Q. What is bailment? What are the rights and duties of bailer and bailee?

Ans.
Under Section 148 of the Contract Act, Bailment is a contract of the delivery of goods by one person to another person for some purpose that the goods shall be returned after completion of purpose or to disposed for according to the direction of the owner.
Person who delivers the goods is called bailer.
Person to whom the goods are delivered is called bailee and the contract is called Bailment.
Example:
“A” delivers clothes to dry cleaner for washing of clothes. When the clothes will be dry cleaned and returned to 'A' after payment of charges the contract is completed.
Example:
“Z” hands over his car to mechanic 'Y' to repair the engine. ‘Y" repairs the engine gets his charges and hands over the car to `T. Held, it is contract of bailment.
Kinds of Bailment:
1.     Deposit:
Goods are delivered for the purpose of keeping.
2.     Commandatum:
Goods are lent to a friend without consideration.
3.     Hire:
Goods are delivered to bailee on hire.

4.     Pawn:
Goods are delivered to creditor as security for the ban-owed amount this is called pledge.
Essentials of Bailment:
1.     Delivery of possession of goods:
Delivery of possession of goods is must for the contract of bailment.

2.     Delivery of possession of goods for some purpose:
Delivery of possession for some purpose by the bailer to bailee.

3.     Return of goods deposited:
Goods deposited shall be returned to the bailer by the bailee after completion of purpose.
Rights of Bailer:
1.     Compensation:
He has right to be compensated in case of damage.
2.     Return of goods:
Goods bailed must be returned to him on completion of the object.
3.     Claiming charges:
He can claim charges incurred on recovery of goods bailed.
4.     Claiming increase:
He can claim in case of increase in the value or income accruing from the goods bailed.
5.     Cancellation of bailment:
He can cancel the contract of bailment.
6.     Right to sue against bailee:
He has right to sue against the bailee in case of breach of contract.
Rights of Bailee:
1.     Right to claim damages:
He can claim damages in case of breach of contract against bailor.
2.     Right to claim expenses:
He has right to claim expenses for his services.
3.     Right to deliver the goods:
Goods must be delivered to him by the bailor.
4.     Right to sue:
He can sue the bailer in the court in case of violation of the terms of the contract.
5.     Right to lien:
He can retain the goods in case of default of the bailer.
Duties of Bailer:
1.     Duty to disclose defects:
He must disclose the defects of goods bailed to the bailee.
2.     To repay expenses:
He must repay the expenses to the bailee incurred by him on the up-keep and preservation of the goods as agreed by him with the bailer.
3.     To repay extraordinary expenses:
He must repay the extra expenses to the bailee, i.e., those not expressly agreed between the bailer and the bailee.
4.     To indemnify bailee:
 He must indemnify the bailee in case of damages cause to him during the course of contract of bailment.
5.     To get back the goods from bailee:
He has right to get back the goods bailed to the bailee.
Duties of Bailee:
Reasonable care for goods:
1.     Reasonable care for goods:
He must be careful towards the goods put in his possession by the bailer.
2.     No unauthorized use of goods:
          He will not use the goods without permission of the bailer or beyond terms and conditions of the contract of bailment.
3.     Not to mix the goods with others goods:
He will not mix the goods bailed to him with the goods belonging to himself or someone else.
4.     Duty to return the goods:
He must return the goods to bailer on expiry of period or according to the terms and conditions mentioned in the contract of bailment.
5.     Duty not to set up adverse title:
He will never set up his own title to the goods bailed to him by the bailer under the contract.
6.     Duty to return increase:

He must return the increase if any accrued to the goods bailed to him by the bailer.

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