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CONTRACT Study Notes: Bailment

Dear Readers, 

Here we are providing you updated and most relevant Study notes on Contract of Bailment for Law Entrance Exam. These study notes are highly recommendable for all those who aspire to crack CLAT, DULLB, AILET and other Law Entrance Exam.


Section 148 of ICA 1872 defines Bailment.

“A bailment is the delivery of goods by one person to another for same purpose, upon a contract that they shall, when they purpose is accomplished, be returned to other wise disposed of according to the directions of the person delivering them. The person delivering goods in called ‘Bailor’ and the person to whom it is delivered is called bailee.

Note: If a person is already in position of the goods of other contracts to hold them as a bailee, he/the one who holds it becomes bailee and the owner becomes the bailer.
Example: Pledge by delivery of possession
It is not a contract of bailment but the other party Pawnee is bound to keep the goods in
good condition.
One of the basic requirements of bailment is delivery of gods to the bailee. Delivery of possession to the bailee is sine quo non (an essential condition) of bailment. In order to constitute bailment change of possession is necessary.


Example:
A hires a car for a trip from B who deals in renting car business. B is bailor and
A is bailee.
Example: A lady wanted to mould her old jewelry in new design. She gave her jewellery box to the gold smith with a condition that she will put her lock on the box and will keep key and in morning she will sit with the labour to monitor the work and to keep eye on the box. Jeweler accepted her condition. One day there was theft in jeweler’s shop and the box was also broken and jewelry was missing with other articles of the jewellery shop. She claimed compensation but was divided as the court held that there is no bailment. Key was hold by the lady and there was no actual delivery of possession hence no bailment. Jeweler is not liable.


Example: Lockers in bank are example of not bailment. There is no bailment in case of keeping locker in banks.

Duties of the Bailee

1. Duty to take reasonable care of goods delivered to him.
Example: A gave his shirt for stitching to B a tailor. A’s shirt was spoiled by tea at tailor’s shop. Tailor is liable to compensate the loss to A as he did not take the reasonable care of goods delivered to him.

2. Duty not to make unauthorized use of goods entrusted to him.
Example: A tailor/drycleaner started giving cloths on rent basis. This is an unauthorized use of good.
3. Duty not to mix goods bailed with our goods.
Example: A asked B to take care of his sheeps in his absence B mixed A’s sheeps with his own sheeps it is a breach of duty


4. Duty to return the goods
When the purpose of bailment is achieved the goods are returned to the owner bailee is bound to return the goods on receiving the price for his services.


5. Duty to deliver any accretion to goods
Example: A asked B to take care of A’s cow for few days as A was not available and A’s cow delivered the calf A is entitled to accretion to good not B.


Duties of Bailer

1. Duty to disclose faults in goods bailed. It is the duty of the bailer to disclose faults.
Example: A lends a horse which he known to be vicious. He does not disclose the fact that horse is vicious. The horse ran away. B is thrown and injured. A is responsible to B for damage.
Example: A hires a car of B. It was unsafe but B was not aware of the fault. A is injured B is responsible to A for that injury.


2. Duty to repay necessary expenses in case of gratuitous bailment.
Example: A bails his cow to be taken care by B in his absence. A should repay B for feed of the cow.


3.Duty to receive back the goods.
Example: It the duty of the bailer to receive back the goods


4. Duty to indemnify bailer
Example: If because of the goods bailed to the bailee, the bailee incurs any loss due to faults in goods bailed then bailer is duty bound to indemnify the loss to the bailee.
5. Duty to repay any extra ordinary expenses in case of non gratuitous bailing.
Example: A bailed his cow to be take care by B for some period. The cow full ill and B incurred extra ordinary expense to care the cow. A is liable to compensate the B


PRACTICE EXERCISE

1. Bailment has been defined under which Sec. of The Indian Contract Act?
A. 148 B. 149
C. 150 D. 151

Ans.A

2. A _____________ is the delivery of goods by one person to another for same purpose, upon a n contract that they shall, when they purpose is accomplished, be returned to other wise disposed of according to the directions of the person delivering them
A. Bailment B. Agency
C. Partnership D. None of the above

Ans.A

3. The person delivering goods in called
A. Promisee B. Bailor
C. Bailee D. None of the above

Ans.B

4. The person to whom it is delivered is called
A. Promisee B. Bailor
C. Bailee D. None of the above

Ans.C

5. A hires a car for a trip from B who deals in renting car business. B is the
A. Promisee B. Bailor
C. Bailee D. None of the above

Ans.B

6. Maya gave her shirt to the tailor for stitching. He dropped coffee on the shirt. Will he be
liable?

A. Yes B. No
C. Maybe D. None of the above

Ans.A

7. Maya had given one of her sari for dry cleaning. She later finds out that the shop rented out
her sari to someone else. Will the dry cleaners be held liable?
A. Yes B. No
C. Maybe D. None of the above

Ans.A

8. Maya gives some of her jewellery to the goldsmith for polishing. He mixes her jewellery with
the other goods in his shop. Will be he held liable?
A. Yes B. No
C. Maybe D. None of the above

Ans.A

9. The plaintiff with his wife and children had to travel from Wimbledon to Hampton Court. They took a train from Wimbledon, which transported them to Esher. They had to walk several miles on a drizzling wet night to reach their destination. Will they be awarded damages?
A. Yes B. No
C. Maybe D. None of the above


Ans.A

10. A asked B to take care of A’s cow for few days as A was not available and A’s cow delivereda calf. Is A entitled to accretion?
A. Yes B. No
C. Maybe D. None of the above

Ans.A



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