Contract of Bailment | Duties of Bailor & Baile

Contract of Bailment

A 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. – Section 148

Parties to the contract of Bailment

• Bailer: person delivering the goods is called bailor
• Bailee: person to whom the goods are delivered is called bailee

Essential features of contract of Bailment

• Contract
• Specific purpose: A gives his watch to B for repair, repair is specific purpose here
• Delivery of goods
• Return of same goods

Duties of Bailor

• Duty to disclose faults
• Duty to repay necessary expenses
• Duty to repay extra-ordinary expenses
• Duty to indemnify for demanding back
• Duty to indemnify for defective title
• Duty to receive back the goods

Duties of Bailee

• Duty to take responsible care
• Duty not to make unauthorized use
• Duty not to mix the goods
• Duty to return the goods
• Duty to return increase

Termination of Bailment

• Expiry of time
• Accomplishment of purpose
• Unauthorized use
• On death of either party
• Termination by bailor
• Destruction of subject matter

Finder of Lost Goods

A person who finds goods belonging to another and takes them into custody is subject to the same responsibility as a bailee.