We will explore different points of view and provide in-depth information that can help readers understand the concept better. Judgement – The court held that exclusive possession of the goods is sine qua non for bailment. Therefore, mere hiring of a locker would not be sufficient to constitute a contract of bailment as provided under Section 148 of the Indian Contract Act, 1872. Further, the court said that the question of reasonable care and quantum of damages would arise only after it has been shown that actual exclusive possession of the property was given by the bailee to the bailor, i.e. the bank. Since the bank was not aware of the contents of the locker, hence it was impossible to know the quantity, quality or the value of the jewellery that was allegedly kept in the locker at the time when the robbery occurred. In this case, it was held that there was no exclusive possession to the bank hence no compensation was allowed to the plaintiff.
The increase or profit could be in relation with animals, shares, property etc. Section 155 states, that if the goods are mixed with the bailor’s consent, then both the bailor and bailee will have an interest according to their share in the mixture. If the goods are mixed without the consent of the bailor, then the bailee would have to compensate according to the nature of the goods. B has a right to claim the necessary expenses that he incurred for the repair of the grinder from A. If B doesn’t deliver the goods after the work is completed, then A can ask for compensation from B for any loss he suffers due to the non-delivery. Both the bailor and the bailee must be aware of these potential downsides and take the necessary steps to reduce risks and safeguard their interests.
This may involve creating a precise and thorough bailment agreement, acquiring adequate insurance, and keeping lines of communication open during the bailment time. 4)The bailor is responsible for reimbursing the bailee for any necessary expenses incurred in the preservation or improvement of the goods. 3)The bailor can terminate the bailment before the agreed-upon period in certain situations. The bailor must disclose any known defects in the goods that may affect their use or safety to the bailee. 1)The bailor has the right to demand the return of the goods from the bailee once the purpose of the bailment is accomplished or the agreed-upon period expires. Meanwhile, the establishment and enforcement of contracts including the above bond in India are governed by the Indian Contract Act of 1872.
Duty to Return Goods (Section
In garage were put not only vehicles containing petrol but also other combustibles like thinners and paints. The garage was portioned by wooden walls and a part of it was allowed to be used for cooking purpose. The room in which plaintiffs’ car was kept could not be opened for 15 minutes after the fire was noticed, as the keys of the rooms were not available.
Duty Not to Make Unauthorized Use of Goods (Section
If the bailor fails to pay the due remuneration, the bailee has the right to claim the same from the bailor. The bailor has to remunerate the bailee for the expenses he incurs under a contract of bailment. If the goods bailed are used for some purpose other than for which they were bailed, due to which the goods get damaged, the bailor can claim compensation for the same. For instance, in case of theft or some negligent act of the bailee the goods are lost or damaged, the bailor can claim compensation for the loss. By understanding and adhering to these defined duties, parties can safeguard their legal rights and responsibilities, which in turn enhances the overall efficiency and reliability of commercial transactions.
Bailment by several joint owners (Section
- The bailor must disclose any known defects in the goods that may affect their use or safety to the bailee.
- Where the bailee’s own goods are lost along with those of bailor, it will not be deciding factor.
- The plaintiff having required the defendant to deliver the whole of the books then bound, the defendant failed to deliver them within a reasonable time and they were subsequently burnt in an accidental fire on his premises.
- Concerning the products bailed out by him, the Bailor possesses the below rights on the Bailee.
He benefits from his occupation and consequently has the obligation to ensure that the goods he delivers are reasonably safe for bailment purposes. Section 150 states clearly that “if the goods are bailed for hire, the bailor is responsible for such damage, whether he was or was not aware of such faults in the goods bailed”. He should evaluate the goods and remove problems that would have been revealed by reasonable scrutiny. The bailor can claim compensation from the bailee for any damage or loss suffered in the goods being bailed. If the bailee doesn’t take reasonable care of the goods bailed, due to which damage occurs, then the bailor is entitled to get compensation for the same.
Contract of Bailment, Rights And Duties of Bailor and Bailee, License, Sale
The bailee is estopped from denying the right of the bailor to bail the goods and to receive them back. If such goods are bailed for hire, the bailor is responsible for such damage, whether he was or was not aware of the existence of such faults in the goods bailed. There are certain duties which the bailee has to fulfil under a contract of bailment. As mentioned in Section 153, the bailor has a right to terminate the contract if the bailee indulges in some malpractice or doesn’t fulfil the conditions of the contract.
3) If the goods have generated any profits, the bailee is required to return those profits to the bailor. Lien is the right of the bailee under which the bailee can retain the goods of the bailor, and refuse to deliver them back, until the due remuneration or amount due is paid. Actual delivery – When there is a physical transfer of possession rights and duties of bailor of the goods. The rights and duties of Bailor are discussed from Section 148 to 171 of the Indian Contract Act, 1872. Welcome to Law Tribune, your trusted source for legal insights and expertise. Our mission is to provide comprehensive and accessible information on various legal topics, helping you navigate the complexities of the legal system with confidence.
General lien of bankers, factors, wharfingers, attorneys and policy brokers (Section
The ‘general lien’ entitles the bailee to retain the goods of the bailor for a general balance of account. For instance, A leaves his horse with his neighbor, B, for safe custody foe one week. B is entitled to recover the expenses incurred by him in feeding the horse. Section 158– Some numeration has to be paid to the bailee for services he renders in respect of them, he has a right to recover the same, or to exercise the right of lien in respect of such goods until he receives the necessary payment.
The right of ‘general lien’ as provided in section 171, means the right to hold the goods bailed as security for a general balance of account. General lien entitles the bailee to detain any goods bailed to him for any amount due to him whether in respect of those goods or any other goods. Lien is a personal right which continues only so long as the possessor holds the goods (Legg v. Evans). The right of lien may also be defeated or excluded by an agreement to the contrary.
They are expected to take reasonable care of the property and use it only for the agreed-upon purpose. If they fail to do so and the property is damaged or lost, they can be held liable for the damages. The concepts of bailment and pledge play a significant role in the framework of the Indian Contract Act, 1872. These legal concepts outline the processes by which goods can be temporarily transferred from one party to another while ensuring that ownership remains with the original owner. In a bailment arrangement, the bailor entrusts their property to the bailee, who is responsible for its care and return. Conversely, in a pledge, the pledgor gives goods to the pledgee as security for a debt or obligation.
It is a legal relationship between two parties where one party (the bailor) transfers the possession of their property to another party (the bailee) for a specific purpose. The bailee assumes temporary control and possession of the property, but the bailor retains the ownership rights. In this blog, we will explore the roles of the bailor and the bailee in more detail. Section 166 states that, if the bailor’s title is defective, and the bailee delivers the goods to the bailor, then he cannot be held liable to compensate the owner of such goods. It is the duty of the bailee to return the goods to the bailor even though his title is defective. The bailee cannot refuse to return the goods due to the defective title of the bailor.
- It is important for both the bailor and the bailee to understand their respective rights and duties to ensure a smooth and lawful bailment arrangement.
- A bailee, on the other hand, gets the benefit of using or managing the property for a defined purpose and frequently is paid in exchange.
- To conclude, important legal issues and a number of laws and principles apply to the relationship between a bailor and a bailee.
- Though Z does not actually hold the car in his premises, but the act of handling over of the keys constitute delivery of possession of goods from X to Z hence, creating a relationship of bailor and bailee.
- It must be safeguarded against theft, damage, and unauthorized access.
The bailee, in the absence of any special contract, is not responsible for the loss, destruction or deterioration of the thing bailed, if he has taken the amount of care of it described in 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 prudence would, under similar circumstances, take of his own goods of the same bulk, quantity and value as the goods bailed. The bailee is entitled with the responsibility to deliver back any increase or profit that accrued on the goods of the bailor.
This category of delivery of products could be either actual or constructive bailment type in nature. The burden of proof is on the bailee to demonstrate that he was reasonably careful and he is not responsible if he can prove this. If the bailee provides proof that he has taken reasonable care to avoid reasonably foreseeable damages, or had taken all reasonable efforts to avoid reasonably apprehended hazards, he would be waived from his liability.
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