BAILMENT

Sec.148-171

Definition : Sec.148

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

Essential features of Bailment:

Delivery of goods A) Actual Delivery B) Constructive Contract Return of goods in specie: Goods must be same

Classification of Bailment
Bailment on the basis of benefits: Bailment for the benefit of Bailor only Bailment for the benefit of Bailee only Bailment for the mutual benefit of both Bailor & Bailee

Bailment on the basis of rewards:

Non Gratuitous bailment Gratuitous bailment

Rights of Bailor:

Right of termination: 1. On expiry of the stipulated period 2. On accomplishment of purpose 3. Action of Bailee inconsistent with the conditions 4. Death of either party

Right to demand restoration of goods lent gratuitously Right to get an increase or profit from goods bailed Right to sue the bailee for the enforcement of the duties imposed upon a bailee

Duties of Bailor :

Duty to disclose faults in goods bailed (Sec.150) Liability for breach of warranty as to title (Sec.164): Bailor is responsible To bear expenses in case of gratuitous bailment (Sec.158) In case of non-gratuitous bailment: Extra Ordinary Exp. Duty to indemnify the bailee for loss Duty to receive back the goods

Rights of Bailee:
Bailee can sue bailor for: Claiming compensation for damage resulting from non disclosure of faults in the goods For breach of warranty as to title & the damage resulting there from & For extraordinary expenses

LIEN-(Sec.170-171): Lien is the right of one person to retain that which is in his possession, belonging to another, until some debt or claim is paid Bailees particular Lien :Sec.170: Specific Bailees general Lien :Sec.171 eg. Bank Right against wrongful deprivation or injury to goods: Sec.180-181: Against third party as owner

Duties of the Bailee :

To take care of the goods bailed-Sec.151 Not to make unauthorized use of goodsSec.154 Not to mix Bailors goods with his ownSec.155-157 To return the goods bailed-Sec.160-161 To return any accretion to the goods bailedSec.163

Termination of Bailment :
On the expiry of the stipulated period On the accomplishment of the specified purpose By bailees act inconsistent with conditions-Sec.153 Termination of Gratuitous bailmentSec.159 Section 162

Finder of lost Goods :

Finding is not keeping. A finder of lost goods is treated as the bailee of the goods found as such and is charged with the responsibilities of a bailee, besides the responsibility of exercising reasonable efforts in finding the real owner.

Rights :

Right to retain the goods-Sec.168 1. Until the true owner is found. 2. If any reward is announced then until it is paid. Right to sell-Sec.169 1. Where true owner is not found 2. Where owner refused to pay the rewards
3.

Where owner refuses to pay reasonable charges

PLEDGE OR PRAWN (SEC.172)

The bailment of goods as security for payment of a debt or performance of a promise is called pledge.

PARTIES:
Pawnor or Pledger: Pawnee or Pledgee

Pawnees Rights
Retaining goods Retaining for subsequent advances Rights for extraordinary expenses Right in case of pawnor default

Distinction between Pledge and Bailment:

Pledge is bailment of goods for a specific purpose where as Bailment is for a purpose of any kind Pawnee cannot use the goods pledged where as bailee can use the goods as per terms of bailment