This document discusses the principles of bailment in business law. It defines bailment as the delivery of goods by one person to another for some purpose, upon agreement that the goods will be returned or disposed of according to the deliverer's directions. The document outlines the essential features of bailment, the different types of bailment categorized by benefit and reward, and the duties and rights of both the bailor and bailee. It also discusses how bailment differs from sale and license, and how a bailment can be terminated.

1. Principles of Business Law
Bailment

2. Topics Covered
Principles of Business Law
• Definition
• Essential Features
• Kinds of Bailment
• Duties and Rights of Bailee
• Duties and Rights of Bailor
• Termination of Bailment

3. Principles of Business Law
Bailment
“ A 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.”
Section 148 of the Contract Act
BailorBailee
Hiring of Goods
Hiring of Furniture
Delivering a scooter for repair

4. Principles of Business Law
Essentials features
Delivery of Movable goods
The Goods are delivered for some purpose
The goods are to be returned in specie or disposed of
Deposit of money with a
banker is Bailment?

5. Principles of Business Law
Kinds of Bailment
Kinds from ‘benefit’ point of view:-
 Bailment for the exclusive benefit of the bailor
 Bailment for the exclusive benefit of the bailee
 Bailment for the mutual benefit of the bailor and the bailee
Kinds from ‘reward’ point of view:-
 Gratuitous bailment
 Non-gratuitous bailment
Benefit
Reward
Benefit and Reward

6. Principles of Business Law
Consideration in Relation to Gratuitous Bailments
Difference between ‘Sale’ and ‘Bailment’
Difference between ‘Bailment’ and ‘License’

7. Principles of Business Law
Duties of Bailee
Duty to take reasonable care of goods delivered to him
Duty not to make authorised use of goods entrusted to him
Duty not to mix goods bailed with his own goods
Duty to return the goods
Duty to deliver any accretion to the goods

8. Principles of Business Law
Duties of Bailor
Duty to disclose faults in goods bailed
Duty to repay necessary expenses in case of gratuitous
bailment
Duty to repay any ‘extraordinary’ expenses in case of non-
gratuitous bailment
Duty to indemnify bailee
Duty to receive back the goods

9. Principles of Business Law
Rights of Bailee
Enforcement of Bailor’s duties
Right to deliver goods to one of several joint bailors
Right to deliver goods, in good faith, to bailor without title
Right of lien

10. Principles of Business Law
Rights of Bailor
Enforcement of bailee’s duties
Right to terminate bailment if the bailee uses the goods
wrongly
Right to demand return of goods at any time in case of
gratuitous bailment

11. Principles of Business Law
Rights of Bailor and Bailees against Wrong-doers
Termination of Bailment
-Specific period
- Specific purpose
- Inconsistent in terms of bailment
- Gratuitous Contract can be terminated anytime/death

12. Principles of Business Law
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