Monday, 7 February 2022

Concepts of Bailment.

 Concepts of Bailment. 

By swatee shukla 

There are certain types of contracts where the nature of the relationship between the parties gives rise to certain rights and duties. In addition to the usual rules applicable to contract law, there are special rules attached to the special contracts. Whenever these contracts are entered into, apart from the terms the parties agree on, some conditions apply by default as the law imposes them n the contracting parties. 

Bailment is defined as the delivery of goods by one person to another for a predetermined purpose with the contractual obligation that once the purpose is fulfilled, the goods should be returned or disposed of according to the direction of the person delivering them. The person delivering the goods is known as “bailor” and the person to whom they are delivered is called “bailee”. 

In the contract of bailment, the bailor is the person with the right of possession over a property. And he is delivering the property to the possession of another (the bailee). The delivery would not be against the wish of the bailor. The possession of the bailee is intended by the bailor to be only temporary. After the purpose of bailment is served, it is to be returned or disposed of according to the wish of the bailor.  Remember that bailment can be either contractual, where there would be the transfer of valuable consideration. Bailment of goods imposes some duties on the bailee. In fact, the relationship of bailment creates certain rights and duties for both the bailor and the bailee. The duty of one is the right of another. 

Duties of the bailee- duty to take reasonable care of goods delivered to him, a duty not to make unauthorized use of goods entrusted to him. duty not to mix goods bailed own goods, duty to return the goods and duty to deliver to the bailor increase or profit on the goods bailed. 

Duties of bailor- duty to disclose faults in goods bailed, duty to repay necessary expenses in case of gratuitous bailment, duty to receive back the goods, duty to pay the ailee if he has done some works or rendered some service on it to improve it, and duty to repay any reasonable cost incurred by bailee in keeping and protecting the goods. 

When any of these duties are breached, the injured parties can claim damages. The list of duties is only an indicative list to give some examples of duties of the bailor and the bailee. If a problem is set on the duties of the bailor or bailee, the principle given with it would contain the duty you need to know about. The bailee, however, is not liable for the loss of the bailed good or any damage to it. Which is beyond his control, when he has taken adequate care to protect it, as much as a reasonable person would have taken in similar circumstances in the case the goods were his own. The bailee would be paid compensation according to the terms of the contract. 

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