BAILMENT ACT

Presented By:-
Ajit Kumar Soni, Roll No-10
INTRODUCTION
Bailment means a legal relation that arises whenever one person delivers possess
ion personal property to another person under an agreement by which the later is
under an obligation to return the property to the former. The term bailment is
derived from a French word 'baillior' which means to deliver.
DEFINITION ACCORDING TO CONTRACT ACT SEC 148:
"A bailment is the delivery of goods by one person to another for some purpose u
pon a contract that they shall when the purpose is accomplished be returned or o
therwise disposed of according to the directions of the person delivering them.
PARTIES OF THE CONTRACT OF BAILMENT:
There are two parties in the contract of bailment. (a) Bailor: The person who de
riveds the goods is called bailor. (b) Bailee: The person to whom the goods are
derived is called bailee.
ESSENTIALS OF CONTRACT OF BAILMENT
Following are essential of contract of bailment. (I) CONTRACT: It is a basic ess
ential for bailment. (II) MOVEABLE PROPERTY: Property must be moveable in contra
ct of bailment. (III) DELIVERY OF GOODS: The delivery of goods should be made fo
r some purpose under a contract. (IV) CHANGE OF POSSESSION: In bailment possessi
on is changed from one person to another person.
(V) SPECIFIC PURPUSE: The goods are delivered for some specific purpose to anoth
er person. (VI) OWNERSHIP IS NOT CHANGED:The ownership is not change. It remain
to bailor. (VII) PARTIES OF CONTRACT: There are two parties to the contract of b
ailment bailor and bailer. (VIII)RETURNABLE: The goods must be returned to the o
wner of property or disposed according to the direction of bailor.
DUTIES OR RESPONSIBILITIES:
Following are the duties or responsibilities of bailee. (I) CARE OF GOODS: Baile
e is bound to take as much as care as the man take care of his own good. (II) AC
T ACCORDING TO THE CONTRACT: Bailee is bound to act according to the contract of
Bailment. (III) NOT DENY THE TITLE: Bailee can not deny the title of the goods
delivered to him. (IV) RETURN THE GOODS: It is the duty of Bailee to return or d
eliver the goods to bailor or according to his directions.
(V) RETURN AT PROPER TIME: Bailee should return the goods at proper time. (VI) R
ETURN OF PROFIT: Bailee should return the goods at proper time. (VII) PROPER USE
OF GOODS: He is duty bound to return the increase or profit to bailee.
RIGHTS OF BAILEE
Following are the rights of Bailee. (I) RECOVERY OF LOSS: A Bailee is entitled t
o recover damages If he suffers any loss. (II) RECOVERY OF COMPENSATION: A baile
e is entitled to receive compensation from the bailor for any loss resulting fro
m the defect of bailor title. (III) RECOVERY OF EXPENSES: Bailee is entitled to
recover all expenses for any purpose of the bailment. (IV) RIGHT TO RETAIN: Bail
ee has right to retain the goods until debtor claim is paid.
(V) RIGHT OF INDEMNITY: He has right to receive the amount of indemnity from bai
lor for any loss which may sustain by reason that the bailor was not entitled to
make the bailment. (VI) RIGHT AGAINST THIRD PERSON: If a third person wrongfull
y deprives the bailee of the use or possession of the good bailed. He can file s
uit against such person. (VII) RIGHT OF REMUNERATION: He is entitled to lawful c
harges for providing services.
CONCLUSION
To conclude I can say that the person to whom the goods are delivered under the
contract of bailment is called bailee. He is bound to act accordingly the direct
ion of Bailee. Bailor and Bailee have right and duties under the contract Act.
Thank You