Section 148

BAILMENT Section 148

Bailment 

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

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E.g. A lends a book to B to be returned after the examination.There is contract of bailment between A & B.A is the bailor and B is the bailee

Types of bailment 

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Without Consideration or gratuitous With consideration or nongratuitous

DUTIES OF BAILOR To disclose known faults and if he does not do so , he is responsible for any damages caused to bailee directly e.g. A lends a horse, which he knows to be vicious, to B. He does not disclose that horse is vicious. B is thrown and injured. A is responsible for damage.  To receive back the goods 

To bear extraordinary expenses of bailment A lends his horse to B , a friend, for two days. The feeding charges are to be paid by B. But if the horse meets with an accident, A will have to repay B.  To indemnify bailee 

To indemnify bailee for loss in case of premature termination of gratuitous bailment e.g. A lends an old discarded bicycle to B gratuitously for three months.B incurs Rs.200 on its repairs.If A asks for bicycle in one month , he will compensate B for expenses in excess benefit received 

DUTIES OF BAILEE To take reasonable care of goods bailed e.g. M was admitted to a hospital where her jewellery was handed over to hospital authorities for safe custody. The jewellery was stolen. The hospital authorities are liable for the loss.  Not to make any unauthorized use of goods 

Not to set up an adverse title  Not to mix the goods bailed with his own goods  To return any accretion to the goods e.g. A leaves a cow in custody of B to be taken care of. The cow has a calf. Both cow and calf to be returned back to A 

Rights of bailor and bailee 

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Enforcement of rights Avoidance of contract Return of goods lent gratuitously Compensation from a wrong-doer

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Delivery of goods to one of several joint bailors of goods Delivery of goods to bailor without title Right to apply to court to stop delivery Right of action against trespassers

PLEDGE The bailment of goods as security for payment of a debt or performance of a promise is called ‘pledge’. It is a special kind of bailment. e.g. If A borrows Rs.200 from B and keeps his watch as security for payment of the debt , the bailment of watch is a pledge. A is pawnor and B is pawnee 

PAWNEE  

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Right of retainer Right to extraordinary expenses Right against true owner , when the pawnor’s title is defective Pawnee’s rights where pawnor makes default

PAWNOR 

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Right to get back goods Right to redeem debt Rights of an ordinary debtor Preservation and maintenance of goods

FINDER OF GOODS    

He must try to find out the owner of goods He must not mix the goods with his own goods He must not use the goods for his own purpose He must take reasonable care of goods and if, in spite of this, the goods are destroyed , he is not responsible for any loss.

Rights of Finder of goods   

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b) c)

Right of lien Right to sue for reward Right of sale: A finder of goods may sell the goods foundIf the owner cannot with reasonable diligence be found Perishable goods If found, he refuses to pay lawful charges of the finder