Discuss the essentials of a contract of bailment and state the rights and duties of a bailee.

Discuss the Essentials of a Contract of Bailment and State the Rights and Duties of a Bailee

Introduction

A contract of bailment is a special kind of contract in which one person delivers goods to another for a specific purpose, under the condition that the goods will be returned or disposed of according to instructions. This concept is widely used in daily life—for example, giving a bike to a mechanic for repair or leaving clothes at a dry cleaner.

This contract is governed by Sections 148 to 171 of the Indian Contract Act, 1872.

Meaning of Bailment

According to Section 148 of the Indian Contract Act, bailment is:

“The 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.”

Parties in a Bailment

• Bailor: The person who delivers the goods
• Bailee: The person to whom the goods are delivered

Essentials of a Valid Contract of Bailment

1. Delivery of Goods: The bailor must deliver movable goods (not immovable property) to the bailee. Delivery can be actual or constructive (symbolic).
2. Purpose: The delivery must be for a specific purpose, like safekeeping, repair, or transportation.
3. Return of Goods: The bailee must return the goods after the purpose is completed, or as per the directions of the bailor.
4. Ownership Not Transferred: Ownership of the goods remains with the bailor. Only possession is transferred.
5. Voluntary Delivery: The goods must be delivered willingly, not by force or theft.
6. Consideration: Although not always necessary, many bailments involve compensation (e.g., payment for services).

Types of Bailment

• Gratuitous Bailment: Made without any charge (e.g., lending a book to a friend).
• Bailment for Hire: Involves payment or compensation (e.g., giving your car to a valet parking service).

Rights of a Bailee

1. Right to Compensation: If the bailor does not disclose defects in the goods, and the bailee suffers loss, he can claim compensation.
2. Right to Lien: The bailee can retain goods until his lawful charges are paid (called bailee’s lien).
3. Right to Expenses: He can demand expenses incurred for maintaining the goods.
4. Right to Recover Loss: If he suffers a loss due to bailor’s negligence, he can recover damages.

Duties of a Bailee

1. Duty of Reasonable Care: The bailee must take care of the goods as an ordinary prudent person would take of his own goods.
2. Not to Use Goods Unlawfully: He cannot use the goods for any unauthorized purpose.
3. Return Goods: After the purpose is served, the goods must be returned in the same condition.
4. Not to Mix Goods: The bailee should not mix the bailor’s goods with his own without consent.
5. Duty to Deliver Increase or Profit: If any increase or profit (like offspring of a cow) is received, it must be returned to the bailor.

Examples of Bailment

• Giving your shoes to a cobbler for repair
• Depositing money or jewellery in a bank locker
• Leaving your car with a valet

Conclusion

A contract of bailment is very useful in both business and daily life. It ensures that goods delivered temporarily are protected, cared for, and returned safely. The law lays down clear rights and duties for both bailor and bailee to prevent misunderstandings and disputes. Understanding these provisions helps in better management of responsibilities in such arrangements.