Bailment

I have booked certain goods with N.W Railway

at Quebec in Pakistan to get them transferred to
Jeddah on 4th September.

Hello, I am Azmeer.

The wagon containing the

goods was received at the
Saudi border on November 1,
and was destinated to Jeddah,
It had reached Jeddah on
February 3, and was
unloaded on February 20,
but no information was ever On June 7, I was
sent. asked to collect the
goods they were not
traceable.
On July 24 when I went again to collect the
goods only a small portion of 76 were offered
and was subjected to pay an amount of 24
Riyals.

Azmeer filled a suit for 3,524.4 Riyals with an

interest compensation for non-delivery of
goods against Dominion of Saudi Arabia on
August 4th.
• Trial court
• E.P Railway guilty.
• Decreed suit for 1,739 Riyals.
• Appeal for confirmation in court.
- Railway was liable for the loss.

- Railway took responsibility of

bailor, carried wagon to Jeddah.

- Azmeer also accepted this

relationship.
 Bailment.
- Bailment is a legal relationship in
common law.
- The owner transfers physical possession
of personal property for a time.
- Retains ownership.
- The owner giving up custody is the
"bailor" and person who takes is "bailee".
The word “bailment” has been derived from the
French word “ballier” which means “to deliver”.

Who are the parties to the contract of

Bailment?
Bailment.
- Two parties to the contract of Bailment.

According to Section 148 of the Contract Act,

“Bailment means 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:
Rohail and Haider

How is Bailment different from the sale of the good?

- Sales involve the transfer of the ownership of the good in exchange for something
of value.

- Bailment involves the transfer of the possession of the good, not the
ownership.
 Essentials of Bailment.

1. Delivery of possession;
a)Actual delivery
b)Constructive delivery

2. Delivery upon contract

3. Delivery upon some purpose.

4. Return of goods.
 Kinds of Bailment

1. GRATUITOUS BAILMENT:
a. BAILMENT FOR THE EXCLUSIVE BENEFIT OF THE BAILOR
b. BAILMENT FOR THE EXCLUSIVE BENEFIT OF THE BAILEE

2.NON-GRATUITOUS BAILMENT:
 Duties and Rights of the Bailee
Duties of Bailee:
1. TO TAKE REASONABLE CARE OF
THE GOODS BAILED. Need to return
Sara her seat
2. NOT TO MAKE ANY UNAUTHORIZED
USE OF GOODS
3. NOT TO MIX THE GOODS BAILED
WITH HIS OWN GOODS
4. NOT TO SET UP AN ADVERSE TITLE
5. TO RETURN THE GOODS
6. TO RETURN ANY ACCRETION TO
THE GOODS
RIGHTS OF BAILEE:

1. RIGHT TO DELIVER THE GOODS TO ANY ONE OF THE

JOINT BAILORS

2. RIGHT TO DELIVER THE GOODS TO BAILOR WITHOUT

TITLE

3. RIGHT TO APPLY TO COURT TO DECIDE THE TITLE TO

THE GOODS

4. RIGHT OF LIEN
 Duties and Rights of the Bailor
Duties of the bailor
1. Duty to disclose faults

2. Duty to repay Bailee’s expenses

3. Duty to indemnify the bailee

4. Duty to compensate bailee for breach of

warranty

5. Duty to claim back the goods

.
Rights of the Bailor

1. Right to enforce Bailee’s performance

2. Right to claim damages

3. Right to claim compensation against unauthorized use of goods

4. Right to demand return of goods along with accretion

THANK YOU!