contract of bailment

1. Meaning:
 (Any kind of handing over)
 Technical term of a common law
 Transfer of possession for specified time
Definition:
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 direction of the
person delivering them.
Bailor : The person delivering the goods is called bailor.
Bailee : The person to whom the goods are deliver is called bailee.
Bailment:
The Transaction of handing over the goods is bailment.
If it possesses all the essentials of a contract the transaction is called
contract of bailment
Essentials :
I. All the essentials of a valid contract
II. Delivery of goods (moveable)
III. transfer of possession
IV. Specific purpose
V. Upon contract
VI. Return of goods
i. In original form
ii. In change form
iii. Or otherwise dispose of
Explanation:
If the Person is already in the Possession Then mere the Contract
to hold that as Bailee is enough to constitute the Bailment
Typology:
1. Gratuitous (Without Reward )
2. Non Gratuitous (For Reward )
Munir Hussain ktk All Rights Reserved
Contract of Bailment
 Typology : Bailment
Benefit Reward
For the benefit
Of bailor
For both Gratuitous Non Gratuitous
For the benefit
Of bailee
Subject: Law of Contract II LLB 224
Standard: LL.B 4th semester
Topic: Bailment. Section 148 to 171
MUNIR HUSSAIN KTK
Lecturer
UNIVERSITY LAW COLLEGE
QUETTA
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2. Duties of Bailor :
To Disclose Fault:
--n case of Gratuitous Bailment
Which were in his Knowledge
-In case of Non Gratuitous Bailment
If he is aware of the Fact are not if Injury caused to him
he will be Liable for Damages
To pay necessary expenses:
 In case of gratuitous bailment
Where the bailee hold the goods for bailor
- Ordinary
-Extra ordinary / special
 In case of non-gratuitous bailment
- Extra ordinary / special
Duty to Indemnify :
I - For Demanding Back
In case of gratuitous bailment
If the bailor demands the goods before the time specified
Then he has to indemnify the bailee for the loss caused to him in
the excess of the benefit already enjoyed by the bailee in respect
of the good bailed
II - For Defective Title
If the title of the bailor is defective and the bailee suffers a loss
then the bailor will indemnify the bailee
Duty to receive back the goods:
Can claim compensation
Rights of Bailor :
1. To claim damages:
-loss due to the negligence of bailee
-for un authorized use
- For unauthorized mixing
2. To demand for the return of goods :
When the purpose is accomplished
If bailee makes defaults
In gratuitous bailor can demand before the time
Then he will indemnify the bailee
3. To claim increase:
Bailor is entitle to receive any increase of profit .
4. To terminate the bailment :
If the bailee violate any terms and condition
5. To sue :
The bailor may sue for the breach of contract
The bailor may sue third person who damage or take the
possession of property

3. Duties of Bailee :
Duty to take reasonable care:
Like ordinary prudence person would under similar circumstances
take care Of his own goods Of the same descriptions.
And in the default any loss is accrue the bailee is responsible
In the absence of a special contract to the contrary the bailee is not
responsible if care is taken.
The bailee is bound to take reasonable step for the recovery if been
stolen
Duty Not to make un authorized use:
To use the goods according to the terms of the bailment .If the bailee
make un authorized used and any damage caused Bailee will
compensate the bailor
Duty not to mix the goods:
If the bialee without the consent of the bailor mixes the goods with
his own goods
If possible to separate
The bailee will bear the expenses of Separation and the loss
If impossible to be separated
The bailee will compensate the bailor
Duty to return the goods:
-According to directions of the bailee
-Without demand
-If the bailee fails to return the goods at proper place Bailee will
responsible to the bailor for any loss
Duty to return increase:
In the absence of any contrary provision
The bailee is bound to return the natural increase and profit to the
bailor
Rights of bailee:
1. Right to claim damages :
In case of gratuitous bailment
Any damage caused directly due to the faults known to the bailor
In case of non-gratuitous bailment
Bailee is entitled to claim compensation even for those faults of
which bailor was not aware
2.Right to recover expenses :
In case of gratuitous bailment
where the bailee hold the goods for bailor
- Ordinary
- Extra ordinary / special
In case of non-gratuitous bailment
- Extra ordinary / special
3. Right to deliver goods:
If several joint owner bailed any goods .In the absence of any
agreement to the contrary bailee can delivered back to any of the
joint owner without the consent of all

4. 4. Right to stop the delivery :
If someone else (other than bailor) claims the owner ship of the
goods The bailee may apply the court to stop the delivery and to
decide the title
5. Right to sue :
If any third person wrongfully deprive the bailee from the use of
goods bailed or made any loss to the goods the Bailee is entitled to
sue such person
6. Right of lien :
Mean the right to retain the possession of property belonging to
another until and unless some claim or debt is paid
Exception;
If the bailee does not complete the work with in a time then he will
not be entitled to this right
Termination of Bailment:
1. On expiry of time
2. On accomplishment of purpose
3. On unauthorized use (void able )
4. On death
5. (the gratuitous bailment )
6. On Termination by bailor
7. On destruction of subject matter