DUTIES OF BAILOR

 Section 150 deals with duties of Bailor.

 To disclose known facts: The bailor should disclose the known faults
about the goods, which he/she has bailed to bailee. If the bailor does
not disclose the defects then he/she is liable for any damage caused
to the bailee due to such defects in the goods.
 Illustration: A lends a horse, which he known to be vicious, to B. He
does not disclose the fact that the horse is vicious. The horse runs
away. B is thrown and injured. A is responsible to B for damage
sustained.
 Bailment of reward: It carries a greater responsibility on the Part of
bailor. He will be liable even if he as not in the know of the defects.
 Illustration: A hire a carriage of B, The carriage is unsafe, though B is
not aware of it, and A is injured. B is still responsible to A for the
injury.
 Duty to repay bailee’s expenses: A bailor is duty bound to repay to
the bailee expenses incurred by him for work done on the goods
received under conditions of bailment, and for which he is not
receiving any remuneration or deriving any benefit.
 Duty to indemnify the bailee: The bailor is bound to make good the
loss suffered by the bailee that is in excess of the benefit actually
derived, where he had delivered the goods gratuitously and
compelled the bailee to return them before the expiry of the period
of bailment.
 Duty to indemnify the bailee: The bailor is bound to make goods the
loss suffered by the bailee
 Duty to compensate bailee for breach of warranty: Every contract of
Bailment warrants the bailee about the bailor’s title being defect
free, Thus, if bailee suffers any loss due to bailor’s title being
defective, it is the duty of the bailor to compensate the bailee for
breach of warranty
 Duty to claim back the goods.
 RIGHTS OF BAILOR
 If bailee does not take care and destruction of good takes place,
bailer can claim compensation.
 If bailee uses the goods for un-authorized purposes, bailor has the
right to claim compensation.
 Bailor has the right to claim return of goods.
 Bailor has right to claim not only delivered goods but also accruals
on good if any.
 In case where bailee has mixed the goods and they are of sufferable
nature, bailer can claim cost of separation from bailee.
 In case where the goods are of insufferable nature, bailer has right to
claim compensation
 Bailor has right to repudiate the contract of bailment whenever he
wants but, by doing so, if bailee comes across any suffering, bailor
has to compensate.
 DUTIES OF BAILEE
 To take reasonable care of the goods: It is the duty of the bailee to
take reasonable care of the goods bailed to him/her by the bailor.
According to section 151 of the Indian contract act 1872, the bailee is
to take care of the goods as a man of ordinary prudence would,
under similar circumstances, take care of his own goods of the same
bulk, quality and value as the goods bails”. Section 152 states that If,
In spite of taking all reasonable care, the goods are damaged or
destroyed in any way, then the bailee is not liable for the loss,
destruction or the deterioration of the goods bailed.
 In Coldman vs Hill (1919) 1 K.B. 443 : In this case some cattle
belonging to A were given to B for feeding them grass against
payment. Without any negligence on the part of B the cattle were
stolen. B did not inform the owner or the police or make any effort to
recover the cattle, because he thought it would be useless to do so. It
was held by the Court that B was liable for the loss to A.
 Not to make any unauthorized use of goods: The bailee is not to use
goods in a manner, which is inconsistent with the terms of the
contract. If he/she uses the goods in an inconsistent manner then
he/she is liable for loss of or any damage to the goods bailed.
 Not to mix goods bailed with his/her own goods: The bailee is to keep
the goods bailed to him/her separately from his/her own goods.
 To return the goods
 In Shaw& Co. vs. Symmons & Sons (1917 )1K.B. 799: A delivered
some books to B for binding. He pressed for their return, but B
neglected to return them although more than a reasonable time had
elapsed. A fire accidently broke out on B’s premises, and the books
were destroyed. He held, B was liable for the loss, although he was
not negligent, because of his failure to deliver the books within a
reasonable time.
 Bailee should not setup adverse title.