BAILMENT

BAILMENT

Author: Aaliya Hassan,a  student of ‘Bihar institute of law, Patna.

Bailment simply mean, ‘Transfer of movable property which is not sale’. Under section 148 of Indian Contract of Law Bailment defines as. A "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.

Who can bail - Any person who is in possession of the movable property whether owner or not.

In case of Rashiklal Kantillal v. Trustee of ports Bombay state that, Bailment does not mean that only the owner of the goods can create a bail. Any person who is capable of transferring possession of goods can create it. or

In case of Reeves v. Capper state that, One who has custody without any possession like a servant or a guest using his host goods cannot be consider as a bailment. 

Bailment may be expressed or implied: Just the way promises are expressed or implied, bailment made by use of words is an expressed bailment while the bailment created without using words written or spoken, it is an implied bailment.

For example: checking into a hotel for the purpose of dinning and the waiter takes your coat and hangs it on a hook without being asked to do so is implied bailment. 

The curious case of bank locker- In case of goods kept in a bank locker, the bank is neither aware nor does it have exclusive possession of the goods stored in them therefore relationship between them bank and customer as bailee and bailor respectively seem implausible it could be, a mere custody of goods but not of bailment.

Essential of Bailment:

1. Delivery of possession – the delivery of possession can be done in two ways: Actual and constructive. When the possession is physically transferred it is called actual delivery.

2. In case of constructive delivery there is no change in physical possession but a symbol is transferred which enables the receiver to have possession of goods. An example of constructive delivery could be transfer of railway receipts or that of the keys of a vehicle.

In case of State of Gujarat v. Hazi Hasan held that, Bailment is dealt with under contract act only in the case where it arises from a contract but is incorrect that there cannot be bailment without a contract. A finder of goods has been held to be in certain circumstances bailment is relationship Sui generis and unless it is sought and unless it is short to increase or diminish the burden imposed by act of bailment, it is not necessary to incorporate it into the law of contract. The state was held liable to pay the amount of lost goods to the victim. 

Bailment is entered into for some purpose which can be of any nature. Bailment could be for use, hire, repair and maintenance or safe keeping purposes as it for return/dispose. On the fulfilment of the purpose, the goods are either to be return to the bailor or according to the direction of the bailor. 

Bailor duty to disclose defects: Bailor has the liability to disclose all the defects in the goods bailed which materially interfere with the enjoyment or use of the goods or which may cause any harm to the bailee however the degree of duty of care good change depending upon the kind of the bailment.

Bailments are of two kinds - 

1. Gratuitous Bailment

2. Bailor for consideration or hire.

A person, who lends his goods without any charge for the bailee to use is called a gratuitous bailer. His duty is natural must lesser than that of a bailor for higher or consideration. The bailor, who charges something in return of the bailment are bailors for consideration or hire. If the goods are bailed for higher, the bailor is responsible for any damaged caused because of such bailment whether or not he was aware of the fault in the goods.

Illustration of section 150: the condition of the liability of the bailor for the gratuitous bailment are 

1. He should have the knowledge of the defect and the bailee should not be aware. 

2. The defect in the goods must be such as exposes the bailee to extra ordinary risk or materially interfere in the use of goods.

Conclusion: Now, by knowing the provision of Bailment we can understand in brief that how its work.