PPT on "Bailment" for BBA & B.Com 1st year students, CA, CPT, CS & CMA Foundation. Business Law PPT by Sandeep Sharma. Meaning with suitable example & explanation.

1. BAILMENT
Chapter – 16
Part 1
PPT by Sandeep Sharma

2. Meaning: Bailment
 Section 148
“It is the delivery of goods by one person to another for
some purpose,
when the purpose is accomplished,
be returned according to the directions of the person
delivering them”.
Section 148 (definition) to Section 171

3. Bailment
 Bailor: person delivering goods.
 Bailee: person to whom the goods are delivered.
 Sub-bailee: when bailee with the consent of
bailor, bails the goods further to the third
party.

4. Example 1
Ms. Rajni
Here, Ms. Rajni
lends her car to Mr.
Kant (her friend).
So, it is a contract
of Bailment
between them.
Mr. Kant
friend
lends car
(Bailor) (Bailee)

5. Examples
 When A delivers his clothes to B for
dry-cleaning.
 When A hands over his car to B for
a long drive.
 When A parks his car in a parking
centre of B for a payment.
 When A gives his laptop to B for
updating it’s software.
There is a contract
of Bailment in each
of the following
cases.

6. Essentials: Bailment
 Contract: it may be Express, Implied or Quasi.
 Goods: bailment is only for ‘movable goods’, the bailment of
immovable property is impossible.
 Delivery of goods: goods must be delivered from one to another
person.

7. Essentials: Bailment
 Purpose: the delivery of goods must have some purpose. Delivery
without any purpose/by mistake does not create bailment.
 Return of goods: it is a basic condition, when purpose is accomplished.
 Return of the same Goods: bailee is bound to return the very same
good.

8. Special cases of Bailment
 Seizure of goods by Govt. officials: if govt seize then they are in the position
of bailee & liable to the owner of goods.
 Deposit of instruments: instruments like promissory note are deposited as
security for liability then person receiving it considered as bailee.
 Port authorities: these port authorities are liable as bailees.
 Common carrier: railways
 Post office, Cloak room, Parking place etc.

9. These are NOT Bailment
 Deposit with Bank: deposit in Savings/fixed deposit account.
WHY not bailment?
i. Money is not goods as per definition.
ii. Banker is not bound to return same notes & coins.
 Collection of money by agent: an agent who collects money on behalf of his
principal.
 Bank locker/safety vault: because they are not going to use it, so it is a
contract of hiring only.

10. Modes of delivery of Goods
 Actual delivery: when goods are physically handed by bailor to bailee.
 Symbolic: Eg:- A is to deliver Bike to B, he gave the key of his Garage
from where B will take A’s bike.
 Constructive: here any authorized person gets the goods on behalf of
bailee.

11. Classification/types of Bailment
On the basis of Purpose
On the basis of Benefit
On the basis of Reward

12. Classification
1) For deposit: for safe custody of goods.
2) For use: for use of goods for some time.
3) For pledge: goods as security of a loan.
4) For carriage: carrying goods from one
to another place.
5) For creation of utility: delivering cloth
to a tailor for stitching a shirt.
6) For repair: delivering car for service.
On the
basis of
PURPOSE

13. Classification
1) For bailor’s sole benefit: car at parking
centre for a payment
2) For exclusive benefit of bailee: gives
car for long drive.
3) For the mutual benefit: when both the
parties are being benefited.
4) Forced bailment: goods passes to a
person by mistake, accident.
On the
basis of
Benefit

14. Classification
1) Gratuitous: where remuneration passes
between both. Eg:- Bailor lends his
goods without any charge/reward.
2) Non-gratuitous bailment: where some
consideration takes place. Eg:- bailee
hires something from a shop for charges.
On the
basis of
Reward
(remuneration – money paid for work)

15. END OF PART - 1
PPT by Sandeep Sharma