Transcript
DUTIES & RIGHTS OF BAILOR AND BAILEE INTRODUCTION Bailment is a concept of common law. Under Common law, bailment is the process of placing personal property or goods in the temporary custody or control of another. For a valid bailment, it is necessary necess ary that bailee must have actual physical control of the property propert y with the intent to possess it. The bailee is generally not entitled to the use of the property during his possession. A bailor can demand for return of the property at any time.
DEFINITION OF BAILMENT According to Contract Act, bailment means delivery of goods by one person to another for some purpose upon a contract that they these goods shall be returned or disposed of according to the directions of the person delivering them when the purpose will be accomplished.
BAILMENT EXPLANATION Under Contract Act, bailment is considered a contract. Such contract is consisted of following essentials. i. Delivery of Good
For a valid bailment, it is essential that goods should be delivered from one person to another person. t means that possession of goods should be changed. ii. Delivery for So!e P"r#oe
t is necessary for a valid bailment that goods should be delivered for some purpose. iii. Re$"r% or di#oi% of Good
For a valid bailment, it is also essential that goods should be returned or disposed off according to directions of bailor when purpose is accomplished.
1
DEFINITION OF BAILOR n bailment, the person, who delivers goods, is call bailor.
DUTIES AND LIABILITIES OF BAILOR Following are duties and liabilities of bailor! i. Di'loi% of defe'$ of ood ()iled
t is duty of bailor to disclose any defects, which are present in goods, which are being bailed. ii. Re#)y!e%$ of e*#e%e
t is liability of bailor to repay all those e"penses, which bailee spends for purpose of bailment. iii. B)ilor+ Re#o%i(ili$y $o B)ilee
Bailor is liable to bailee for any loss, which the bailee bears in the following situations! ). No ri,$ $o !)-e ()il!e%$
Bailor is responsible to bailee for any loss, which bailee bears because bailor was not entitled to ma#e bailment. (. No Ri,$ $o e$ ()'- ()iled ood
Bailor is responsible to bailee for any loss, which bailee bears because bailor was not entitled to get bac# bailed goods. '. No ri,$ $o ive Dire'$io%
Bailor is responsible to bailee for any loss, which bailee bears because bailor was not entitled to give directions.
2
DEFINITION OF BAILEE n bailment, the person to whom goods are delivered is called bailee.
DUTIES AND LIABILITIES OF BAILEE Following are duties and liabilities of bailee! i. C)re
n all cases of bailment, bailee is bound to ta#e care of bailed goods in the same manner in which a man of ordinary prudence ta#es care of his own goods of the same $uality and value. ii. U%)"$,oried "e of B)iled Good
f bailee ma#es any use of goods bailed and such use in not according to conditions of bailment, he is liable to ma#e compensation to bailor for any damage, which is caused to the goods during such use. iii. Mi*i% of B)iled ood /i$, B)ilee+ ood
f bailee mi"es bailed goods with his own goods without consent of bailor, his liability arises in the following two cases! ). 0,e% ood ')% (e Se#)r)$ed1
%ut of mi"ed goods, if bailed goods can be separated or divided, bailee will be under obligation to bear all e"pense of separation or division, and any damage, which is caused from such mi"ture. (. 0,e% ood ')%%o$ (e Se#)r)$ed1
%ut of mi"ed goods, if bailed goods cannot be separated or divided, bailee will be under obligation to compensate the bailor for such loss of bailed goods.
3
iv. Re$"r% of B)iled ood
t is duty of bailee to return bailed goods to bailor without any demand an according to directions of bailor on e"piration of time or accomplishment of purpose. v. No%2re$"r% of B)iled Good
f bailee fails to return bailed goods at proper time, it is his liability to compensate bailor for any destruction or loss from this time. vi. I%'re)e or Profi$ fro! ()iled ood
n absence of any contrary contract or according to directions of bailor, bailee is also under obligation to deliver to bailor any increase or profit, which may have accrued from bailed goods.
RIGHTS OF BAILER &. f bailee does not ta#e care and destruction of goods ta#es place, bailer can claim compensation. '. f bailee uses the goods for un(authori)ed purposes, bailer has the right to claim compensation. *. Bailer has the right to claim return of goods. +. Bailer has right to claim not only delivered goods but also accruals on goods if any. . n case where bailee has mi"ed the goods and they are of sufferable nature, bailer can claim cost of separation from bailee. -. n case where the goods are of insufferable nature, bailer has right to claim compensation. . Bailer has right to repudiate the Contract of bailment whenever he wants but, by doing so, if bailee comes across any suffering, bailer has to compensate.
4
RIGHTS OF BAILEE &. Bailee has right to claim compensation for in/uries arising out of faults present in goods, f it is gratuitous bailment, bailee can ma#e bailer answerable with regard to #nown faults only. But not to un(#nown faults. n case of 0on(gratuitous bailment bailee can ma#e bailer answerable to #nown as well as un(#nown faults. '. Bailee has right to claim contribution for e"penses. f it is 1ratuitous bailment, bailee can claim only e"traordinary e"penses. But in case of 0on(1ratuitous bailment, bailee can claim both ordinary and ordinary e"penses. *. n case where bailer has given goods with defective title and bailee, therefore, comes across suffering, then such bailee has right to get compensated by defective titled bailer. +. Bailee has right of indemnity, for ma#ing involvement in bailment Contract, bailer can ma#e bailee answerable. . Bailee has right of lien. t is only particular lien. That means he can e"ercise right of lien against those goods only on which amount is due. -. Bailee can return the goods to any one of the /oint owners. . n times of need Bailee has right to approach Court of law.
CONCLUSION To conclude, it can be stated that bailment is the process of placing personal property or goods in the temporary custody or control of another. 2owever, such temporary custody originates very strong duties and liabilities for both the bailor and bailee.
REFERENCES • • •
http344www.lawsofbusiness.com4'5&'45+4rights(and(duties(of(bailer.html http344www.lawsofbusiness.com4'5&'45+4rights(and(duties(of(bailee.html http344thelawstudy.blogspot.in4'5&4&'4bailment(rights(and(duties(of(bailor.html
5
6
