Bailment, as defined under Section of the Indian Contract Act, is the delivery of goods by one person to another for some purpose. Bailment is the delivery of goods by a person (the Bailor) to another (the Bailee) for a certain purpose. have been pledged by him under section 19 of the Indian Contracts Act,and the contract [1]Indian Contracts Act, In Contact, a bailment is the delivery of goods from one person to another for Section of the Indian Contract Act, deals with the topic of bailment.

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A has rare coins in a locked safe-deposit box.

This means there should a contract between the two parties for such transaction of delivery and subsequent return. This judgment has laid down a crucial principle in the context of delivery of possession of goods in a contract of bailment.

Sheo Singh Rai [ ILR 2 All ], a man delivered nine government promissory notes to the Treasury Officer at Meerut for cancellation and consolidation into a single note of Rupees 48, only. How you can make this new year bailmenh.

If the case arises where a third person wrongfully deprives the position and the shape ballment the bailed goods or injuries, then the Bailey has the right to use any remedies as the bailmenf might have used if the case has arisen and no bailment had been made. If a person is not bound to return the goods to another, then the relationship between them is not of bailment. In this case the bailor delivers the goods for the exclusive benefits and the 18872 does not derive any benefit out of it.

Bailment is a type of special contract and thus, all basic requirements of contract like consent of parties, competency, etc are applicable to any contract of Bailment. Holding the defendant liable, justice Lindley said: Leave a Reply Cancel reply Enter your comment here Bailment, as defined under Section of the Indian Contract Act, 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 bailor [1].


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The Indian Contract Act Bailment and Pledge – Business Law [Book]

The Law Commission of India in its 13 th report suggested that bailment without contract should also be included in the Indian Contract Act, but no concrete steps have been taken as yet. His duty is naturally much less than that of a Bailor for hire or consideration. The launch caught fire, and the plaintiffs were unable to extinguish it, the fire-fighting equipment being out of order.

Therefore, mere hiring of a locker would not be sufficient to constitute a contract of bailment as provided under Section of the Indian Contract Act, This is the case where a bailor delivers the goods to the bailee for the exclusive benefits of the bailee and does not gain anything from the contract himself.

If a person deposits or delivers the goods under stressful circumstance like fire flood, riots or if the person who is depositing the goods is incapable of appreciating the value of the action, it is still regarded as bailment despite the absence of a contract. But a valid bailment can also arise in absence of express ballment or from invalid or voidable contracts. Contraft continuing to use this website, you agree to their use.

Similarly, hiring and storing goods in a bank locker by itself is not bailment thought there is delivery of goods to the bank premises. If the Pawnee makes a default while paying the debt or while performing the promise at the given time then the Pawnor has the right to redeem the Pledged goods from the Pawnee before the actual sale but if the case arises he must pay in addition the expenses which have arisen from his default.

The court held that there was an implied undertaking that the launch was as fit baimlent the purpose for which it was hired as reasonable care and skill could make it. Sorry, your blog cannot share posts by email. bsilment

Contract of Bailment

Mere custody of goods is not the same as delivery of possession. If an animal gives birth during the period of bailment, the bailee must return the animal with the offspring at the conclusion of the bailment. Any accruals to the goods must also be handed over. In another case [8] the judge referred to lays down the same principle that it has to be proved that the bailor was aware of the value of the property and was entrusted with its safekeeping. Skip to content There are many instances of bailment in our daily lives — when we give our clothes for laundry, when we use valet parking for our cars.


A bailment is usually created by an agreement between the bailor and bailee.

Narsimbulu [AIR AP ], a person pledged cinema projector with the bank but the bank allowed him to keep the projector so as to keep the cinema hall functional. The Pawnee must redeem the value of the pledge to the Pawnor after the completion of the bailment.

Bailment – Section 148 – 181 of Indian Contracts Act

cat Thus, the lockers could be opened even without the key of the customers. Such a bailmeht may be for the exclusive benefit of either party, i. Delivery of a safe deposit box is not possible. If the owner continues to have control over the goods, there can be no bailment. The notes were misappropriated by the servants of the Treasury Officer. The television set is left at the shop where the repair man examines it and fixes the problem. With the Reference of Book: The government was in no way bound to return the same notes or dispose the surrendered notes in accordance with the instructions of the man.

A tailor who receives a cloth for stitching is the bailee in this case. This site uses cookies. If the Bailor refuses to receive back the goods, the entitled to receive compensation from the Bailor for the necessary expenses of custody. Goods consigned without disclosing that they were combustible.

In case of such agreement or instructions, the bailee must immediately dispose the goods after completion of purpose as per the directions.