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- Meaning:- The term bailment is derived from the French word “bailor” which means “to deliver”. It basically means the change of possession voluntarily from one person to another.
e.g:- “A” delivers a cloth to “B”, a tailor for making a shirt. The contract between “A” & “B” is bailment. Here, “A” is a bailor, and “B” is a bailee.
- Essential Elements:-
- Delivery of Goods for a specific purpose
As, per Sec,149 Delivery of Goods to bailee may be made by doing anything which has the same effect of putting the goods in the possession of intended bailee.
In the case of Rajshaker Iyer vs. Presidency of Madras
It was held that delivery of goods to the intended bailee/ authorized person is also deemed as the delivery of goods to the actual bailee.
There can be no bailment without a contract.
In the case of Ram gulam vs. Govt. of. U.P., AIR 1950 ALL 106
Like the entire contract Bailment is also one of its specific kinds having the same attributes.
- Return and Disposal of goods
As the delivery of goods is done for some purpose therefore after the purpose is accomplished the goods may be returned to the bailor in the same or in the altered condition.
- KINDS OF BAILMENT:-
- ON THE BASIS OF BENEFIT
- Bailment for the benefit of the bailor
- Bailment For the benefit of the bailee
- Bailment for mutual benefit of both the bailor and the bailee
- ON THE BASIS OF CONSIDERATION
- Gratuitous Bailment
- Non- gratuitous bailment
- DUTIES OF BAILOR:-
- To disclose known facts of the goods bailed ( Sec. 150)
- To bear the extraordinary expenses ( Sec. 158)
- To indemnify the loss (Sec. 159)
- To take back the goods (Sec. 161)
RIGHTS OF BAILOR:-
- Enforcement of Rights
- To avoid the Contract
- Right to claim increase in profit
- Right against third party (subrogation)
DUTIES OF BAILEE:-
- To take care of the goods bailed (Sec. 151)
- Not to make unauthorized use of the goods bailed (Sec. 154)
- To act in conformity with terms and conditions of the contract (Sec. 153)
- Not to mix with own goods (Sec. 155 to Sec.157)
- To return the goods bailed, after the purpose is accomplished (Sec. 160)
RIGHTS OF BAILEE:-
- Right to recover expenses (Sec. 158)
- Right to recover compensation (Sec. 164)
- Right to lien (Sec 171 & 172)
- Right against third party (Right of subrogation) (Sec. 180)
CITY ACADEMY LAW COLLEGE