Section 148 of ICA 1872 defines Bailment.

“A bailment is
the delivery of goods by one person to another for same purpose, upon a
contract that they shall, when they purpose is accomplished, be returned to
other wise disposed of according to the directions of the person delivering
them. The person delivering goods in called ‘Bailor’ and the person to whom it
is delivered is called bailee.

Note: If a person is already in
position of the goods of other contracts to hold them as a bailee, he/the one
who holds it becomes bailee and the owner becomes the bailer.

Example: Pledge by delivery of
possession

It is not a
contract of bailment but the other party Pawnee is bound to keep the goods in
good condition.

One of the basic
requirements of bailment is delivery of gods to the bailee. Delivery of
possession to the bailee is sine quo non of bailment. In order to
constitute bailment change of possession is necessary.

Example: A hires a car for a trip from B
who deals in renting car business. B is bailor and A is bailee.

Example: A lady wanted to mould her old
jewelry in new design. She gave her jewellery box to the gold smith with a
condition that she will put her lock on the box and will keep key and in morning
she will sit with the labour to monitor the work and to keep eye on the box.
Jeweler accepted her condition. One day there was theft in jeweler’s shop and
the box was also broken and jewelry was missing with other articles of the
jewellery shop. She claimed compensation but was divided as the court held that
there is no bailment. Key was hold by the lady and there was no actual delivery
of possession hence no bailment. Jeweler is not liable.

Example: Lockers in bank are example of
not bailment. There is no bailment in case of keeping locker in banks.

Duties of the bailee

1. Duty to take
reasonable care of goods delivered to him.

Example: A gave his shirt for stitching
to B a tailor. A’s shirt was spoiled by tea at tailor’s shop. Tailor is liable
to compensate the loss to A as he did not take the reasonable care of goods
delivered to him.

2. Duty not to
make unauthorized use of goods entrusted to him.

Example: A a tailor/drycleaner started
giving cloths on rent basis. This is an unauthorized use of good.

3. Duty not to
mix goods bailed with our goods.

Example: A asked B to take care of his
sheeps in his absence B mixed A’s sheeps with his own sheeps it is a breach of
duty

4. Duty to return
the goods

When the purpose
of bailment is achieved the goods are returned to the owner bailee is bound to
return the goods on receiving the price for his services.

5. Duty to
deliver any accretion to goods

Example: A asked B to take care of A’s
cow for few days as A was not available and A’s cow delivered the calf A is
entitled to accretion to good not B.

Duties of Bailer

1. Duty to
disclose faults in goods bailed. It is the duty of the bailer to disclose
faults.

Example: A lends a horse which he known
to be vicious. He does not disclose the fact that horse is vicious. The horse
ran away. B is thrown and injured. A is responsible to B for damage.

Example: A hires a car of B. It was
unsafe but B was not aware of the fault. A is injured B is responsible to A for
that injury.

2. Duty to repay
necessary expenses in case of gratuitous bailment.

Example: A bails his cow to be taken
care by B in his absence. A should repay B for feed of the cow.

3. Duty to
receive back the goods.

Example: It the duty of the bailer to
receive back the goods

4. Duty to
indemnify bailer

Example: If because of the goods bailed
to the bailee the bailee incurs any loss due to faults in goods bailed them bailer
is duty bound to indemnify the loss to the bailee.

5. Duty to repay
any extra ordinary expenses in case of non gratuitous bailing.

Example: A bailed his cow to be take
care by B for some period. The cow full ill and B incurred extra ordinary
expense to care the cow. A is liable to compensate the B.

PRACTICE EXERCISE

1.  Bailment has been defined
under which Sec. of The Indian Contract Act?

A. 148

B. 149

C. 150

D. 151

Ans: A

2. A _____________ is the
delivery of goods by one person to another for same purpose, upon a contract
that they shall, when they purpose is accomplished, be returned to other wise
disposed of according to the directions of the person delivering them

A. Bailment

B. Agency

 C. Partnership

D. None of the above

Ans: A

3.  The person delivering goods in called

A. Promisee

B. Bailor

C. Bailee

D. None of the above    

Ans: B

4. The person to whom it is delivered is called

A. Promisee

B. Bailor

C. Bailee

D. None of the above    

Ans: C

5.  A hires a car for a trip from
B who deals in renting car business. B is the

A. Promisee

B. Bailor

C. Bailee

D. None of the above    

Ans: B

6. Maya gave her shirt to the tailor for stitching. He dropped coffee on
the shirt. Will he be liable?

A. Yes

B.  No

C. Maybe

D. None of the above

Ans: A (Reasonable care should be taken by the bailee)

7.  Maya had given one of her sari
for dry cleaning. She later finds out that the shop rented out her sari to
someone else. Will the dry cleaners be held liable?

A. Yes

B.  No

C. Maybe

D. None of the above

Ans: A

8.  Maya gives some of her
jewellery to the goldsmith for polishing. He mixes her jewellery with the other
goods in his shop. Will be he held liable?

A. Yes

B.  No

C. Maybe

D. None of the above

Ans: A

9. The plaintiff with his wife and children had to travel from Wimbledon
to Hampton Court. They took a train from Wimbledon, which transported them to
Esher. They had to walk several miles on a drizzling wet night to reach their
destination. Will they be awarded damages?

A. Yes

B.  No

C. Maybe

D. None of the above

Ans: A

10.  A asked B to take care of A’s
cow for few days as A was not available and A’s cow delivered a calf. Is A entitled
to accretion?

A. Yes

B.  No

C. Maybe

D. None of the above

Ans: A

11. A lends a horse which he known to be vicious. He does not disclose
the fact that horse is vicious. The horse ran away. B is thrown and injured.
Who is liable in this situation?

A. B

B. A

C. The horse

D. None of the above

Ans: B

12. A bails his cow to be taken care by B in his absence. Should A repay
B for the feed of the cow?

A. Yes

B. No

C. Maybe

D. None of the above

Ans: A

13. A bailed his cow to be take care by B for some period. The cow full
ill and B incurred extra ordinary expense to care the cow. Does A need to
compensate for the expense incurred?

A. Yes

B. No

C. Maybe

D. None of the above

Ans: A

14. Maya has given her shoes to the cobbler. He accidently spills some
colour on the shoes. Will he be held liable?

A. No

B. Yes

C. Maybe

D. None of the above

Ans: B

15.  P gives his pair of ripped
jeans to the tailor for some alteration. The tailor likes the jeans and decides
to wear them to a party. He never returns the jeans to P. Will he be liable?

A. Yes

B. No

C. Maybe

D. None of the above

Ans: A