Updated: Aug 16, 2020


Section 148: Bailment, bailor and bailee defined –

The person delivery the good – bailor

The person to whom the goods are delivered – bailee


Section 151: Care to be taken by bailee

The bailee is bound to take as much care of the goods bailed to him as any ordinary man would have under similar circumstances of his own goods.

If the care given by the bailee falls below his standard then he’ll be liable for loss or damage to goods.

Section 152: Bailee when not liable for loss, etc. of things bailed.

The bailee is not responsible for any kind of loss, deterioration of the goods if the bailee has taken proper care of the goods as described.

Section 154: Liability of bailee making unauthorized use of goods bailed

If the bailee uses any goods, which is not according to the condition stated during the process of bailment, then he is liable to compensate the bailor for any damage caused to the goods.

Section 156: Effect of mixture, without bailor’s consent.

Wherein bailee without the consent of bailor mixes goods. In such situations when the goods are separable then goods can be separated and the bailee is bound to bear all the expenses of separation and even the damages arising from the mixture

Section 157: Effect of mixture, without bailor’s consent, when the goods cannot be separated.

Wherein the bailee without consent of the bailor mixes goods. In such situations when the goods are impossible to separate, the bailee is bound to compensate the bailor for the loss of goods.

Section 161: Bailee’s responsibility when goods are not duly returned.

When the purpose of the bailment is accomplished on the time of which the goods were bailed has expired the bailee should return the goods to the bailor without a demand. If he fails to do so, he will end keep the goods at his own risk and will be responsible for any loss or damage to the goods.

Section 163: Bailor entitled to increase or profits from goods bailed

In the absence of any agreement, to the contrary, the bailee is bound to return to the bailor natural increases or profits accruing to the goods during the period of bailment.


Section 149: Delivery to bailee how made

When the bailor hands over bailee physical possession of the goods that is called actual delivery. When there is no change of physical possession, goods remain where they are but something is done which has an effect putting them in possession of bailee.

Section 150: Bailor’s duty to disclose faults in goods bailed

A bailor is under an obligation to disclose to the bailee faults in the goods bailed. The faults, which are required to be disclosed, are

  • Those which materially affect the use of goods bailed

  • Which may expose the bailee to extra-ordinary risks

Failure to such defects entails liability to pay damages.

It the duty of bailor to see that the goods which he delivers are reasonably safe for bailment. It is in no defense for the bailor to say that he was not aware of the defect. Section 150 signifies that if the goods are hired, the bailor is responsible for damages whether he was aware of the defects or not.

Section 155: Effect of mixture, with bailor’s consent of his good with bailee’s

Section 155 deals with the bailor’s consent to mixing goods. In such situations where the goods are separable, bailor and bailee will have their proportionate shares to respective goods.

Section 158: Repayment by bailor of necessary expenses.

This section intends to lay down the duty of a bailor in respect to the gratuitous bailee. When in the conditions of bailment, the goods need to kept or to be carried or there’s some sort of work done by the bailee for bailor, and the bailee doesn’t receive remuneration then the bailor shall repay for all the necessary expenses incurred for the purpose of bailment.

Section 159: Restoration of goods lent gratuitously

This section lays down the rights & duties of a gratuitous bailor. The bailor must abide by the terms and conditions of bailment or gratuitous loan but if he needs the goods back he not ask or wait for its return. In doing so if he puts the bailee to any loss caused by earlier demand, he must indemnify the bailee.

Section 164: Bailor’s responsibility to the bailee

If the bailor has, no rights to bail the goods or to receive them back or to give directions respecting them and consequently the bailee is exposed to some loss. The bailor is responsible for any loss which the bailee has sustained.

Section 170: Bailee’s particular lien

Bailee in accordance with the bailment has a right to retain goods on which he has rendered service involving the exercise of labour or skill with respect to the charges due to him by the bailor.


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