If the goods are immovable the contract will not be a contract of bailment. In Gratuitous bailment, bailer is not answerable to un-known faults. In case of Gratuitous bailment, bailer need not contribute for ordinary expenses and extra ordinary expenses or to the contributed by bailer. It is the warehouse which stores the goods from the time of production to the time they are sold. Introduction Bailment is a common law term and involves the change of possession, i.
Illustration; A keeps his bicycle for safe custody with B for reward the bicycle gets punctured without the negligence of B and B repairs it. Objects a To purchase the raw materials and other factors at most economical prices. He does not disclose the fact that the horse is vicious. If bailer refuses to take the goods back, bailer has to compensate bailee. Also, there are certain bailment contracts which exempt the bailee from any obligation or liability.
This implies that the bailee is not entitled to use the goods for personal benefits unless the bailment for his use by doing an unauthorized act. The parties under the contract of bailment may insert any special provision increasing the responsibility of the bailee in respect of care to be taken against the goods bailed, but they cannot decrease the standard of care. Right of general lien Sec. Common instances of bailment are: giving cloth to the tailor to make a coat, delivering a car to repairers for repairs, consigning goods to a commission agent for sale, delivering goods to a railway company for carriage. Moreover, if the bailee fails to return or dispose of the good, then the bailee, at his risk, keeps the goods with him and if after that any loss or damage happens, the bailee would be held liable for the same. Bailee can also claim all the necessary expenses incurred by him for the purpose of gratuitous bailment.
If he refuses or fails to accept back the goods, if offered at a proper time and at a proper place, without any reasonable ground, he shall be responsible for any loss or damage to the goods and not the bailee. Mixing is Not Allowed :- It is the duty of the bailee that he should keep the bailor goods separate from his own goods. If none is expressed, the intention of the parties must be determined from the surrounding circumstances, including the nature of the property and the nature and purpose of the bailment. And the bailee is under obligation to return so. Return of Goods :- It is the duty of the bailee to return or deliver the goods bailed according to the bailors conditions. To disclose Facts The important duty of the bailor is to disclose the faults in the goods bailed in so for as they are known to him; and if he fails to do that he will be liable to pay such damages to the bailee as may have resulted directly from the faults.
This implies that the bailee is not entitled to use the goods for personal benefits unless the bailment for his use by doing an unauthorized act. Illustration; A delivers his camera to B to keep it in his safe-custody for six months. Want of skill usually associated with a particular class of work, would be evidence of negligence. Bailments apply to items which have been borrowed or loaned, items being transported by couriers, and customer goods in the possession of repairmen. Illustration; A delivers his bicycle to B to use it for two days. For example, when we give a piece of cloth for stitching to a tailor or when we give our watch for repair, etc. He shall be held liable for compensation to the bailor if any damage is caused to the goods because of his unauthorised use.
If the bailee fails to do so, is entitled to get reasonable compensation from the bailee due to 2. This right of particular lien shall be available only against the property in respect of which skill and labour has been used. If the bailee, without the consent of the bailor, mixes the goods bailed with his own goods and the goods can be separated or divided, the property in the goods remains in the parties respectively bailee is bound to bear the expenses of separation and division and any damage arising from the mixture Sec. To take reasonable care Sec. Bailee shall be held liable for losses arising due to his negligence. The following are the duties and rights of the bailor.
In those situations wherein the goods are separable, the law imposes liability on the bailee for any loss or damage that the bailor might suffer due to such mixing. That means he can exercise right of lien against those goods only on which amount is due. In other words where an article is hired out for use there is an implied warranty that it is fit for such use. The person who has good prestige and status is given, the position of nominal partner. This qualified property right entitles him to bring an action against third persons for interfering with his possession or for injury to or destruction of the goods. Notice that there is a difference in the degree of responsibility of the bailor, according as bailment is gratuitous or non- gratuitous.
In other words, his duty towards the goods arises at that time when the purpose for which goods are bailed is completed. Section 160 provides that if the time of bailment has expired or the purpose is fulfilled, then the bailee is bound to deliver the goods as per the directions of the bailor without demanded by bailor, i. In this case, B may apply to the Court to decide the question of ownership of the T. Right to Deliver the Goods to Bailor without Title If the bailor has no title to the goods, and the bailee in good faith delivers them back to or according to directions of the bailor, the bailee is not responsible to the owner in respect of such delivery. Example : A lends his horse to B for his own riding only. The transfer of possession may be actual or constructive, e.
There is an implied contract in a bailment to return the articles in a reasonable time after the purpose is served even if no time is stipulated for return. For a valid bailment, it is necessary that bailee must have actual physical control of the property with the intent to possess it. Recovery of Losses :- If the bailee suffers a loss or damage due to the of the bailed goods he has a right to recover it from the bailor. Where the bailee has a in accordance with the purpose of bailment, b rendered any service involving the exercise of labour of skill, c in respect of the goods, he shall have d in the absence of a contract to the contrary, right to retain such goods, until he receives due remuneration for the services he has rendered in respect of them. A non-gratuitous bailment or bailment for reward, however, carries a greater responsibility on the part of bailor. Exampl e i : A delivered to B certain gold ornaments for safe custody.
McMullen, 1703 2 Ld Raym 909. Duty not to make any unauthorized use: In a contract of bailment, the bailor transfers the goods to the bailee for some purpose, and the bailee is responsible for using the goods bailed according to the purpose of bailment. A will be bailor and B will be bailee. The British Indian Steam Navigation Co. At present time the goods are produced for in advance of demand. Before discussing duties and rights of bailor and bailee, it may be pointed out that the duties of the bailor are more or less the rights of the bailee and vice-versa.