Bailment

→ The word Bailment is derived from the French word “ballie” which means “to deliver”.

→ Section 148 defines the term bailment as

“ 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”

ex

Giving watch,Tv,radio set, etc for repair or servicing

Leaving car/scooter for service/repairs

Hiring car, tent

Handing over valuables or pets to a safe custody of a friend/neighbor while leaving station

→ The person delivering the goods is called a bailor and the person to whom they are delivered
is called the bailee.

For instance if A delivers his car to B for repair. Here a relationship of bailment is created between A
and B where A is the bailor and B is the bailee

Essentials of Bailment

1. Contract : Bailment is based on a contract between a bailor and a bailee. The contract may
however be implied in some cases like finder of lost goods
2. Subject Matter: Goods form the subject matter of the bailment. As per section2 of Sale of
goods act ,”Goods” means every kind of movable property other than money and actionable
claim(claim or debt for which one can take action). Thus depositing money in bank ac does
not constitute bailment.
3. Delivery of goods: dofg is the essence of bailment. In bailment possession of goods must
change.it is further necessary that the goods change hands temporarily,voluntarily,and in
accordance with the contract. Delivery may be actual or constructive- Act del implies
physical transfer of goods from one person to another. Constructive del- when possession of
goods changes by doing anything which has the effect of putting the goods in the possession
of the bailee. picking up a parcel on behalf of ur frnd and agree to hold on to it for
him/her.undue influence threat fraud
4. No change in ownership: bailment signifies change of possession of goods but there is no
change in ownership. Bailor is the owner of goods
5. Purpose- the bailor delivers his goods to the bailee for some definite purpose which is in
contemplation of both the parties
6. Return of goods: every bailment pre supposes a condition that the goods bailed would be
returned to the bailor or otherwise be disposed off according to the directions of the bailor
on accomplishment of the purpose or expiry of period of bailment. In order to discharge his
duty, a bailee is supposed to return the goods bailed out.

Kinds of Bailment
Duties of Bailor
1. Duty to disclose faults- Acc to section 150, the bailor is bound to disclose to the bailee
faults in the goods bailed,of which he is aware and which materially interfere with the
use of them or could expose the bailee of extraordinary risk. If he does not make such a
disclosure the bailor is responsible for any damage arising because of it.
2. Duty to repay bailee’s expenses- A bailor is duty bound to repay to the bailee expenses
incurred by him for work done on the goods received under condition of bailment, and
for which he is not receiving any remuneration or deriving any benefit
3. Duty to indemnify the bailee- It is the duty of the bailor to indemnify the bailee for any
cost incurred due to defective title of goods bailed.
4. Duty to compensate bailee for breach of warranty: if bailee suffers any loss by the
reason of the bailors title being defective, it is the duty of the bailor to compensate the
bailee for breach of warranty
5. Duty to claim back good: It is the duty of the bailor to accept the goods after the
purpose for which such goods were bailed is accomplished or upon expiry of the period
of bailment. He shall be responsible for any loss or damage to the goods and not the
bailee. Bailee can also claim from the bailor all necessary exp that he might have
incurred to keep and protect the goods

Rights of Bailor

1. Right to enforce bailees performance-Since the bailor delivers goods to the bailee
for some specific purpose therefore the bailor esp in case of non gratuitous bailment
has the right to achieve that purpose or obtain that benefit. Ex tailor A will see that
the tailor does the needful.
2. Right to claim damages This gives bailor the right to claim for any damages against
the loss caused by the goods bailed due to the bailee’s negligence or misconduct
3. Right to claim compensation against unauthorised use of goods-if the bailee makes
any use of the goods bailed which is not according to the conditions of the bailment,
the bailor has a right to claim compensation from the bailee in respect of any
damage arising to the goods from or during such use of them. Car to C
4. Right to terminate the contract- Bailor has the right to terminate contract if the
bailee does any act with regard to the goods bailed that is inconsistent with the
conditions of the bailment. Horse carriage
5. Right to demand return of goods along with accretion to, if any: The bailor enjoys
the exclusive right to have goods bailed and delivered back to him in safe and sound
condition. Moreover the bailor is also entitled to any accretion to the goods bailed if
occurred while the goods were in the custody of bailee. A is entitled to not only the
cow but the calf as well.