BAILMENT Sec.148-171

Definition : Sec.148 “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”

Essential features of Bailment: Delivery of goods Contract Return of goods in specie

Classification of Bailment Bailment on the basis of benefits: Bailment for the benefit of Bailor only Bailment for the benefit of Bailee only Bailment for the mutual benefit of both Bailor & Bailee

Bailment on the basis of rewards: Non – Gratuitous bailment Gratuitous bailment

Rights of Bailor: Right of termination Right to demand restoration of goods lent gratuitously Compensation from a wrong doer Right to get an increase or profit from goods bailed Right to sue the bailee for the enforcement of the duties imposed upon a bailee

Duties of Bailor : Duty to disclose faults in goods bailed (Sec.150) Liability for breach of warranty as to title (Sec.164) To bear expenses in case of gratuitous bailment (Sec.158) In case of non-gratuitous bailment Duty to indemnify the bailee for loss Duty to receive back the goods

Rights of Bailee: Bailee can sue bailor for: Claiming compensation for damage resulting from non disclosure of faults in the goods For breach of warranty as to title & the damage resulting there from & For extraordinary expenses

LIEN-(Sec.170-171): “Lien is the right of one person to retain that which is in his possession, belonging to another, until some debt or claim is paid” Bailees particular Lien :Sec.170 Bailees general Lien :Sec.171 Right against wrongful deprivation or injury to goods: Sec.180-181

Duties of the Bailee : To take care of the goods bailed-Sec.151 Not to make unauthorized use of goods-Sec.154 Not to mix Bailors goods with his own-Sec.155-157 To return the goods bailed-Sec.160-161 To return any accretion to the goods bailed-Sec.163

Termination of Bailment : On the expiry of the stipulated period On the accomplishment of the specified purpose By bailees act inconsistent with conditions-Sec.153 Termination of Gratuitous bailment-Sec.159 Section 162

Finder of lost Goods : Finding is not keeping. A finder of lost goods is treated as the bailee of the goods found as such and is charged with the responsibilities of a bailee, besides the responsibility of exercising reasonable efforts in finding the real owner.

Rights : Right to retain the goods-Sec.168 Right to sell-Sec.169

PLEDGE OR PRAWN (SEC.172) The bailment of goods as security for payment of a debt or performance of a promise is called pledge.1

PARTIES: Pawnor or Pledger: Pawnee or Pledgee

Distinction between Pledge and Bailment: Pledge is bailment of goods for a specific purpose where as Bailment is for a purpose of any kind Pawnee cannot use the goods pledged where as bailee can use the goods as per terms of bailment