Abstract

The temporary placement of control over or give the possession of goods(as defined under section 6 of
the sales of goods act) by one person to another for a designated purpose upon which both the parties
have agreed is know as a contract of bailment. Bailment differs from a sale since the ownership stays
the same in case of bailment while in a sale the ownership and the possession changes between the
parties.

Introduction

The word bailment is derived from the French word “ballier” which means to deliver.According to
section 148.A bailment is the delivery of goods by one person to another for some purpose, upon a
contract that the shall, when the purpose is accomplished, be returned or otherwise be disposed off
according to the directions of the purpose delivering them.

 The person delivering the goods id known as the bailor.

 The person to whom it is delivered is known as the bailee.

Essential elements of a contract of bailment

 Delivery of goods
 Purpose
 Return of the goods
 Essential elements of a valid contract

There can be a contract of bailment without the flow of consideration among the parties, which is
known as gratuitous bailment and bailment can be of quasi nature when a person is finder of goods.

Duties of bailee and liability arising

To take care of the goods

As per Section 151, whether the bailment was gratuitous or non-gratuitous ,the bailee has to take
reasonable care of the goods. The words as a man of ordinary prudence would, under similar
circumstances, take care of his own goods of the same bulk, quantity and value as the goods bailed have
been used to define reasonable care.

If the bailee has followed section 151 which is to take reasonable care of the goods, he cannot be held
liable for any loss, destruction or deterioration of the goods.

Not make unauthorized use of the goods bailed

According to section 154, if the bailee makes any use of the goods bailed which is not according to the
conditions of the bailment. This will give rise to liability for any loss even if he is not negligent or ant
damage arising due to an accident.
Not mix the goods bailed with his personal goods.

The bailee should not mix the goods bailed to him with his personal goods.

In case the goods is mixed, the consent of the bailor and the separability of the goods have to be taken
into account for the bailee’s liability.

In case where the bailor did not consent for the mixing

1. The goods are separable

As per section 156.The bailee is bound to bear the expenses for the separation of the goods.

2. The goods are inseparable

As per section 157, the bailee has to compensate the bailor for the goods lost.

In case the bailor consented for the mixing, the bailee and bailor shall have an interest in proportion to
their respective shares in the mixture produced.

To return of the accretion to the goods.

The bailee is bound to deliver to the bailor,or according to his direction, any increase or profit which may
have accrued from the goods according to section 163

To return the goods

It is the duty of the bailee to return the goods once the purpose or the time limit has been completed,
without the demand by the bailor which is defined in section 160.if the bailee does not return the goods,
he is responsible for any loss caused to the bailor due to this default as mentioned in section 161.

Duties of bailor

To disclose faults in the goods

In a contract of bailment, it is the duty of the bailor to disclose the faults in the goods bailed

The liability varies in cases of gratuitous and non-gratuitous bailment of the bailor

In case of gratuitous bailment. the bailor is bound to disclose faults which is known to him
which exposes the bailee to extraordinary risks and causes material interference. if these facts
are not disclosed, he is responsible for damage arising directly arising from these faults.
In case of a non-gratuitous bailment. the bailor will be liable for any damage arising from the
goods bailed to him, if aware or not.

Duty to bear the expenses of the bailment.

As per section 158 for a non-gratuitous bailment where the bailee has work done upon them or
just for the purpose of storage or carried them. The bailor has to repay the bailee all necessary
expenses incurred by him for the purpose of bailment.

To indemnify the bailee.

As per section 159, in case of a gratuitous bailment, the bailor has right over the goods to be
returned before the purpose is completed or the time limit has expired. But in such case, the
loss securing to the bailee from such a premature termination of the contract should not
exceed the benefit he derived from the contract. If the loss exceeds the benefit, the bailor is
bound to indemnify the bailee.

Rights of bailor.

Avoidance of contract

The bailor can terminate the bailment it the bailee, with regard to the goods bailed, any act
which is inconsistent with the terms of the contract as per section 153.

Can demand goods back.

The bailor, in case of gratuitous bailment, can demand the goods back before the expiry of the
time limit or the purpose is completed.if the bailee suffers loss more than the benefit derived
from the bailment.the bailor is bound to compensate the bailee for the loss suffered as per
section 159

Compensation from a wrong-doer

If a third person wrongfully deprives the bailee of the possession of the goods bailed to him or
does any injury to them. The bailor may bring a sui against this third person for such deprivation
or injury as per section 180

Rights of bailee

Delivery of goods to one of the several joint bailors

If several joint owners bailed goods.the bailee must deliver them back to,or according to the
direction of,one joint owner without the consent of all or in the absence of the rest as per
section 165.
Delivery of goods to bailor without title.