Bailment .

             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. (Section 148 of the Indian Contract Act, 1872)

Who is Bailor? 

     In Bailment the person delivering the goods is called the ‘bailor’. and the person to whom they are delivered is called the ‘bailee’.

     If a person is already in possession of the goods of other contracts to hold them as a bailee, he thereby becomes the bailee, and the owner becomes the bailor of such goods, although they may not have been delivered by way of bailment.





Rights of Bailor : 

      The rights of Bailor are as follows :

1) Right to claim damages if bailee makes wrongful use

2) Right to claim proportionate share in mixed goods

3) Right to claim return of goods or their loss 

4) Right to claim damages due to mixing up of goods 



1) Right to claim damages if bailee makes wrongful use (Section 154 of I.C.A)

          If the bailee makes any use of the goods bailed which is not according to the conditions of the bailment, he is liable to make compensation to the bailor for any damage arising to the goods from or during such use of them.

Examples 

 (a) A lends a horse to B for his own riding only. B allows C, a member of his family, to ride the horse. C rides with care, but the horse accidentally falls and is injured. B is liable to make compensation to A for the injury done to the horse.

(b) A hires a horse in Calcutta from B expressly to march to Banaras. A rides with due care but marches to Cuttack instead. The horse accidentally falls and is injured. A is liable to make compensation to B for the injury to the horse.


2) Right to claim proportionate share in mixed goods (Section 155 I.C.A): .

          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 return of goods  : (Section 160, 161 of I.C.A)

        In bailment, the goods are delivered for a specific purpose. after the purpose is served, the goods may be returned to the bailor. Bailor has a right to claim return of goods.

                   
4) Right to claim damages due to mixing up of goods 

            According to Section 156 and Section 157 of the Indian Contract Act, 1872 bailor has a right to claim damages due to mixing up goods. Section 156 & Section 157 runs as follows

Effect of mixture, without bailor's consent, when the goods can be separated (Section 156)

            If the bailee, without the consent of the bailor, mixes the goods of the bailor with his own goods and the goods can be separated or divided, the property in the goods remains in the parties respectively; but the bailee is bound to be bear the expense of separation or division, and any damage arising from the mixture.

Illustration:

        A bails 100 bales of cotton marked with a particular mark to B. B, without A’s consent, mixes the 100 bales with other bales of his own, bearing a different mark; A is entitled to have his 100 bales returned, and B is bound to bear all the expense incurred in the separation of the bales, and any other incidental damage.

Effect of mixture, without bailor's consent, when the goods cannot be separated (Section 157) 

        If the bailee, without the consent of the bailor, mixes the foods of the bailor with his own goods in such a manner that it is impossible to separate the goods bailed from the other goods, and deliver them back, the bailor is entitled to be compensated by the bailee for the loss of the goods.

Illustration :

        A bails a barrel of Cape flour worth Rs. 45 to B. B, without A’s consent, mixes the flour with country flour of his own, worth only Rs. 25 a barrel. B must compensate A for the loss of his flour.

See also

1) Pledge / Pawn : Meaning, Definition and Essentials of Pledge/ Pawn

2)  What are the Duties of Bailee ?

3) Distinction/ Difference between Bailment and Pledge

4) Distinction/ Difference between Bailment and Agency

5) Bailment : Rights of Bailee

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