Duties and Rights of Duties and Rights of Bailor and BaileeBailor and Bailee
Duties of BailorDuties of Bailor
To disclose known faultsTo disclose known faults
According to section 150, it is the first and foremost duty According to section 150, it is the first and foremost duty
of the bailor to disclose the known faults about the goods of the bailor to disclose the known faults about the goods
bailed to the baileebailed to the bailee
If the goods are bailed for hire the duty of the bailor is If the goods are bailed for hire the duty of the bailor is
greatergreater
Duties of BailorDuties of Bailor
To bear extraordinary expenses of the bailmentTo bear extraordinary expenses of the bailment
The bailee is bound to bear ordinary and reasonable The bailee is bound to bear ordinary and reasonable
expenses of the bailment but for any extraordinary expenses of the bailment but for any extraordinary
expenses the bailor is responsibleexpenses the bailor is responsible
In case of gratuitous bailment the bailor must repay all the In case of gratuitous bailment the bailor must repay all the
necessary expenses incurred by him for the purpose of necessary expenses incurred by him for the purpose of
bailment (Sec. 158)bailment (Sec. 158)
Duties of BailorDuties of Bailor
To indemnify bailee for loss in case of premature To indemnify bailee for loss in case of premature
termination of gratuitous bailmenttermination of gratuitous bailment
According to section 159, if the contract of bailment is According to section 159, if the contract of bailment is
terminated before the time specified and because of which terminated before the time specified and because of which
the bailee suffering losses more than the benefit he has the bailee suffering losses more than the benefit he has
derived from that, the bailor shall have to indemnify the derived from that, the bailor shall have to indemnify the
baileebailee
Duties of BailorDuties of Bailor
To receive back the goodsTo receive back the goods
If the bailor refuses to receive back the goods after If the bailor refuses to receive back the goods after
the termination of time specified he is liable to the termination of time specified he is liable to
pay the compensation to the baileepay the compensation to the bailee
Duties of BailorDuties of Bailor
To indemnify the baileeTo indemnify the bailee
According to section 164, if the bailee is suffering losses According to section 164, if the bailee is suffering losses
because of the title of the goods i.e. where the title of the because of the title of the goods i.e. where the title of the
bailor to the goods is defective, the bailor has to pay the bailor to the goods is defective, the bailor has to pay the
compensation for the losses incurred by the baileecompensation for the losses incurred by the bailee
Rights of BailorRights of Bailor
Enforcement of rightsEnforcement of rights
The bailor can enforce by suit all the liabilities or duties of The bailor can enforce by suit all the liabilities or duties of
the bailee as his rightsthe bailee as his rights
Avoidance of contractAvoidance of contract
the bailor can terminate the bailment if the bailee does any the bailor can terminate the bailment if the bailee does any
act which is inconsistent with the terms of the bailment act which is inconsistent with the terms of the bailment
(Section 153)(Section 153)
Rights of BailorRights of Bailor
Return of goods lent gratuitouslyReturn of goods lent gratuitously
The bailor can demand the return of goods The bailor can demand the return of goods
whenever he pleases even though he lent them for whenever he pleases even though he lent them for
a specified time or purpose (Sec. 159)a specified time or purpose (Sec. 159)
Rights of BailorRights of Bailor
Compensation from a wrong-doerCompensation from a wrong-doer
If a third person wrongfully deprives the bailee of If a third person wrongfully deprives the bailee of
the use or possession of the goods bailed, the the use or possession of the goods bailed, the
bailor or the bailee may bring a suit against the bailor or the bailee may bring a suit against the
third person for such deprivation (Sec. 180)third person for such deprivation (Sec. 180)
Duties of BaileeDuties of Bailee
To take reasonable care of the goods bailedTo take reasonable care of the goods bailed
According to section 151, in all cases of bailment the bailee According to section 151, in all cases of bailment the bailee
is bound to take care of the goods as much as it is his own is bound to take care of the goods as much as it is his own
goods of the same bulk, quality and valuegoods of the same bulk, quality and value
If inspite of taking reasonable care the goods are damaged If inspite of taking reasonable care the goods are damaged
or destroyed in any way, the bailee is not liable for the loss, or destroyed in any way, the bailee is not liable for the loss,
destruction or deterioation (Sec. 152)destruction or deterioation (Sec. 152)
Duties of BaileeDuties of Bailee
Not to make any unauthorised use of goodsNot to make any unauthorised use of goods
If the bailee uses the goods bailed in a manner If the bailee uses the goods bailed in a manner
which is inconsistent with the terms of the which is inconsistent with the terms of the
contract, he shall be liable for any loss even though contract, he shall be liable for any loss even though
he is not guilty of negligence, and even if the he is not guilty of negligence, and even if the
damage is the result of an accident (Sec. 154)damage is the result of an accident (Sec. 154)
Duties of BaileeDuties of Bailee
Not to mix goods bailed with his own goodsNot to mix goods bailed with his own goods
The bailee must not mix the goods of the bailor The bailee must not mix the goods of the bailor
with his own goodswith his own goods
If bailee mixes the with the bailor’s consent both shall If bailee mixes the with the bailor’s consent both shall
have a proportionate interest in the mixture (Sec. 155)have a proportionate interest in the mixture (Sec. 155)
Duties of BaileeDuties of Bailee
Without the bailor’s consent and if the goods can be Without the bailor’s consent and if the goods can be
separated or divided, the bailee is bound to bear the separated or divided, the bailee is bound to bear the
expenses or separation or division as well as damage expenses or separation or division as well as damage
arising from the mixture (Sec. 156)arising from the mixture (Sec. 156)
Without the bailor’s consent, if the mixture is beyond Without the bailor’s consent, if the mixture is beyond
separation, the bailor is entitled to be compensated by separation, the bailor is entitled to be compensated by
the bailee for the loss of the goods (Sec. 157)the bailee for the loss of the goods (Sec. 157)
Duties of BaileeDuties of Bailee Not to set up an adverse titleNot to set up an adverse title
The bailee must hold the goods on behalf of and for the bailorThe bailee must hold the goods on behalf of and for the bailor
He can not deny the right of bailor to bail the goods and He can not deny the right of bailor to bail the goods and
receive them backreceive them back
To return any accretion to the goodsTo return any accretion to the goods
the bailee is bound to deliver to the bailor, or according to his the bailee is bound to deliver to the bailor, or according to his
directions, any increase or profit which may have accrued directions, any increase or profit which may have accrued
from the goods bailed (Sec. 163)from the goods bailed (Sec. 163)
Duties of BaileeDuties of Bailee
To return the goodsTo return the goods
It is the duty of the bailee to return or deliver, according to It is the duty of the bailee to return or deliver, according to
the bailor’s directions, the goods bailed, without demand as the bailor’s directions, the goods bailed, without demand as
soon as the time has expired or the purpose of the bailment is soon as the time has expired or the purpose of the bailment is
accomplished (Sec. 160)accomplished (Sec. 160)
If bailee fails to deliver the goods, he is responsible to the If bailee fails to deliver the goods, he is responsible to the
bailor for any loss (Sec. 161)bailor for any loss (Sec. 161)
Rights of BaileeRights of Bailee Delivery of goods to one of several joint bailors of Delivery of goods to one of several joint bailors of
goodsgoods
If several joint owners of the goods bailed, the bailee may If several joint owners of the goods bailed, the bailee may
deliver the goods back to one joint owner without the consent deliver the goods back to one joint owner without the consent
of all, unless there is no contrary agreement (Sec. 165)of all, unless there is no contrary agreement (Sec. 165)
Delivery of goods to bailor without titleDelivery of goods to bailor without title
If bailor does not hold the title of the goods, bailee is not If bailor does not hold the title of the goods, bailee is not
responsible to the owner of the goods (Sec. 166)responsible to the owner of the goods (Sec. 166)
Rights of BaileeRights of Bailee
Right to apply to court to stop deliveryRight to apply to court to stop delivery
If a person other than the bailor claims the goods bailed, the If a person other than the bailor claims the goods bailed, the
bailee may apply it to court to stop the delivery of the goods bailee may apply it to court to stop the delivery of the goods
to bailor and to decide the title to the goods (Sec. 167)to bailor and to decide the title to the goods (Sec. 167)
Right of action against trespassersRight of action against trespassers
If a third person wrongfully deprives the bailee of the use or If a third person wrongfully deprives the bailee of the use or
possession of the goods bailed to him he has the right to bring possession of the goods bailed to him he has the right to bring
an action against that party (Sec. 180)an action against that party (Sec. 180)
Rights of BaileeRights of Bailee
Bailee’s lienBailee’s lien
Where the lawful charges of the bailee in respect of Where the lawful charges of the bailee in respect of
the goods bailed are not paid, he may retain the the goods bailed are not paid, he may retain the
goodsgoods
This right of the bailee is known as “particular lien”This right of the bailee is known as “particular lien”
LienLien
Lien means the right of a person to retain possession Lien means the right of a person to retain possession
of some goods belonging to another until some debt of some goods belonging to another until some debt
or claim of the person in possession is satisfiedor claim of the person in possession is satisfied
Possession is essential for exercising the right of lienPossession is essential for exercising the right of lien
LienLien
In order to create a lien the possession must be In order to create a lien the possession must be
RightfulRightful
Not for a particular purposeNot for a particular purpose
ContinuousContinuous
Types of LienTypes of Lien
A particular lienA particular lien
Lien which is available to the bailee against only those Lien which is available to the bailee against only those
goods in respect of which he has rendered some service goods in respect of which he has rendered some service
involving the exercise of labour or skillinvolving the exercise of labour or skill
A general lienA general lien
It is a right to retain all the goods or any property of It is a right to retain all the goods or any property of
another until all the claims of the holder are satisfiedanother until all the claims of the holder are satisfied
Types of LienTypes of Lien
A particular lienA particular lien
According to Section 170, where the bailee has in According to Section 170, where the bailee has in
accordance with the purpose of the bailment, rendered accordance with the purpose of the bailment, rendered
any service involving the exercise of labour or skill in any service involving the exercise of labour or skill in
respect of the goods bailed, he has in the absence of a respect of the goods bailed, he has in the absence of a
contract to the contrary, a right to retain such goods contract to the contrary, a right to retain such goods
until he recieves due remuneration for the service he has until he recieves due remuneration for the service he has
rendered in respect of themrendered in respect of them
Types of LienTypes of Lien
Particular lienParticular lien
If the bailee does not complete the work within the If the bailee does not complete the work within the
agreed time, or a reasonable time, he cannot exercise his agreed time, or a reasonable time, he cannot exercise his
right of lienright of lien
If the bailee voluntarily permits the bailor or regain If the bailee voluntarily permits the bailor or regain
possession of the goods without payment of the charges, possession of the goods without payment of the charges,
he cannot exercise the right of lienhe cannot exercise the right of lien
Types of LienTypes of Lien
Particular lienParticular lien
If without any fault of the bailee, the goods are If without any fault of the bailee, the goods are
destroyed or stolen, the bailee is entitled to be paid for destroyed or stolen, the bailee is entitled to be paid for
services performed upon the goods before they were services performed upon the goods before they were
destroyed or stolendestroyed or stolen
Types of LienTypes of Lien
General LienGeneral Lien
According to section 171, general lien is availables to According to section 171, general lien is availables to
bankers, factors, wharfingers, attorneys of High Court bankers, factors, wharfingers, attorneys of High Court
and policy brokersand policy brokers
These persons are entitled to retain possession of the These persons are entitled to retain possession of the
goods bailed to them as security until their claims are goods bailed to them as security until their claims are
fully satisfiedfully satisfied
Particular Lien Vs. General LienParticular Lien Vs. General Lien
Right available to a bailee Right available to a bailee
against only those goods in against only those goods in
respect of which skill and respect of which skill and
labour have been expended by labour have been expended by
himhim
Right to retain the goods only Right to retain the goods only
for a charge for labour for a charge for labour
employed or expenses incurred employed or expenses incurred
upon the goodsupon the goods
Right available to a bailee against Right available to a bailee against
any property belonging to the any property belonging to the
other party in respect of any other party in respect of any
payment lawfully due (property payment lawfully due (property
should be in possession of bailee)should be in possession of bailee)
Right to retain any property Right to retain any property
belonging to the other party for a belonging to the other party for a
general balance of accountgeneral balance of account
Extinguishment of LienExtinguishment of Lien
A lien is extinguished or lost by A lien is extinguished or lost by
AbandonmentAbandonment
Payment or tender of the amount duePayment or tender of the amount due
Loss or surrender of possession of the goodsLoss or surrender of possession of the goods
Finder of goodsFinder of goods
According to section 71, a person, who finds According to section 71, a person, who finds
goods belonging to another and takes them goods belonging to another and takes them
into his custody is subject to the same into his custody is subject to the same
responsibility as a baileeresponsibility as a bailee
Rights of finder of goodsRights of finder of goods
Right of lienRight of lien
According to section 168, the finder of lost goods has a According to section 168, the finder of lost goods has a
right of lien over the goods for his expensesright of lien over the goods for his expenses
Right to sue for rewardRight to sue for reward
According to section 168, the finder can sue for any According to section 168, the finder can sue for any
specific reward which the owner has offered for the return specific reward which the owner has offered for the return
of goodsof goods
Rights of finder of goodsRights of finder of goods Right of saleRight of sale
According to section 169,finder may sell the goods According to section 169,finder may sell the goods
foundfound
If the owner cannot with reasonable diligence foundIf the owner cannot with reasonable diligence found
If found, he refuses to pay the lawful chargesIf found, he refuses to pay the lawful charges
If the goods are in the danger of perishing or of losting the If the goods are in the danger of perishing or of losting the
greater part of their valuegreater part of their value
If the lawful charges of the finder, amount to two-third of their If the lawful charges of the finder, amount to two-third of their
valuevalue
Obligations of finder of goodsObligations of finder of goods
He must take reasonable care of the goodsHe must take reasonable care of the goods
He must not use the goods for his own purposeHe must not use the goods for his own purpose
He must not mix the goods with his own goodsHe must not mix the goods with his own goods
He must try to find out the owner of the goodsHe must try to find out the owner of the goods
Termination of BailmentTermination of Bailment
On the expiry of the periodOn the expiry of the period
On the achievement of the objectOn the achievement of the object
Inconsistent use of goods (Sec. 154)Inconsistent use of goods (Sec. 154)
Destruction of the subject-matterDestruction of the subject-matter
Gratuitous bailmentGratuitous bailment
Death of the bailor or baileeDeath of the bailor or bailee
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