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.The person delivering the goods is called the ‘bailor’. The person to whom they are delivered is called the ‘bailee’. (See... kinds of Bailment.)

Rights of Bailee:

The Rights of bailee are as follows -

1) Right to know Material faults in goods.


       The bailee has right to know material faults in goods. According to Section150 of the Indian Contract Act, the bailor is bound to disclose to the bailee faults in the goods bailed, of which the bailor is aware and which materially interfere with the use of them or expose the bailee to extraordinary risk and if he does not make such disclosure he is responsible for damage arising to the bailee directly from such faults.

Illustrations

        (a) A lends a horse, which he knows 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.

        (b) A hires a carriage of B. The carriage is unsafe, though B is not aware of it, and A is injured. B is responsible to A for the injury.


2)  Right to claim proportionate share in mixed goods :

   The bailee has right to claim proportionate share in mixed goods. According to Section 155 of the Indian Contract Act, 1872, It is the duty of bailee, not to mix the goods bailed with his own goods without the consent of the bailor. If the bailee with the consent of the bailor mixes the goods of the bailor with his own goods, the bailor and the bailee shall have an interest, in proportion to their respective shares in the mixture thus produced.


3) Right to claim Lien for remuneration

        The Bailee has right to claim lien for remuneration.The term 'Lien' means  right of one person to retain possession of goods owned by another until the possessor's claims against the owner have been satisfied.  (See... What is Lien and types of Lien Section 170 &171 of the Indian Contract Act.)


4) Right to Recover Compensation.

        The bailee has right to recover compensation from the bailor for the loss sustained. Section 164 of the Indian Contract Act, says that the bailor is responsible to the bailee for any loss which the bailee may sustain the reason that the bailor was not entitled to make the bailment or to receive back the goods or to give directions, respecting them.

  
5) Right to claim Damages:

      According to Section 150 and 164 of the Indian Contract Act, 1872 the Bailee has right to claim damages due to defect in bailor's title or faults in goods.

         Section 150 of the said Act says that the bailor is bound to disclose to the bailee faults in the goods bailed of which the bailor is aware and which materially interfere with the use of them or expose the bailee to extraordinary risk and if he does not make such disclosure he is responsible for damage arising to the bailee directly from such faults.


6) Right to claim expenses of bailment.

     The bailee has right to claim expenses of bailment  Section 158 of the Indian Contract Act, 1872 confers on bailee right to recover expenses of bailment. 

Section 158 runs as follows:

      Where, by the conditions of the bailment, the goods are to be kept or to be carried or to have work done upon them by the bailee for the bailor, and the bailee is to receive no remuneration, the bailors shall repay to the bailee the necessary expenses incurred by him for the purpose of the bailment.


7) Right to claim Indemnity 

       According to Section 159 of the Indian Contract Act the Bailee has right to claim indemnity.  (See What is Indemnity  )




See also

1) What is bailment and What are the Duties of Bailee ?

2) What is lien what are the kinds of Lien ?

3) Classification of Bailment

4) Difference between Bailment and Pledge

5) Contract Of Indemnity





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