What is the contract of bailment? Rights and duties of the bailee and revocation of contract of bailment.
Introduction
Bailment is a process when the owner of the certain goods delivers possession of his personal property to another person under an agreement but with the obligation to return it to his original possessor when the purpose has been achieved. For example, a man visits a repair shop for getting his television set fixed. The television set is left at the shop where the repair man examines it and fixes the problem. Once fixed, the television set has to be returned to its owner. There is a contract of bailment between the man and the repair-man
Meaning of Bailment
The word ‘bailment’ has been derived from the French word ‘bailer’ which means ‘to deliver’.
Definition of bailment
A bailment is the delivery of goods by one person to another person for some purpose upon an agreement that the goods shall be returned when the purpose will be completed. In a contract of bailment such kind of delivery is for temporary purposes.
Kinds of bailment
Following are the kinds of bailment
Bailment for the benefit of bailer.
In this type of bailment, the bailer gives goods to bailee upon his own responsibility. While bailee is not responsible for any loss in this condition
Bailment for the benefit of the bailee.
In this case the bailee takes possession of the goods upon his own responsibility. The bailer gets nothing. But the bailee is rewarded by the possession of the goods.
Bailment for mutual benefit.
In this type, both the bailor and bailee benefit. If a person gives his vehicle for repair. The bailer will get his vehicle repaired and the bailee will be lawfully charged
Parties of the contract of bailment
Following are the two parties in the contract of bailment
Bailer
The person who delivers the goods is called bailer in the contract of bailment
Bailee
The person who receives the goods is called bailee in the contract of bailment
Essentials of contract of bailment
Following are the essential of contract of bailment
Contract
Contract is a basic essential for the bailment, without contract nothing can be proceeded
Moveable property
In contract of bailment property should be moveable or any property which can be moved from one location to another location
Delivery of goods
In the contract of bailment goods should be delivered for some purposes
Change of possession
In the contract of bailment possession should be changed from one person to another person
Specific purpose
The goods should be delivered for some specific purpose to another person
Ownership is not changed
In contract of bailment the ownership should not be changed. It remains of bailer
Parties of contract
There should be two parties of the contract of bailment. One is bailer and second one is bailee
Returnable
The good should be returned to the owner of the property after the completion of the purpose
Duties of bailee
Following are the duties of bailee
Care of goods
Bailee is responsible to take care of the goods of the bailer as he takes care of his own goods
Return the goods
Bailee is responsible to return the goods to bailer after the completion of the purpose
Return at proper time
Bailee is responsible to return the goods at proper time to bailer according to the contract
Return of profit
Bailee is responsible to return the profit to bailer for example if a cow gives birth to a calf and bailee is responsible to return the cow along with calf to the bailer
Proper use of goods
Bailee should use the goods according to the contract of bailment
Duty not to mix
Bailee should not mix his goods with bailor's goods without bailor's consent. If he does so, and if the goods are separable, he is responsible for separating them and if they are not separable, he will be liable to compensate
Rights of bailee
Following are the rights of bailee
Recovery of loss
Bailee has right to recover all the loss which has been occurred during the completion of the purpose
Recovery of compensation
Bailee has right to receive compensation from the bailer for any loss during the completion of the purpose
Recovery of expenses
Bailee has right to recover all the expenses which has been expensed during the completion of the purpose
Right to possession
Bailee has right to keep the possession of the property of the bailer until that bailer pays lawful charges to the bailee
Right of security
Bailee has right to receive the amount of security from bailer for any loss likely to be possible in future during the completion of purpose
Rights against third person
He has the right to bring an action against that party. If a third person wrongfully deprives the bailee from the use of the goods bailed to him
Right of wage
Bailee has the right to give lawful charges to him for providing services against the contract of bailment
Termination of bailment
Following are the reasons which can cause the termination of bailment
Expiry of time
Bailment comes to an end on the expiry of specified time according to the contract of bailment
Completion of purpose
Bailment comes to an end on the completion of the purpose. Bailment terminates as soon as bailment completes
Unauthorized use
Bailment comes to an end if the bailee makes unauthorized use of the goods delivered to him
Death of either party
Bailment comes to an end by the death of the any party before the completion of the purpose
Termination by bailer
Bailment comes to an end if it is terminated by bailer before completion of the purpose
Destruction of subject matter
Bailment comes to an end if the subject matter of the bailment gets destroyed
Conclusion
A bailment is an intentional transfer of the possession of the goods by the owner to another person under a contract. The contract of bailment can be terminated under some circumstances as well as it enforces different rights and duties upon bailor and bailee