Law Of Contract

Ii
 Sec:148
The Contract Of Bailment
“Bailment” Meaning and Definition:-

 Bailment is delivery of goods by one person to another for some purpose.

 The purpose is specified in the contract of bailment.
 When the purpose is over, the goods should be returned to the person who delivered.
 Or it is disposed off according to the directions of the person who delivered the goods.

Parties:-
 Bailor:- The person who delivers the goods.
 Bailee:- The person to whom the goods are delivered.
Essentials Of Bailment :-
 All the requirement of valid contract.
 Two parties.
 Delivery Of Possession – Delivery of goods for some purpose.
o Actual or constructive delivery
o Ultzen v Nicols case
 If owner maintains control, there is no bailment.
o Kaliaperumal Pillai vs Visalakshmi
o National Bank of Lahore vs Sohan Lal
 Return of the goods after the purpose is achieved, or their disposal according
to the bailor’s directions.
 Case Study

Kaliaperumal
Vs
Visalakshmi
AIR 1938 Mad 32
 Case:- Kaliaperumal vs Visalakshmi
Facts:-
In this case, a lady employed a Goldsmith for melting old jewellery to make
some new ornaments/Jewels. Every evening she used to receive the half made jewels
from the Goldsmiths and put them into a box which was left in a room in the
Goldsmith’s house which she retained the key. One morning she found that jewellery
had been stolen. She sued the goldsmith for the loss of property.
Heldings:-
Madras high court held that the Goldsmith was not liable for the
loss because there was re-delivery of the jewels to the Lady and they were
not in possession of the Goldsmith when during one night they were
stolen.

Delivery is an essential element of bailment and merely leaving

the box in the room of Goldsmith while she retained the key, did not
constitute delivery within the meaning of Section 149 of Indian Contract
Act 1872.
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