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AL-BAQARA: 282
 What is Bailment?
 Voluntary transfer of the possession of goods by
the owner to another person, under a contract that
such other person shall hold them or return them
to the owner or deliver them according to his
order.

Meaning of bailment
 Derived from the French word baillier which
means to deliver

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 Definition of bailment
 According to section 148:
“A Bailment is the delivery of goods by one person
to another for some purpose, upon a contract that
they shall, when the purpose is accomplished, be
returned or otherwise disposed of according to the
directions of the person delivering them.”

Example of bailment
 A delivers a piece of cloth to B to make a suit. This
is a contract of bailment between A and B.
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 Essential Elements of Bailment
 Contract
 Specific Purpose
 Delivery of Goods
 No Change of Ownership
 Return of Same Goods

Parties of Bailment
 Bailor (person delivering the goods)
 Bailee (to whom goods are delivered)

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 Kinds of Bailment

 Classified according to benefit and reward

 Benefit
(a). For benefit of Bailor
(b). For benefit of Bailee
(c). For benefit of Bailor and Bailee
 Reward
(a). Bailment without reward
(b). Bailment for reward
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 Rights of Bailor

 Right to Claim Damages (Sec. 151)

 Right to Demand Return of Goods (Sec. 160)
When the goods are lent gratuitously, the bailor can
demand the return of the goods at any time even before
the specified period. (Sec. 159)
 Right to Claim Increase(Sec. 163)
 Right to Terminate Bailment (Sec. 153)
 Right to Sue (Sec.180)

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 Duties of Bailee
 Duty to take Reasonable Care
 Duty not to make Unauthorized Use (Sec. 154)
 Duty not to Mix Goods
a) With the consent of the bailor (Sec. 155)
b) Without the consent of the bailor (Sec. 156)
c) Without the consent of bailor, mixes his own goods in a
manner that goods can’t be separated the bailee must
compensate the bailor for his loss. (Sec. 157)
 Duty to Return Goods (Sec. 160-161)
 Duty to Return Increase (Sec. 163)
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 Rights of Bailee

 Right to Claim Damages (Sec. 150)

 Right to Recover Expenses (Sec 158)
 Right to Deliver Goods (Sec 165)
 Right to Compensation (Sec.164) (Sec. 166)
 Right to Stop Delivery (Sec.167)
 Right to Sue (Sec. 180)
 Right of Lien (Sec 170)
 Defective title
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 Duties of Bailor

 Duty to Disclose Faults (Sec. 150)

 Duty to Repay Necessary Expenses (Sec. 158)
 Duty to Repay Extra-Ordinary Expenses (Sec.
158)
 Duty to indemnify for Demanding Back (Sec.
159)
 Duty to indemnify the defective title (Sec. 164)
 Duty to Receive Back Goods (Sec.160)

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 Termination of Bailment
 Expiry of Time
 Accomplishment of Purpose
 Unauthorized Use (Sec 153)
 On Death (Sec 162)
 Termination by Bailor (Sec 159)
 Destruction of Subject matter

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