RIGHTS OF BAILOR

PRESENTED BY : ISHA VERMA (2020/16)

1) Right of indemnity for losses due to
negligence by bailee
According to Section 152 is the duty of the bailee to
take proper care of the goods kept with him by the
bailor . If the bailee does not take proper care of
the goods as an owner of such goods would do
under normal circumstances , or is careless or
negligent in the proper maintenance of goods , the
bailor has the right to be compensated for the
damage caused by the bailee’s negligence .
For example : if goods are stolen or damaged
during bailment , the liability rests with bailee .
2)Right to terminate the contract in case of
unauthorized use of goods (Section 153 )
If the bailee uses the goods in an authorized manner,
the bailor con terminate the contract of bailment
before the completion of the bailment . A contract of
bailment is regarded as a voidable contract in such an
event the bailee cannot sue the bailor for a breach of
contract .
Example, if Satish lets out a horse to Suresh for his
personal riding and Suresh uses the horse to drive a
carriage, the contract in such a situation, can be
terminated by Satish and he can get back the horse.
3) Right to claim compensation in case of
unauthorized use of goods (Section 154)
According to the Section 154 , if the bailee uses the
goods in bailment in a manner which are contrary to the
terms of the contract of bailment and not authorized by
the bailor , as a result of which the bailor is subjected to
some loss , the bailor is entitled to damages from the
bailee .
For example , A lends a horse to B for his own riding
only . B allows C , a member of his family , to ride the
horse . C rides with care , but the horse accidently falls
and is injured . B is liable to make compensation to A for
the injury done to the horse .
4) Right to claim the separation of goods in case
of unauthorized mixture of goods (Section 156)
If the Bailee , without the consent of the Bailor mixes
Bailors goods with his own goods and the goods can be
separated , the Bailor has the right to claim his goods
after separation .
For example, 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, and B
is bound to bear all the expenses incurred in the
seperation of the bales, and any other incidental
damage.
5) Right to claim compensation in case of unauthorized
mixture of goods which cannot be separated (section 157)
If the bailee without the consent of the bailor
mixes bailors goods with his own goods and the
goods cannot be separated , the bailor has a right to
claim compensation from bailee for the loss of
goods .
For example, A bails a barrel of Cape flour worth
Rs. 45 to B. B without A’s consent, mixes the flour
with country flour of his own, worth Rs. 25 a barrel.
B must compensate A for the loss of his flour.
6) Right to demand return of goods (section 160)
The bailor has a right to demand return of goods
after the completion of the purpose or after the
expiry of period of bailment .
7) Right to claim compensation in case of
unauthorized retention of goods (section 161)
If the bailee does not return or deliver the goods
according to the bailor’s directions , after the
accomplishment of purpose or after the expiry of
period of bailment , the bailor has a right to claim
compensation for any loss , destruction and
deterioration of goods from that time .
8) Right to demand accretion to goods ( section
163)
In the absence of contract to the contrary , the bailor
has a right to demand any increase or profit which may
have occurred from the goods bailed .
For example , if Ram leaves his cow with his friend
raj , and the cow gives birth to a calf during the period
of bailment , Ram is entitled to get back the cow with
the calf on the expiry of bailment .