Page 47 - 01. Indian Contract Act, 1872

Contracts of Bailment

 As per Sec 148, Bailment is an act whereby the goods are delivered by one
person to another for some purpose, on a contract, that the goods shall', when
the purpose is accomplished be returned or otherwise disposed off according to
the directions of the persons delivering them.
 It is a voluntary delivery of goods for a temporary purpose.

 Ownership of goods remains with the bailor.
 Goods should be movable goods.

 Parties
(1) Bailor- The person delivering the goods.

(2) Bailee- The person to whom the goods are delivered.
 Essential Elements of Contracts of Bailment

(i) There must be an expressed or implied contract between the parties.
(ii) It can be made of goods only.

(iii) There must be delivery of goods from one person to another.
(iv) Goods must be delivered for some purpose express or implied.

(v) The delivery of goods must be conditional.
(vi) The return of the goods may be in the original form or i.e. in an improved form
as agreed between the bailor and bailee.
 Modes

(i) Actual Delivery
(ii) Symbolic Delivery

(iii) Constructive Delivery.

 Bailment may be gratuitous (without any remuneration or reward) or . for reward. (for
consideration)

Duties of Bailor

Sec. 150: Bailor must disclose all defects / faults in the goods bailed. He is responsible
for defects in the goods hired to bailee whether bailor was aware of such defects or not.
Sec. 158:
(a) Where the bailment is gratuitous, he must reimburse the bailee for any expenditure
incurred in keeping the goods.

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