{"id":4280,"date":"2020-04-03T14:43:01","date_gmt":"2020-04-03T14:43:01","guid":{"rendered":"https:\/\/commerceiets.com\/?p=4280"},"modified":"2020-04-03T14:43:01","modified_gmt":"2020-04-03T14:43:01","slug":"contract-of-bailment","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/contract-of-bailment\/","title":{"rendered":"CONTRACT OF BAILMENT"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/contract-of-bailment\/#CONTRACT_OF_BAILMENT\" title=\"CONTRACT OF BAILMENT\">CONTRACT OF BAILMENT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/contract-of-bailment\/#ESSENTIAL_FEATURES_OF_CONTRACT_OF_BAILMENT\" title=\"ESSENTIAL FEATURES&nbsp;OF CONTRACT OF BAILMENT\">ESSENTIAL FEATURES&nbsp;OF CONTRACT OF BAILMENT<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/contract-of-bailment\/#KINDS_OF_BAILMENT\" title=\"KINDS OF BAILMENT\">KINDS OF BAILMENT<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/contract-of-bailment\/#RIGHTS_AND_DUTIES_OF_BAILOR_AND_BAILEE\" title=\"RIGHTS AND DUTIES OF BAILOR AND BAILEE\">RIGHTS AND DUTIES OF BAILOR AND BAILEE<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/contract-of-bailment\/#DUTIES_OF_A_BAILOR\" title=\"DUTIES OF A BAILOR\">DUTIES OF A BAILOR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/contract-of-bailment\/#DUTIES_OF_BAILEE\" title=\"DUTIES OF BAILEE\">DUTIES OF BAILEE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/commerceiets.com\/contract-of-bailment\/#RIGHTS_OF_A_BAILEE\" title=\"RIGHTS OF A BAILEE\">RIGHTS OF A BAILEE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/commerceiets.com\/contract-of-bailment\/#TERMINATION_OF_BAILMENT\" title=\"TERMINATION OF BAILMENT\">TERMINATION OF BAILMENT<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"contract-of-bailment\"><span class=\"ez-toc-section\" id=\"CONTRACT_OF_BAILMENT\"><\/span><strong>CONTRACT OF BAILMENT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nword \u2018Bailment\u2019 is derived from the French word \u2018Bailer\u2019 which means to\ndeliver. The etymological meaning of bailment is\n\u201chanding over\u201d or \u201cchange of possession of goods\u201d. In legal sense, it\ninvolves change of possession of goods from one person to another for some\nspecific purpose. <\/p>\n\n\n\n<p>Bailment is a delivery of goods on condition that the recipient shall ultimately restore them to the Bailor or dispose of them according to the direction of the Bailor.<\/p>\n\n\n\n<p><strong>ACCORDING\nTO SECTION 18 OF INDIAN CONTRACT ACT, 1872<br \/>\n<\/strong>\u201cIt is the delivery of goods by one person to another for\nsome purpose, upon a contract, that they shall, when the purpose is\naccomplished be returned or otherwise disposed of according to the directions\nof the person delivering them. The person delivering the goods is called bailor\nand the person to whom they are delivered is called bailee\u201d.<\/p>\n\n\n\n<p><strong>ACCORDING TO ENGLISH AUTHOR DAVID A.G. SARRE<\/strong><br \/> \u201cBailment is the delivery of goods by one person called the bailor to another, called the bailee on the conditions that same goods shall be redelivered by the bailee to or on the directions of the bailor\u201d.<\/p>\n\n\n\n<p>Thus, the <a href=\"https:\/\/commerceiets.com\/indian-contract-act-1872\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"contract (opens in a new tab)\">contract<\/a> of bailment is a contract between two persons under which one person called the bailor delivers some goods for some purpose to another, called the bailee on the condition that the same goods shall be returned by the bailee to the bailor or according to his order on the fulfillment of the stated purpose. <\/p>\n\n\n\n<p><strong>Example:&nbsp;<\/strong>If\nA gives his car to B his neighbor for 10 days, but at the same time he keeps\none key with himself and during this period of 10 days he used to take the car.\nNow this will not be a case of bailment as A is keeping control over the\nproperty bailed.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"essential-features-of-contract-of-bailment\"><span class=\"ez-toc-section\" id=\"ESSENTIAL_FEATURES_OF_CONTRACT_OF_BAILMENT\"><\/span><strong>ESSENTIAL FEATURES&nbsp;OF CONTRACT OF BAILMENT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A contract of bailment has the following essential features:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"583\" height=\"436\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/04\/image-10.png\" alt=\"\" class=\"wp-image-4284\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/04\/image-10.png 583w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/04\/image-10-300x224.png 300w\" sizes=\"(max-width: 583px) 100vw, 583px\" \/><\/figure>\n\n\n\n<p><strong>CONTRACT<\/strong><br \/> The first condition is that there must be a contract between the two parties for the delivery of goods. Such contract may be express or implied, written or oral.<\/p>\n\n\n\n<p><strong>DELIVERY OF GOODS<\/strong><br \/> This contract is for the delivery of some movable goods from one person (bailor) to another person (bailee) or to his authorized agent. If the goods are immovable the contract will not be a contract of bailment.<\/p>\n\n\n\n<p><strong>CHANGE OF POSSESSION<\/strong><br \/> The possession of goods must be affected by such contract. Mere custody without possession is not a contract of bailment.<\/p>\n\n\n\n<p><strong>PURPOSE OF DELIVERY<\/strong><br \/> The delivery of the goods is for temporary purposes. It may be for safe-custody, repair, carriage or for gratuitous use by the bailee.<\/p>\n\n\n\n<p><strong>NUMBER OF PARTIES<\/strong><br \/> There is two parties tinder such contract e.g., the bailor and bailee. The person delivering the goods is called the bailor and the person to whom the goods are bailed is called the bailee.<\/p>\n\n\n\n<p><strong>RIGHT OF OWNERSHIP<\/strong><br \/> In a contract of bailment, the right of ownership remains with an owner (bailor) and is not changed. If the ownership is transferred, the contract will be a contract of sale and is not of bailment.<\/p>\n\n\n\n<p><strong>CHANGE OF FORM<\/strong><br \/> If the goods bailed are altered in form by the bailee, such as cloth. is converted into a shirt still, the contract is one of bailment.<\/p>\n\n\n\n<p><strong>GOODS IN POSSESSION OF BAILEE<\/strong><br \/> The delivery of the goods is not essential if the goods are already in the possession of the person who enters into the contract as bailee.<\/p>\n\n\n\n<p><strong>REDELIVERY OF GOODS<\/strong><br \/>\nUnder such contract, the goods are redelivered to the bailor or according to\nhis directions upon the fulfillment of the purpose by the bailee.<\/p>\n\n\n\n<p><strong>RIGHT OF REWARD<\/strong><br \/> In a contract of bailment, both the parties bailor and the bailee can get a reward but it depends on the nature of the transaction.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"kinds-of-bailment\"><span class=\"ez-toc-section\" id=\"KINDS_OF_BAILMENT\"><\/span><strong>KINDS OF BAILMENT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A contract of bailment may be of the following kinds:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"593\" height=\"340\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/04\/image-9.png\" alt=\"\" class=\"wp-image-4283\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/04\/image-9.png 593w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/04\/image-9-300x172.png 300w\" sizes=\"(max-width: 593px) 100vw, 593px\" \/><\/figure>\n\n\n\n<p><strong>BAILMENT FOR SAFE-CUSTODY<\/strong><br \/> When the bailor delivers his goods to the bailee only for keeping it. in his safe-custody, the bailment is said to be bailment for safe-custody.<br \/> <strong>EXAMPLE:&nbsp;<\/strong>A delivers his camera to B to keep it in his safe-custody for six months. This will be the bailment for safe-custody.<\/p>\n\n\n\n<p><strong>BAILMENT FOR USE<\/strong><br \/> If the bailor delivers, the goods to the bailee to use it. The bailment will be the bailment for use.<br \/> <strong>EXAMPLE<\/strong>: A delivers his bicycle to B to use it for two days. This will be the example of bailment for use.<\/p>\n\n\n\n<p><strong>BAILMENT FOR REWARD<\/strong><br \/> Where the bailment is for use or for sate-custody and the bailee or bailor can charge for his services, then it will be the case of bailment for<br \/> <strong>EXAMPLE:<\/strong>&nbsp;A delivers his bicycle to B to use it for two days for Rs.50 daily. This will be the bailment for a reward because Bailor (A) will get a reward for the use of a bicycle.<\/p>\n\n\n\n<p><strong>GRATUITOUS BAILMENT<\/strong><br \/>\nWhere the bailment is for safe-custody or for use and bailee does not charge\nanything, the bailment is a bailment for gratuitous.<br \/>\n<strong>EXAMPLE<\/strong>: A delivers his bicycle to his friend B to\nuse it for two days without reward. It will be the case of gratuitous bailment.<\/p>\n\n\n\n<p><strong>BAILMENT FOR LOST GOODS<\/strong><br \/> When a person finds out the lost goods of another has the same responsibilities as the bailee has against the goods the bailor. such implied bailment Will be the case of bailment of lost goods. Under such conditions, the bailee is entitled to retain the goods until he receives compensation for the trouble and expenses he has to bear in order to find but the owner of the lost goods.<br \/> <strong>EXAMPLE:<\/strong>\u00a0A found the lost horse B and redelivered it to B. It will be the bailment for lost goods.<\/p>\n\n\n\n<p><strong>BAILMENT FOR PLEDGE<\/strong><br \/> When any moveable goods are given as security for the debt, to creditor by the debtor, it will be bailment for pledge until the repayment.<br \/> <strong>EXAMPLE: <\/strong>A gets a loan from B and hands over his B as security until the repayment of the loan. It will be the bailment for pledge.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"rights-and-duties-of-bailor-and-bailee\"><span class=\"ez-toc-section\" id=\"RIGHTS_AND_DUTIES_OF_BAILOR_AND_BAILEE\"><\/span><strong>RIGHTS AND DUTIES OF BAILOR<\/strong> <strong>AND BAILEE<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The person delivering the goods is called the \u2018Bailor\u2019. He is\na party to the contract of bailment.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"duties-of-a-bailor\"><span class=\"ez-toc-section\" id=\"DUTIES_OF_A_BAILOR\"><\/span><strong>DUTIES OF A BAILOR<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>1) TO PUT BAILEE INTO POSSESSION (SECTION 149)<br \/> <\/strong>&nbsp;The delivery to be bailee may be made by doing anything which has the effect of putting the goods in the possession of the intended bailee or of any person authorised to hold them on his behalf.<\/p>\n\n\n\n<p><strong>2) TO DISCLOSE MATERIAL\nFAULTS (SECTION 150)<\/strong><br \/>\n<br \/>\nSection 150 of Indian Contract Act 1872 says\nthat, The bailor is bound to disclose to the bailee faults in the goods bailed,\nof which the bailor is aware, and which materially interfere with the use of\nthem, or expose the bailee to extraordinary risk; and if he does not make such\ndisclosure, he is responsible for damage arising to the bailee directly from\nsuch faults.<br \/>\n<br \/>\n<strong>Example: <\/strong>A lends a horse, which he\nknows to be vicious, to B. He does not disclose the fact that the horse is\nvicious. The horse runs away. B is thrown and injured. A is responsible to B\nfor damage sustained.<\/p>\n\n\n\n<p><strong>3) TO PAY EXPENSES OF\nBAILMENT (SECTION.158)<\/strong><br \/>\n<br \/>\nSection 158 of the Indian Contract Act says\nthat, where, by the conditions of the bailment, the goods are to be kept or to\nbe carried, or to have work done upon them by the bailee for the bailor, and\nthe bailee is to receive no remuneration, the bailors shall repay to the bailee\nthe necessary expenses incurred by him for the purpose of the bailment.<\/p>\n\n\n\n<p><strong>4) TO&nbsp;INDEMNIFY&nbsp;THE LOSS (SECTION 159)<br \/> <\/strong><br \/> Indemnity&nbsp;means promise to make good the loss.&nbsp;According to Section 159 of the Indian Contract Act 1872 bailor has a duty to indemnify the loss suffered by the bailee under the contract.<\/p>\n\n\n\n<p><strong>5) TO PAY&nbsp;DAMAGES&nbsp;FOR NON DISCLOSURE (SECTION 150 )<br \/> <\/strong><br \/> Second part of Section 150 of the said Act says that,&nbsp; &#8230;..if bailor does not make disclosure to the bailee faults in the goods bailed, he is responsible for damage arising to the bailee directly from such faults.<br \/> <br \/><strong> Example: A<\/strong> lends a horse, which he knows to be vicious, to B. He does not disclose the fact that the horse is vicious. The horse runs away. B is thrown and injured. A is responsible to B for damage sustained. <\/p>\n\n\n\n<p><strong>6) TO PAY DAMAGES FOR DEFECT IN BAILOR&#8217;S TITLE&nbsp; (SECTION 164)<br \/> <\/strong><br \/> &nbsp;The bailor is responsible to the bailee for any loss which the bailee may sustain the reason that the bailor was not entitled to make the bailment, or to receive back the goods, or to give directions, respecting them.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong>RIGHTS OF A BAILOR<\/strong><strong><\/strong><\/p>\n\n\n\n<p>As such Indian Contract Act,\n1872 does not provide for Rights of a Bailor. But Rights of a Bailor is same as\nDuties of the Bailee i.e. Rights of Bailor = Duties of Bailee. So the rights of\nbailor are:<\/p>\n\n\n\n<p><strong>ENFORCEMENT\nOF BAILEE\u2019S DUTY<\/strong><\/p>\n\n\n\n<p>Since\nthe bailor delivers goods to the bailee for some specific purpose, the former,\nespecially in case of&nbsp;<strong>non-gratuitous bailment<\/strong>,\nhas an elemental right to achieve that purpose or obtain the benefit (i.e.,\nperformance) through the latter.<\/p>\n\n\n\n<p><strong>For example<\/strong>,\nif&nbsp;<strong><em>X<\/em><\/strong>&nbsp;delivers a suit\nlength to&nbsp;<em><strong>Y<\/strong><\/em>, his tailor, to stitch a\nsuit for him,&nbsp;<strong><em>X<\/em><\/strong>&nbsp;(bailor) will\nsee that the tailor does the needful in the desired manner.<\/p>\n\n\n\n<p><strong>RIGHT\nTO CLAIM DAMAGES (SECTION 151):<\/strong><\/p>\n\n\n\n<p>In all\ncases of bailment, the bailor has the right to claim for damages against the\nloss, if any, caused to the goods bailed due to the bailee\u2019s negligence or\nmisconduct.<\/p>\n\n\n\n<p><strong>RIGHT TO TERMINATION THE\nCONTRACT (SECTION 153)<\/strong><\/p>\n\n\n\n<p>If the Bailee does not\ncomply with the terms of the contract and acts in a negligent manner in such\ncase the bailor has the right to rescind the contract. <\/p>\n\n\n\n<p><strong>RIGHT TO CLAIM COMPENSATION<\/strong><\/p>\n\n\n\n<p>If the Bailee uses the\ngoods for an unauthorized purpose or mixes the goods which cause loss of goods\nin such case bailor has the right to claim compensation.<\/p>\n\n\n\n<p>A\ngood example for this is this situation,&nbsp;<strong><em>A<\/em><\/strong>&nbsp;lets&nbsp;<strong><em>B<\/em><\/strong>&nbsp;use\nhis car but with a condition that only&nbsp;<strong><em>B<\/em><\/strong>&nbsp;shall\ndrive.&nbsp;<strong><em>B<\/em><\/strong>&nbsp;allows&nbsp;<strong><em>C<\/em><\/strong>, a\nmember of his family, to drive the car.&nbsp;<strong><em>C<\/em><\/strong>&nbsp;rides\nwith care, but the car meets with some accident. Now<strong><em>&nbsp;B<\/em><\/strong>&nbsp;is\nliable to compensate for the damages caused.<\/p>\n\n\n\n<p><strong>RIGHT TO DEMAND THE RETURN\nOF GOODS<\/strong><\/p>\n\n\n\n<p>It is the duty of the\nBailee to return the goods and the bailor has the right to demand the same.<\/p>\n\n\n\n<p><strong>RIGHT TO DEMAND RETURN OF GOODS ALONG WITH ACCRETION TO, IF ANY<\/strong><\/p>\n\n\n\n<p>The\nbailor enjoys the exclusive right to have the goods bailed delivered back to\nhim in safe and sound condition after the time of bailment has expired or the\npurpose behind the bailment has been achieved. Moreover, in the absence of any\ncontrary term in the contract, the bailor is also entitled to any accretion to\nthe goods bailed if it occurred while the goods were in the study of bailee.<\/p>\n\n\n\n<p><strong>For example,<\/strong>&nbsp;<strong>A<\/strong>&nbsp;leaves\nhis brooding hen in the custody of&nbsp;<strong>B<\/strong>&nbsp;to\nbe taken care of for a week. The hen has hatched the chicks.&nbsp;<strong>A<\/strong>&nbsp;is\nentitled not only to the hen but also to the chicks.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"duties-of-bailee\"><span class=\"ez-toc-section\" id=\"DUTIES_OF_BAILEE\"><\/span><strong>DUTIES OF BAILEE<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Bailee has to fulfil several\nobligations as per Indian Contract Act, 1872. That is:<\/p>\n\n\n\n<p><strong>DUTY\nTO TAKE REASONABLE CARE<\/strong><strong> <\/strong><strong>(SECTION 151-152)<\/strong><strong><\/strong><\/p>\n\n\n\n<p>It is the duty of the Bailee to take care of goods as his own goods. He\nshall ensure all safety measures that are necessary to protect the goods. The\nstandard of care should be such as taken care by a prudent man. The goods shall\nbe taken care of equally whether they are gratuitous or non-gratuitous. The\nBailee shall be held liable for payment of compensation if he fails to take due\ncare. But if the Bailee has taken due care and instead of that the goods are\ndamaged then in such a situation Bailee will not be liable to pay compensation.\nThe Bailee is not liable for the loss of goods due to destruction by fire. <\/p>\n\n\n\n<p><strong>DUTY\nNOT TO MAKE UNAUTHORIZED USE OF THE GOODS (SECTION 153-154):<\/strong><\/p>\n\n\n\n<p>Bailee is duty bound to use the goods for a specific purpose only and\nnot otherwise. If he uses the goods for any other purpose than what is agreed\nfor then the bailor has the right to terminate such bailment or is entitled\nwith compensation for damage caused due to unauthorized use. <\/p>\n\n\n\n<p><strong>DUTY\nNOT TO MIX BAILOR\u2019S GOODS WITH HIS OWN GOODS (SECTION 155-157):<\/strong>&nbsp;<\/p>\n\n\n\n<p>It is the duty of the Bailee not to mix bailor\u2019s goods with his own. But\nif he wants to do the same then he shall seek consent from the bailor for\nmixing of goods. If the bailor agrees for the mixing of the goods then the\ninterest in the mixed goods shall be shared in proportion. In case, Bailee\nwithout the consent of bailor mixes the goods with his own then two situations\narise: goods can be separated and goods can\u2019t be separated. In the former case\nthe Bailee has to bear the cost of separation and in the latter case since\nthere is the loss of the goods, therefore, bailor shall be entitled with\ndamages of such loss. <\/p>\n\n\n\n<p><strong>DUTY\nTO RETURN THE GOODS ON THE FULFILMENT OF PURPOSE (SECTION 160-161):<\/strong><\/p>\n\n\n\n<p>Bailee is duty bound to return the goods once the purpose is achieved or\non the expiry of the time period for which the goods were bailed. But if the\nBailee makes default in returning the goods on proper time then he will be\nresponsible with the loss, destruction or deterioration of the goods if any. <\/p>\n\n\n\n<p><strong>DUTY\nTO DELIVER TO THE BAILOR INCREASE OR PROFIT IF ANY ON THE GOODS BAILED (SECTION\n163):<\/strong><\/p>\n\n\n\n<p>The Bailee has a duty to return the goods along with increase or profit\nsubject to contract to the contrary. Accretion that has accrued from the bailed\ngoods is the part of the bailed goods and therefore bailor has the right over\nsuch accretions if any. And such accretions shall be handed over to the bailor\nalong with the goods bailed. For instance, A leaves a cow in the custody of B\nand cow gives birth to the calf. Then B is duty bound to hand over the bailed\ngoods along with accretion to the bailor. <\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"rights-of-a-bailee\"><span class=\"ez-toc-section\" id=\"RIGHTS_OF_A_BAILEE\"><\/span><strong>RIGHTS OF A BAILEE<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>RIGHT\nTO RECOVER EXPENSES (SECTION 158):<\/strong><\/p>\n\n\n\n<p>In the contract of Bailment, the Bailee incurs expenses to ensure the\nsafety of goods. The Bailee has the right to recover such expenses from the\nbailor. <\/p>\n\n\n\n<p><strong>RIGHT\nTO REMUNERATION:&nbsp;<\/strong><\/p>\n\n\n\n<p>When the goods are bailed to the Bailee he is entitled to receive\ncertain remuneration for services that he has rendered. But in case of\ngratuitous bailment, the Bailee is not awarded any remuneration.<\/p>\n\n\n\n<p><strong>RIGHT\nTO RECOVER COMPENSATION (SECTION 168):<\/strong><\/p>\n\n\n\n<p>At times a situation arises wherein bailor did not have the capacity to\ncontract for bailment. Such a contract causing loss to the Bailee, therefore\nthe Bailee has the right to recover such compensation from the bailor. <\/p>\n\n\n\n<p><strong>RIGHT\nTO LIEN (SECTION 170-171):<\/strong><\/p>\n\n\n\n<p>Bailee has the right over Lien. By this, we mean that if the bailor\nfails to make payment of remuneration or does not pay the amount due, the\nBailee has the right to keep the goods bailed in his possession till the time\ndebtor dues are cleared. Lien is of two types: particular lien and general lien.\n<\/p>\n\n\n\n<p>In the case of Surya\nInvestment Co. v. S.T.C, the court held that expenses incurred by Bailee during\npreservation of goods under lien shall be borne by bailor.<\/p>\n\n\n\n<p><strong>RIGHT\nTO SUIT AGAINST A WRONGDOER (SECTION 180):<\/strong><\/p>\n\n\n\n<p>After the goods have been bailed and any third party deprives the Bailee\nof use of such goods, then the Bailee or bailor can bring an action against the\nthird party. <\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"termination-of-bailment\"><span class=\"ez-toc-section\" id=\"TERMINATION_OF_BAILMENT\"><\/span><strong>TERMINATION OF BAILMENT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A contract of bailment can be terminated by\nany of the following;<\/p>\n\n\n\n<p><strong>1. ACCOMPLISHMENT OF PURPOSE<\/strong><br \/>\nWhen the purpose for which goods were bailed\u201d has been accomplished, the\ncontract of bailment is terminated and goods are returned to the bailor.<\/p>\n\n\n\n<p><strong>2<\/strong>.<strong>EXPIRY OF TIME<\/strong><br \/> When the goods are bailed for a fixed time, the contract of bailment is terminated at the expiry of the time fixed.<\/p>\n\n\n\n<p><strong>3.<\/strong>&nbsp;<strong>DEATH OF\nTHE PARTY<\/strong><br \/>\nA gratuitous bailment is terminated by the death either of the bailor &nbsp;<\/p>\n\n\n\n<p><strong>4.<\/strong>&nbsp;<strong>BAILEE\u2019S INCONSISTENT ACT<\/strong><br \/> A contract of bailment \u2018is voidable (terminated) at the option of the bailee does any act with regard to the goods bailed\u2019 with the conditions of the bailment.<\/p>\n\n\n\n<p><strong>CONNECT ON LINKEDIN<\/strong><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>LINKEDIN<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study:&nbsp;<\/strong><\/td><td><strong>Also Study:&nbsp;<\/strong><\/td><td><strong>Also Study:&nbsp;<\/strong><\/td><td><strong>Also Study:&nbsp;<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/indian-contract-act-1872\/\">Indian contract act, 1872<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/offer-or-proposal-its-valid-essentials\/\">Offer or proposal and its valid essentials<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/important-kinds-of-offer-or-proposal\/\">Kinds of offer or proposal<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/valid-essentials-of-acceptance\/\">Valid essentials of acceptance<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/valid-consideration\/\">Valid Consideration<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revocation-of-offer-and-acceptance\/\">Revocation of offer and acceptance<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/lapse-of-an-offer\/\">Lapse of an offer<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/no-consideration-no-contract\/\">No consideration no contract<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/stranger-to-contract\/\">Stranger to contract<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/capacity-to-contract\/\">Capacity to contract<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/free-consent-in-contract\/\">Free consent in Contract<\/a><\/td><td><a href=\"http:\/\/v\" target=\"_blank\">Coercion<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/remedies-for-breach-of-contract\/\">Remedies of breach of contract<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/undue-influence\/\">Undue Influence<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/coercion-vs-undue-influence\/\">Coercion vs Undue Influence<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/fraud\/\">Fraud<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/misrepresentation\/\">Misrepresentation<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/mistake-in-contract-law\/\">Mistake<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/fraud-vs-misrepresentation\/\">Fraud vs misrepresentation<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/discharge-of-contract\/\">Discharge of contract<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/contract-of-indemnity\/\">Contract of Indemnity<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/contract-of-guarantee-notes\/\">Contract of Guarantee Notes<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/surety\/\">Surety under contract act<\/a><\/td><td><a href=\"http:\/\/v\" target=\"_blank\">Difference between Indemnity and guarantee<\/a><\/td><\/tr><tr><td><a href=\"http:\/\/v\" target=\"_blank\">Contract of bailment<\/a><\/td><td><a href=\"http:\/\/v\" target=\"_blank\">Contract of pledge<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-pledge-and-bailment\/\">Difference between Bailment and pledge<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consumer-protection-act-1986\/\">Consumer Protection Act 1986<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/limited-liability-partnership\/\">Limited Liability partnership<\/a><\/td><td><a href=\"http:\/\/v\" target=\"_blank\">Difference between LLP and Partnership<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/contract-of-agency\/\">Contract of agency<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/contract-of-sale-of-goods\/\">Contract of sale of goods<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>CONTRACT OF BAILMENT The word \u2018Bailment\u2019 is derived from the French word \u2018Bailer\u2019 which means to deliver. The etymological meaning of bailment is \u201chanding over\u201d or \u201cchange of possession of goods\u201d. In legal sense, it involves change of possession of goods from one person to another for some specific purpose. Bailment is a delivery of&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/contract-of-bailment\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;CONTRACT OF BAILMENT&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":4282,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/4280"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=4280"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/4280\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/4282"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=4280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=4280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=4280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}