In general, Bailment means the delivery of goods of a person to whom permission is given to have the goods of another person. The contracts of bailment come under a special class of contract and are dealt under Sections to of the Indian Contract Act, Though the Contract Act covers the general principles related to contracts of bailment but it does not deal with all types of bailment. However, in a bailment for consideration, he can be held responsible only for the faults which he is aware of and failed to disclose them.

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These are dealt within Chap. IX from S. Bailment implies a sort of one person temporarily goes into the possession of another Contract- II: Bailment. Contracts of Bailment are a special class of contract. Bailment implies a sort of one person temporarily goes into the possession of another.

The circumstance in which this happens are numerous. Delivering a cycle, watch or any other article for repair, delivering gold to a goldsmith for making ornaments, delivering garments to a drycleaner, delivering goods for carriage, etc.

His duty is naturally much less than that of a Bailor for hire or consideration. If he does not make such disclosure, he is responsible for any damage caused to the Bailee directly from such faults. He does not disclose that the horse is vicious. In Gratuitous Bailment, however, the Bailor is responsible only for those faults which are known to him and which are not disclosed.

But in such a case, the loss accuring to the bailee from such premature termination should not exceed the benefit he has derived out of the bailment. If the loss exceeds the benefit, the bailor shall have to indemnify the bailee.

He is making profit from his profession and, therefore, it is his duty to see that the goods which he delivers are reasonably safe for the purpose of the bailment. It is no defence for him to say that he was not aware of the defect. If the Bailor refuses to receive back the goods, the entitled to receive compensation from the Bailor for the necessary expenses of custody.

The plaintiff hired from the defendant for a specific journey of a carriage, a pair of horses and a driver. During the journey a bolt in the under-part of the carriage broke, the splinter bar became displaced, the carriage was upset and the plaintiff injured. The plaintiff hired a motor launch from the defendant for a holiday on the river Thames. The launch caught fire, and the plaintiffs were unable to extinguish it, the fire-fighting equipment being out of order.

They were injured and suffered loss. The court held that there was an implied undertaking that the launch was as fit for the purpose for which it was hired as reasonable care and skill could make it. The defendant was accordingly held liable. Goods consigned without disclosing that they were combustible. Where a bailor delivers goods to another for carriage or for some other purpose, and if the goods are of dangerous nature, the fact should be disclosed to the bailee.

Bailment is different from licence and sale. There are five important duties of bailor as we have discussed above. A contract of bailment may be terminated by act of parties or by operation of Law. Avtar Singh B. For Further Details Contact: editor legalserviceindia. Legal Service India. File Your Copyright - Right Now! File Divorce in Delhi - Right Now!


Bailment – Introduction

This article is written by Rishabh Soni, law student, Amity law school Delhi. He discusses the contract of bailment and pledge. Bailment as defined in section of the Indian contract act is the delivery of goods by one person to another for some specific purpose, upon a contract that these goods are to be returned when the specific purpose is complete. For example, A delivering his car for Service at the service center is an example of bailment. The person delivering the goods is known as bailor and the person to whom goods are delivered is known as bailee. However, if the owner continues to maintain control over the goods, there is no bailment. Illustration If A gives his car to B his neighbor for 10 days, but at the same time he keeps one key with himself and during this period of 10 days he used to take the car.


Contract- II: Bailment

There are many instances of bailment in our daily lives — when we give our clothes for laundry, when we use valet parking for our cars. We deliver our goods to another person or leave them in the power of another person for a purpose and expect to receive our goods back when the purpose has been achieved. For example, a man visits a repair shop for getting his television set fixed. The television set is left at the shop where the repair man examines it and fixes the problem. Once fixed, the television set has to be returned to its owner.


Business Law by Tejpal Sheth

These are dealt within Chap. IX from S. Bailment implies a sort of one person temporarily goes into the possession of another Contract- II: Bailment. Contracts of Bailment are a special class of contract.

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