The document discusses the rights and duties of bailors and bailees. A bailor temporarily gives possession of goods to a bailee but retains ownership. The bailor has the right to compensation if the goods are damaged due to the bailee's negligence and the right to demand return of the goods. The bailee has the right to compensation from the bailor and the right to expenses incurred in caring for the goods. Both parties have duties - the bailor must disclose known faults while the bailee must take reasonable care of the goods and not mix them with personal items.

1. Rights and Duties of Bailor
And BaileE

2. Who is Bailor?
A Bailor is a person who temporarily gives the possession of goods or
property but not the ownership under the bailment.
Who is Bailee?
A Bailee is the person who temporarily gets the possession of the goods
and property but not the ownership.

3. Rights of Bailor :
• Right to Claim Compensation Against the Unauthorized Use of Goods:
If any of the third person, does some injury to the goods bailed or deprive (stop) the
bailee to use bailed goods, in such a case bailor has right to file the suit against the wrong-
doer and to get compensation from him.
• Right to Claim Compensation: – In the case of bailment, bailor has the right to claim the
compensation if any damage is done to the goods bailed due the bailee’s negligence or
misconduct.
• Right to Demand the Return of the Goods: – The bailor has the right to get his goods
back in a safe and good condition after the expiry of the bailment time period or the
achievement of the purpose for which the goods were bailed.
• Right to Enforce Bailee’s Performance: – The bailor deliver his goods to the bailee for
some specific purpose and in the case of the non-gratuitous bailment, the bailor has the right
to achieve that purpose or to get benefits through the same.

4. Duties of a Bailor:
• Duty to Disclose Faults: – In the case of a gratuitous bailment, the bailor is expected to disclose all the
defects to the bailee known by him and that can arise while using the bailed goods. A non-gratuity carries a
major responsibility on the part of the bailor as in this case bailor will also be liable even if he does not know
about the defects.
• Duty to Repay Bailee’s Expenses: – Bailor is bound to repay all the expenses which were incurred by
him for the work done on the goods received in the bailment.
• Duty to Indemnify the Bailee: – The bailor is obliged to make good for the losses suffered by the
bailee, or that because of the bailor, where the goods were delivered without any reason or force the bailee to
return the goods before the expiry period of the bailment.
• Duty to Claim Back the Goods: – In accordance with the terms of the bailment, bailor is obliged to
accept the goods returned by the bailee. If bailor refuse to accept the returned goods without any reasonable
ground then in such a case, bailor will be responsible for all the damage done to the goods and not the bailee.
• Duty of the Bailor to Compensate for the Breach of Warranty: – In every contract of
bailment warrants, bailor’s title should be defect free. If bailee suffers any losses due the bailor’s defective title
then in such a case the bailor will be responsible for the damages done to the bailee for breach of warranty.

5. Rights of Bailee:
 Right to Compensation: – Bailee has the right to claim compensation from the
bailor in respect to any damages done to him by the act of the bailor.
 Right to Expenses or Remuneration: – Bailor is bound to repay all the
expenses which were incurred by him for the work done on the goods received in
the bailment.
 Right of Lien: – If the bailee charges are not paid by the bailor, he has the right
to retain the goods. So, the right to retain the property on which the charges are
due is called right to lien. The Supreme Court cited the following passage from
HALSBURY’S LAWS OF ENGLAND as to the nature of this right.

6. Duties of Bailee:
 Duty to Take Reasonable Care: – It is the duty of the bailee to take reasonable care of the bailed
goods and he is bound to take as much care of the goods as an ordinary prudent person of sound mind takes.
 Duty to Unauthorized Use of Goods: – The bailee has to keep in mind or fulfil all the conditions
mention in the bailment agreement while using the bailed goods. If he illegally use the goods, the bailment
agreement will become voidable at the option of the Bailor.
 Duty to Not to Mix the Bailed Goods with his Personal Goods: – The bailee must keep the
bailed goods separated from his own personal goods. He cannot mix the goods without the prior permission of
the bailor.
 Duty of Not to Setup an Adverse Title: – Bailee only have temporary possession of the goods and
not ownership as he holds the goods on behalf of the bailor, so he has to return the goods.
 Duty to Return Goods: – It is the duty of the bailee to return the goods to the bailor in safe and good
condition after the expiry of the time period of bailment or achievement of purpose for the goods were bailed.
The goods must be returned according to the directions given by the bailor. If he failed to do so, he will be
responsible for the losses done to bailor even without his negligence.