DUTIES & RIGHTS OF BAILOR AND BAILEE

INTRODUCTION

Bailment is a concept of common law. Under Common law, bailment is the process of
placing personal property or goods in the temporary custody or control of another. For a valid
bailment, it is necessary that bailee must have actual physical control of the property with the
intent to possess it. The bailee is generally not entitled to the use of the property during his
possession. A bailor can demand for return of the property at any time.

DEFINITION OF BAILMENT

According to Contract Act, bailment means delivery of goods by one person to

another for some purpose upon a contract that they these goods shall be returned or disposed
of according to the directions of the person delivering them when the purpose will be
accomplished.

BAILMENT EXPLANATION

Under Contract Act, bailment is considered a contract. Such contract is consisted of

following essentials.

i. Delivery of Goods

For a valid bailment, it is essential that goods should be delivered from one person to
another person. It means that possession of goods should be changed.

ii. Delivery for Some Purpose

It is necessary for a valid bailment that goods should be delivered for some purpose.

iii. Return or disposing of Goods

For a valid bailment, it is also essential that goods should be returned or disposed off
according to directions of bailor when purpose is accomplished.

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DEFINITION OF BAILOR

In bailment, the person, who delivers goods, is call bailor.

DUTIES AND LIABILITIES OF BAILOR

Following are duties and liabilities of bailor;

i. Disclosing of defects of goods bailed

It is duty of bailor to disclose any defects, which are present in goods, which are being
bailed.

ii. Repayment of expenses

It is liability of bailor to repay all those expenses, which bailee spends for purpose of
bailment.

iii. Bailors Responsibility to Bailee

Bailor is liable to bailee for any loss, which the bailee bears in the following
situations;

a. No right to make bailment

Bailor is responsible to bailee for any loss, which bailee bears because bailor was not
entitled to make bailment.

b. No Right to get back bailed goods

Bailor is responsible to bailee for any loss, which bailee bears because bailor was not
entitled to get back bailed goods.

c. No right to give Directions

Bailor is responsible to bailee for any loss, which bailee bears because bailor was not
entitled to give directions.

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DEFINITION OF BAILEE

In bailment, the person to whom goods are delivered is called bailee.

DUTIES AND LIABILITIES OF BAILEE

Following are duties and liabilities of bailee;

i. Care

In all cases of bailment, bailee is bound to take care of bailed goods in the same
manner in which a man of ordinary prudence takes care of his own goods of the same quality
and value.

ii. Unauthorized use of Bailed Goods

If bailee makes any use of goods bailed and such use in not according to conditions of
bailment, he is liable to make compensation to bailor for any damage, which is caused to the
goods during such use.

iii. Mixing of Bailed goods with Bailees goods

If bailee mixes bailed goods with his own goods without consent of bailor, his liability
arises in the following two cases;

a. When goods can be Separated?

Out of mixed goods, if bailed goods can be separated or divided, bailee will be under
obligation to bear all expense of separation or division, and any damage, which is caused
from such mixture.

b. When goods cannot be Separated?

Out of mixed goods, if bailed goods cannot be separated or divided, bailee will be
under obligation to compensate the bailor for such loss of bailed goods.

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iv. Return of Bailed goods

It is duty of bailee to return bailed goods to bailor without any demand an according
to directions of bailor on expiration of time or accomplishment of purpose.

v. Non-return of Bailed Goods

If bailee fails to return bailed goods at proper time, it is his liability to compensate
bailor for any destruction or loss from this time.

vi. Increase or Profit from bailed goods

In absence of any contrary contract or according to directions of bailor, bailee is also

under obligation to deliver to bailor any increase or profit, which may have accrued from
bailed goods.

RIGHTS OF BAILER

1. If bailee does not take care and destruction of goods takes place, bailer can claim
compensation.

2. If bailee uses the goods for un-authorized purposes, bailer has the right to claim
compensation.

3. Bailer has the right to claim return of goods.

4. Bailer has right to claim not only delivered goods but also accruals on goods if
any.

5. In case where bailee has mixed the goods and they are of sufferable nature, bailer
can claim cost of separation from bailee.

6. In case where the goods are of insufferable nature, bailer has right to claim
compensation.

7. Bailer has right to repudiate the Contract of bailment whenever he wants but, by
doing so, if bailee comes across any suffering, bailer has to compensate.

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RIGHTS OF BAILEE

1. Bailee has right to claim compensation for injuries arising out of faults present in
goods, If it is gratuitous bailment, bailee can make bailer answerable with regard
to known faults only. But not to un-known faults. In case of Non-gratuitous
bailment bailee can make bailer answerable to known as well as un-known faults.

2. Bailee has right to claim contribution for expenses. If it is Gratuitous bailment,

bailee can claim only extraordinary expenses. But in case of Non-Gratuitous
bailment, bailee can claim both ordinary and ordinary expenses.

3. In case where bailer has given goods with defective title and bailee, therefore,
comes across suffering, then such bailee has right to get compensated by defective
titled bailer.

4. Bailee has right of indemnity, for making involvement in bailment Contract, bailer
can make bailee answerable.

5. Bailee has right of lien. It is only particular lien. That means he can exercise right
of lien against those goods only on which amount is due.

6. Bailee can return the goods to any one of the joint owners.

7. In times of need Bailee has right to approach Court of law.

CONCLUSION

To conclude, it can be stated that bailment is the process of placing personal property
or goods in the temporary custody or control of another. However, such temporary custody
originates very strong duties and liabilities for both the bailor and bailee.

REFERENCES

http://www.lawsofbusiness.com/2012/04/rights-and-duties-of-bailer.html
http://www.lawsofbusiness.com/2012/04/rights-and-duties-of-bailee.html
http://thelawstudy.blogspot.in/2015/12/bailment-rights-and-duties-of-bailor.html

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