This document defines and explains the key elements of a contract of bailment under Indian contract law. It notes that a bailment involves the delivery of movable goods by the bailor to the bailee for a specific purpose, with an obligation for the bailee to return the goods. The essential elements outlined are a contract, delivery of goods, purpose for the delivery, and return of the goods. The document also distinguishes between different types of bailments based on whether the benefit is to the bailor, bailee, or both, and whether consideration is provided.

1. Contract of Bailment
Course Co-Ordinator:
Neetu Kushwaha

2. • Section 148 to171 of the Indian
Contract act 1872,contain the
provision relating to contract of
bailment .

3. Definition
• According to Sec. 148, ‘bailment’ 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 directions of the person delivering
them.

4. Parties to contract
• Bailor: The person delivering the goods is called
the bailor. [Sec.148]
• Bailee: The person to whom the goods are
delivered under the contract of aa bailment is a
bailee. [Sec.148]
• Sub-Bailee: When a bailee with express or
implied consent of the bailor, again bails the
goods to a third party is known as sub-bailee.

5. Essential Elements of Bailment
• Contract: A bailment is based on contract. The
contract may be expressed or implied.
• Goods: Bailment can be constituted only of goods
i.e. movable goods only.
• Delivery of goods: In bailment there must be
delivery of goods by one person to another. In
bailment only possession of goods passes from
one person to other. Possession means control of
goods.

6. CONT…..
• Purpose: The delivery of goods must be for
some purpose. The purpose of delivery may be
safe custody, transportation, repair, use, etc.
Delivery without purpose dos not create
bailment.
• Return of goods: For a transaction of bailment,
it is necessary that the same goods must be
returned.

7. Kinds of Bailment
• On the basis of the benefit delivered by the
parties:
(i) Bailment for the benefit of the bailor:
Where a person delivers his goods for safe custody
with his relative or friends without any reward.
Eg: ‘A’ while going out of station, leaves his car
with his friend ‘B’, for safe custody

8. CONT….
(ii) Bailment for the benefit of the bailee alone:
Where goods are lent for the use of friends and
relatives.
Eg. A borrows B’s books for week.
(iii) Bailment for the mutual benefit of both the
bailor & bailee:
Where goods are bailed for rewards or some
consideration then the bailment is for the benefit
of both the parties

9. CONT….
• On the basis of consideration:
(i) Gratuitous Bailment:
A bailment without any reward or
consideration
(ii) Non Gratuitous Bailment:
A bailment for reward or hire