2. Name : s.sivasangar
Supject : business law
College : ayya nadar janaki ammal college,sivakasi.
Class : ii.b.com
3. BAILMENT
•Derived from a French word ‘bailer’
word which means to deliver
•In law of contracts it means
delivery of goods.
• Under contract law, only
possession is passed on and not
the ownership.
4. • Bailment is 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.
• Bailor – a person or party that entrusts goods to
bailee .
• Bailee – a person or party who takes goods from
bailor .
•Bailment – Transaction
SEC 148 OF INDIAN CONTRACT ACT 1872
5. ESSENTIALS OF BAILMENT
1.Contract :
The first condition is that there must be a contract
between the two parties for the delivery of goods.
Such contract may be expressed or implied, written or
oral.
2.Delivery of Possession :
Possession of goods from one person to another and mere
custody of goods does not amount to change in possession
3. Delivery should be made upon a contract :
There is no bailment where the delivery of goods is without
contract Cases: State of Gujarat vs. Memon MohammadAIR
1967 SC 1885 Lasalgaon Merchants Coopertaion Bank ltd. Vs.
Prabhudas Hathibhai
6. 4. Delivery for specific purpose.
5. Return of goods.
KINDS OF BAILMENT :
On the basis of benefit :
1. Exclusive for the benefit of bailor .
2. Exclusive for the benefit of bailee.
On the basis of Reward :
1. Gratuitous Bailment:
Goods are delivered by the bailor to the bailee and neither
bailor nor bailee is entitled for remuneration.
example: Lending a book to a fund
7. 2. Non gratuitous Bailment :
Either bailor or bailee is entitled o a remuneration.
Example: A car let out for hire.
RIGHTS OF THE BAILOR:
1. Right to get back the goods .
2. Right to terminate the contract .
3. Expenses of separation .
4. Compensation for goods .
5. Right to share profit .
6. Compensation for delay in time.
8. RIGHTS AND DUTIES OF BAILEE :
1. To recover damages .
2. Recovery of expenses.
3. Recovery of compensation.
4. Right of action against the third party .
5. Right of lien – sec 170 of Indian contract act
DUTIES AND LIABILITIES OF THE BAILEE:
1. To take care of goods – sec 151
2. Expenses of separation – sec 156
3. Unauthorised use of goods – sec 154
4. Inconsistent act – sec 153
5. Compensation - sec 157
9. BAILMENT AGENCY
1. Bailee does not
represent bailor.
2. Bailee does not have
power to make contract on
bailor’s behalf.
3. Bailor not liable for any
acts of bailee
1. Agent represents
principal
2. Agent can make
contract on principal’s
behalf
3. Principal is bound by
agent’s act.
DIFFERENCE BETWEEN BAILMENT
ANDAGENCY
