Sections 148 to 171 of the Indian Contract Act, 1872 outline the provisions governing contracts of bailment, which involve the delivery of goods from one party (bailor) to another (bailee) for a specific purpose, with the expectation that the goods will be returned. The document details the essential elements of bailment, the duties and rights of both bailors and bailees, and outlines obligations such as care for the goods, return of goods, and disclosure of defects. Key principles include that a contract is necessary for bailment and that bailees must not use the goods unlawfully.

1. BailmentARAVIND.T.Swww.aravindts.com

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

3. Bailment Originated from aFrenchword
Bailer which meansto deliver.

4. Abailment is the delivery of goods by one
person to another forsome 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 .

5. Bailor :- Theperson who delivers the goods
Bailee :- Person towhom they are delivered is
called the bailee

6. Essentialsof Bailment
1. Delivery of possession
2. Delivery of goods should be upon acontract
3. Delivery of goods must be for aspecific
purpose
4. Return of goods

7. 1.Delivery of possession
Thefirst unique feature of bailment is that the
bailor must transfer his possession of goodsto
the bailee.
Thegoods should be put in the leagalpossession
of the bailee.

8. 2.Delivery of goods should be upon acontract
When apersons ‘s goods go into the possession ofanother
without any contract there is no bailment.
However afinder of lost goods of another is considered to be a
bailee even though there is no real contract .The contract
may be express or implied

9. 3.Delivery of Goodsmust be for aspecific
purpose
U/S 148 provides , the delivery of goods from bailor to bailee
must be for some purpose.
If goods delivered by mistake to aperson , there is reallyno
bailment .

10. 4.Return of Goods
Goodsshould be returned to the bailor or
disposed of according to his direction,either
in their original or in an altered form , when
the purpose of bailment is over.

11. Duties of Bailee
A. To take care of theGoods
U/S 151provides , the bailee is bound by the
contract of bailment to return the goods
when the purpose ofbailment is fulfilled .He
hasto take care of the goods while they are
in his possession.
Heis responsible for any loss ordamage
causedto the goods by virtue of his
negligence .

12. B.Duty not to mix with his owngoods
U/S 155 to 157 : deal with the provisions governing the
rights of the bailor and bailee when there is an inter-
mixing of their goods.
Thebailee hasan obligation to
keep the goods of the bailor
separate from his own.

13. C.Dutyto Return theGoods
Duty of the bailee to return the goods without
demand , on the expiration of the time
specified or when the purpose is
accomplished .

14. D.Duty not to usebailed goods in anUnauthorised
Manner
Bailee is under an obligation not tousethe goods in an
unauthorised manner or for an unauthroised
purpose
Ifbailee does so, the bailor can terminate the bailment
, and claim damagesfor any loss or damagecaused
by the unauthoriseduse

15. F.Duty to return any accretion of the goods
Thebailee must return to thebailor any
increase or profits which have accuredfrom
the goods bailed.
U/S 163 states that the bailor is entitled to the
profits accruing from the goods ,unless there
is acontract to the contrary.

16. G.Duty of Finder of LostGoods
Afinder of lost goods is abailee and such he is
bound to take reasonable care ofthose goods
Hehas to return the goods to the real owner if
the real owner payshis lawfulcharges

17. Rightsof Bailee
1. Right to compensation(S.164)
Thebailee can claim compensation form the
bailor for any loss resulting to him by the
reason that the bailor was not entitled to
make the bailment .

18. 2.Right to Expensesor remuneration(S.158)
If the bailee is required by the terms of bailment
to keep or carry the goods or to do some work
upon them for the benefit of the bailor , he
(bailee) is entitled to recover his agreed
charge
Thebailee hasaright to askthe bailor for
payment of necessary expensesincurredby
him for the purpose of bailment .

19. 3.Bailee’s Right of Lien(S.170-171)
Lein is the right toretain the goods by aperson
in possession of the goods of another until
his lawful claims in respect of the goods are
satisfied
A.Particular Lien (Skill and labour areused)
B.General Lien(right to retain the property
belonging to the other and in the possession of the
person trying to exercise the lien in respect of any
payment lawfully due to him)

20. Duties of Bailor
a) Duty of Disclosure
In the caseof gratuitous bailment , the bailor
must disclose all the known faults to the
bailee and if he doesn’t make suchdisclosure
, he is responsible for the damage arisingto
the bailee directly from such faults.
In caseof bailment for reward the bailor is
responsible irrespective of the knowledgeof
the faults in the goods bailed.

21. b)Duty to bearexpenses
If the bailementis gratuitous and the bailee isin
no way benefited , the bailor hasto bear the
expenses .
In the caseof bailment for reward , even
thought the bailee is to bear the ordinary and
reasonable expensesof bailment (eg,feeding
of horselent),

22. c)Duty to indemnify thebailee
Thebailor should indemnify the bailee forany
cost or costs which the bailee may incur
because of the defective title of the bailor to
the goods bailed.