1 BAILMENT Topic for today class Introduction Bailment

1 BAILMENT

Topic for today class Introduction Bailment Bailor Definition and Bailee Characteristics of Bailment Kinds of Bailment Duties of Bailor and Bailee Rights of Bailor and Bailee 2

BAILMENT INTRODUCTION “A bailment is a transaction whereby one person delivers goods to another person for some purpose. When the purpose is accomplished to be returned or otherwise disposed of according to the directions of the person delivering them. ” Examples of Bailment Hiring of Goods Delivering of cloth to tailor for stiching Delivering a car or scooter for repair 3

DEFINITION According to section 148 of the Indian Contract Act, “A bailment is a transaction whereby one person delivers goods to another person for some purpose, upon a contract that they are, when the purpose is accomplished to be returned or otherwise disposed of according to the directions of the person delivering them. ” 4

BAILOR & BAILEE The person who delivers the goods is called the Bailor. The person to whom they are delivered is called the Bailee. The transaction is called a Bailment 5

Characteristics of bailment 1. Contract 2. Delivery of Goods. 3. Specific Purpose. 4. Return of Goods. 6

Kinds of bailment 1. Kind on the Basis of Benefit a) Bailment for the Exclusive Benefit of Bailor. b) Bailment for the Exclusive Benefit of Bailee. c) Bailment for Mutual Benefit. 2. Kind on the Basis of Reward a) Gratuitous Bailment. b) Non - Gratuitous Bailment. 7

Duties of bailor 1. To disclose the faults in the goods Bailed. (Sec 150) 2. Repay necessary Expenses. (Sec 158) 3. To indemnify the Bailee ( Sec 159) 4. Responsibilities for any loss due to defect in title (Sec 164) 5. To receive back the Goods. 8

Duties of bailee 1. To take Reasonable care of the goods Bailed (Sec 151) 2. Not to make Unauthorized Use of Goods Bailed (Sec 154) 3. Not to mix the goods Bailed with his Own goods. ( Sec 155, 156 and 157) 4. To return the goods Bailed ( Sec 160) 5. To return Increase or Profit accrued ( Sec 163) 6. Not to set up an Adverse Title. 9

Rights of bailor 1. Right to Sue 2. Right to terminate the Bailment (Sec 153) 3. Unauthorized use by the Bailee (Sec 154) 4. Right against Mixture of Goods Bailed (Sec 155, 156 and 157) 5. Right to demand return of goods (Sec 159) 6. He is Entitled to Claim Damages 7. Right to Claim Increase in Value of Profits (Sec 163) 8. Suit against Wrongdoer (Sec 180) 9. Share in the Compensation Received (Sec 181) 10

Rights of bailee 1. Enforcement of Bailor’s Duties 2. Rights to deliver goods to one of the several joint bailor 3. Right to apply to court to stop delivery of goods. 4. Right to claim damages. 5. Right to Indemnify 6. Right of lien. 11

TOPICS FOR Tomorrow Right to lien. Types of Rights to Lien Pledge meaning Difference between Bailment and Pledge Rights and duties of pledger Rights and duties of Pledgee. 12

THANK YOU!! 13