Breach of Bailment

 

⚠️ Breach of Bailment

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📝 What is Breach of Bailment?

• A breach of bailment occurs when either the bailee or the bailor fails to fulfill their duties as per the bailment contract.

• Typically, it refers to the bailee’s failure to take proper care of the goods, misuse of the goods, or failure to return or deliver the goods as agreed.

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👥 Who can commit breach?

• Bailee:

  • Fails to take reasonable care of the goods.

  • Uses goods for unauthorized purposes.

  • Refuses or neglects to return the goods or dispose of them according to bailor’s instructions.

• Bailor:

  • Fails to disclose known faults in the goods which may cause loss or damage to the bailee.

  • Refuses to compensate the bailee for necessary expenses incurred for safekeeping.

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⚖️ Legal Consequences of Breach

• The aggrieved party (usually the bailor) can file a suit for:

  • Recovery of goods

  • Damages for loss or damage caused due to breach

  • Compensation for expenses incurred

• The bailee is liable only if negligence or misconduct is proved. They are not liable for loss/damage due to inevitable accident or force majeure.

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📚 Relevant Sections

Section	Subject
151	Duties of Bailee and liability for negligence
152	Duties of Bailor and liability for failure to compensate or disclose

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🛡️ Defenses available to Bailee

• Exercise of reasonable care and diligence in handling goods.

• Loss or damage occurred due to reasons beyond control (e.g., natural calamity).

• The goods were returned as per contract or instructions.

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Example Scenario of Breach

• A bailee receives a laptop for repair but uses it for personal work or damages it due to negligence, failing to return it timely — this is a breach of bailment.