BAILMENT

BAILMENT

Definition

The word bailment is come out of a French word “bailor” which means to deliver. I denote a contract resulting from delivery of goods it involves exchange of goods from one person to another and not transfer of ownership. According to three sections 148 a bailment is the delivery of goods by one person to another for some purpose, upon the contract they shall when the purpose is accomplished, be returned or otherwise be disposed of according to the direction of the person delivering them.

Kinds of Bailment contracts

There are three types of bailment contracts, which are as under

i. According to benefit

ii. According to reward.

According to benefit; - According to benefit bailment can be classified into three categories

i. For the benefit of the bailor: - When the goods are delivered to any friend, relative or any neighbor without any compensation to be paid.

iii. For the benefit of the bailee: - When the goods are delivered to bailee for a specific purpose without any compensation than it is the benefit of the bailee.

iv. For ht benefit of bailee and beilor :- When the goods are delivered for the benefit of both the bailer and bailee than it is the contract in the benefit of bailor and bailee.

According to reward; - It has the following categories

i. Bailment without reward; - When the bailor and the bailee both are not entitle for any remuneration that it is called bailment without reward. For example, when a friend gives his book to other friends than it is the bailment without reward.

ii. Bailment for reward: - It its he bailment in which both bailor and the bailee has the right for remuneration is called bailment with reward. For example, when a person lend his car for Gs. 10,000/-.

Rights of bailee: - The duties of the bilor are the rights of the bailee

i. Right to claim damages: - In case of bailment without reward the bailee is entitled to know the defaults in the goods bailed to him of which the bailor is aware. A bailor haste right t claim compensation form the bailor for any loss or damages arising directly from such faults in the goods hailed.

ii. Rights to recover expenses; - the bailee can recover all the necessary expenses incurred by him due to any defect in the bailer’s title and lawful charges for providing services.

iii. Rights to compensation: - If the baialor has no right to bail the goods or to receive them back or to give directions regarding them and as a result the bailee suffers a loss, the bailee is entitled to receive such loss form the bailor (section 164).

iv. Right to stop delivery: - if a person other than the bailor claimed goods bailed than the bailee has the right to apply to the court for the stoppage of the goods (section 167).

v. Right to sue: - If a third person incurred a loss upon bailee than the baille has the right to sue the peons for the losses sustain by him.

vi. Right of Lien: - Lien is the right t retains possession of the property of goods belonging to another until some debt or claim is paid. Bailee has the right to retain the property in respect of which he has rendered some services or has charges as due (section 170).

Liabilities of Bailee; - the bailee has the following liabilities to pay,

i. Duty to take reasonable care: - According to section 151 “ in all cases of bailment the bailee is bound to take as much care of the goods bailed to him as a man of ordinary procedure worked under similar circumstances take of his own goods of the same bulk quality and the value a the goods bailed.

ii. Duty not to make unauthorized use: - According to section 154 it is the duty of the bailee to use the goods according to the terms of the bailment. If the bailee makes an unauthorized use, he is liable to make compensations to the bailor.

iii. Duty not to mix the goods: - According to section 157 it is also duty of the bailee that he should not mix his goods with those of the bailor without bailer’s consent.

iv. Duty to return the goods: - Section 160 it is the duty of the bailee to return or deliver according to the bailor directions, the goods bailed, without demand, as soon as the time for which the they were bailed has expired, or the purpose for which they were bailed has been accomplished.

v. Duty to return increase: - In the absence of any contact to the contrary, the bailee is bound to deliver to the bailor any natural increase or profit which may have accrued from the goods bailed. (Section 163).