Contract of Bailment

 Delivery of goods by one person to another

-for some purpose
-returned after accomplishment of purpose
-or dispose of according to the direction
• Person delivering the goods: Bailor
• Person to whom it is delivered: Bailee
• Can be either constructive or actual
 Duties of Bailor
 To disclose faults in the goods bailed
 To bear expenses in case of gratuitous
bailment
 To bear extraordinary expenses in case of
non- gratuitous bailment
 To indemnify bailee
 To receive back the goods
 Duties of Bailee
 To take reasonable care of goods delivered
to him
 Not to make unauthorized use of the goods
entrusted to him
 Not to mix goods with his own goods
 To return the goods
 To deliver any accretion to the goods
 Rights of Bailor
 To enforce bailee’s duties
 To terminate bailment if the bailee uses the
goods wrongfully
 To demand goods any time in case of
gratuitous bailment
 Rights of Bailee
 Enforcement of bailor’s duty
 To deliver goods to one of several joint bailors
 To deliver goods,in good faith, to bailor without
title
 Right of Lien

1.Particular Lien
-Must have rendered some service to the goods
-Must be an addition in the value of the goods
 Contd..
2.General Lien
Bankers, Factors, Policy brokers etc.
Termination of Bailment
-On the expiry of the stipulated period
-On the accomplishment of the specified purpose
-By bailee’s act , inconsistent with the terms of
bailment
-Any time in case of gratuitous bailment
 Contract of Pledge
 Bailment of goods as security for payment
of a debt or performance.
 Bailor: Pawnor
 Bailee: Pawnee
 Rights & Duties of Pawnor
 Rights:-
-Enforcement of Pawnee’s duty
-To claim back the security after repayment of debt
-To receive notice in case of selling by pawnee
•Duties:-
-To compensate pawnee for any extraordinary expenses
-To meet his obligations on stipulated time
 Rights of Pawnee
 Right of retainer – for principal & interest
 Right to extraordinary expenses
 Right to sue the pawnor on default
 Right to sell the goods after reasonable notice

 Other than all duties of a bailee , he should

return goods after the payment of debts
 Pledge by Non -owners
 Mercantile agents
 Pawnor having limited interest
 Seller in possession of goods after sale
 Buyer in possession of goods after an
agreement to sell
 Co- owner in possession
 Person in possession under voidable
contract