THE CONTRACT OF BAILMENT

Section 148 of the Indian Contract Act of 1872 defines bailment as the delivery of goods by
person to another for some specific purpose on the condition that the goods shall be returned
back once the condition is fulfilled. The person who delivers the goods is known as bailor while
the person to whom the goods are delivered is known as bailee.
ESSENTIALS OF THE CONTRACT OF BAILMENT.
The following are the essential conditions for the contract of bailment.
1. A valid contract – the most important condition for the existence bailment is that the
contract between the bailor and the bailee should be a valid contract wherein it is implied
that the goods shall be returned once the purpose is fulfilled.
2. Delivery of goods – the central idea behind the contract of bailment is that there should
be a temporary delivery of goods from the bailor to the bailee. Such delivery can either
be done through actual delivery of good or merely through the delivery of possession.
3. Return of Goods – the goods bailed should be returned after the condition for the contract
of bailment is fulfilled.
BREACH OF THE CONTRACT OF BAILMENT
Section 151 and 152 of the Indian Contract Act deal with the provisions of care to be taken by
the bailee. The said sections say that the bailee is bound to take reasonable care which a prudent
man should take under similar circumstances. Therefore, if the bailee has taken reasonable care,
he shall not be liable for any loss.
In the case of Calcutta Credit Corporation v. Prince Peter of Greece, the Calcutta High Court
held that the bailee has failed to take reasonable care to protect the car bailed to him to prevent
burning.
PRINCIPLES OF THE BREECH OF THE CONTRACT OF BAILMENT
The general principle of the breech of the contract of bailment is to award compensatory
damages to the plaintiff just as it happens in the cases of tort. A bailor is entitled to recover the
amount equivalent to put him in his earlier position or the amount which would put him in the
present condition had the breech not taken place.
ANALYSIS OF THE FACTS OF THE CASE
In the present case, the contract between Sonam and the University Lost and Found Departments
is one of a bailment where Sonam is the bailor while the University lost and found Department is
the bailee. The specific condition of contract is that the Goods (a bag with cash, Gold chain and a
Mac book Laptop) shall be kept in the Department’s Locker which shall have a numeric lock
whose key shall only be available to Sonam. The delivery of goods was temporary and the
possession was to be taken back as soon as the real owner of the Goods is found.
REMEDIES AVAIALBLE TO SONAM
Since the goods were in the Possession of the Department of lost and found goods, it was their
responsibility to ensure that the care of the valuable items is taken such that they are not lost.
Since the Department did not take reasonable care which led to the missing of goods, it is liable
to compensate Sonam. There are two remedies available to Sonam.
One is that she can claim for monetary compensation worth the price of the laptop. Second is that
she can claim the same laptop from the bailee.