Bailment Under CONTRACT Laws

By | March 14, 2017

1. INTRODUCTION:

Bailment means a legal relation that arises whenever one person delivers possession personal property to another person under an agreement by which the later is under an obligation to return the property to the former.

2. MEANING:

The term baillment is derived from a French word ‘baillior’ which means to deliver.

3. DEFINITION ACCORDING TO CONTRACT ACT SEC 148:

“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.

4. PARTIES OF THE CONTRACT OF BAILMENT:

There are two parties in the contract of bailment.

(a) Bailor:

The person who deriveds the goods is called bailor.

(b) Bailee:

The person to whom the goods are derived is called bailee.

5. ESSENTIALS OF CONTRACT OF BAILMENT:

Following are essential of contract of bailment.

(I) CONTRACT:

It is a basic essential for bailment.

(II) MOVEABLE PROPERTY:

Property must be moveable in contract of bailment.

(III) DELIVERY OF GOODS:

The delivery of goods should be made for some purpose under a contract.

(IV) CHANGE OF POSSESSION:

In bailment possession is changed from one person to another person.

(V) SPECIFIC PURPUSE:

The goods are delivered for some specific purpose to another person.

(VI) OWNERSHIP IS NOT CAHNGED:

The ownership is not change. It remain to bailor.

(VII) PARTIES OF CONTRACT:

There are two parties to the contract of bailment bailor and bailer.

(VIII)RETURNABLE:

The goods must be returned to the owner of property or disposed according to the direction of bailor.

6. DUTIES OR RESPONSIBILITIES:

Following are the duties or responsibilities of bailee.

(I) CARE OF GOODS:

Bailee is bound to take as much as care as the man take care of his own good.

(II) ACT ACCORDING TO THE CONTRACT:

Bailee is bound to act according to the contract of Bailment.

(III) NOT DENY THE TITLE:

Bailee can not deny the title of the goods delivered to him.

(IV) RETURN THE GOODS:

It is the duty of Bailee to return or deliver the goods to bailor or according to his directions.

(V) RETURN AT PROPER TIME:

Bailee should return the goods at proper time.

(VI) RETURN OF PROFIT:

Bailee should return the goods at proper time.

(VII) PROPER USE OF GOODS:

He is duty bound to return the increase or profit to bailee.

7. RIGHTS OF BAILEE:

Following are the rights of Bailee.

(I) RECOVERY OF LOSS:

A Bailee is entitled to recover damages If he suffers any

loss.

(II) RECOVERY OF COMPENSATION:

A bailee is entitled to receive compensation from the bailor for any loss resulting from the defect of bailor title.

(III) RECOVERY OF EXPENSES:

Bailee is entitled to recover all expenses for any purpose of the bailment.

(IV) RIGHT TO RETAIN:

Bailee has right to retain the goods until debtor claim is

paid.

(V) RIGHT OF INDEMNITY:

He has right to receive the amount of indemnity from bailor for any loss which may sustain by reason that the bailor was not entitled to make the bailment.

(VI) RIGHT AGAINST THIRD PERSON:

If a third person wrongfully deprives the bailee of the use or possession of the good bailed. He can file suit against such person.

(VII) RIGHT OF REMUNERATION:

He is entitled to lawful charges for providing services.

8. CONCLUSION:

To conclude I can say that. The person to whom the goods are delivered under the contract of bailment is called bailee. He is bound to act accordingly the direction of Bailee. Bailor and Bailee. Have right and duties under the contract Act.

Source by Chaudhry Omar Ejaz

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