SHRI RAMSWAROOP

MEMORIAL UNIVERSITY

NAME-VIDHI DUBEY
COURSE-BA(LLB)H

CAMPUS ID-2020103011040031
SUBJECT-LAW OF CONTRACT II
TOPIC-CONTRACT OF BAILMENT
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BAILMENT •
•
•
• 'Bailment' is derived from a French •
word 'bailer' which means 'to deliver'.
• But in law it refers to the contract which •
results from delivery of goods . •
• In contract of bailment only possession is
passed on not the ownership. •
• There cannot be bailment of immovable •
property. •
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Section 148 •• •
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••
 " 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. The person to whom
they are deli vered is called the bailee"
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KINDS OF BAILMENT •• •
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• On the basis of benefit - ••
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2. Exclusive for the benefit of bailer. ••
3. Exclusive for the benefit of bailee. ••
• On the basis of Reward - •
1. Gratuitous Bailment - Goods are delivered
by the bailer to the bailee without any •
reward. Lending a book to a friend for
reading. ( Exclusive benefit of either of the
party)
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2. Non - Gratuitous bailment - Where
bailo •• ••
••••
& bailee is entitled to reward for ••
bailment. E.g. ••••
•
•
A car given
Gold let outtofor hire,
goldsmith for making • •
•
• •
jewellery for charges.
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DUTIES OF BAILEE ••••
•• •
1.To take reasonable care : as a prudent man••••
would take of his own goods . If any loss or•• •
damage incurs to the goods bailed inspite of•
the due care, he will not be liable for any
•
such loss or damage. The burden of proof • is
on the bailee to show that he was not
negligent. •
• The bailee is not answerable for any loss to
goods bailed, caused by an act of God,
Lightning, flood.
3. Not to mix the goods with his own goods : •••••
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•• •
Mixing with bail or's consent . ••••
• Mixing without bailor's consent : •
• Where goods can be separated - Bailee is •••
liable to bear all the expenses of separation.
•
E.g. A bails 100 bales of cotton marked with a
particular mark to B. B, without A's consent
mixes the 100 bales with other bales of his
own bearing a different mark. A is entitled to
have his 100 bales returned & B is bound
to bear all the expenses for separation of
bales.
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DUTIES OF BAILOR ••••••

•••
••• •
1.To disclose fault in the goods bailed. •••• •
2.To repay necessary expenses in case ••
•
of •
gratuitous bailment - Where the bailee
is •
required to keep goods for the benefit of the•
bailor without any remuneration, it is duty of
bailor to repay all necessary expenses. E.g.
X leaves a horse in the custody of Y to be
taken care of & y is to receive no
remuneration. All the expenses incidental
thereto i.e. feeding horse . medical
expenses should be paid to Y.
 :::•case of non - gratuitous bailment: ••
•
:• • Y hires X 's horse for his carriage. The hor ••
•
e
• becomes ill & Y spends Rs. 50 on
•
medical expenses over & above Rs. 20 on
feeding the horse. X is liable to pay to Y
Rs. 50 the extra­ordinary expenses only.
4. To indemnify the bailee - the bailor has to
 indemnify the loss if incurred on defective
title of the goods .
5. .To received back the goods - If the bailor
refuses to receive back the goods, he is liable
to compensate the bailee for the necessary
expenses of custody.
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•••••
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RIGHT OF BAILOR •••
• Right to claim for loss caused to the goods by ••• •
the bailee for not taking reasonable care. • •• •
•
• Right to claim damages for mi xing •
goods without consent.
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•
• Right to claim i ncrease in goods.
• Right to demand back the goods. •
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RIGHTS OF BAILEE ••••
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•••••
• Right to recover extra ordinary expenses ••
incurred on goods.
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• •
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• Right to claim damages incurred because of •
non disclosure of faults in goods bailed. •
• Right to deliver goods to any one of the
several joi nt owners.
•
• Right to receive compensation for loss
incurred for bailor's defective title.
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TERMINATION OF BAILMENT •
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• On the expiry of period - Bailment is
••••
for specific period.
• Accomplishment of purpose. •
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• Gratuitous bailment - in between •
• Death of bailor or bailee.
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