Kinds of Bailment-

The kinds of bailment are-

a) On the basis of reward-i) Gratuitous bailment- A contract where no
consideration passes between the bailor and the bailee. Ii) Non
gratuitous bailment- a contract of bailment where some
consideration passes between the bailor and the bailee.
b) On the basis of benefit- i) bailment for the exclusive benefit of the
bailor- a contract which is executed only for the benefit of the
bailor and the bailee does not derive any benefit from it. ii)
bailment for the exclusive benefit of the bailee- a contract which is
executed only for the benefit of the bailee iii) Bailee for the mutual
benefit- a contract of bailment which is executed for the mutual
benefit of bailor and bailee.
Duties of Bailor-
• The various duties of bailor are as follows-
a) Duties to disclose defects, Sec 151
b) Duty to bear expenses, Sec 158
c) Duty to indemnify the Bailee in case of premature termination of
gratuitous bailment, Sec 159
d) Duty to indemnify the Bailee against the defective title of the Bailor,
Sec 164
e) Duty to receive back the Goods, Sec 164
f) Duty to bear the risk of loss, Sec 152
Duties of Bailee-
The various duties of bailee are-
1. Duty to take care of the goods bailed, Sec 151 and 152
2. Duty not to make any unauthorised use of goods, Sec 154
3. Duty not to mix bailor’s goods with his own goods, Sec 155 to 157
4. Duty to return the goods, Sec 160 and 161
5. Duty to return accretions to the goods, Sec 163
6. Duty not to set up any adverse title
Rights of a Bailor-
 Right to claim damages in case of negligence, Sec 152
Right to terminate the contract in case of unauthorised use, Sec 153
Right to claim compensation in case of unauthorised use, Sec 154
Right to claim the separation of goods in case of unauthorised
mixture, Sec 156
Right to claim compensation in case of unauthorised mixture of
goods which cannot be separated, Sec 157
Right to Demand Return of Goods, Sec 160
Right to claim compensation in case of unauthorised retention of
goods, Sec 161
Right to demand accretion to goods, Sec 163
Rights of a Bailee-
1. Right to claim damages, Sec 150
2. Right to claim reimbursement of expenses, Sec 158
3. Right to indemnified in case of premature termination and
gratuitous bailment, Sec 159
4. Right to recover loss in case of bailor’s defective title, Sec 164
5. Right to recover loss in case of bailor’s refusal to take the goods
back
6. Right to deliver goods to anyone of the joint bailors, Sec 165
7. Right to deliver the goods to bailor in case of bailor’s defective title,
Sec 166
8. Right to particular lien
Lien
Meaning of lien- Lien means the right of a person having possession of goods
belonging to another to retain those goods until the satisfaction of sum
claimed by the person in possession of goods.
Types of lien: A lien may be either a particular lien or a general lien.
a) Particular Lien, Sec 170- A particular lien is a right to retain only those
goods in respect of which some charges are due. This right is available
only if the following conditions are fulfilled-
 the bailee must have rendered some service
 the bailee must have rendered the service in accordance with the
purpose of the bailment.
 the goods must be in possession of the bailee.
There must not exist any contract for payment of price in future.
The labour and skill must have been used so as to confer an additional
value on the article.
b) General Lien- A general lien is a right to retain all the goods as a
security for the general balance of account until the full satisfaction of
the claims due whether in respect of those goods or other goods.
Meaning of Finder of Goods: Finder of goods is the person who finds
some goods which do not belong to him.
Rights of Finder of goods:
a) Right to Lien, Sec 168
b) Right to Sue for Reward, Sec 168
c) Right to Sell, Sec 169
Duties of Finder of goods:
A finder of goods is subject to the same responsibility as a bailee. The
duties are:
a) Duty to take reasonable care
b) Duty not to use for personal use
c) Duty not to mix with his own goods
d) Duty to find the owner
Termination of Bailment:
Every contract of bailment comes to end under the following
circumstances:
a) On the expiry of the fixed period
b) On fulfilment of the purpose
c) Inconsistent use of goods
d) Destruction of the subject matter of bailment.
Termination of gratuitous bailment:
• Before the expiry of a fixed period
• On the death of bailor/bailee
Pledge
Meaning of pledge, Sec 172: The bailment of goods as security for
payment of a debt or performance of a promise is called pledge or
pawn.
Meaning of pawnor or pledgor: The person who delivers the goods as
security for payment of debt or performance of a promise is called the
pawnor or pledgor.
Meaning of pawnee or pledgee: The person to whom the goods are
delivered as security for payment of a debt or performance of a promise
is called pawnee or pledgee.
Rights of pawnee-
1. Right of retainer: The pawnee has the right to retained the goods
pledged.
2. Right to recover reimbursement of extra ordinary expenses, Sec
173: The pawnee has right to recover from the pawnor extra
ordinary expenses incurred by him for the preservation of the
goods pledged.
3. Right to sue pawnor, Sec 176: The pawnee has the right to sue the
pawnor, if the pawnor makes default in payment of debt or
performance of the promise.
4. Right to sell, Sec 176
5. Right against true owner, Sec 178 A
Duties of pawnee:
The pawnee has almost the same duties as those of the bailee. His
duties are as follows:
1. Duty to take reasonable care of the goods pledged.
2. Duty not to make unauthorised use of goods.
3. Duty not to mix goods pledged with his own goods.
4. Duty to return goods.
5. Duty to return accretions to the goods.
Rights of a pawnor:
• The pawnor has the following rights:
a) Right to get pawnee’s duty duly enforced
b) Right to redeem- Redemption means right to recover back the
goods by making payment of the debt or performance of promise.
Duties of Pawnor:
1. Duty to comply with the terms of pledge
2. Duty to compensate the pawnee for extraordinary expenses
3. Duty to pay the loss on sale
4. Duty to disclose all faults in goods
5. Duty to indemnify against defective title.
Contract of Agency: