ossession onl as se$urit (or $'ar%es in$urre# in relation to t'ose !arti$ular %oo#s- 7'ere t'e *ailee %ives u!
!ossession o( t'e %oo#s t'e lien is normall lostC an# 3'ere t'e terms o( t'e *ailment $ontem!late a !erio#i$
resum!tion o( !ossession * t'e *ailor< a lien is !ro*a*l !re$lu#e#
)
-
T'e *ailee must ta8e reasona*le $are o( t'e %oo#s #urin% t'e !erio# (or 3'i$' t'e lien is asserte#
+
- =e $arries
t'e *ailee2s normal *ur#en o( !roo( i( t'e %oo#s are lost or in5ure# #urin% t'at !erio#
,
- T'e e;tent o( t'e #ut o( $are
#e!en#s< as else3'ere< on all t'e $ir$umstan$es-
7'ere a *ailor $ounterman#s t'e 3or8 *e(ore its $om!letion< t'e *ailee ma *e entitle# to $om!lete t'e 3or8
not3it'stan#in% t'e $ounterman#
.
- T'at ma *e so 3'ere t'e *ailee 'as a le%itimate interest in $om!letin% t'e 3or8
an# $om!letion #oes not re0uire t'e *ailor2s $o@o!eration
/
- In t'at event< t'e *ailee a!!ears entitle# to a lien (or 'is (ull
$'ar%es on$e t'e 3or8 is $om!lete#
1
- In ot'er $ases< t'e *ailee is at least entitle# to assert a lien in res!e$t o( t'e
$'ar%es in$urre# u! to t'e #ate on 3'i$' 'is instru$tions 3ere 3it'#ra3n
14
-
T'e re0uirement t'at t'e *ailee 'as la3(ul !ossession !ro*a*l #e*ars an *ailee 3'o re$eive# !ossession
(rom a !erson ot'er t'an t'e o3ner (rom assertin% a lien a%ainst t'at o3ner
11
< unless t'e !erson 3'o instru$te# t'e
3or8 an# #elivere# t'e %oo#s to t'e *ailee 'a# t'e a$tual or ostensi*le aut'orit o( t'e o3ner to $reate t'e lien
1"
-
General liens ma *e $on(erre# * $ustom in re%ar# to !arti$ular tra#es or lo$alities
1&
- Courts #o not vie3
t'eir re$o%nition 3it' ent'usiasm
1)
-
[3102]
1
C( Wilson v Lom#an! Ltd D11,&E 1 All ER .)4< D11,&E 1 7LR 1"1)-
"
3udson v .theridge 91/&&: 1 Cr J M .)&C Sarfe v Morgan 91/&/: ) M J 7 ".4C Chase v Westmore 91/1,: + M J S 1/4C Re
Southern Livesto! Produers Ltd D11,&E & All ER /41< D11,)E 1 7LR ")C Ward v &ielden D11/+E CLB "444C Re Witt) e/ $
Shu#roo! 91/.,: " C' D )/1< CA< an# see Palmer Bailment 9"n# E#n< 1111: !! 1))F1++-
&
Bolwell &i#reglass Pt" Ltd v &ole" D11/)E AR 1.< Su!reme Court o( Australia-
)
Ward v &ielden D11/+E CLB "444-
+
+ightingale v Tildsle" D11/4E CLB 1&)C (ngus v MLahlan 91//&: "& C' D &&4-
,
See Para%ra!' &"-& D&4/.E ante-
.
Bolwell &i#reglass Pt" Ltd v &ole" D11/)E AR 1.-
/
See %enerall White & Carter *Counils- Ltd v M'regor D11,"E AC )1&< D11,1E & All ER 11./< =L< a!!lie# in Bolwell
&i#reglass Pt" Ltd v &ole" D11/)E AR 1.-
1
Bolwell &i#reglass Pt" Ltd v &ole" D11/)E AR 1.-
14
Lille" v Barnsle" 91/)): 1 Car J >ir &))-
11
C( 3ohnson Matthe" & Co Ltd v Constantine Terminals Ltd D11.,E " Llo#2s Re! "1+< not (ollo3e# in The Pioneer Container
D111)E " All ER "+4< PC-
1"
Ta$$enden v (rtus D11,)E " ?B 1/+< D11,&E & All ER "1&< CAC (l#emarle Su$$l" Co Ltd v Hind & Co D11"/E 1 >B &4.< CAC
Palmer Bailment 9"n# E#n< 1111: !! 1)+F1++-
1&
Palmer Bailment 9"n# E#n< 1111: !! 1++F1+/-
1)
See Para%ra!' &"-+ D&411E ante-
[3103]
&: LOCATIO CONDUCTIO REI< OR =IRE O6 GOODS
3( 7eneral
1
T'e $ontra$t o( 'ire is a *ailment 3'ere* one !erson %ets !ossession o( %oo#s *elon%in% to anot'er< to use t'em (or
'is *ene(it< in return (or a re3ar# to t'e !erson to 3'om t'e *elon%- T'e !ur!oses (or 3'i$' %oo#s ma *e 'ire# are
numerous an# $an in$lu#e su*@'irin%< alt'ou%' (or statutor !ur!oses a sale or return *ailment !lan< entitlin% a #ealer to
8ee! $ars on 'is (ore$ourt to attra$t o((ers< 3as not a $ontra$t o( 'ire
"
- T'e *ailor2s re3ar# ma *e monetar< or ma
$onsist in some ot'er *ene(it
&
< su$' as t'e !er(orman$e o( 3or8 in 3'i$' *ot' !arties are intereste#
)
- A %ara%e 3'i$'
*ails a $ar to a $ustomer 3'ile 'is o3n is *ein% re!aire# ma *e a 'irer
+
< an# is most unli8el to *e a mere %ratuitous
len#er
,
- T'e %oo#s must *e re#elivere# to t'e *ailor at t'e en# o( t'e 'irin%
.
< or ot'er3ise #ealt 3it' in a$$or#an$e 3it'
'is instru$tions-
On mo#ern aut'orit< it is un$ertain 3'et'er t'e 'irer 'as a !ro!rietar interest in t'e %oo#s< ena*lin% 'im to
en(or$e 'is ri%'t to t'e %oo#s a%ainst t'ir# !art !ur$'asers
/
- On normal !rin$i!les o( !rivit o( $ontra$t< t'e 'irer is
un!rote$te#
1
- A $ontrar $on$lusion ma *e 5usti(ie# 3'ere t'e $ontra$t o( 'ire is s!e$i(i$all en(or$ea*le
14
< or
3'erever t'e 'irer 'as !ossession un#er t'e $ontra$t o( 'ire 3'en t'e t'ir# !art !ur$'aser see8s to oust 'im
11
- T'e
'irer2s !ossession is< o( $ourse< a su((i$ient interest to ena*le 'im to sue t'ir# !art 3ron%#oers 3'o 'ave no $laim o(
title
1"
< or to insure t'e %oo#s in 'is name
1&
-
[310!]
1
See Palmer Bailment 9"n# E#n< 1111: $' 11-
"
'eneral Motors (e$tane Cor$n *%2- Ltd v IRC D11/.E STC 1""< CAC Palmer Bailment 9"n# E#n< 1111: ! 1"41-
&
Su!!l o( Goo#s an# Servi$es A$t 11/" s , 9&1 =als*ur2s Statutes 9)t' E#n: SALE O6 GOODS AND CONSUMER PROTECTION:C
$( Der#"shire Building Co Pt" Ltd v Be!er 911,": 14. CLR ,&&-
)
Der#"shire Building Co Pt" Ltd v Be!er 911,": 14. CLR ,&&-
+
>ueens Sales and Servie Ltd v Smith 911,&: )/ MPR &,)-
,
Sanderson v Collins D114)E 1 >B ,"/< CA-
.
British Crane Hire Cor$ Ltd v I$swih Plant Hire Ltd D11.+E 1 ?B &4&< D11.)E 1 All ER 14+1< CA-
/
Palmer Bailment 9"n# E#n< 1111: $' ".C (L Ham#lin .?ui$ment Pt" Ltd v &ederal Comr of Ta/ation D11.)E ATC )&14-
1
See 1 =als*ur2s La3s 9)t' E#n: !ara "41 et se0-
14
See Bristol (ir$ort $l v Powdrill D1114E C' .))< D1114E " All ER )1&< CA-
11
T'is ma *e $olle$te# (rom Port Line Ltd v Ben Line Steamers Ltd D11+/E " ?B 1), !er Di!lo$8 H-
1"
See Para%ra!' 1 D&4"1E ante-
1&
See Para%ra!' 14 D&4"+E ante-
[310%]
3) Duties o$ t#e lessor
B statute< $ertain im!lie# terms !rote$t t'e 'irer2s se$urit in t'e %oo#s- Ever $ontra$t (or t'e 'ire o( %oo#s
1
$ontains:
&/-1 an im!lie# $on#ition on t'e !art o( t'e lessor
"
t'at in t'e $ase o( a *ailment 'e 'as t'e ri%'t to trans(er
!ossession o( t'e %oo#s * 3a o( 'ire< an# in t'e $ase o( an a%reement to *ail t'at 'e 3ill 'ave su$' a ri%'t at
t'e time o( t'e *ailment
&
C an#
&/-" an im!lie# 3arrant * t'e lessor t'at t'e 'irer
)
3ill 'ave 0uiet !ossession o( t'e %oo#s (or t'e !erio# o( t'e
*ailment< e;$e!t so (ar as !ossession ma *e #istur*e# * t'e o3ner or ot'er !erson entitle# to t'e *ene(it o(
an $'ar%e or en$um*ran$e #is$lose# or 8no3n to t'e *ailee *e(ore t'e $ontra$t is ma#e
+
-
T'e statutor terms #o not a((e$t a lessor2s ri%'t to re!ossess t'e %oo#s un#er an e;!ress or im!lie# term o(
t'e $ontra$t
,
- Statute ma8es limite# !rovision (or t'e e;$lusion o( t'ese im!lie# terms
.
-
6urt'er im!lie# terms %ive t'e 'irer statutor ri%'ts in relation to t'e $orres!on#en$e o( t'e %oo#s 3it' an
#es$ri!tion
/
< t'eir mer$'anta*le 0ualit
1
< t'eir reasona*le (itness (or !ur!ose
14
an# t'eir $orres!on#en$e 3it' an
sam!le
11
- T'ese im!lie# terms are virtuall in#istin%uis'a*le< *ot' in s$o!e an# $ontent< (rom t'ose 3'i$' %overn
$ontra$ts o( sale o( %oo#s
1"
- Statute ma8es limite# !rovision (or t'e e;$lusion o( t'ese im!lie# terms
1&
-
[310&]
1
Contra$ts (or t'e 'ire o( %oo#s are #e(ine# (or t'is !ur!ose * t'e Su!!l o( Goo#s an# Servi$es A$t 11/" s , 9&1 =als*ur2s
Statutes 9)t' E#n: SALE O6 GOODS AND CONSUMER PROTECTION:-
"
T'e !rovision s!ea8s in terms o( a L*ailor2< 3'i$' is #e(ine# (or t'is !ur!ose as meanin% 9su*5e$t to $onte;t: a !erson 3'o *ails
t'e %oo#s un#er t'e $ontra$t< or a !erson 3'o a%rees to #o so< or a !erson to 3'om t'e #uties un#er t'e $ontra$t o( eit'er o(
t'ose !ersons 'ave !asse#: i*i# s 1/91:-
&
I*i# s .91:- See also )1 =als*ur2s La3s 9)t' E#n: !ara ,/.-
)
T'e !rovision s!ea8s in terms o( a L*ailee2< 3'i$' is #e(ine# (or t'is !ur!ose as meanin% 9su*5e$t to $onte;t: a !erson to 3'om
t'e %oo#s are *aile# un#er t'e $ontra$t< or a !erson to 3'om t'e are to *e so *aile#< or a !erson to 3'om t'e ri%'ts un#er t'e
$ontra$t o( eit'er o( t'ose !ersons 'ave !asse#: i*i# s 1/91:-
+
I*i# s .9":- An# see Lee v (t!inson and Broo!s 91,41: Cro Ha$ "&,C Warman v Southern Counties Car &inane Cor$n Ltd D11)1E
" >B +.,< D11)1E 1 All ER .11C (ustralian 'uarantee Cor$ Ltd v Ross D11/&E " AR &11- T'e lessor2s 3arrant o( title is to *e
$ontraste# 3it' t'e normal *ailee2s esto!!el a%ainst !lea#in% 5us tertii: see Biddle v Bond 91/,+: / B J S ""+C $( .uro$ean and
(ustralian Ro"al Mail Co Ltd v Ro"al Mail Steam Pa!et Co 91/,1: &4 LHCP ").C an# see Para%ra!' 11 D&4",E ante- As to
e;$lusion o( t'ese terms see t'e Su!!l o( Goo#s an# Servi$es A$t 11/" s 11C " =als*ur2s La3s 9)t' E#n reissue: !ara 1/+4C
t'e Un(air Contra$t Terms A$t 11.. s . 911 =als*ur2s Statutes 9)t' E#n: CONTRACT:C an# 1 =als*ur2s La3s 9)t' E#n: !ara
"41 et se0-
,
Su!!l o( Goo#s an# Servi$es A$t 11/" s .9&:- As to 3'et'er t'e 'irer ma *e entitle# to e0uita*le relie( (rom (or(eiture see 1,
=als*ur2s La3s 9)t' E#n Reissue: !ara ,+1 et se0-
.
Un(air Contra$t Terms A$t 11.. s .-
/
Su!!l o( Goo#s an# Servi$es A$t 11/" s /-
1
I*i# s 19":-
14
I*i# s 19+:-
11
I*i# s 14-
1"
See vol &) SALE O6 GOODS-
1&
Un(air Contra$t Terms A$t 11.. s .-
[310(]
3* Duties o$ t#e lessee
3*+1 Custody and sa$e6eepin
T'e 'irer2s #uties as to $usto# an# sa(e8ee!in% $orres!on# su*stantiall 3it' t'e #uties o3e# * a $usto#ian (or
re3ar#
1
< (or in ea$' $ase t'e *ailment is (or mutual *ene(it- T'e 'irer must ta8e reasona*le $are o( t'e %oo#s< su$' $are
*ein% measure# * all t'e $ir$umstan$es
"
- =e is ans3era*le (or t'e ne%li%en$e o( 'is em!loees in t'e $ourse o( t'eir
em!loment
&
< an# (or t'e(t or ot'er #eli*erate 3ron%s $ommitte# * t'ose o( 'is em!loees to 3'om 'e 'as entruste#
t'e %oo#s (or t'e !ur!ose o( #ele%atin% an !art o( 'is #ut o( $are
)
- O( $ourse< t'e 'irer2s res!onsi*ilit ma *e
en'an$e#
+
or re#u$e#
,
* $ontra$t-
[310)]
1
See Para%ra!' &"-1 D&4/&E ante-
"
Dean v 2eate 91/11: & Cam! )C Tilling v Balmain 91/1": / TLR +1.< DCC Brie & Sons v Christiani and +ielsen 911"/: )) TLR
&&+C Dollar v 'reenfield 9114+: Times< 11 Ma< =LC Morris) Polle/fen and Blair v Walton 91141: unre!orte#< =LC Ludgate v
Lovett D11,1E " All ER 1".+< D11,1E 1 7LR 141,< CAC British Crane Hire Cor$n Ltd v I$swih Plant Hire Ltd D11.+E 1 ?B
&4&< D11.)E 1 All ER 14+1< CA-
&
British Crane Hire Cor$ Ltd v I$swih Plant Hire Ltd D11.+E 1 ?B &4&< D11.)E 1 All ER 14+1< CA-
)
See Para%ra!' &"-" D&4/,E ante-
+
Brie & Sons v Christiani and +ielsen 911"/: )) TLR &&+-
,
Su*5e$t to t'e Un(air Contra$t Terms A$t 11.. 911 =als*ur2s Statutes 9)t' E#n: CONTRACT:-
[310*]
3*+2 Burden o$ proo$
T'e *ur#en o( !roo( in res!e$t o( all o( t'e (ore%oin% matters rests on t'e 'irer 3'o< on$e it is s'o3n t'at some mis'a!
'as *e(allen t'e %oo#s 3'ile in 'is !ossession< is lia*le unless 'e $an s'o3 t'at it o$$urre# in#e!en#entl o( 'is or 'is
em!loees2 (ailure to e;er$ise !ro!er $usto# an# $are
1
-
1
See t'e $ases $ite# in Para%ra!' &"-1 note 1 D&4/)E< &"-& note & D&4//E ante-
[3110]
3*+3 Deviation
A 'irer 3'o #e!arts (rom t'e (un#amental restri$tions 3'i$' t'e lessor 'as !la$e# on 'is !ossession o( t'e %oo#s
$ommits a #eviation an# *e$omes an insurer
1
- Ot'er $onse0uen$es ma also (ollo3< as #es$ri*e# earlier
"
- Su*5e$t to
an e;!ress term o( t'e $ontra$t< a 'irer #eviates 3'ere 'e 8ee!s t'e $'attel in a #i((erent !la$e (rom t'at a%ree#
&
< or
uses it (or a #i((erent !ur!ose< or #rives it alon% a #i((erent route< (rom t'at a%ree#
)
or retains it 3it'out aut'orit at t'e
en# o( t'e 'irin%
+
-
It is a matter (or t'e $ontra$t an# t'e $ir$umstan$es at lar%e 3'et'er a 'irer is !ermitte# to su*@'ire t'e %oo#s
or to allo3 anot'er to use t'em
,
- Su$' !ermission is more li8el in $ases o( $ommer$ial leasin%< an# 3ill normall
a!!l to $om!etent em!loees o( t'e 'irer< unless !er'a!s t'e $'attel is su!!lie# 3it' an o!erator 3'o is %iven
e;$lusive $ontrol
.
- In t'at event !ossession ma *e retaine# * t'e lessor< so !re$lu#in% a *ailment
/
-
[3111]
1
Ro#erts v M;Dougall 91//.: & TLR ,,,< DCC see %enerall Lille" v Dou#leda" 91//1: . ?BD +14 an# Para%ra!' &"-) D&4/1E
ante-
"
See Para%ra!' &"-) D&4/1E ante-
&
Ro#erts v M;Dougall 91//.: & TLR ,,,< DC-
)
Bringloe v Morrie 91,.,: 1 Mo# Re! "14C Lee v (t!inson and Broo!s 91,41: Cro Ha$ "&,C Coggs v Bernard 91.4&: " L# Ram
141C Ro#erts v M;Dougall 91//.: & TLR ,,,< DCC Hughes v Roo!e D11+)E ?SR )+-
+
C( Ballett v Minga" D11)&E >B "/< D11)&E 1 All ER 1)&< CAC Shaw & Co v S"mmons & Sons D111.E 1 >B .11-
,
C( >ueens Sales & Servie Ltd v Smith 911,&: )/ MPR &,)-
.
See Para%ra!' ,-& D&41)E ante-
/
See Para%ra!' ,-& D&41)E ante-
[3112]
3*+! =eturn o$ oods
T'e 'irer o3es a #ut to return t'e %oo#s< 3'i$' #ut is in#e!en#ent (rom t'e #ut to ta8e reasona*le $are o( t'em
1
- In
a$$or#an$e 3it' t'is #ut< 'e ma *e lia*le (or t'e $ost o( re$overin% t'e %oo#s a(ter an un(oreseen event 3'i$' #i# not
involve (ault on 'is !art
"
- T'e 'irer is not res!onsi*le< 'o3ever< 3'ere t'e un(oreseen event stems (rom t'e lessor2s
(ault
&
or is e;treme enou%' to (rustrate t'e $ontra$t
)
< or 3'ere t'e $ontra$t !rovi#es ot'er3ise
+
-
T'e 'irer must ma8e t'e %oo#s availa*le (or return to t'e lessor at t'e en# o( t'e 'irin%
,
- 7'et'er 'e must
re#eliver t'em to t'e lessor2s !remises #e!en#s on t'e $ontra$t an# t'e $ir$umstan$es at lar%e
.
- I( t'e lessor ori%inall
$olle$te# t'e %oo#s (rom t'e lessor2s !la$e o( *usiness 'e ma o3e a #ut to return t'em t'ere- T'ere is no %eneral #ut
on a *ailee to ta8e a$tive ste!s to re#eliver t'e %oo#s< *eon# ma8in% t'em availa*le (or $olle$tion
/
-
[3113]
1
British Crane Hire Cor$n Ltd v I$swih Plant Hire Ltd D11.+E ?B &4& at &11F&1" !er Lor# Dennin% MR-
"
British Crane Hire Cor$n Ltd v I$swih Plant Hire Ltd 9a*ove: 3'ere< in t'e event< t'e 'irer2s #ut to !a (or t'e re$over o( a
$rane (rom a mars' 3as im!ose# * t'e e;!ress terms o( t'e $ontra$t-
&
British Crane Hire Cor$n Ltd v I$swih Plant Hire Ltd 9a*ove: at &1& !er Sir Eri$ Sa$'s-
)
It a!!ears t'at t'e 'irer $arries t'e *ur#en o( !rovin% t'at an a!!arentl (rustrator event o$$urre# in#e!en#entl o( 'is #e(ault:
(!tiesels!a#et de Dans!e Su!!erfa#ri!!er v BaAamar Com$ania +aviera S() The Torenia D11/&E " Llo#2s Re! "14 at "1,-
+
British Crane Hire Cor$ Ltd v I$swih Plant Hire Ltd 9a*ove: at &1& 3'ere Sir Eri$ Sa$'s 'ints t'at t'e o*li%ation ma *e
$on(ine# to $ases 3'ere t'e !arties are in Lsimilar 3al8s o( li(e2- Se# 0uaere: $( Palmer Bailment 9"n# E#n< 1111: !! 1".,F1"..-
,
Palmer Bailment 9"n# E#n< 1111: ! 1"..- Brea$' o( t'is o*li%ation !la$es t'e 'irer in mora an# ren#ers 'im an insurer-
.
Palmer Bailment 9"n# E#n< 1111: ! 1"..- T'is 3ill normall *e a matter o( e;!ress !rovision-
/
Ca$ital &inane Co Ltd v Bra" D11,)E 1 All ER ,4&< D11,)E 1 All ER /1.-
[311!]
3*+% .1ners#ip o$ produce
T'e %eneral rule is t'at !ro#u$e (ollo3s !ossession< so t'at un#er a lease o( livesto$8< (or e;am!le< o((s!rin% o( t'e
livesto$8 *elon% !rima (a$ie to t'e lessee unless t'e e;!ress terms or t'e !e$uliar (a$ts in#i$ate a $ontrar intention
1
-
6rom t'e %eneral rule t'at t'e o3ner o( t'e !ro#u$e or !ro%en is to *e i#enti(ie# as Lt'e !erson entitle# to !ossession2
o( t'e !arent $'attel
"
< it !resuma*l (ollo3s t'at a lessee 3'o 'as lost t'e ri%'t to !ossession o( t'e !arent animals
3'en t'e o((s!rin% are *orn (alls outsi#e t'e %eneral rule-
1
Tu!er v &arm and 'eneral Investment Trust Ltd D11,,E " ?B )"1< D11,,E " All ER +4/< CA- T'e $ase 3as one o( 'ire !ur$'ase<
*ut a similar rule evi#entl a!!lies to sim!le leases- T'e %eneral rule !resuma*l a!!lies< 3'ere a!!ro!riate< to t'e !ro#u$e o(
*aile# %oo#s ot'er t'an animals-
"
Tu!er v &arm and 'eneral Investment Trust Ltd D11,,E " ?B )"1 at )&1 !er Di!lo$8 LH-
[311%]
3*+& Payment
T'e 'irer must !a t'e a%ree# $'ar%es< at t'e times an# in t'e manner re0uire# * t'e $ontra$t
1
- 7'et'er a #e(ault in
!ament entitles t'e lessor to terminate t'e 'irin%< an# 3'et'er a $lause !ur!ortin% to a$$elerate !ament o( all $'ar%es
on su$' #e(ault is a !enalt< are matters o( %eneral $ontra$t la3
"
- In a!!ro!riate $ir$umstan$es< it a!!ears t'at t'e
e0uita*le #o$trine o( relie( (rom (or(eiture
&
< as 3ell as t'e e0uita*le rule a%ainst !enalties< ma *e availa*le to t'e 'irer-
1
See " =als*ur2s La3s 9)t' E#n Reissue: !ara 1/+/C Palmer Bailment 9"n# E#n< 1111: !! 1"+4F1",&-
"
See %enerall " =als*ur2s La3s 9)t' E#n Reissue: !ara 1/+/C Palmer Bailment 9"n# E#n< 1111: !! 1"+4F1",&-
&
Barton Thom$son & Co Ltd v Sta$ling Mahines Co D11,,E C' )11< D11,,E " All ER """C 'o!er v +WS Ban! $l 91114: Times<
"& Ma-
[311&43130]
E: SUB@BAILMENT AND SIMILAR RELATIONS=IPS
!0 De$inition o$ su'>'ailment
1
A su*@*ailment o( %oo#s arises 3'ere a !erson 3'o is not t'eir o3ner< *ut 3'o 'as a !resent ri%'t to !ossession o(
t'em as a *ailee o( t'e o3ner< allo3s !ossession o( t'em to *e ta8en * a t'ir# !art
"
- A su*@*ailment t'ere(ore arises
3'ere A *ails to B 3'o *ails to C 3'ile retainin% a ri%'t o( !ossession a%ainst C- T'e *ailment *e$omes tri!artite an#
t'e t'ir# !art< C< *e$omes a su*@*ailee-
T'e normal $onse0uen$e o( su*@*ailment is t'at t'e su*@*ailee o3es #uties *ot' to t'e 'ea# *ailor an# to t'e
interme#iate !ossessor
&
- B a$$e!tin% !ossession< t'e su*@*ailee assumes t'e o*li%ations o( a *ailee to3ar#s *ot' t'e
'ea# *ailor an# t'e mi##le !art
)
-
[3131]
1
See %enerall Palmer Bailment 9"n# E#n< 1111: $' "4
"
China4Paifi S( v &ood Cor$n of India) The Winson D11/"E AC 1&1 at 1+1< =L< !er Lor# Di!lo$8- Un#er a su*@*ailment< t'e
ori%inal *ailee remains res!onsi*le (or t'e %oo#s as a *ailee an# retains a ri%'t to t'eir !ossession 3'en t'e su*@*ailment e;!ires-
C( Transontainer ./$ress Ltd v Custodian Seurit" Ltd D11//E 1 Llo#2s Re! 1"/< CA< 3'ere t'e mi##le $arriers *rou%'t no
evi#en$e o( an ri%'t on t'eir !art to resume !ossession o( t'e %oo#s (rom t'e su*@$arriers-
&
See Para%ra!' )1 D&1&&E !ost- 7e 'ave assume# a*ove t'at t'e (irst !art in t'e $'ain 3ill *e t'e resi#ual o3ner o( t'e %oo#s-
7'ile %enerall true< t'at is not ne$essaril soC t'e se0uen$e o( su*@*ailments $an en$om!ass (our or more !arties- It a!!ears
t'at a *ailor situate# at more t'an one remove (rom t'e su*@*ailee 'as a ri%'t o( a$tion a%ainst t'e su*@*ailee (or *rea$' o( an o(
t'e latter2s #uties< irres!e$tive o( 3'et'er 'e is t'e o3ner< eit'er 9a: i( 'e 'as t'e ri%'t to imme#iate !ossession o( t'e %oo#s< or
9*: i( t'e %oo#s are !ermanentl in5ure# or lost: see 2ahler v Midland Ban! Ltd D11+4E AC ")< D11)1E " All ER ,"1< =LC Morris
v CW Martin & Sons Ltd D11,,E 1 ?B .1, at ."/F."1< D11,+E " All ER ."+ at .&&< CA< !er Lor# Dennin% MRC Mou!ataff v
British 1verseas (irwa"s Cor$n D11.,E 1 Llo#2s Re! &1, at )1+ !er Bro3ne H-
)
The Pioneer Container D111)E " All ER "+4 at "+/F","< PC !er Lor# Go(( o( C'ieveleC Morris v CW Martin & Sons Ltd
D11,,E 1 ?B .1,< D11,+E " All ER ."+< CAC 'ilhrist Watt and Sanderson Pt" Ltd v Bor! Produts Pt" Ltd D11.4E & All ER /"+<
D11.4E 1 7LR 1","< PCC China4Paifi S( v &ood Cor$n of India) The Winson D11/"E AC 1&1 at 1+.F1+1< D11/1E & All ER ,//
at ,1"F,1&< =L< !er Lor# Di!lo$8: LA !erson 3'o 'ol#s !ossession o( %oo#s as su*@*ailee o( an ori%inal #ire$t *ailee also o3es
some #ut o( $are to3ar#s t'e o3ner2- It ma *e t'at t'e su*@*ailee2s la$8 o( 8no3le#%e as to t'e i#entit o( t'e 'ea# *ailor #oes
not normall a((e$t 'is o*li%ations to3ar#s t'e 'ea# *ailor *e$ause t'e i#entit o( t'at !art is a matter o( in#i((eren$e to t'e su*@
*ailee: Balsamo v Medii D11/)E " All ER &4) at &14F&11< D11/)E 1 7LR 1+1 at 1+1 !er 7alton HC *ut $( The Pioneer Container
D111)E " All ER "+4 at ","< PC !er Lor# Go(( o( C'ievele-
[3132]
!1 Duties o$ t#e su'>'ailee
T'e su*@*ailee2s o*li%ations var a$$or#in% to t'e $ir$umstan$es o( t'e su*@*ailment
1
- 7'ere t'e su*@*ailment is (or
re3ar#
"
< t'e su*@*ailee o3es t'e #uties o( a *ailee (or re3ar#
&
not onl to t'e mi##le *ailee
)
93'ose o3n o*li%ations to
t'e ori%inal *ailor $ontinue in s!ite o( t'e su*@*ailment:
+
*ut to t'e ori%inal *ailor 'imsel(
,
- =e must ta8e reasona*le
$are o( t'e %oo#s an# re(rain (rom $onvertin% t'emC 'e must ans3er (or t'e #is'onest or ot'er 3ron%(ul a$ts o( t'ose
em!loees to 3'om 'e entrusts t'e %oo#sC an# 'e must #is$'ar%e t'e normal *ailee2s *ur#en o( !roo( in t'e event o(
loss o(< or #ama%e to< t'e %oo#s 3'ile in 'is !ossession
.
- All t'ese o*li%ations are en(or$ea*le * *ot' t'e 'ea# *ailor
an# t'e interme#iate *ailee< alt'ou%' a re$over o( t'e (ull value o( t'e %oo#s 9or t'e (ull $ost o( re!air: * one o( t'ese
!arties (rom t'e su*@*ailee 3ill #e*ar an a$tion * t'e ot'er
/
- T'e su*@*ailee ma also *e esto!!e# at $ommon la3
(rom #enin% t'e title o( eit'er o( t'ose !arties
1
- T'e relations'i! *et3een ori%inal *ailor an# t'e su*@*ailee e;ists
in#e!en#entl o( an $ontra$t *et3een t'em< or o( an attornment
14
-
[3133]
1
The Pioneer Container D111)E " All ER "+4 at "+/ et se0< PC< !er Lor# Go(( o( C'ieveleC Morris v CW Martin & Sons Ltd
D11,,E 1 ?B .1, at .&1< D11,+E " All ER ."+ at .&)< CA< !er Di!lo$8 LH-
"
As to t'e #ire$tion (rom 3'i$' su$' re3ar# mi%'t $ome see Para%ra!' 1& D&4&,E ante-
&
The Pioneer Container D111)E " All ER "+4 at "+/< PC< !er Lor# Go(( o( C'ieveleC Morris v CW Martin & Sons Ltd D11,,E 1
?B .1, at ."1< D11,+E " All ER ."+ at .&&< CA< !er Lor# Dennin% MRC 3ames Buhanan & Co Ltd v Ha";s Trans$ort Servies
Ltd and Dunan Bar#our & Son Ltd D11."E " Llo#2s Re! +&+ 9%ratuitous su*@*ailee:-
)
See Pollo$8 an# 7ri%'t< Possession 91///: ! 1,1C Morris v CW Martin & Sons Ltd D11,,E 1 ?B .1, at ."/F."1< D11,+E " All
ER ."+ at .&"F.&&< CA< !er Lor# Dennin% MR-
+
'ilhrist Watt and Sanderson Pt" Ltd v Bor! Produts Ltd D11.4E & All ER /"+ at /"1< D11.4E 1 7LR 1"," at 1",.< PCC Palmer
Bailment 9"n# E#n< 1111:C an# see Metaalhandel 3( Magnus B0 v (rdfields Trans$ort Ltd and .astfell Ltd *tCa 3ones Trans$ort-
D11//E 1 Llo#2s Re! 11. 9mi##le !art un#er 0uasi@*ailment lia*le (or #e(aults o( ultimate *ailee:- C( t'e !osition un#er a
su*stitutional *ailment< 3'ere t'e (irst *ailee 3it'#ra3s (rom t'e relations'i! an# t'e in$omin% *ailee ta8e 'is !la$e as t'e #ire$t
*ailee o( t'e ori%inal o3ner: see Para%ra!' )& D&1&.E !ost- An e;am!le o( t'is t!e o( *ailment is t'e !osition o( a s'i! o3ner
on$e t'e $ar%o is o((@loa#e# onto salva%e vessels an# enters t'e 'ar*our: see China4Paifi S( v &ood Cor$n of India) The
Winson D11/"E AC 1&1< D11/1E & All ER ,//< =L- O( $ourse< an interme#iate or ori%inal *ailee 3'o #eviates * #ele%atin%
!ossession 3it'out aut'orit is stri$tl ans3era*le (or t'e %oo#s as an insurer: .dwards v +ewland & Co D11+4E " >B +&)<
D11+4E 1 All ER 14." an# see Para%ra!' &"-) D&4/1E ante-
,
The Ham#urg Star D111)E 1 Llo#2s Re! &11-
.
The Pioneer Container D111)E " All ER "+4 at "+1F",1< PC !er Lor# Go(( o( C'ievele 9sem*le:C Morris v CW Martin & Sons
/
T'is rule is %roun#e# on an analo% 3it' The Win!field D114"E P )"< CA: see Para%ra!' 1 D&4"1 anteC an# see 1;Sullivan v
Williams D111"E & All ER &/+< CA-
1
The Ham#urg Star D111)E 1 Llo#2s Re! &11 at )4+ !er Clar8e H 9!ro!osition at least ar%ua*le:C an# see Para%ra!' 11 D&4",E
ante-
14
'ilhrist Watt and Sanderson Pt" Ltd v Bor! Produts Ltd D11.4E & All ER /"+< D11.4E 1 7LR 1","< PCC The Pioneer Container
D111)E " All ER "+4 at "+,F"+.< "+1< PC !er Lor# Go(( o( C'ieveleC an# see Cia Portorafti Commeriale S( v %ltramar
Panama In) The Ca$tain 'regos *+o ,- D1114E " Llo#2s Re! &1+ at )4)F)4,< CA< !er Bin%'am LH-
[313!]
!2 =elie$ o$ t#e su'>'ailee
In an a$tion * t'e !rin$i!al *ailor< t'e su*@*ailee is entitle# to rel on an !rote$tive terms $ontaine# in t'e su*@
*ailment< irres!e$tive o( an $ontra$t *et3een 'im an# t'e !rin$i!al *ailor< i( t'e !rin$i!al *ailor 'as e;!ressl or
im!lie#l $onsente# to t'e su*@*ailment on su$' terms
1
- An ostensi*le or a!!arent aut'orit in t'e mi##le *ailee to
$on$lu#e t'e su*@*ailment on t'e relevant terms 3ill a!!arentl su((i$e (or t'is !ur!ose
"
- T'e su*@*ailee ma also *e
relieve# o( an #ut to t'e !rin$i!al *ailor i( 'e $ame into !ossession neit'er 8no3in% o(< nor 'avin% reasona*le $ause
to sus!e$t< t'e e;isten$e o( an ulterior *ailor< an# 3it'out t'ere(ore $onsentin% to 'ol# as t'at *ailor2s *ailee
&
-
[313%]
1
The Pioneer Container D111)E " All ER "+4 at "+1F",4< PC< !er Lor# Go(( o( C'ievele< (ollo3in% Morris v CW Martin & Sons
Ltd D11,,E 1 ?B .1, at ."1F.&4< D11,+E " All ER ."+ at .&&< CA< !er Lor# Dennin% MR 9o*iter:- See also His$ania de
Petroleos S( v 0enedora 1eania +avegaion S() The 2a$etan Mar!os +L *+o,- D11/.E " Llo#2s Re! &"1 at &&,< CA< !er
Ni$'olls LH< an# at &)4 !er Dillon LHC Singer Co *%2- Ltd v Tees and Hartle$ool Port (uthorit" D11//E " Llo#2s Re! 1,)C Cia
Portorafti Commeriale S( v %ltramar Panama In) The Ca$tain 'regos *+o ,- D1114E " Llo#2s Re! &1+< CA- T'e !rin$i!le is
not $on(ine# to terms 3'i$' !ur!ort to e;$lu#e or restri$t t'e lia*ilit o( t'e su*@*ailee< *ut $an e;ten# to an e;$lusive
5uris#i$tion $lause 9The Pioneer Container 9a*ove: at ",,:C $( The &orum Craftsman D11+/E 1 Llo#2s Re! "11< CA: an#
!resuma*l to a $'oi$e o( la3 $lause- ?uaere< 'o3ever< 3'et'er t'e !rin$i!le $oul# *e use# to su!!ort t'e en(or$ement o(
!ositive $ovenants * t'e 'ea# *ailor a%ainst t'e su*@*aileeC see %enerall Palmer Bailment 9"n# E#n< 1111: !! 1&"1F1&)"-
"
The Pioneer Container 9a*ove: at ",1< ","< !er Lor# Go(( o( C'ievele< o*iter- In Singer Co *%2- Ltd v Tees and Hartle$ool
Port (uthorit" 9a*ove: at 1,/< Sten H le(t t'e 0uestion o!en- It 3as (ormerl t'ou%'t t'at a su*@*ailee $oul# also rel on
e;$ul!ator terms in t'e su*@*ailment to 3'i$' t'e !rin$i!al *ailor 'a# not $onsente# 9at least 3'ere t'e #ut on 3'i$' t'e
!rin$i!al *ailor 3as suin% 3oul# not 'ave arisen *ut (or t'e (a$t o( t'e su*@*ailment: i( t'e terms 3ere an essential !art o( t'e
su*@*aileeMs $onsi#eration (or enterin% into t'e su*@*ailment: 3ohnson Matthe" & Co Ltd v Constantine Terminals Ltd D11.,E "
Llo#2s Re! "1+< 9le(t o!en in Singer Co *%2- Ltd v Tees and Hartle$ool Port (uthorit" D11//E " Llo#2s Re! 1,) at 1,/ !er
Sten H:C an# see Cia Portorafti Commeriale S( v %ltramar Panama In) The Ca$tain 'regos *+o ,- D1114E " Llo#2s Re!
&1+< CAC Swiss Ban! Cor$n v Brin!;s4Mat Ltd D11/,E " Llo#2s Re! .1 at 1/ !er Bin%'am H- But t'e 3ohnson Matthe" #e$ision
3as not (ollo3e# * t'e Priv Coun$il in The Pioneer Container D111)E " All ER "+4 at ",4F","-
&
C( The Pioneer Container 9a*ove: at "+/< "," !er Lor# Go(( o( C'ievele-
[313&]
!3 8u'stitutional 'ailments
Su*@*ailments are to *e #istin%uis'e# (rom su*stitutional *ailments< 3'ere a ne3 *ailee 3'oll su!!lants an e;istin%
one
1
- T'e in$omin% *ailee *e$omes t'e #ire$t *ailee o( t'e ori%inal *ailor an# o3es 'im t'e normal #uties o( a *ailee o(
t'e $lass in 0uestion
"
C 3'ile t'e out%oin% *ailee
&
o3es no (urt'er res!onsi*ilit to t'e !rin$i!al *ailor (or t'e %oo#s
)
<
an# 'as no ri%'ts o( a$tion a%ainst t'e in$omin% *ailee (or an later loss o( or #ama%e to t'e %oo#s
+
- An out%oin% *ailee
3'o retains a%ainst t'e ori%inal *ailor a mere $ontra$tual ri%'t to resume !ossession o( t'e %oo#s a(ter t'eir #eliver to
t'e su*stitutional *ailee is not< it seems< a *ailor o( t'e in$omin% *ailee * virtue o( t'at $ontra$tual ri%'t alone
,
-
A su*stitutional *ailment ma arise 3'ere an in$omin% *ailee attorns to t'e ori%inal *ailor 3'o a$0uies$es in
t'e attornment
.
- In t'at event< !rote$tive terms in t'e ori%inal *ailment a!!l *et3een t'e ne3 !arties
/
- 7'et'er an
in$omin% *ailee ta8es un#er a su*@*ailment or a su*stitutional *ailment arises #e!en#s !rin$i!all on t'e intentions o(
t'e !arties< t'e terms o( t'e ori%inal *ailment an# t'e reasona*le un#erstan#in% o( t'e in$omin% *ailee
1
-
[313(]
1
T'e lea#in% mo#ern e;am!le is China4Paifi S( v &ood Cor$n of India) The Winson D11/"E AC 1&1< D11/1E & All ER ,//< =L-
6or anot'er !ossi*le e;am!le see 3ames v Bradle" D11/4E 7AR 11< Su!reme Ct o( 7estern AustraliaC Palmer Bailment 9"n#
E#n< 1111: !! .1.F.1/ 9trans$ri!t *aile# to soli$itor * $lient t'en su*@*aile# to $ounselC soli$itor2s instru$tions 3it'#ra3n:-
"
C( t'e ne3 *ailment 3'i$' arose (rom t'e #ealer2s $onstru$tive #eliver o( %oo#s 'el# on title retention terms to a *ona (i#e
!ur$'aser in 'amer;s Motor Centre *+ewastle- Pt" Ltd v +atwest Wholesale (ustralia Pt" Ltd 911/.: 1,& CLR "&,-
&
In $ontrast to t'e !osition o( t'e interme#iate *ailee un#er a su*@*ailment: see Para%ra!'s )4 D&1&1E< )1 D&1&&E ante-
)
China4Paifi S( v &ood Cor$n of India) The Winson D11/"E AC 1&1< D11/1E & All ER ,//< =L: s'i!o3ners< not *ein% *ailors<
3ere not lia*le (or salvors2 $osts in !reservin% %oo#s a%ainst 'aIar#s-
+
C( Transontainer ./$ress Ltd v Custodian Seurit" Ltd D11/+E 1 Llo#2s Re! 1"/< CA-
,
China4Paifi S( v &ood Cor$n of India) The Winson 9a*ove:- But a !art ma *e a *ailor 3'ere 'is !ossessor entitlement is
more t'an a mere $ontra$tual ri%'t: see Para%ra!' ) D&44.E anteC Palmer Bailment 9"n# E#n< 1111: !! 11&F11/< &4,F&4/-
.
As to attornment see Para%ra!' . D&41,E ante-
/
See t'e $ases $ite# in Para%ra!' . note ) D&41.E ante-
1
See Singer Co *%2- Ltd v Tees and Hartle$ool Port (uthorit" D11//E " Llo#2s Re! 1,)-
[313)]
!! <uasi>'ailment
?uasi@*ailment arises 3'ere an interme#iate !art 9t'e 0uasi@*ailor: !romises an o3ner o( %oo#s
1
t'at servi$es 3ill *e
!er(orme# in relation to t'e %oo#s< *ut #ele%ates t'e tas8 to a t'ir# !art 9t'e 0uasi@*ailee: 3it'out %ettin% !ossession
!ersonall
"
- I( t'e interme#iate !art 'a# eit'er a ri%'t or a #ut to ta8e !ossession< 'e 3ill o3e #uties similar to t'ose
o( a *ailee
&
alt'ou%' 9$ontrar to %eneral *ailment !rin$i!le:
)
'e 'as no a$tual !ossession
+
- I( t'e #ele%ation is
unaut'orise#< it a!!ears t'at t'e 0uasi@*ailor is stri$tl lia*le to t'e o3ner (or ensuin% loss or #ama%e< in similar
manner to a #eviatin% *ailee
,
- I( t'e #ele%ation is aut'orise#< t'e 0uasi@*ailor is not stri$tl lia*le (or loss or #ama%e
o$$urrin% 3'ile t'e %oo#s are in t'e 'an#s o( t'e 0uasi@*ailee< *ut is ans3era*le (or t'e #e(aults o( t'e !art to 3'om
t'e #ut o( $are is #ele%ate#< 3'et'er em!loee< a%ent or in#e!en#ent $ontra$tor
.
< as 3ell as (or an !ersonal (ailure to
ta8e reasona*le $are in sele$tin% t'e !art to 3'om t'e %oo#s are entruste#
/
- T'e 0uasi@*ailor $an normall re$ou! t'is
lia*ilit (rom t'e !art at (ault
1
- It a!!ears t'at t'e 0uasi@*ailor #oes not $arr< in t'e event o( loss or in5ur #urin% t'e
term o( t'e 0uasi@*ailment< t'e normal *ailee2s *ur#en o( !roo(
14
- T'e la$8 o( !ossession a!!arentl e;onerates t'e
0uasi@*ailor (rom t'is as!e$t o( t'e *ailment relation
11
-
T'e 0uasi@*ailee< *ein% voluntaril an# 8no3in%l in !ossession o( %oo#s *elon%in% to t'e ori%inal *ailor
1"
<
is normall ans3era*le to 'im as a *ailee an# o3es 'im t'e normal #uties o( a *ailee
1&
- But t'e 0uasi@*ailee ma *e
relieve# o( t'e normal $ommon la3 o*li%ations i( 'e too8 !ossession neit'er 8no3in% o( nor 'avin% reasona*le $ause
to sus!e$t t'e e;isten$e o( t'e ultimate *ailor
1)
< or i( 'is transa$tion 3it' t'e 0uasi@*ailor $ontains !rote$tive terms to
3'i$' t'e ori%inal *ailor 'a# a$tuall or ostensi*l $onsente#
1+
- In t'ese res!e$ts< t'e !osition o( t'e 0uasi@*ailee
resem*les t'at o( t'e su*@*ailee an# t'e su*stitutional *ailee
1,
-
[313*]
1
Or ot'er !erson resi#uall entitle# to t'e !ossession o( t'em-
"
Palmer Bailment 9"n# E#n< 1111: !! &)< 1"11- T'e term L0uasi@*ailment2 is use# in The Pioneer Container D111)E AC "+4 at
",)F",+< PC< !er Lor# Go(( o( C'ieveleC Metaalhandel 3( Magnus B0 v (rdfields Trans$ort Ltd D11//E 1 Llo#2s Re! 11. at
"4"F"4& !er Gate'ouse H-
&
Ho##s v Petersham Trans$ort Co Pt" Ltd 911.1: )+ ALHR &+, 9*ut $( 7in#eer H at &,&:C Thomas +ational Trans$ort
*Mel#ourne- Pt" Ltd v Ma" & Ba!er *(ustralia- Pt" Ltd D11,.E ALR &C Metaalhandel 3( Magnus B0 v (rdfields Trans$ort Ltd
D11//E 1 Llo#2s Re! 11. 9*ut $( at "4": !er Gate'ouse HC Palmer Bailment 9"n# E#n< 1111: ! 1&+4 et se0- An interme#iate !art
3'o is neit'er *oun# nor entitle# to ta8e !ossession o( t'e %oo#s seems to *e a mere (or3ar#in% a%ent- As su$'< 'e 'as no
res!onsi*ilit as a *ailee an# no lia*ilit (or t'e (aults o( t'e a$tual *ailee< !rovi#e# 'e ta8es reasona*le $are in en%a%in% 'im-
Generall< 'e is lia*le onl in $ontra$t (or (ailin% to ma8e t'e a%ree# arran%ements-
)
See Para%ra!' 1 D&441E ante-
+
T'e interme#iate !art mi%'t also *e a *ailor o( t'e !ossessor in a!!ro!riate $ases: see .dwards v +ewland & Co D11+4E " >B
+&)< D11+4E 1 All ER 14."< CA-
,
.
Metaalhandel 3( Magnus B0 v (rdfields Trans$ort Ltd D11//E 1 Llo#2s Re! 11.C Ho##s v Petersham Trans$ort Co Pt" Ltd
911.1: 1") CLR ""4< )+ ALHR &+,-
/
Metaalhandel 3( Magnus B0 v (rdfields Trans$ort Ltd 9a*ove:-
[31!0]
1
Metaalhandel 3( Magnus B0 v (rdfields Trans$ort Ltd 9a*ove:- T'e interme#iate !art 3ill normall sue t'e su*si#iar
!ossessor in $ontra$t- An a$tion (or *rea$' o( *ailment ma *e !ossi*le a%ainst a su*si#iar !ossessor 3'o is at one or more
$ontra$tual remove (rom t'e 0uasi@*ailor< *ut (or su$' a $laim to su$$ee# t'e 0uasi@*ailor 3ill nee# to #emonstrate t'at 'e 'as
some reversionar !ossessor ri%'t to t'e %oo#s: $( Transontainer ./$ress Ltd v Custodian Seurit" Ltd D11//E 1 Llo#2s Re!
1"/< CA< 3'ere su$' !ossessor ri%'t 3as a*sent an# t'e $laim (aile#: The Ham#urg Star D111)E 1 Llo#2s Re! &11C Palmer
Bailment 9"n# E#n< 1111: !! 111F1"4< 1"1)F1"1+-
14
Metaalhandel 3( Magnus B0 v (rdfields Trans$ort Ltd D11//E 1 Llo#2s Re! 11. at "4& !er Gate'ouse HC Palmer Bailment 9"n#
E#n< 1111: 1&+1F1&,1-
11
Metaalhandel 3( Magnus B0 v (rdfields Trans$ort Ltd 9a*ove: !er Gate'ouse HC an# see Ho##s v Petersham Trans$ort Co Pt"
Ltd 911.1: 1") CLR ""4< )+ ALHR &+,< at &+1 !er Bar3i$8 CH< &,)F&,+ !er 7in#eer H-
1"
See Para%ra!'s 1 D&441E< & D&44+E< )4 D&1&1E< )" D&1&+E ante-
1&
The Pioneer Container D111)E AC "+4 at "+/< "," !er Lor# Go(( o( C'ievele- But Lor# Go(( ultimatel le(t t'e !oint o!en as
not nee#in% #e$ision- See (urt'er Palmer Bailment 9"n# E#n< 1111: !! 1"1&F1"1+- 7'ere a 0uasi@*ailor retains a !ossessor
ri%'t to t'e %oo#s< t'e 0uasi@*ailee ma o3e t'e #uties o( a *ailee to 'im as 3ell as to t'e 'ea# *ailor: .dwards v +ewland & Co
9a*ove:C $( Transontainer ./$ress Ltd v Custodian Seurit" Ltd 9a*ove: 9no !ossessor title s'o3n:C The Ham#urg Star D111)E
1 Llo#2s Re! &11- It $an *e assume# t'at on (ull re$over (rom 'im * one su!erior !art< t'e 0uasi@*ailee is relieve# o(
lia*ilit to t'e ot'er: $( Para%ra!' 1 D&4"1E anteC The Win!field D114"E P )"< CA-
1)
C( The Pioneer Container 9a*ove: at "+/< "," !er Lor# Go(( o( C'ievele-
1+
In The Pioneer Container 9a*ove: at ",+< Lor# Go(( o( C'ievele !rovisionall (avoure# a similar !rin$i!le o( !rote$tion (or
0uasi@*ailees as (or su*@*ailees< (avourin% t'e 0uasi@*ailee2s immunit 3'ere t'e 'ea# *ailor $onsents to t'e terms o( t'e
su*si#iar *ailment- But Lor# Go(( sai# t'at t'e issue must a3ait aut'oritative $onsi#eration- I( t'e !arallel is u!'el#< t'e (a$t
t'at t'e mi##le !art 'as ostensi*le aut'orit to entrust t'e %oo#s on t'e relevant terms 3ill !resuma*l su((i$e-
1,
See Para%ra!' )4 D&1&1E et se0 ante-
[31!1431%0]
6: INAOLUNTARB BAILMENT AND BAILMENT BB CONCEALMENT
1: INAOLUNTARB BAILMENT
!% De$inition
1
Involuntar *ailment arises 3'ere a !erson is in !ossession o( %oo#s an# a3are o( 'is !ossession *ut 'as %iven no
$onsent to it
"
- On a stri$t analsis< su$' $ir$umstan$es %ive rise to no *ailment at all< *e$ause t'e essen$e o( *ailment is
$onsent to t'e !ossession o( anot'er2s %oo#s
&
- T'e !'rase Linvoluntar *ailment2 is use# !urel as one o( $onvenien$e-
Most involuntar *ailments arise 3'ere t'e !ossessor %ives no ori%inal $onsent to !ossession< as 3'ere
unsoli$ite# %oo#s are #elivere# to a !otential *uer
)
< or %oo#s in transit are mis#elivere#
+
- In limite# $ir$umstan$es<
'o3ever< a *ailment 3'i$' 3as on$e voluntar ma *e$ome involuntar t'rou%' la!se o( time< as 3'ere a *ailor o(
%oo#s (or valuation or re!air (ails to $olle$t t'em on t'e a%ree# #ate
,
- In 3'at (ollo3s< t'e term Linvoluntar *ailment2
3ill *e use# to $onnote t'e (ormer situation alone-
[31%1]
1
See Palmer Bailment 9"n# E#n< 1111: $' 1"-
"
C( t'e *ailment * $on$ealment< 3'ere t'e !erson in !ossession is una3are o( t'e (a$t o( 'is !ossession< or ma *e a3are o( 'is
!ossession *ut una3are t'at t'e %oo#s *elon% to someone elseC see Para%ra!' ,& D&1/&E !ost-
&
The Pioneer Container D111)E " All ER "+4< PC an# see Para%ra!'s 1 D&441E< & D&44+E ante-
)
6or le%islation %overnin% t'e ri%'ts o( re$i!ients o( su$' %oo#s see t'e Unsoli$ite# Goo#s an# Servi$es A$t 11.1 9&1 =als*ur2s
Statutes 9)t' E#n: SALE O6 GOODS AND CONSUMER PROTECTION: an# Para%ra!' +1 D&1,1E !ost-
+
C( .lvin and Powell Ltd v Plummer Roddis Ltd 911&&: +4 TLR 1+/-
,
See Para%ra!' +" D&1,"E et se0 !ost- Courts rarel i( ever 'ol# t'at an ori%inall voluntar *ailment 'as *e$ome involuntar
t'rou%' a sim!le (ailure o( t'e *ailor to $olle$t on time-
[31%2]
!& Duty to uard aainst loss and damae
T'e involuntar *ailee o3es no #ut to ta8e reasona*le $are to %uar# t'e %oo#s a%ainst loss< t'e(t or !'si$al in5ur
1
-
Provi#e# 'e #oes not attem!t to #eliver t'em to a t'ir# !art
"
< 'e nee# onl a*stain (rom 3il(ul or 9!ossi*l: re$8less
$on#u$t to3ar#s t'em- T'us< 3'ere a !i$ture 3as ta8en to a 'ouse 3it'out t'e 'ouse'ol#er2s $onsent an# #ama%e#
t'rou%' *ein% !la$e# near a stove< t'e 'ouse'ol#er 3as not lia*le
&
C an# 3'ere a musi$al instrument 3as #ama%e# a(ter
*ein% le(t in a $on$ert 'all 3it'out t'e $onsent o( t'e o$$u!ier< no lia*ilit 3as visite# on t'e o$$u!ier
)
- It is sometimes
ar%ue# t'at t'e involuntar *ailee2s #ut s'oul# *e one o( reasona*le $are in all t'e $ir$umstan$es
+
< *ut aut'orit
(avourin% t'is vie3 is sli%'t
,
-
[31%3]
1
Leth#ridge v Philli$s 91/11: " Star8 +))C Howard v Harris 91//): Ca* J El "+&C +euwith v 1ver Darwen Industrial Co4
o$erative Soiet" 91/1): ,& LH?B "14< DC-
"
See Para%ra!' ). D&1++E !ost-
&
Leth#ridge v Philli$s 91/11: " Star8 +))-
)
+euwith v 1ver Darwen Industrial Co4o$erative Soiet" 91/1): ,& LH?B "14-
+
C( (05 Ltd v .'M Solders Ltd 911/": Times< . Hul-
,
C( +elson v Maintosh 91/1,: 1 Star8< "&.C Thom$son v Star!ings D11++E CLB 1)1C 'arli! v W & H R"roft Ltd D11/"E CA
Trans$ri!t "..-
[31%!]
!( Duty on delivery to t#ird party
7'ere t'e involuntar *ailee #elivers t'e %oo#s to a t'ir# !art 3'o la$8s t'e aut'orit o( t'e o3ner to re$eive t'em<
an# t'e %oo#s are lost< t'e involuntar *ailee is ans3era*le unless in ma8in% t'e #eliver 'e e;er$ise# reasona*le $are
1
-
T'e involuntar *ailee2s o*li%ation is t'ere(ore li%'ter t'an or#inar lia*ilit in $onversion< 3'i$' is stri$t
"
- But i( t'e
!erson 3'o ma8es over t'e %oo#s to a t'ir# !art 3as not in !ossession at t'e time< t'is rela;ation o( t'e normal
lia*ilit in $onversion #oes not a!!l
&
- A mis#eliver t'en soun#s in $onversion< irres!e$tive o( t'e 'onest o( t'e
#e(en#ant2s intention in ma8in% it-
1
.lvin and Powell Ltd v Plummer Roddis Ltd 9111&: +4 TLR 1+/C Batistoni v Dane 9114/: Times< 1/ Hanuar-
"
Ste$hens v .lwall 91/1+: ) M J S "+1C Hollins v &owler 91/.+: LR . =L .+.< =L-
&
Hiort v Bott 91/.): LR 1 E;$' /,-
[31%%]
!) Disposal o$ oods
T'e involuntar *ailee is entitle# to ta8e reasona*le ste!s to ri# 'imsel( o( t'e %oo#s
1
< *ut t'e limits o( t'is li*ert are
un$ertain
"
- =e is !ro*a*l entitle# to remove *ul8 an# #ura*le %oo#s 9su$' as a $ar: to t'e !u*li$ 'i%'3a or to
uno$$u!ie# lan#< !rovi#e# t'at in ma8in% t'e removal 'e a$ts 3it' reasona*le $are an# s8ill
&
- =e ma even *e entitle#
to #estro or sell no;ious or 3astin% %oo#s- T'e !osition 3it' re%ar# to smaller items o( %reater value 9su$' as
5e3eller:
)
is 'ar#er to #e(ine
+
C t'e onl $ertain rule is t'at t'e !ossessor must *e'ave reasona*l in all t'e
$ir$umstan$es
,
-
[31%&]
1
Pedri! v Morning Star Motors Ltd 91) 6e*ruar 11.1< unre!orte#:< CA< 9sem*le:C R v Howson D11,,E " OR ,&-
"
C( t'e #o$trine o( a%en$ o( ne$essitC see 19": =als*ur2s La3s 9)t' E#n Reissue: !ara "/ an# Para%ra!'s )1 D&1+/E< ++ D&1,+E
!ostC Rid"ard v Ro#erts 91, Ma 11/4< unre!orte#:< CA-
&
R v Howson D11,,E " OR ,&C Haniotis v Dimitriou D11/&E 1 AR )1/-
)
C( Maritime Coastal Containers Ltd v Shel#urne Marine Ltd 911/": +" NSR 9"#: +1-
+
See Haniotis v Dimitriou D11/&E 1 AR )1/-
,
Haniotis v Dimitriou D11/&E 1 AR )1/-
[31%(]
!* =ecovery o$ costs
It is un$ertain 3'et'er t'e involuntar *ailee $an re$over (rom t'e o3ner t'e $osts o( 8ee!in% t'e %oo#s< or #is!osin%
o( t'em< or removin% t'em to a !la$e o( sa(et- T'e !oli$ ar%ument in (avour o( su$' re$over a!!ears stron%< an# is
!er'a!s rein(or$e# * mo#ern restitution t'eor: i( t'e !ossessor is not reim*urse#< t'e o3ner ma *e un5ustl
enri$'e#
1
- 7'ile ol#er aut'orit su%%ests a ri%'t o( re$over in t'e involuntar *ailee
"
< more re$ent aut'orit
#isa!!roves it
&
- O$$asional statements #enin% su$' ri%'t to a (in#er
)
ma 3ell #i$tate a similar #enial to involuntar
*ailees- Lor# Di!lo$8 'as s!o8en o( a %ratuitous *ailee2s ri%'t to re$ou! t'e $osts o( sa(e%uar#in% %oo#s a%ainst su##en
'aIar#s as arisin% 3'ere t'e $osts 3ere in$urre# in t'e e;er$ise o( t'e *ailee2s #ut o( $are
+
- T'e involuntar *ailee is
not a true *ailee
,
an# o3es no %eneral #ut o( $are-
[31%)]
1
Go(( an# Hones< Law of Restitution 9)t' E#n: !! &+1F&,4-
"
+iholson v Cha$man 91.1&: " = Bl "+) !er Ere CH-
&
2olfor Plant Ltd v Til#ur" Plant Ltd 911..: 1"1 Sol Ho &14-
)
2owal v .llis 911..: ., DLR 9&#: +), at +).F+)/ !er O2Sullivan HA-
+
,
See Para%ra!'s 1 D&441E< )+ D&1+1E ante-
[31%*]
%0 .t#er $eatures o$ 'ailment
It a!!ears t'at t'e involuntar *ailee is *oun# * no esto!!el a%ainst !lea#in% 5us tertii
1
< an# #oes not $arr t'e
or#inar *ailee2s *ur#en o( !roo(
"
-
1
See %enerall Para%ra!' 11 D&4",E ante-
"
See %enerall Para%ra!'s 1, D&4++E< &"-& D&4/.E ante- See also Para%ra!'s "1 D&4,1E< &+-" D&41,E< &1-" D&114E ante-
[31&0]
%1 Property in unsolicited oods
Statute %overns t'e !osition o( re$i!ients o( unsoli$ite# %oo#s- 7'ere unsoli$ite# %oo#s are sent or #elivere# to a
!erson< an# t'at !erson #oes not a%ree eit'er to a$0uire or to return t'e %oo#s< 'e is entitle# to re%ar# t'em as an
un$on#itional %i(t on t'e !art o( t'e sen#er
1
i(:
+1-1 t'e %oo#s 3ere sent to 'im 3it' a vie3 to 'is a$0uirin% t'em
"
C an#
+1-" eit'er t'e sen#er (aile# to $olle$t t'em #urin% t'e si; mont's imme#iatel a(ter re$ei!t 9an# 3as not
unreasona*l !revente# (rom #oin% so: or t'e re$i!ient %ave noti$e to t'e sen#er at least &4 #as *e(ore t'e
e;!ir o( t'e si; mont's an# 3it'in t'e ne;t &4 #as t'e sen#er (aile# to reta8e t'emC an#
+1-& t'e re$i!ient 'a# no reasona*le $ause to su!!ose t'at t'e %oo#s 3ere sent 3it' a vie3 to 'is a$0uirin% t'em (or
t'e !ur!oses o( a tra#e or *usiness-
T'e noti$e re(erre# to in su*@!ara%ra!' +1-" must state t'e re$i!ient2s name an# a##ress< t'e !la$e 9i( #i((erent: (rom
3'i$' t'e %oo#s ma *e $olle$te#< an# t'e (a$t t'at t'e %oo#s 3ere unsoli$ite#-
1
Unsoli$ite# Goo#s an# Servi$es A$t 11.1 s 1 9&1 =als*ur2s Statutes 9)t' E#n: SALE O6 GOODS AND CONSUMER
PROTECTION:-
"
A$0uire< (or t'is !ur!ose< in$lu#es a !ossi*le 'ire o( t'e %oo#s: i*i# s ,91:-
[31&1]
": UNCOLLECTED GOODS
9a: Dut o( $are< an# $ommon la3 #is!osal o( %oo#s
%2 7eneral
A *ailor2s (ailure to $olle$t 'is %oo#s at t'e a!!ointe# time 9or 3'ere no time is a%ree#< 3it'in a reasona*le time: ma
re#u$e or e;tin%uis' t'e *ailee2s #ut o( $are< a$$or#in% to $ir$umstan$es- T'is mo#i(i$ation o( t'e #ut ma *e
su!!orte# on several %roun#s
1
-
1
See Palmer Bailment 9"n# E#n< 1111: !! .4+F.11 an# see Para%ra!' +& D&1,&E et se0 !ost-
[31&2]
%3 8tandard o$ care diminis#in
T'e *ailee ma ar%ue t'at:
+&-1 t'e #ut o( $are re0uires 'im onl to ta8e su$' !re$autions as are reasona*le in all t'e $ir$umstan$es
1
< an#
+&-" t'e e;tension o( 'is $usto# *eon# t'e !erio# $ontem!late#
"
ma8es it reasona*le (or 'im to e;er$ise a lo3er
#e%ree o( $are
&
-
1
See Para%ra!'s 1+ D&4+&E< &"-1 D&4/&E ante-
"
7'i$' ma t'ere(ore no lon%er *e re3ar#e#C see Para%ra!' 1& D&4&,E ante-
&
Pedri! v Morning Star Motors Ltd 91) 6e*ruar 11.1< unre!orte#:< CA-
[31&3]
%! Bailment no1 involuntary
T'e *ailee ma ar%ue t'at t'e *ailment 3as (or an a%ree# !erio#< *eon# 3'i$' t'e *ailee $ease# to 'ol# * $onsent
an# *e$ame onl an involuntar *ailee< o3in% no %eneral #ut o( $are- T'e a%reement as to !erio# ma *e e;!ress or
im!lie#< an# t'e !erio# itsel( ma *e (i;e# or #etermina*le
1
- T'e ar%ument su$$ee#e# in a $ase involvin% *ul8 %oo#s
o( lo3 value
"
< *ut ma *e #i((i$ult to a!!l to e;!ensive !orta*le items
&
- Alternativel< 3'ere t'e *ailment 3as
ori%inall (or re3ar# t'e *ailee mi%'t ar%ue t'at 'e 'as *e$ome< * virtue o( t'e *ailor2s #ela< a mere %ratuitous
*ailee
)
-
1
E% a reasona*le time a(ter #eliver to t'e *ailee-
"
Maritime Coastal Containers Ltd v Shel#urne Marine Ltd 911/": +" NSR 9"#: +1-
&
C( Pedri! v Morning Star Motors Ltd 91) 6e*ruar 11.1< unre!orte#:< CA< 3'ere Me%a3 LH2s 5u#%ment also len#s some
su!!ort to t'is analsis-
)
C( Davis v Henr" Bir! and Sons Ltd D11/1E + 77R ++1< on a!!eal D11/&E 1 77R .+)-
[31&!]
%% Breac# o$ 'ailment
T'ir#l< t'e *ailee ma ar%ue t'at t'e *ailor2s (ailure to $olle$t t'e %oo#s in time is a *rea$' o( a term o( t'e *ailment-
T'e term ma re0uire t'e *ailor to $olle$t at a $ertain time< or 3it'in a reasona*le time
1
- I( t'e term is a $on#ition or an
innominate term< t'e *rea$' ma *e re!u#iator
"
- T'e *ailee ma t'en *e entitle# to a$$e!t t'e re!u#iation an#
renoun$e (urt'er !er(orman$e un#er t'e *ailment- In t'is manner< t'e *ailee mi%'t relieve 'imsel( o( an (urt'er #ut to
sa(e%uar# t'e %oo#s- T'e o$$urren$e o( a *rea$' * t'e non@$olle$tin% *ailor mi%'t *e relevant in t3o (urt'er res!e$ts:
++-1 it mi%'t entitle t'e *ailee to miti%ate t'e loss 'e su((ers in $onse0uen$e o( t'e *rea$'
&
< (or e;am!le * removin%
t'e %oo#s (rom 'is !remises even t'ou%' t'is in$reases t'e ris8 to t'em
)
C an#
++-" it ma $onstitute a (a$tor a$tivatin% t'e *ailee2s !o3er to invo8e t'e #is!osal o( un$olle$te# %oo#s ma$'iner
$ontaine# in t'e Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. Se$tions 1" an# 1&
+
-
[31&%]
1
Pedri! v Morning Star Motors Ltd 91) 6e*ruar 11.1< unre!orte#:< CAC Rid"ard v Ro#erts 91, Ma 11/4< unre!orte#:< CAC
Davis v Henr" Bir!s & Sons Ltd D11/1E + 77R ++1< on a!!eal 911/&: 1)" DLR 9&#: &+,-
"
Rid"ard v Ro#erts 91, Ma 11/4< unre!orte#:< CA 9sem*le:C *ailee also 'el# to *e a%en$ o( ne$essit-
&
E% in t'e (orm o( stora%e $osts< or lost *usiness $ause# * t'e !resen$e o( t'e %oo#s $lutterin% a 3or8s'o!: see Pedri! v
Morning Star Motors Ltd 91) 6e*ruar 11.1< unre!orte#:< CAC 3efferson Ltd v Burton 'rou$ Ltd 91& A!ril 11/)< unre!orte#:-
)
Pedri! v Morning Star Motors Ltd 91) 6e*ruar 11.1< unre!orte#:< CA-
+
See Para%ra!' +. D&1,/E et se0 !ost-
[31&&]
%& A'andonment
T'e *ailee ma ar%ue t'at t'e *ailor 'as a*an#one# 'is !ro!ert in t'e %oo#s- In t'at event< no (urt'er #ut o( $are $an
*e o3e# un#er a *ailment< *e$ause t'e *ailment 'as $ease#C t'e *ailor< 'avin% va$ate# !ro!ert in t'e %oo#s< is no
lon%er a *ailor
1
- To esta*lis' a*an#onment< it is ne$essar to s'o3 a !ositive intention to a*an#on< or at least !ositive
$on#u$t on t'e !art o( t'e *ailor (rom 3'i$' t'at intention $an *e une0uivo$all in(erre#
"
- T'e ne$essar intention 3ill
not< it seems< normall *e in(erre# (rom !assive #ela alone
&
-
1
It is not entirel $lear 3'et'er a $'attel o3ner $an #ivest 'imsel( o( !ro!ert * a*an#onment< t'ou%' su$' a vie3 seems
!re(era*le: see =u#son 911/): 144 L?R 114C $( Moorhouse v (ngus and Ro#ertson *+o 6- Pt" Ltd D11/1E 1 NS7LR .44-
"
Moorhouse v (ngus and Ro#ertson *+o 6- Pt" Ltd D11/1E 1 NS7LR .44-
&
As in Moorhouse v (ngus and Ro#ertson *+o 6- Pt" Ltd D11/1E 1 NS7LR .44-
[31&(]
9*: Statutor #is!osal
%( "#e "orts (-nter$erence 1it# 7oods) Act 1*((
T'e *ailee ma *e entitle# to invo8e statutor ma$'iner (or t'e #is!osal o( un$olle$te# %oo#s- T'e relevant !rovisions
are Se$tions 1" an# 1& o( t'e Torts 9Inter(eren$e 3it' Goo#s: A$t 11..-
[31&)]
%) 8cope
Ever variet o( *ailment seems to *e $overe# * t'e statutor !rovisions- Sin$e< 'o3ever< *ailment itsel( is no3'ere
#e(ine#
1
< t'ere ma *e room (or #ou*t as to 3'et'er involuntar *ailment
"
an# *ailment * $on$ealment
&
0uali( (or
t'e statutor !ur!oses- 7'ile re$ent aut'orit su%%ests t'at t'e #o not
)
< it 3oul# *e un(ortunate i( t'ese $lasses o(
!ossessor 3ere una*le to invo8e t'e statutor ma$'iner-
1
T'e 3or#s L*ailor2 an# L*ailee2 as use# in t'e Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. ss 1"< 1&< S$' 1 9)+ =als*ur2s Statutes
9)t' E#n: TORTS: in$lu#e t'eir res!e$tive su$$essors in title: i*i# s 1"9.:9a:-
"
See Para%ra!' )+ D&1+1E ante-
&
See Para%ra!' ,& D&1/&E !ost-
)
The Pioneer Container D111)E " All ER "+4< PCC *ut $( (05 Ltd v .'M Solders Ltd 911/": Times< . Hul-
[31&*]
%* Forms o$ disposal
T'e Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. allo3s (or #is!osal * sale 3it'out t'e aut'orit o( t'e $ourt< an# (or sale
3it' su$' aut'orit- It ma8es no allo3an$e (or ot'er (orms o( #is!osal< su$' as %i(t or #estru$tion-
[31(0]
&0 8ale 1it#out court aut#ority
&0+1 Activatin t#e po1er
T'e Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. Se$tion 1"9&: %ives a %eneral !o3er o( sale over %oo#s *aile# a(ter t'e
$ommen$ement o( t'e A$t
1
- To a$tivate t'e !o3er< t'e *ailee must s'o3:
,4-1-1 t'at t'e terms o( t'e *ailment #o not !rovi#e to t'e $ontrar
"
C
,4-1-" t'at %oo#s are in t'e !ossession or un#er t'e $ontrol o( t'e *ailee
&
C an#
,4-1-& t'at some a$tual or notional #ate (or re#eliverin% t'e %oo#s to t'e *ailor 'as !asse#- T'e *ailee ma satis( t'is
re0uirement * s'o3in% t'at:
,4-1-&-1 t'e *ailor is a$tuall in *rea$' o( an o*li%ation to ta8e #eliver o( t'e %oo#s< or< i( t'e terms o( t'e
*ailment so !rovi#e< to %ive #ire$tions (or t'eir re#eliver
)
C
,4-1-&-" t'e *ailee 3oul# *e a*le to im!ose su$' an o*li%ation * %ivin% noti$e to t'e *ailor *ut t'at t'e *ailee
is in (a$t una*le to tra$e or $ommuni$ate 3it' 'im
+
C
,4-1-&-& t'e *ailee $oul# reasona*l e;!e$t to *e relieve# o( an #ut to sa(e%uar# t'e %oo#s * %ivin% noti$e
to t'e *ailor *ut is una*le to tra$e or $ommuni$ate 3it' 'im
,
-
[31(1]
1
Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. s 1"91: 9)+ =als*ur2s Statutes 9)t' E#n: TORTS:- See (nderson v .arlanger D11/4E
CLB 1&&-
"
Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. s 1"9/:< an# see i*i# S$' 1< !ara ,-
&
I*i# s 1"91:- A *ailee 3'o no lon%er !ossesses t'e %oo#s *ut 'as su*@*aile# t'em to a t'ir# !art on terms t'at 'e ma $all (or
t'eir re#eliver at 3ill is a!!arentl entitle# to t'e !rote$tion o( t'e A$t: see Palmer Bailment 9"n# E#n< 1111:-
)
I*i# s 1"91:9a:C see Para%ra!' ++ D&1,+E ante-
+
I*i# s 1"91:9*:-
,
I*i# s 1"91:9$:-
[31(2]
&0+2 -mposin a duty to collect
An o*li%ation to $olle$t t'e %oo#s ma *e im!lie# 3'ere a *ailor is a$tuall or $onstru$tivel a3are t'at t'e !ur!ose
(or 3'i$' t'e %oo#s 3ere *aile# is $om!lete# an# t'at t'e %oo#s are availa*le (or $olle$tion
1
- But a (ailure to $olle$t
3ill not ne$essaril !la$e t'e *ailor in *rea$' o( $ontra$t- T'e Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. t'ere(ore
ena*les t'e *ailee un#er $ertain t!es o( *ailment to im!ose u!on t'e *ailor * noti$e a #ut to $olle$t t'e %oo#s
"
< or to
%ive #ire$tions (or t'eir re#eliver- T'e noti$e must *e in 3ritin% an# ma *e %iven eit'er * #eliverin% it to t'e *ailor<
or * leavin% it at 'is !ro!er a##ress
&
< or * !ost
)
- To $om!l 3it' t'e A$t t'e noti$e must:
,4-"-1 s!e$i( t'e name o( t'e *ailee< an# %ive su((i$ient !arti$ulars o( t'e %oo#s an# t'e a##ress or !la$e 3'ere t'e
are 'el#C
,4-"-" state t'at t'e %oo#s are rea# (or re#eliver to t'e *ailor< or< 3'ere $om*ine# 3it' a noti$e terminatin% t'e
$ontra$t o( *ailment< state t'at t'e 3ill *e rea# (or re#eliver 3'en t'e $ontra$t is terminate#C an#
,4-"-& s!e$i( t'e amount< i( an< !aa*le * t'e *ailor to t'e *ailee in res!e$t o( t'e %oo#s an# 3'i$' *e$ame #ue
*e(ore t'e %ivin% o( t'e noti$e
+
-
[31(3]
T'e times at 3'i$' su$' noti$e ma *e %iven var a$$or#in% to t'e t!e o( *ailment an# are su*5e$t to its
terms
,
-
7'ere t'e *ailee a$$e!te# t'e %oo#s (or re!air or ot'er treatment on t'e terms 9e;!resse# or im!lie#: t'at
t'e 3ill *e re#elivere# to t'e *ailor 3'en t'e re!air or ot'er treatment 'as *een $arrie# out< noti$e ma *e %iven at an
time a(ter t'e re!air or ot'er treatment
.
-
7'ere t'e *ailee a$$e!te# t'e %oo#s in or#er to value or a!!raise t'em< noti$e ma *e %iven at an time a(ter
t'e *ailee 'as $arrie# t'e valuation or a!!raisal
/
-
7'ere t'e *ailee is in !ossession at an time o( %oo#s 3'i$' 'e 'as 'el# as $usto#ian< an# 'is o*li%ation as
$usto#ian 'as $ome to an en#< noti$e ma *e %iven at an time a(ter t'e en#in% o( t'e o*li%ation< or ma *e $om*ine#
3it' an noti$e terminatin% 'is o*li%ation as $usto#ian
1
< e;$e!t t'at t'is !rovision #oes not a!!l to %oo#s 'el# * a
!erson as mer$antile a%ent
14
-
T'e (ore%oin% !rovisions as to time o( noti$e a!!l 3'et'er or not t'e *ailor 'as !ai# an amount #ue to t'e
*ailee in res!e$t o( t'e %oo#s< an# 3'et'er or not t'e *ailment is (or re3ar#< or in t'e $ourse o( *usiness or
%ratuitous
11
- T'e !o3er to im!ose an o*li%ation u!on t'e *ailor to ta8e #eliver o( t'e %oo#s is not limite# to
$ommer$ial *ailments-
[31(!]
1
See Para%ra!' ++ D&1,+E ante-
"
Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. s 1"9":< S$' 1 Pt I 9)+ =als*ur2s Statutes 9)t' E#n: TORTS:-
&
As #e(ine# in i*i# S$' " Pt II !ara /-
)
I*i# S$' 1 Pt I !ara 19":-
+
I*i# S$' 1 Pt I !ara 19&:C see also i*i# S$' 1 Pt I !ara 19):-
,
I*i# S$' 1 Pt I !ara ,-
.
I*i# S$' 1 Pt I !ara "-
/
I*i# S$' 1 Pt I !ara &-
1
I*i# S$' 1 Pt I !ara )91:-
14
T'at is< * a !erson 'avin% in t'e $ustomar $ourse o( 'is *usiness as a mer$antile a%ent aut'orit eit'er to sell %oo#s or to
$onsi%n %oo#s (or t'e !ur!ose o( sale< or to *u %oo#s< or to raise mone on t'e se$urit o( %oo#s: see i*i# S$' 1 Pt I !ara )9":-
11
I*i# S$' 1 !ara +-
[31(%]
&0+3 7ivin notice o$ intention to sell
T'e *ailee must ne;t %ive noti$e to t'e *ailor o( 'is intention to sell t'e %oo#s
1
- I( t'ese $on#itions are met< a *ailee
3'o is reasona*l satis(ie# t'at t'e *ailor o3ns t'e %oo#s
"
< *e$omes entitle# to sell t'em-
Noti$e o( intention to sell must s!e$i(
&
:
,4-&-1 t'e name an# a##ress o( t'e *ailee
)
C
,4-&-" t'e #ate on or a(ter 3'i$' t'e *ailee !ro!oses to sell t'e %oo#s
+
C
,4-&-& t'e amount< i( an< !aa*le * t'e *ailor to t'e *ailee in res!e$t o( t'e %oo#s< an# 3'i$' *e$ame #ue *e(ore t'e
%ivin% o( t'e noti$e-
T'e noti$e must *e in 3ritin% an# must *e sent * !ost in a re%istere# letter< or * re$or#e# #eliver
,
-
No *ailee ma %ive noti$e un#er Se$tion 1"9&:< or e;er$ise 'is ri%'t to sell t'e %oo#s !ursuant to su$' noti$e<
at a time 3'en 'e 'as noti$e t'at< *e$ause o( a #is!ute $on$ernin% t'e %oo#s< t'e *ailor is 0uestionin% or re(usin% to !a
all or an !art o( 3'at t'e *ailee $laims to *e #ue to 'im in res!e$t o( t'e %oo#s
.
- But t'is !ro'i*ition is to *e le(t out o(
a$$ount in #eterminin% un#er Se$tion 1&91: o( t'e A$t 3'et'er a *ailee o( %oo#s is entitle# to sell t'e %oo#s un#er
Se$tion 1"< or 3oul# *e so entitle# i( 'e 'a# %iven an noti$e re0uire# in a$$or#an$e 3it' S$'e#ule 1
/
-
[31(&]
1
It su((i$es (or t'is !ur!ose t'at t'e *ailee 'as (aile# to tra$e or $ommuni$ate 3it' t'e *ailor 3it' a vie3 to %ivin% 'im su$'
noti$e< a(ter 'avin% ta8en reasona*le ste!s (or t'at !ur!ose- See t'e Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. s 1"9&: 9)+
=als*ur2s Statutes 9)t' E#n: TORTS:-
"
I*i# s 1"9&:-
&
See i*i# S$' 1 Pt II !ara- ,91:-
)
=ere< t'e noti$e must %ive su((i$ient !arti$ulars o( t'e %oo#s an# t'e a##ress or !la$e 3'ere t'e are 'el#-
+
T'e !erio# s!e$i(ie# in t'is noti$e as t'at a(ter 3'i$' t'e *ailee !ro!oses to sell t'e %oo#s must *e su$' as 3ill a((or# t'e *ailor a
reasona*le o!!ortunit o( ta8in% #eliver o( t'e %oo#s: i*i# S$' 1 Pt II !ara ,9":- I( an amount is !aa*le in res!e$t o( t'e
%oo#s * t'e *ailor to t'e *ailee< an# *e$ame #ue *e(ore t'e noti$e o( intention to sell 3as %iven 9see *elo3:< t'e !erio# allo3e#
must not *e less t'an t'ree mont's: i*i# S$' 1 Pt II !ara ,9&:-
,
I*i# S$' 1 Pt II !ara ,9):-
.
I*i# S$' 1 Pt II !ara .91:-
/
I*i# S$' 1 Pt II !ara .9":-
[31((]
&0+! Conductin t#e sale
A *ailee 3'o e;er$ises 'is !o3er to sell un#er t'e Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. Se$tion 1"9&: must
a$$ount to t'e *ailor (or t'e !ro$ee#s o( t'e sale a(ter #e#u$tin% t'e e;!enses t'ereo(
1
- T'e a$$ount must *e ta8en on
t'e (ootin% t'at t'e *ailee s'oul# 'ave a#o!te# t'e *est met'o# o( sale reasona*l availa*le in t'e $ir$umstan$es
"
- T'e
*ailee ma also #e#u$t an sum 3'i$' is !aa*le * t'e *ailor to t'e *ailee in res!e$t o( t'e %oo#s an# 3'i$' La$$rue#
#ue2 *e(ore t'e *ailee %ave noti$e o( 'is intention to sell
&
-
1
Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. s 1"9+: 9)+ =als*ur2s Statutes 9)t' E#n: TORTS:-
"
I*i# s 1"9+:9a:-
&
I*i# s 1"9+:9*:- See also< as to t'e #e(inition o( $'ar%es !aa*le in res!e$t o( t'e %oo#s< i*i# s 1"9.:9*:-
[31()]
&0+% ;eal e$$ects o$ sale
A sale un#er t'e Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. Se$tion 1" %ives t'e *uer o( t'e %oo#s a %oo# title as
a%ainst t'e *ailor alone
1
- I( t'e *ailor #i# not o3n t'e %oo#s< no %oo# title is $on(erre# * sale un#er t'e A$t eit'er
a%ainst t'e true o3ner or a%ainst anone $laimin% un#er 'im
"
-
1
Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. s 1"9,: 9)+ =als*ur2s Statutes 9)t' E#n: TORTS:-
"
I*i# s 1"9):-
[31(*]
&1 8ale 1it# court aut#ority
I( a *ailee o( %oo#s to 3'i$' t'e Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. Se$tion 1" a!!lies satis(ies t'e $ourt
1
t'at 'e
is entitle# to sell t'e %oo#s un#er Se$tion 1"< or 3oul# *e so entitle# i( 'e 'a# %iven an noti$e re0uire# in a$$or#an$e
3it' S$'e#ule 1 to t'e A$t< t'e $ourt ma
"
:
,1-1 aut'orise t'e sale o( t'e %oo#s su*5e$t to su$' terms an# $on#itions< i( an< as ma *e s!e$i(ie# in t'e or#er< an#
,1-" aut'orise t'e *ailee to #e#u$t (rom t'e !ro$ee#s o( sale an $osts o( sale an# an amount #ue (rom t'e *ailor to
t'e *ailee in res!e$t o( t'e %oo#s< an#
,1-& #ire$t t'e !ament into $ourt o( t'e net !ro$ee#s o( sale< less an amount #e#u$te# un#er ,1-" a*ove< to *e 'el#
to t'e $re#it o( t'e *ailor-
A #e$ision o( t'e $ourt aut'orisin% a sale un#er Se$tion 1& o( t'e A$t is
&
$on$lusive< as a%ainst t'e *ailor< o(
t'e *ailee2s entitlement to sell t'e %oo#s< an# %ives a %oo# title to t'e !ur$'aser as a%ainst t'e *ailor
)
-
[31)0]
1
T'at is< t'e =i%' Court or a $ount $ourt: Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. s 1&9&: 9)+ =als*ur2s Statutes 9)t' E#n:
TORTS:- A $ount $ourt 'as 5uris#i$tion in t'e !ro$ee#in%s i( t'e value o( t'e %oo#s #oes not e;$ee# t'e $ount $ourt limit: i*i# s
1&9&:-
"
I*i# s 1&91:-
&
Su*5e$t to an ri%'t o( a!!eal-
)
Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. s 1&9":-
[31)1]
9$: Re$over o( e;!enses
&2 =ecovery o$ e:penses
T'ere seems to *e no %eneral aut'orit entitlin% t'e *ailee o( un$olle$te# %oo#s to re$over (rom t'e *ailor
$om!ensation (or $osts in$urre# or losses sustaine# in $onse0uen$e o( 'is e;ten#e# $usto#
1
- In !arti$ular $ases< a ri%'t
o( re$over mi%'t *e 5usti(ie# * 3a o( an im!lie# term in t'e ori%inal *ailment< or as #ama%es (or t'e *ailor2s *rea$'
in (ailin% to $olle$t t'e %oo#s
"
- Su$' a ri%'t mi%'t also *e more %enerall su!!orta*le on normal !rin$i!les o( t'e la3
o( un5ust enri$'ment
&
-
1
C( 'reaves v (shlin 91/1&: & Cam! )",-
"
See Para%ra!' ++ D&1,+E ante-
&
C( The Winson D11/"E AC 1&1< D11/1E & All ER ,//< =L-
[31)2]
&: BAILMENT BB CONCEALMENT
&3 7eneral
A !ossessor o( %oo#s 3'o is:
,&-1 una3are o( 'is !ossession o( t'em< or
,&-" a3are o( 'is !ossession< *ut una3are t'at t'e %oo#s #o not *elon% to 'im<
o3es no %eneral #ut o( $are (or t'eir sa(e8ee!in%
1
- =e is not a *ailee *e$ause 'e 'as not $onsente# to !ossession as
*ailee
"
- I(< 'o3ever< t'e !ossessor in t'e se$on# $ase see8s to #ama%e or #estro t'e %oo#s< 'e must *e(ore #oin% so
ta8e reasona*le $are to esta*lis' t'at 'e is t'e o3ner o( t'em
&
-
1
Consentino v Dominion ./$ress Co 9114,: ) 7LR )1/C *ut $( (wad v Pillai D11/"E RTR ",,C an# see %enerall Palmer
Bailment 9"n# E#n< 1111: $' ,< !! )).F)++-
"
Consentino v Dominion ./$ress Co 9114,: ) 7LR )1/-
&
(05 Ltd v .'M Solders Ltd 911/": Times< . Hul-
[31)343200]
(B) Forms and Precedents
A: 6ORMS RELATING TO T=E TORTS 9INTER6ERENCE 7IT= GOODS: ACT
1
Document see6in 1ritten aut#ority o$ a person claimin to #ave or #avin an interest in oods to commence
action $or 1ron$ul inter$erence 1it# oods
1
TORTS 9INTER6ERENCE 7IT= GOODS: ACT 11.. SECTION /
RULES O6 T=E SUPREME COURT ORDER 1+ RULE 14A
To *full name-
o( *address-
1 7e !ro!ose to *rin% an a$tion a%ainst *name- (or t'e re$over o( *$reise desri$tion of goods- 3'i$' 'e
$urrentl 'ol#s an# re(uses to return #es!ite 'avin% *een tol# so to #o-
" [7e are t'e o3ner o( t'e %oo#s or 3e are !art o3ners o( t'e %oo#s 3it' ou or s$eif" the $reise nature of
title to the goods-]
& Bou 'ave $laime# * our letter #ate# *date- t'at [ou also 'ave an interest in t'e %oo#s or ou 'ave t'e
(ollo3in% ri%'ts over t'e sai# %oo#s< namel *insert details-]-
[3201]
) 7e are re0uire# *e(ore *rin%in% !ro$ee#in%s (or 3ron%(ul inter(eren$e 3it' %oo#s 3'ere t'e !ro!ose#
Plainti(( is one o( t3o or more !ersons 'avin% or $laimin% an interest in t'e %oo#s eit'er:
)-1 to o*tain t'e 3ritten aut'orit o( ever ot'er su$' !erson to *rin% !ro$ee#in%s on t'e latter2s *e'al(
or
)-" to in#orse t'e 3rit or ori%inatin% summons * 3'i$' t'e a$tion is $ommen$e# 3it' a statement
%ivin% !arti$ulars o( our title< an# i#enti(in% an ot'er !erson 3'o< in our 8no3le#%e< 'as or
$laims an interest in t'e %oo#s-
+ It ma sim!li( matters an# ma involve less $ost i( ou 3ere a*le to !rovi#e t'e relevant aut'orit un#er )-1
a*ove-
, I( ou are 3illin% so to #o< !lease !rovi#e a 3ritten statement settin% out t'e (ollo3in%:
,-1 su$' title as ou $laim to 'ave in t'e %oo#s
,-" t'e (a$t t'at ou are $ontent (or t'e a$tion to *e *rou%'t on our *e'al(
,-& t'e aut'orit o( t'e !erson si%nin% t'e $onsent< 3it' $on(irmation t'at 'e or s'e is entitle# to si%n
,-) t'e #ate on 3'i$' t'e $onsent 3as si%ne#-
*name of $ro$osed $laintiff-
1
T'e o*5e$t o( t'is (orm is to eli$it a letter o( res!onse 3'i$' 3ill $om!l 3it' t'e re0uirements o( RSC Or# 1+ r 14A< an# CCR
Or# 1+ r )- See t'e Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. s / 9)+ =als*ur2s Statutes 9)t' E#n: TORT:- T'e material se$tion
o( t'e Or#er is set out at $lause )-1 D&"4"E- No (orm is !res$ri*e#: it 3oul# *e su((i$ient to set out t'e a*ove in a letter-
[3202]
2
Document providin aut#ority o$ a person claimin to #ave or #avin an interest in oods
1
TORTS 9INTER6ERENCE 7IT= GOODS: ACT 11.. SECTION /
RULES O6 T=E SUPREME COURT ORDER 1+ RULE 14A
To *name of $ro$osed Plaintiff-
1 7e un#erstan# t'at ou !ro!ose to $ommen$e an a$tion (or 3ron%(ul inter(eren$e 3it' *desri#e the goods in
?uestion--
" 7e also un#erstan# t'at ou 3is' to o*tain t'e 3ritten aut'orit o( ever ot'er !erson 'avin% or $laimin% an
interest in t'e sai# %oo#s to *rin% !ro$ee#in%s on t'e t'eir *e'al(-
& 7e $on(irm:
&-1 t'e %oo#s in 3'i$' 3e $laim to 'ave title are t'e (ollo3in%: *desri#e the goods-
&-" 3e 'ave t'e (ollo3in% title in t'e %oo#s: *insert details-
&-& 3e $on(irm t'at 3e are $ontent (or t'e a$tion to *e *rou%'t on our *e'al( an#
&-) t'e !osition 'el# * t'e !erson si%nin% t'is $onsent is *insert details- an# 'eKs'e 'as aut'orit to
si%n t'is $onsent-
Date:
*signature-
1
T'e o*5e$t o( t'is 6orm is to $om!l 3it' t'e re0uirements o( RSC Or# 1+ r 14A an# CCR Or# 1+ r )< an# to re#u$e in s$o!e t'e
!ossi*ilit o( t'e !ro!ose# #e(en#ant to an a$tion (or 3ron%(ul inter(eren$e 3it' %oo#s raisin% a #e(en$e o( 5us tertii- T'ere is no
!res$ri*e# (orm- See %enerall 6orm 1 note 1 D&"4"E ante-
[3203]
3
?otice to 'ailor t#at oods are ready $or re>delivery
1
TORTS 9INTER6ERENCE 7IT= GOODS: ACT 11.. SECTION 1"91:[<9&:]
"
To *name and address of #ailor-
&
[I *name and address of #ailee- %ive or *name and address of #ailee- 9Lt'e Bailee2: %ives]
)
ou noti$e as (ollo3s:
1 T'e *desri#e goods-
+
9Lt'e Goo#s2:< #e!osite# * ou on *date- 3it' [me or t'e Bailee] (or t'e !ur!ose o(
[re!air or valuation or a!!raisal or stora%e or as the ase ma" #e]
,
[on t'e terms or it *ein% im!lie#] t'at t'e
Goo#s 3oul# *e re@#elivere# to ou [3'en t'e [re!air] 'a# *een $arrie# out or as the ase ma" #e]< are 'el#
at *address--
" T'e Goo#s [are rea# (or #eliver to ou or 3ill *e rea# (or #eliver to ou 3'en t'e $ontra$t (or *ailment
relatin% to t'em is terminate# on *date- in a$$or#an$e 3it' t'e noti$e in $lause ) *elo3]
.
as [t'e [re!air] 'as
no3 *een $arrie# out or [m or t'e Bailee2s] o*li%ation as $usto#ian 'as $ome to an en#]-
[& T'e sum o( NO is !aa*le * ou to [me or t'e Bailee] in res!e$t o( t'e Goo#s an# *e$ame #ue *e(ore t'e
#ate o( t'is noti$e-]
/
[) In a$$or#an$e 3it' t'e $ontra$t o( *ailment ma#e on *date- [I %ive or t'e Bailee %ives] noti$e t'at t'e
$ontra$t 3ill terminate on *date--]
1
+ Bou [are or 3ill] a$$or#in%l [on *date- *e] un#er an o*li%ation to ta8e #eliver o( t'e Goo#s [or to %ive
#ire$tions as to t'eir #eliver] !ursuant to t'e Torts 9Inter(eren$e 3it' Goo#s: A$t S$'e#ule 1 !ara%ra!' 1
14
-
[, [I !ro!ose or T'e Bailee !ro!oses] to sell t'e Goo#s on *date- i( ou 'ave not [!ai# t'e sums o( NO an#]
ta8en #eliver [or %iven #ire$tions as to #eliver] o( t'e Goo#s * t'at #ate-]
11
*signature of or on #ehalf of the #ailee-
[320!]
1
T'is noti$e ma *e issue# 3'ere t'e Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. s 1"91: 9)+ =als*ur2s Statutes 9)t' E#n: TORT:
a!!lies ie 3'ere< su*5e$t to t'e terms o( t'e *ailment< t'e %oo#s are in t'e *ailee2s !ossession or un#er 'is $ontrol an#:
9a: t'e *ailor is in *rea$' o( an o*li%ation to ta8e #eliver or< i( t'e terms o( t'e *ailment so !rovi#e< to %ive #ire$tions as
to t'eir #eliver< or
9*: t'e *ailee $oul# im!ose su$' an o*li%ation * %ivin% noti$e to t'e *ailor *ut $annot tra$e or $ommuni$ate 3it' 'im<
or
9$: t'e *ailee $an reasona*l e;!e$t to *e relieve# o( an #ut to sa(e%uar# t'e %oo#s on %ivin% t'e *ailor noti$e *ut
$annot tra$e or $ommuni$ate 3it' 'im-
See i*i# s 1"91:< 9":< 9/:< S$' 1 Pt I-
A *ailee ma< (or t'e !ur!oses o( i*i# s 1"91:< im!ose an o*li%ation on t'e *ailor to ta8e #eliver or %ive #ire$tions as to
#eliver 9i*i# s 1"9"::< 3'ere t'e *ailee 'as a$$e!te# %oo#s (or re!air or ot'er treatment on terms 9e;!ress or im!lie#: t'at t'e
3ill *e re@#elivere# to t'e *ailor 3'en it 'as *een $arrie# out 9i*i# S$' 1 !ara ":C or i( t'e *ailee 'as a$$e!te# %oo#s in or#er to
value or a!!raise t'em 9i*i# S$' 1 !ara &:C or i( t'e *ailee 9not *ein% a mer$antile a%ent: is in !ossession o( t'e %oo#s as
$usto#ian an# 'is o*li%ation< as su$'< 'as $ome to an en# 9i*i# S$' 1 !ara ):- T'e !rovisions o( i*i# S$' 1 !aras "F) a!!l
3'et'er or not t'e *ailor 'as !ai# an amount #ue to t'e *ailee in res!e$t o( t'e %oo#s< an# 3'et'er or not t'e *ailment is (or
re3ar#< or in t'e $ourse o( *usiness< or %ratuitous: i*i# S$' 1 !ara +- A noti$e un#er i*i# S$' 1 !aras "< & ma *e %iven at an
time a(ter t'e re!air or ot'er treatment< valuation or a!!raisal 'as *een $arrie# out- A noti$e un#er i*i# S$' 1 !ara ) ma *e
%iven at an time a(ter t'e en#in% o( t'e o*li%ation an# ma *e $om*ine# 3it' a noti$e terminatin% t'e *ailee2s o*li%ation as
$usto#ian-
A noti$e un#er i*i# S$' 1 !aras 1F) must *e in 3ritin% an# ma *e %iven eit'er * #eliverin% it to t'e *ailor< or * leavin%
it at 'is !ro!er a##ress< or * !ost: i*i# S$' 1 !ara 19":-
"
A noti$e o( intention to sell %oo#s 9see i*i# s 1"9&:< S$' 1 !ara , an# 6orm ) D&"4,E !ost ma *e $om*ine# 3it' t'is noti$e< i(
t'e re0uirements o( i*i# S$' 1 !aras 19):< ,9): are met 9see note 11 *elo3:-
&
T'e !ro!er a##ress o( t'e *ailor is< in t'e $ase o( a *o# $or!orate< t'e re%istere# or !rin$i!al o((i$e< an# in an ot'er $ase< t'e
last 8no3n a##ress o( t'e *ailor: i*i# S$' 1 !ara /-
)
T'e noti$e must s!e$i( t'e name an# a##ress o( t'e *ailee: i*i# S$' 1 !ara 19&:9a:-
+
T'e noti$e must %ive su((i$ient !arti$ulars o( t'e %oo#s< as 3ell as t'e a##ress o( t'e !la$e 3'ere t'e are 'el#: i*i# S$' 1 !ara
19&:9a:-
,
T'e !ur!ose ma *e re!air or ot'er treatment 9i*i# S$' 1 !ara ":< valuation or a!!raisal 9i*i# S$' 1 !ara &: or some ot'er
!ur!ose 9e% stora%e< %uar#in%: t'rou%' 3'i$' an o*li%ation o( $usto#ians'i! 'as arisen 9i*i# S$' 1 !ara ):: see note 1 a*ove-
.
I*i# S$' 1 !ara 19&:9*:-
/
7'ere an amount !aa*le * t'e *ailor to t'e *ailee in res!e$t o( t'e %oo#s *e$ame #ue *e(ore t'e #ate o( t'e noti$e< t'e sum
must *e s!e$i(ie#: i*i# S$' 1 !ara 19&:9$:-
1
See note . a*ove- T'e amount o( noti$e re0uire# 3ill #e!en# on t'e terms o( t'e $ontra$t-
14
T'e noti$e ma im!ose on t'e *ailor an o*li%ation to ta8e #eliver o( t'e %oo#s 9i*i# S$' 1 !ara 191::< 3'i$' in$lu#es< 3'ere t'e
terms o( t'e *ailment a#mit< %ivin% #ire$tions as to t'eir #eliver 9i*i# S$' 1 !ara 19+::-
11
T'is $lause ma *e in$lu#e# i( t'e noti$e is sent * !ost in a re%istere# letter or * re$or#e# #eliver servi$e: i*i# S$' 1 !aras
19):< ,9):-
[320%]
!
?otice o$ intention to sell oods
1
TORTS 9INTER6ERENCE 7IT= GOODS: ACT 11.. SECTION 1"9&:
To *name and address of #ailor-
"
[I *name and address of #ailee- %ive or *name and address of #ailee- 9Lt'e Bailee2: %ives]
&
ou noti$e as (ollo3s:
1 T'e *desri#e goods-
)
9Lt'e Goo#s2: are 'el# at *address- [an# t'e sum o( NO is !aa*le * ou to t'e Bailee
in res!e$t o( t'e Goo#s an# *e$ame #ue *e(ore t'e #ate o( t'is noti$e
+
]-
" [T'e Goo#s are rea# (or re@#eliver to ou or) where this notie is om#ined with a notie terminating the
ontrat of #ailment) indiate that the" are to #e read" for redeliver" u$on termination of the ontratDsee
&orm = lause , E=,<FG ante]
& [I !ro!ose or T'e Bailee !ro!oses] to sell t'e Goo#s on *date-
,
i( ou 'ave not [!ai# t'e sum o( NO an#]
ta8en #eliver [or %iven #ire$tions as to #eliver] o( t'e Goo#s * t'at #ate- T'is !erio# is su((i$ient to
!rovi#e ou 3it' a reasona*le o!!ortunit to ta8e #eliver o( t'e Goo#s-
*signature of or on #ehalf of #ailee-
[320&]
1
T'is noti$e meets t'e re0uirements o( t'e Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. s 1"9&:< S$' 1 Pt II !ara , 9)+ =als*ur2s
Statutes 9)t' E#n: TORT:- T'e *ailee ma not %ive t'is noti$e< or e;er$ise t'e ri%'t to sell t'e %oo#s !ursuant to su$' a noti$e< i(
'e 'as noti$e t'at< *e$ause o( a #is!ute $on$ernin% t'e %oo#s< t'e *ailor is 0uestionin% or re(usin% to !a all or !art o( 3'at t'e
*ailee $laims to *e #ue to 'im in res!e$t o( t'e %oo#s: i*i# S$' 1 !ara .91:- T'e noti$e must *e sent * !ost in a re%istere# letter
or * t'e re$or#e# #eliver servi$e: i*i# S$' 1 !ara ,9):- See Para%ra!' ,4-& D&1.,E ante-
It 3ill *e ne$essar (or t'e *ailee to s'o3 t'at t'e (ollo3in% (urt'er re0uirements are met: 91: t'at t'e terms o( t'e *ailment
#o not !rovi#e to t'e $ontrarC 9": t'at t'e %oo#s are in t'e !ossession or un#er t'e $ontrol o( t'e *aileeC 9&: t'at some a$tual or
$onstru$tive #ate (or re#eliver 'as !asse#C an# 9): t'at i( an amount is !aa*le * t'e *ailor to t'e *ailee in res!e$t o( t'e
%oo#s< an# i( it *e$ame #ue *e(ore t'e %ivin% o( t'e noti$e< t'at t'e !erio# *et3een noti$e an# sale 3ill not *e more t'an &
mont's: see Para%ra!' ,4 D&1.1E ante-
"
As to t'e !ro!er a##ress see 6orm & note & D&"4+E ante-
&
T'e noti$e must s!e$i( t'e name an# a##ress o( t'e *ailee: Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. S$' 1 !ara ,91:9a:-
)
T'e noti$e must %ive su((i$ient !arti$ulars o( t'e %oo#s an# t'e a##ress or !la$e 3'ere t'e are 'el#: i*i# S$' 1 !ara ,91:9a:-
+
7'ere an amount !aa*le * t'e *ailor to t'e *ailee in res!e$t o( t'e %oo#s *e$ame #ue *e(ore t'e #ate o( t'e noti$e< t'e sum
must *e s!e$i(ie#: i*i# S$' 1 !ara ,91:9$:-
,
T'e #ate s!e$i(ie# 9see i*i# S$' 1 !ara ,91:9*:: must allo3 su$' !erio# o( noti$e as 3ill a((or# t'e *ailor a reasona*le
o!!ortunit o( ta8in% #eliver o( t'e %oo#s: i*i# S$' 1 !ara ,9":- T'e !erio# o( noti$e must *e at least t'ree mont's i( an
amount !aa*le in res!e$t o( t'e %oo#s *e$ame #ue *e(ore t'e noti$e is %iven: i*i# S$' 1 !ara ,9&:-
[320(]
%
?otice o$ 'ailee accountin to t#e 'ailor $ollo1in sale o$ oods
1
TORTS 9INTER6ERENCE 7IT= GOODS: ACT 11.. SECTION 1"9+:
To *name of #ailor-
o( *address of #ailor-
1 [I or 7e] no3 $on(irm to ou t'at on *date- [I or 3e or *name and address of #ailee-< t'e *ailee] e;er$ise#
[m or our or 'is] !o3er o( sale in res!e$t o( *desri#e the goods--
" [I am or 7e are or =e is] re0uire# * la3 to in(orm ou o( t'e (a$t t'at t'e sale 'as ta8en !la$e< an# to ta8e
an a$$ount (ollo3in% sale-
& [I or 7e] no3 set out t'at a$$ount: *set out aount--
) [I or 7e] $on(irm t'at t'e met'o# o( sale a#o!te# in res!e$t o( t'e %oo#s 3as *insert details-< 3'i$' 3as t'e
*est met'o# reasona*l availa*le in t'e $ir$umstan$es-
*signature of or on #ehalf of #ailee-
[320)]
1
T'e !ur!ose o( t'is 6orm< 3'i$' is not re0uire# to *e in a !arti$ular (orm< is to ensure $om!lian$e 3it' t'e re0uirements o( t'e
Torts 9Inter(eren$e 3it' Goo#s: A$t 11.. s 1"9+: 9)+ =als*ur2s Statutes 9)t' E#n: TORT:- T'e $ru$ial se$tion relates to t'e (orm
o( t'e a$$ount 3'i$' is to *e ta8en- T'e *ailee must ta8e t'e a$$ount on t'e (ootin% t'at t'e *est met'o# o( sale 3as a#o!te# in
t'e $ir$umstan$es: i*i# s 1"9+:9a:- T'e *ailee must a$$ount to t'e *ailor (or t'e sums re$overe#< *ut t'e $osts o( sale ma *e
#e#u$te# (rom t'e amount< as ma an sum 3'i$' 'as a$$rue# * t'e time t'e *ailee %ives noti$e o( 'is intention to sell t'e
%oo#s: i*i# s 1"9+:-
[320*]
B: UNSOLICITED GOODS AND SERAICES
&
?otice under t#e @nsolicited 7oods and 8ervices Act 1*(1
1
To *name of sender of goods-
o( *address-
I< *name- o( *full address- state as (ollo3s:
1 On *date- I re$eive# *desri#e the goods reeived--
" T'e sai# %oo#s 'a# *een sent * ou-
& In m *elie(:
&-1 t'e %oo#s 3ere sent to me 3it' a vie3 to me a$0uirin% t'emC
&-" I 'ave no reasona*le $ause to *elieve t'at t'e 3ere sent 3it' a vie3 to t'eir *ein% a$0uire# * a
tra#e or *usinessC
&-& I 'ave neit'er a%ree# to a$0uire nor a%ree# to return t'em-
) I no3 %ive ou noti$e t'at
)-1 t'e sai# %oo#s are unsoli$ite#C
)-" t'e sai# %oo#s ma *e $olle$te# (rom me at [t'e a*ove a##ress or) if the" are to #e ta!en from
another address) state that address]C
)-& I %ive ou a !erio# o( &4 #as startin% (rom t'e #ate on 3'i$' ou re$eive t'is noti$e to $olle$t t'e
sai# %oo#s (rom t'at a##ressC an#
)-) a(ter t'e e;!ir o( t'e &4 #a !erio# I 3ill use< #eal 3it' or #is!ose o( t'em as i( t'e 3ere an
un$on#itional %i(t to me< an# an ri%'t ou 'ave to t'e %oo#s s'all *e e;tin%uis'e#-
*signature of rei$ient-
[3210]
1
T'is 6orm $om!lies 3it' t'e re0uirements o( t'e Unsoli$ite# Goo#s an# Servi$es A$t 11.1 s 1 9&1 =als*ur2s Statutes 9)t' E#n:
SALE O6 GOODS AND CONSUMER PROTECTION:- I*i# s 19&: i#enti(ies t'e re0uirements o( t'e noti$e: it is to *e in 3ritin% an#
must state t'e re$i!ient2s name an# a##ress< an#< i( t'e %oo#s $annot *e re$overe# t'ere< t'e a##ress at 3'i$' t'e $an *e
re$overe#- T'ere must *e a statement< 'o3ever !'rase#< t'at t'e %oo#s are unsoli$ite#- T'e noti$e ma *e sent * !ost- T'is
!rovision is !ermissive< an# a$$or#in%l ot'er met'o#s o( servi$e are availa*le an# normal rules as to servi$e o( noti$es 3ill
a!!l-
[321143220]
C: 6ORMS RELATING TO SALE O6 GOODS
(
Delivery order
1
To *name of seller;s warehouse om$an" or #ailees-
Bou 3ill !lease #eliver to *name and address of #u"ers- or or#er t'e *#rief desri$tion of goods- note# *elo3 e; *name
of shi$- (rom *name of $ort-
*signature of seller-
*desri$tion of goods with num#ers) trade mar!s) et-
1
T'is (orm o( #eliver or#er is a #o$ument o( title Las !ur!ortin% to aut'orise< eit'er * in#orsement or * #eliver< t'e !ossessor
o( t'e #o$ument to trans(er or re$eive %oo#s t'ere* re!resente#2: 6a$tors A$t 1//1 s 19): 91 =als*ur2s Statutes 9)t' E#n:
AGENCB:- =o3ever< it #oes not trans(er !ossession as *et3een t'e seller an# t'e *uer 3it'out a$8no3le#%ement * t'e *ailees-
T'is (orm is a #eliver or#er in its !ro!er sense< ie Lan or#er (rom t'e ven#or to t'e 3are'ouseman to #eliver t'e %oo#s to t'e
ven#ee2: Morgan v 'ath 91/,+: & = J C .)/ at .,4- 7arrants are sometimes in$orre$tl $alle# #eliver or#ers- 6or a #is$ussion
o( t'e nature an# e((e$t o( a #eliver or#er< see (liia Hosier" Ltd v Brown Shi$le" & Co Ltd D11.4E 1?B 11+< D11,1E " All ER
+4)-
[3221]
)
9are#ouse>6eeper0s certi$icate
1
*date-
7arrant (or *desri$tion of goods- im!orte# in *name of shi$- (rom *name of $ort- entere# * *name- on *date-
#elivera*le to *name- or assi%ns * in#orsement on t'is $erti(i$ate su*5e$t to t'e $on#itions set out *elo3-
*desri$tion of goods) with mar!s) num#ers) weight et-
*signature of authorised offiial-
*set out onditions-
1
T'is $erti(i$ate is a 3arrant an# a #o$ument o( title un#er t'e 6a$tors A$t 1//1 91 =als*ur2s Statutes 9)t' E#n: AGENCB:: see
i*i# s 19):- Alt'ou%' it #oes not #ivest t'e seller2s lien as a%ainst t'e *uer< i( it is trans(erre# to a su*@*uer it 3ill #o so un#er
i*i# ss 1< 14- T'e (orm in 'unn v Bol!ow) 0aughan & Co 91/.+: 14 C' A!! )11 ma *e $om!are#C it 3as 'el# not to *e a
#o$ument o( title< as not *ein% one use# as t'e !roo( o( t'e !ossession an# $ontrol o( %oo#s< *ein% merel in t'e (orm o( a
$erti(i$ate t'at $ertain %oo#s 3ere at t'e 3or8s rea# (or s'i!ment< an# not *ein% on its (a$e trans(era*le-
[3222]
*
9are#ouse>6eeper0s certi$icate (not document o$ title)
1
Re(eren$e num*er to *e 0uote# on t'e #eliver or#er-
Not trans(era*le-
To *name-
7e 'ol# at our #is!osal in our 3are'ouse su*5e$t to t'e $on#itions set out *elo3 *?uantit" and desri$tion of goods-
e; *name of shi$--
*set out onditions-
1
T'is #o$ument is not a #o$ument o( title un#er t'e 6a$tors A$t 1//1 91 =als*ur2s Statutes 9)t' E#n: AGENCB: as it #oes not
aut'orise t'e 'ol#er to trans(er or re$eive %oo#s: see i*i# s 19):-
[3223]
10
9are#ouse>6eeper0s certi$icate2 'onded 1are#ouse
1
*address of offie-
*date-
Deliver or#er %rante# * *name of warehouse !ee$erin (avour o( *name--
7arrant (or *desri$tion of goods- trans(erre# in our *oo8s an# 'el# to t'e or#er o( *name- or assi%ns * in#orsement
on t'is $erti(i$ate-
Rent $ommen$es on *date--
*full desri$tion of goods-
CONDITIONS
Deliver or#ers must *e si%ne# * mem*ers o( (irms or !er !ro$uration-
*set out further onditions as a$$ro$riate-
1
T'is 6orm is *ase# on Inglis v Ro#ertson and Ba/ter D1/1/E AC ,1,< =L< an# is a #o$ument o( title-
[322!]
11
Doc6 1arrant
1
Do$8 lot O
No O
Date O
7arrant (or *desri$tion of goods- im!orte# in *name of shi$-< master *name-< (rom *name of $ort of de$arture- entere#
* *name- on *date- #elivera*le to *name- or assi%ns * in#orsement on t'is 3arrant- Rent $ommen$es on *date- an# all
ot'er $'ar%es (rom t'e #ate o( t'is 3arrant-
1
T'is #o$ument is a #o$ument o( title un#er t'e 6a$tors A$t 1//1 91 =als*ur2s Statutes 9)t' E#n: AGENCB:< as it aut'orises t'e
'ol#er to trans(er or re$eive t'e %oo#s: see i*i# s 19):-
[322%]
12
9arrant issued 'y manu$acturer
1
*name of manufaturer-
No O
Date O
Situate# at t'e 3or8s o( *manufaturer- at *address--
7arrant (or *?uantit" and desri$tion of goods- #elivera*le (o* an# (ree (rom ven#or2s lien to *$urhaser- o( *address-
or to its assi%ns * in#orsement on t'is 3arrant-
T'e *goods- mentione# a*ove 3ill not *e #elivere# to an !art *ut t'e 'ol#er o( t'is 3arrant-
1
T'is #o$ument is a #o$ument o( title un#er t'e 6a$tors A$t 1//1 ss 1< 14 91 =als*ur2s Statutes 9)t' E#n: AGENCB: an# t'e Sale
o( Goo#s A$t 11.1 ss ")< "+< ). 9&1 =als*ur2s Statutes 9)t' E#n: SALE O6 GOODS AND CONSUMER PROTECTION:< an# #ivests
t'e seller2s lien an# ri%'t o( sto!!a%e in transit a%ainst su*@*uers et$ 3'o are trans(erees- See vol &) SALE O6 GOODS
Para%ra!' )& D)",E-
B virtue o( t'e 3or#s L(ree (rom ven#or2s lien2 t'e 6orm also #ivests t'e seller2s lien an# ri%'t o( sto!!a%e a%ainst t'e
*uer- See i*i# s ).< an# vol &) SALE O6 GOODS Para%ra!'s "&-1 D&/"E< )& D)",E-
[322&43230]
D: LIEN CLAUSES
13
7eneral and particular lien
1
T'e $om!an 'as a %eneral an# !arti$ular lien over %oo#s (or all $laims an# mone o3in% * t'e *uer to t'e $om!an
un#er an $ontra$t 3'atsoever an# in an ot'er 3a 3'atsoever until t'e $ontra$t !ri$e 'as *een re$eive#-
1
As to liens un#er $ontra$ts o( *ailment (or re3ar# see Para%ra!'s &"-+ D&411E< &, D&14"E ante-
[3231]
1!
7eneral and particular lien 1it# po1er o$ sale2 carriae 'y sea
1
T'e $arrier s'all 'ave a lien on t'e %oo#s an# t'e ri%'t to sell t'e same * !u*li$ au$tion or ot'er3ise at 'is #is$retion
(or all (rei%'t $'ar%es an# e;!enses o( 3'atever 8in# an# nature #ue to t'e $arrier un#er t'e $ontra$t o( $arria%e an#
also in res!e$t o( an !reviousl unsatis(ie# amounts o( t'e same nature (or t'e $osts an# e;!enses o( e;er$isin% su$'
lien an# su$' sale- Su$' lien an# lia*ilit s'all remain not3it'stan#in% t'at t'e %oo#s 'ave *een lan#e#< store# or
ot'er3ise #ealt 3it'- I(< on sale< t'e !ro$ee#s (ail to realise t'e amount #ue< t'e $arrier s'all *e entitle# to re$over t'e
#i((eren$e (rom *insert details--
1
T'is 6orm is *ase# on t'e Nort' Sea Stan#ar# Con#itions o( Carria%e Con#ition 1/- As to $on#itions o( $arria%e * sea %enerall
see vol &1 S=IPPING-
[3232]
1%
Po1er o$ sale attac#ed to eneral and particular lien
1
In $ase an lien is not satis(ie# 3it'in a reasona*le time (rom t'e #ate u!on 3'i$' t'e $om!an (irst %ave noti$e o( t'e
e;er$ise o( t'eir lien to t'e o3ners o( t'e %oo#s< t'e %oo#s ma *e sol# an# t'e !ro$ee#s o( sale a!!lie# in or to3ar#s
t'e satis(a$tion o( ever su$' lien an# all !ro!er $'ar%es an# e;!enses in relation t'ereto< an# t'e $om!an must
a$$ount to t'e o3ners o( t'e %oo#s (or an sur!lus-
1
T'is 6orm is *ase# on t'e Britis' Rail3as Boar# stan#ar# terms (or trans!ortation o( non #an%erous %oo#s- As to $on#itions o(
$arria%e * lan# %enerall see vol , CARRIERS-
[3233]
1&
7eneral and particular lien 1it# po1er to claim storae c#ares
7it'out !re5u#i$e to all or an ri%'ts t'e $om!an ma 'ave at $ommon la3 t'e $om!an 'as t'e (ollo3in% ri%'ts in
t'e event o( non@!ament or ot'er3ise as set out *elo3:
1 T'e $om!an 'as a %eneral an# !arti$ular lien over %oo#s (or all $laims an# mone o3in% * t'e *uer to t'e
$om!an un#er an $ontra$t 3'atsoever an# in an ot'er 3a 3'atsoever-
" Until t'e $ontra$t !ri$e 'as *een re$eive#< #urin% t'e $urren$ o( t'e sai# lien< t'e $om!an is entitle# to *e
!ai# stora%e $'ar%es at t'e same rate as un#er t'e a%reement in (or$e !rior to t'e im!osition o( t'e lien- I( t'e
a%reement 'as *een terminate#< t'e relevant rate at 3'i$' t'e stora%e $'ar%es 3ill *e !aa*le 3ill *e t'at
!aa*le imme#iatel !rior to termination-
[323!]
1(
?otice see6in con$irmation t#at oods 1ill 'e released on tender o$ amount o1ed not amount claimed
1
To *name of $erson holding goods-
Bou $ontinue to 'ol# our %oo#s< namel *desri#e goods--
7e $onten# t'at * #oin% so ou 3ron%(ull inter(ere 3it' our title to t'e sai# %oo#s- 7e note t'at ou $laim t'at ou
assert t'at ou 'ol# a lien< an# t'at t'e amount o( mone in res!e$t o( 3'i$' ou see8 to $laim t'e lien is NO *insert
amount laimed--
7e sa t'at t'e amount o( mone [o3in% or #ue an# or #ue an# o3in% *de$ending on the terms of the relevant lause-]
is NO *insert amount atuall" owing-- 7e are $ertainl !re!are# to !a ou t'e sum o( NO *insert amount atuall"
owing- so as to 'ave our %oo#s returne# to us- Our (ear 9*ase# on our $laim (or NO *insert amount laimed-: is t'at
even i( 3e 3ere to ten#er t'e $orre$t amount ou 3oul# 3ron%(ull assert a lien in res!e$t o( t'is e;$essive amount-
Please $on(irm t'at ou 3ill release t'e %oo#s on re$ei!t o( t'e sum o( NO *insert amount atuall" owing--
*signature of owner of goods-
1
7'ere a %eneral lien is sai# to arise $ontra$tuall< t'e $ontra$t 3ill *e stri$tl $onstrue# a%ainst t'e !erson see8in% to rel on it:
2innear v Midland R" Co 91/,/: 11 LT &/.C S?uamish Terminals Ltd v Prie Waterhouse Ltd 911/4: ", BCLR ""- T'e !erson
$laimin% a lien must $laim it (or a #e(inite amount< or %ive t'e o3ner !arti$ulars (rom 3'i$' 'e $an $al$ulate t'e amount (or
3'i$' a lien is #ue- I( t'e o3ner t'en ten#ers t'e amount $overin% t'e lien< t'e lien is t'ere* e;tin%uis'e#: Pinno! v Harrison
91/&/: & M J 7 +&" at +&.- I( a !erson $laimin% a lien $laims it (or a 3ron% $ause or amount< an# ma8es it $lear t'at 'e 3ill not
release t'e %oo#s until 'is (ull $laim is satis(ie#< t'e o3ner is e;$use# (rom ten#erin%: (l#emarle Su$$l" Co Ltd v Hinde & Co
D11"/E 1 >B &4.< CA-
[323%]
1)
?otice $rom o1ner o$ oods to 1#ar$iner or 1are#ouseman to e:ercise lien $or $rei#t and ot#er c#ares
1
MERC=ANT S=IPPING ACT 1/1) SECTION )1)
To *name of wharfinger or warehouseman-
o( *address-
PLEASE DETAIN all %oo#s 3'i$' 'ave *een or s'all *e lan#e# on our !remises (rom t'e s'i! *name- (rom t'e !ort
o( *name- !ursuant to t'e Mer$'ant S'i!!in% A$t 1/1) Se$tion )1) until t'e (rei%'t an# ot'er s!e$i(ie# $'ar%es to
3'i$' t'e same are su*5e$t or lia*le s'all *e !ai# or satis(ie#-
T'e sai# %oo#s an# sai# (rei%'t an# $'ar%es are as set out *elo3:
num*er o( *ill o( la#in%
$onsi%nee
%oo#s
mar8s
3ei%'t an# 0uantit
(rei%'t
$'ar%e
*signature of shi$ owners-
1
T'e !ur!ose o( t'is 6orm is to $om!l 3it' t'e terms o( t'e Mer$'ant S'i!!in% A$t 1/1) s )1) 9&1 =als*ur2s Statutes 9)t'
E#n: S=IPPING AND NAAIGATION:-
[323&]
1*
?otice o$ sale under t#e 5erc#ant 8#ippin Act 1)*! 8ection !*(
ADAERTISEMENT
NOTICE UNDER T=E MERC=ANT S=IPPING ACT 1/1) SECTION )1.
A sale 3ill ta8e !la$e on *date- at *$lae- * au$tion o( t'e (ollo3in% %oo#s *identif" the goods in detail--
*signature of wharfinger or warehouseman-
[323(432%0]
E: RETENTION O6 TITLE CLAUSES
20
8imple retention o$ title clause
[T'e $om!an retains o3ners'i! in t'e %oo#s #elivere# as a%ainst t'e *uer until t'e (ull !ur$'ase !ri$e 'as *een !ai#-
or
All %oo#s s'all remain t'e !ro!ert o( t'e $om!an until t'e (ull !ur$'ase !ri$e t'ereo( s'all *e !ai#
1
-
or
O3ners'i! o( t'e %oo#s 3'i$' are su*5e$t o( t'is $ontra$t s'all not !ass to t'e *uer until t'e are (ull !ai# (or< *ut
t'e ris8 in t'e %oo#s s'all *e *orne * t'e *uer (rom t'e #ate o( t'e #eliver * t'e $om!an or t'eir a%ents to t'e
!ur$'aser-]
1
T'e se$on# alternative $lause is similar to t'e $lause in Hend" Lenno/ *Industrial .ngines- Ltd v 'rahame Putti! Ltd D11/)E "
All ER 1+"< D11/)E 1 7LR )/+-
[32%1]
21
Current account clause
[T'e Com!an retains o3ners'i! in t'e %oo#s #elivere# as a%ainst t'e *uer until all #e*ts or ot'er o*li%ations o3e#
* t'e *uer to t'e $om!an 'ave *een !ai#-
or
T'e o3ners'i! o( t'e material to *e #elivere# 3ill onl trans(er to t'e !ur$'aser 3'en 'e 'as met all t'at is o3in%
1
-]
1
A $lause in t'is (orm 3as a!!rove# 3it'out $omment in (luminium Industrie 0aassen *B0- v Romal$a (luminium Ltd D11.,E "
All ER ++"< CA-
[32%2]
22
,:tended or continuin clause
T'e $om!an retains o3ners'i! in t'e %oo#s #elivere# as a%ainst t'e *uer an# an su*@*uer eit'er until t'e (ull
!ur$'ase !ri$e (or %oo#s 'as *een !ai# or until all #e*ts o3e# * t'e *uer to t'e $om!an 'ave *een !ai#-
[32%3]
23
"racin clause
T'e $om!an retains o3ners'i! in t'e %oo#s #elivere# as a%ainst t'e *uer until eit'er t'e (ull !ur$'ase !ri$e (or t'ose
%oo#s 'as *een !ai# or [until #e*ts o3e# or until all #e*ts o3e#] * t'e *uer to t'e seller 'ave *een !ai#< *ut< i( t'e
%oo#s are resol# to a su*@*uer< t'en t'e $om!an a$0uires o3ners'i! eit'er o( t'e !ro$ee#s o( sale or o( t'e ri%'t to
sue t'e su*@*uer (or t'e !ro$ee#s o( sale-
[32%!]
2!
Areation (or enlared) clause
T'e $om!an retains o3ners'i! in t'e %oo#s #elivere# as a%ainst t'e *uer until t'e (ull !ur$'ase !ri$e 'as *een !ai#<
*ut i( t'e %oo#s are manu(a$ture# into some ot'er !ro!ert< 3it' or 3it'out t'e a##ition o( ot'er %oo#s< t'en t'e seller
a$0uires o3ners'i! o( t'e resultin% !ro!ert or o( a !ro!ortionate !art o( it [e0ual to t'e $ontri*ution ma#e to t'e
manu(a$turin% !ro$ess * t'e ori%inal %oo#s or on a s'are sale]-
D&"++F)444E

Bailment

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bailment

Uploaded by

Copyright:

Available Formats

BAILMENT

You might also like