Saturday, April 12, 2014

Q. What is contract of bailment? Explain fully the rights and duties of the bailee. (1998) (2001)

Contact of bailment

Q. What is contract of bailment? Explain fully the rights and duties of the bailee. (1998) (2001)
1.
 Introduction:
Bailment means a legal relation that arises whenever one person delivers
 possession personal property to another person under an agreement by which the later is under an obligation to return the property to the former.
2. Meaning:
The term bailment is derived from a French word
 ‘baillor’ which means to deliver.
3.
 Definition:
According to contract act Sec 148:
“A 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."
4. General
 definition:
A ‘bailment’ is the
 delivery of goods by one person to another for some purpose upon the understanding that the goods shall be returned when the purpose is completed. In a contract of bailment delivery is for temporary purpose.
5. Kinds of bailment:
Following are the kinds of bailment.
(i)
 Deposit:
It is a simple bailment of goods by one person to another person to keep for bailor’s use.
(ii)
 Commodation:
In this kind of bailment goods lent to a friend graits to be used by him.
When the goods are delivered to the bailee for hire.
When goods are delivered to another person by way of security of money borrowed.
When goods are delivered be carried or something to be done about these for reward payable to the bailee.
6. Parties of the contract of bailment:
There are two parties in the contract of bailment.
(a) Bilor:
The person who parties in the contract of bailment.
(b) Bailee:
The person to whom the goods are derived is called bailee.
7. Essentials of contract of bailment:
Following are essential of contract of bailment.
(I) Contract:
It is basic essential for bailment.
(II)
 Moveable property:
Property must be moveable in contract of bailment.
(III)
 Delivery of goods:
The
 delivery of goods should be made for some purpose under a contract.
(IV) Change of
 possession:
In bailment
 possession is changed from one person to another person.
(V) Specific purpose:
The goods are delivered for some specific purpose to another person.
(VI) Ownership is not changed:
The ownership is not change. It remain to bailor.
(VII) Parties of contract:
There are two parties to the contract of bailment bailor and bailer.
(VIII) Returnable:
The goods must be returned to the owner of property are disposed according to the direction of bailor.
8. Duties or responsibilities:
Following are the duties or responsibilities of bailee.
(I) Care of goods:
Bailee is bound to take as much as care as the man take care of his own good.
(II) Act according to the contract:
Bailee is bound to act according to the contract of bailment.
(III) Not deny the title:
Bailee can not deny the title of the goods delivered to him.
 
(IV) Return the goods:
It is the duty of bailee
 to return or deliver the goods to bailor or according to his directions.
(V) Return at proper time:
Bailee should return the goods at proper time.
(VI) Return of profit:
Baliee should return the increase or profit to bailee.
(VII) Proper use of goods:
He should use the goods according to the contract of bailment.
9. Rights of bailee:
Following are the rights of bailee.
(I)
 Recovery of loss:
A bailee is entitled to recover damages if he suffers any loss.
(II)
 Recovery of compensation:
A bailee is entitled to receive
 compensation from the bailor for any loss resulting from the defect of bilor title.
(III)
 Recovery of expenses:
Bailee is entitled to recover all expenses for any purpose of the bailment.
(IV) Rights to retain:
Baailee has right to retain the goods until debtor claim is paid.
(V) Right against third person:
He has right to receive the amount of indemnity from “bailor for any loss which may sustain by reason that the bailor was not entitled to make the bailment.
(VI) Right against third person:
If a third person wrongfully deprives the bailee of the use orpossession
 of the good bailed. He can file suit against such person.
(VII) Right of remuneration:
He is entitled to lawful charge for providing services.
10. Conclusion:
To conclusion it can be said that, the person to whom the goods are delivered under the contract of bailment is called bailee. He is bound to act accordingly the direction of bailee. Bailor and bailee have right and duties under the contract act.

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