Section 148: Bailment, bailor and bailee defined –

The person delivery the good – bailor

The person to whom the goods are delivered – bailee

Delivery of goods by one person to another for some purpose through a contract. When the purpose is completed, the goods shall be returned or otherwise discarded of according to the directions of the person delivering them.

Delivery of goods by bailor to bailee for a definite purpose on condition of their return or disposal, when purpose is accomplished.

Viodability (section 153)

Bailor may avoid bailment if bailee wrongfully uses or disposes of goods. Any person who is in possession/custody of goods can create bailment. He does not have to be the owner of the goods.



Section 149: Delivery to bailee how made

Delivery of possession is of two types

a) Actual delivery

b) Constructive delivery

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 defence for the bailor to say that he was not aware of the defect. Section 150 clearly signifies that if the goods are hired, the bailor is responsible for damages whether he was aware about the defects or not.

Section 158: Repayment by bailor of necessary expenses.

This section intends to lay down the duty of a bailor in respect to 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 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 to 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 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 154: Liability of bailee making unauthorised 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 155: Effect of mixture, with bailor’s consent of his good with bailee’s

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

Section 155 and 156 deals with bailor’s consent of mixing goods. In such situations where the goods are separable, bailor and bailee will have their proportionate shares to respective goods.

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, bailee is bound to compensate the bailor for the loss of goods.

These three sections lay down the liability of a bailee when he mixes up the goods bailed with those of his own. Mixture maybe either with the consent of the bailor or without the consent of the bailor. If the goods are mixed without the consent, the following two contingencies are provided.

· Where goods are separable.

· Where goods are impossible to separate.

Section 160: Return of goods bailed on expiration of time or accomplished of purpose.

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 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.


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