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BAILMENT
Derived from French word" bailler means to deliver In legal sense, it involves change in possession of goods from one person to another for some specific purpose.
Def. of Bailment
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.
PARTIES
The person delivering the goods is called the Bailor The person to whom they are delivered is called the Bailee E.g.: A delivers a piece of cloth to B, a tailor, to be stitched into a suit. There is a contract of Bailment between A and B.
When a person finds goods belonging to another, a relationship of bailee and bailor is automatically created between the finder and owner
Case: Basavva patil Vs state of mysore Es ornaments having been stolen and recovered by the police disappeared from police custody. Held, the state was liable, the contract of bailment having been implied.
REQUISITES OF A BAILMENT
Actual delivery may be made by physically handing over the goods bailed to the bailee. Constructive or symbolic delivery may be made by doing some thing which has the effect of putting the goods in the possession of the intended bailee or any person authorized to hold them on his behalf. This means possession is transferred to the bailee without actually handing over the goods physically. The delivery of a railway receipt amounts to delivery of the goods.
REQUISITES OF A BAILMENT
3. For some purpose 4. Return of specific goods
Bailment is concerned only with goods E.g: A hire-purchase contract Seizure of goods by custom authorities Acceptance of goods by a transport company or railway for carriage Acceptance of articles by Post-Office as Value Payable Parcel.
CLASSIFICATION OF BAILMENTS
Gratuitous and Non-Gratuitous Bailments According to the benefits received by the parties
the exclusive benefit of the bailor the exclusive benefit of the bailee the mutual benefit of the bailor and bailee.
DUTIES OF BAILOR
To disclose known faults: If he does not disclose he is responsible for any damages caused to the bailee directly from such faults
Read vs. Dean A hires a motor launch from B for holiday on the river Thames. The launch caught fire and A was unable to extinguish it as the fire-fighting equipment was out of order. As such he was injured and suffered loss. Held, B was liable.
DUTIES OF BAILOR
2.To bear extraordinary expenses of bailment: E.g.: 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 medical expenses, incurred by B. Where in the case of gratuitous bailment, the goods are to be kept or to be carried, or some work is to be done upon the goods by the bailee for the bailor, the bailor must repay to the bailee all the necessary expenses incurred by him for the purpose of the bailment. E.g.: A leaves his car with B a friend, for sage custody for two months, B has to pay Rs.100 per month to the night watchman for keeping a watch over the car. It is the duty of A to pay B the necessary expenses incurred by B,
DUTIES OF BAILOR
DUTIES OF BAILOR
RIGHTS OF BAILOR
1.Enforcement of rights 2. Avoidance of contract 3. Return of goods lent gratuitously 4.Compensation from a wrong-doer.
DUTIES OF BAILEE
DUTIES OF BAILEE
DUTIES OF BAILEE
3. Not to mix the goods bailed with his own goods: IF he mixes the bailors goods with his own goods (a) with the bailors consent: both the parties shall have a proportionate interest in the mixture thus produced (b) without the bailors consent: if the goods can be separated or divided, the bailee is bound to bear all the expenses incurred in the separation of the bales, and any other incidental charges. without the bailors consent: If the mixture is beyond the separation, the bailor is entitled to be compensated by the bailee for the loss of the goods. (d) IF the goods of bailor were mixed up by some act unknowingly, the mixture belongs to bailor and the bailee in proportion to their shares but the cost of separation will have to be borne by the bailee.
DUTIES OF BAILEE
RIGHTS OF BAILEE
1. Delivery of goods to one of several joint bailors of goods: 2.Delivery of goods to bailor without title. 3.Right to apply to Court to stop delivery 4.Right of action against trespassers 5. Bailees lien:
Where the lawful charges of the bailee in respect of the goods bailed are not paid, he may retain the goods. This right of the bailee to retain the goods is known as Particular Lien.
PARTICULAR LIEN
A particular lien is one which is available to the bailee against only those goods in respect of which he has rendered some service involving the exercise of Labour or skill. IF there is no fault of the bailee, the goods are destroyed or stolen, the bailee is entitled to be paid for services performed upon the goods before they were destroyed or stolen.
GENERAL LIEN
It is a right of retain all the goods or any property of another until all the claims of the holder are satisfied.
E.g.: Bankers lien in respect of securities.
FINDER OF GOODS
A PERSON WHO FINDS THE GOODS BELONGING TO ANOTHER AND TAKES THEM INTO HIS CUSTODY IS SUBJECT TO THE SAME RESPONSIBILITY AS A BAILEE.
He must take reasonable care of the goods and if, in spite of this, the goods are destroyed, he is not responsible for any loss He must not use the goods for his own purpose. He must not mix the goods with the own goods He must try to find out the owner of the goods.
PLEDGE
The bailment of goods as security for payment of a debt or performance of a promise is called pledge. The pledge is a bailment for security. PARTIES
The producer of a film borrowed a sum of money from a financerdistributor and agreed to deliver the final prints of the film when ready. Held, the agreement was not a pledge, there being no actual transfer of possession.
Pledge is the bailment of goods as a security for the performance of a specific promise In case of default by the pawnor to repay the debt, the Pawnee may after giving notice to the pawnor, sell the goods pledged with him The Pawnee has no right to use the goods pledged with him
Bailment is for a purpose of any kind The bailee may retain the goods or sue for his charges. The bailee may do so if the terms of bailment so provide.
The rights and duties of pawnor and pawnee are almost similar to those of bailor and bailee. But some special mention is as follows:
RIGHTS OF PAWNEE
Right of retainer Right of retainer for subsequent advances Right to extraordinary expenses Right against true owner, when the pawnors title is defective Pawnees right when pawnor makes defect; He may file a suit against the pawnor upon the debt or promise and may retain the goods pledged as a collateral security He may sell the goods pledged after giving the pawnor a reasonable notice of the sale. He can recover from pawnor any deficiency arising on the sale of the goods by him.
RIGHTS OF PAWNOR
Right to get back goods Right to redeem debt Preservation and maintenance of the goods Rights of an ordinary debtor
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