A bailment is a contract where one person (the bailor) delivers goods to another (the bailee) for some temporary purpose. The bailee must return or dispose of the goods according to the bailor's directions once the purpose is accomplished. As per the document, the key duties of a bailor are to disclose any faults in the goods, pay extraordinary expenses incurred by the bailee, accept the goods after the purpose is fulfilled, and indemnify the bailee if the goods have a defective title. The bailee has a lien on the goods, meaning they can retain possession until charges for their skill/labor are paid, if they have conferred additional value on the goods.

2. Duties of Bailee and Bailor:
As per the section 148 of the Indian Contract Act, 1872, a bailment is a contract where
one person delivers goods to another person for some purpose. The person delivering
the goods is the Bailor and the person receiving the goods is the Bailee. After the
accomplishment of the purpose, the Bailee needs to return these goods to the Bailor or
dispose of them according to the directions of the Bailor. Let us now discuss the duties
of bailee and bailor.
Bailment refers to the voluntary delivery of goods. Also, such delivery is for a temporary
purpose and after the fulfilment of which the bailee shall either return the goods in the
same or altered form or dispose of them.
In the contract of bailment, the ownership of the goods remains with the Bailor and only
the possession transfers to the bailee. Such delivery of goods may be actual or
constructive.
For example, when A hands over the keys of a godown to B, it amounts to the delivery of
goods in the godown. Also, A is the bailor and B is the bailee.

3.  Duties of a bailor
 Duties of a bailor are as follows:
 It is the duty of a bailor to disclose all faults. If bailor fails to
disclose such faults then he will be responsible for the
damage caused to goods or loss suffered by the bailee.
 Also, the bailor is under the duty to pay the extraordinary
expenses incurred by the bailee for such bailment.
 It is the duty of the bailor to accept the goods after the
purpose for which such goods were bailed is accomplished.
 It is the duty of the bailor to indemnify the bailee for the cost
incurred due to the defective title of goods bailed to the
bailee.

4.  Example
 Ans. As per section 170 of the Indian Contract Act, 1872, the
bailee has a lien on the goods that he receives under the contract
of bailment. When the bailor bails the goods to the bailee for a
particular purpose and the bailee expands skill and labour on
these goods, he has a right to retain the goods until the bailor pays
him his charges in respect of skill and labour. However, the right of
lien arises only when the bailee uses skill and labour on the goods
to confer an additional value on the goods.
 For example, X gives a piece of cloth to Y for stitching a shirt. Y
promises to deliver the shirt in a week’s time. After a week Y has
the shirt ready. But, he has a right to retain it until X pays him his
charges.
 Section 171 states the provisions for a general lien. It is a right to
detain any property belonging to another person which is in the
possession of the person exercising the lien in respect of any
payment lawfully due to him.