BAILMENT

Sec.148-171

Definition : Sec.148

“Bailment is the delivery of goods by one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them”

Essential features of Bailment:

Delivery of goods Contract Return of goods in specie

Classification of Bailment

Bailment on the basis of benefits: Bailment for the benefit of Bailor only Bailment for the benefit of Bailee only Bailment for the mutual benefit of both

Bailor & Bailee

Bailment on the basis of rewards:

Non – Gratuitous bailment Gratuitous bailment

Rights of Bailor:

Right of termination Right to demand restoration of goods lent

gratuitously Compensation from a wrong doer Right to get an increase or profit from goods

bailed Right to sue the bailee for the enforcement of

the duties imposed upon a bailee

Duties of Bailor :

Duty to disclose faults in goods bailed (Sec.150)

Liability for breach of warranty as to title (Sec.164)

To bear expenses in case of gratuitous bailment (Sec.158)

In case of non-gratuitous bailment Duty to indemnify the bailee for loss Duty to receive back the goods

Rights of Bailee:

Bailee can sue bailor for: Claiming compensation for damage

resulting from non disclosure of faults in the goods

For breach of warranty as to title & the damage resulting there from &

For extraordinary expenses

LIEN-(Sec.170-171): “Lien is the right of one person to retain

that which is in his possession, belonging to another, until some debt or claim is paid”

Bailees particular Lien :Sec.170 Bailees general Lien :Sec.171 Right against wrongful deprivation or

injury to goods: Sec.180-181

Duties of the Bailee :

To take care of the goods bailed-Sec.151 Not to make unauthorized use of goods-

Sec.154 Not to mix Bailors goods with his own-

Sec.155-157 To return the goods bailed-Sec.160-161 To return any accretion to the goods bailed-

Sec.163

Termination of Bailment :

On the expiry of the stipulated period On the accomplishment of the specified

purpose By bailees act inconsistent with

conditions-Sec.153 Termination of Gratuitous bailment-

Sec.159 Section 162

Finder of lost Goods :

Finding is not keeping. A finder of lost goods is treated as the bailee of the goods found as such and is charged with the responsibilities of a bailee, besides the responsibility of exercising reasonable efforts in finding the real owner.

Rights :

Right to retain the goods-Sec.168 Right to sell-Sec.169

PLEDGE OR PRAWN (SEC.172)

The bailment of goods as security for payment of a debt or performance of a promise is called pledge.1

PARTIES:

Pawnor or Pledger: Pawnee or Pledgee

Distinction between Pledge and Bailment:

Pledge is bailment of goods for a specific purpose where as Bailment is for a purpose of any kind

Pawnee cannot use the goods pledged where as bailee can use the goods as per terms of bailment