Bailment under Indian Contract Act, 1872

 

📦 Bailment under Indian Contract Act, 1872

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📝 What is Bailment?

• Bailment is a contract in which the owner of goods (bailor) delivers goods or movable property to another person (called the bailee) for some purpose, under the condition that the goods will be returned or otherwise disposed of according to the owner’s instructions once the purpose is completed.

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📜 Legal Definition (Section 148 of the Act)

“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.”

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👥 Parties Involved

• Bailor: The person who delivers the goods.

• Bailee: The person to whom goods are delivered.

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📋 Essentials of Bailment

1. Delivery of Goods: Actual or constructive delivery of goods by bailor to bailee.

2. Purpose: Delivery is for a specific purpose (e.g., safekeeping, repair, transport).

3. Return or Disposal: The goods must be returned or disposed of as per bailor’s directions after the purpose is fulfilled.

4. Contract: An agreement (express or implied) between bailor and bailee.

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🛠️ Types of Bailment

Type	Description
Gratuitous Bailment	Without consideration (e.g., lending your car to a friend for free)
Bailment for Reward	With consideration (e.g., paid parking service)
Pledge	Bailment of goods as security for a loan

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🎯 Duties of the Bailee (Section 151)

• Take reasonable care of the goods as a prudent person would.

• Return or deliver the goods as per the bailor’s instructions.

• Not make unauthorized use of the goods.

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🎯 Duties of the Bailor

• Disclose known faults in the goods.

• Compensate the bailee for necessary expenses incurred during the bailment.

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🛑 Breach of Bailment

• If the bailee misuses or fails to return the goods, the bailor can sue for damages or recovery of goods.

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📚 Relevant Sections

Section	Subject
148	Definition of Bailment
149	Definition of Bailee
150	Bailment of goods
151	Duties of Bailee
152	Duties of Bailor