Page 48 - 01. Indian Contract Act, 1872

(b) He should reimburse any expense which bailee may incur by the way of loss in the
process of returning the goods or complying with other directions for returning the
goods.

(c) He must compensate the bailee for any loss or damage suffered by bailee in excess of
benefit received.
(d) He is bound to accept the goods after the purpose is accomplished.

Rights of Bailor:
 Right to enforce the duties of the bailee.

 Right to terminate the contract if bailee does any thing which is inconsistent with the
conditions of bailment.

 In gratuitous bailment, he has a right to demand back goods even before expiry of
bailment period.
 Right to claim the increase or profit trom the gOods bailed which may have occurred
from value of goods.
Duties of Bailee

Sec. 151: Duty to take reasonable care of goods.
Sec. 152: If he takes care of goods as a man of ordinary prudence, he will not be liable
for any loss or damage of goods bailed.
Sec. 153: Duty not to make authorised use of goods. •

Sec. 154: If he makes any unauthorized use of goods , he will be liable to make good
the loss.
Sec. 155-157:

(a) Duty not to mix the goods bailed with his own goods without. the bailor's consent. If
he does so, he has to make good the loss.

(b) Duty not to set up an adverse title
Sec. 160: Duty to return the goods on expiration of the bailment period.

Sec. 161: If he fails to return, he will be responsible to the bailor for any loss, destruction
or deterioration of goods there after.

Sec. 163:
(a) Duty to return any extra profit occurring from goods bailed.

(b) Duty not to do any thing inconsistent with the bailment conditions.

Rights of Bailee
(a) Right to claim compensation for any loss arising from non-disclosu of
known/unknown defects in goods.

(b) Right to claim indemnification for any loss or damage as a result defective title.

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