Question 3 (a)

Bailment; rights and duties of the bailor

12 marks

Time to write: About 24 minutes
Topic: Bailment and pledge
Notes: Crux notes

Question

Question 3 (a) · 12 marks

Under the Indian Contract Act, of 1872, define the term 'Bailment'. Discuss in detail the rights and duties of the bailor.

Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

24 minfor 12 marks

Read from the question

DiscussEach point named and explained, not just listed.

Write it in this order

Read; underline the asks; jot your points 2 min
1 Bailment defined, essentials 3 marks 5 min
2 Duties of the bailor 4½ marks 7 min
3 Rights of the bailor 4½ marks 7 min
Check: every ask answered, key terms underlined 3 min

123

Short on time? Trim steps 1–3 evenly rather than skip one: each is capped at its own marks.

Try it first. About 24 minutes for 12 marks. Write it out, then open the solution.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

Bailment. Section 148 of the Indian Contract Act, 1872: “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. The person delivering the goods is” the bailor; the person to whom they are delivered is the bailee. The essentials are a contract, delivery of possession (not ownership) of movable goods, a purpose, and the return of the specific goods.

Picture itBailment; rights and duties of the bailor

1Keys for a gift box: Arjun lends his scooter to Imran for the errand.

BailmentThe delivery of goods by one person to another for some purpose.

2He crouches first to point out the loose brake Imran should know about.

To disclose known faultsThe bailor must disclose to the bailee faults in the goods bailed of which he is aware.

3Errand done, the scooter comes back through the same gate.

To accept the goods backWhen the purpose is accomplished.

Duties of the bailor. The duties are spelt out in sections 150, 158, 159 and 164:

To disclose known faults (s. 150). The bailor must disclose to the bailee faults in the goods bailed of which he is aware and which materially interfere with their use or expose the bailee to extraordinary risks; otherwise he is responsible for damage caused. In a bailment for hire he is responsible for such damage whether or not he knew of the faults.
To bear necessary expenses (s. 158) of a gratuitous bailment, where the goods are to be kept, carried or worked on by the bailee without remuneration.
To indemnify the bailee where a gratuitous bailment is terminated before time and the bailee's loss exceeds the benefit he has already had from the bailment (s. 159), and for loss the bailee suffers because the bailor had no right to bail the goods or to take them back (s. 164).
To accept the goods back when the purpose is accomplished.

Rights of the bailor:

To terminate the bailment (s. 153) if the bailee acts inconsistently with its conditions.
To demand back the goods at any time in a gratuitous bailment (s. 159).
To sue any wrongdoer who deprives the bailee of the goods or injures them (s. 180).
To enforce the bailee's duties and claim compensation for loss caused by the bailee's breach (negligence, unauthorised use, unauthorised mixing).

Where the 12 marks sit

#	Component	Marks
1	Bailment defined, essentials	3
2	Duties of the bailor	4.5
3	Rights of the bailor	4.5
	Total	12

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