Bailment (Indian Contract Act, 1872)
A bailment is a contract where one person gives goods to another person for a specific purpose, and after the purpose is completed, the goods are returned or disposed of as directed.
The person who gives the goods is called the Bailor, and the person who receives the goods is called the Bailee.
Example:
Riya gives her laptop to a technician for repair. Here, Riya is the bailor and the technician is the bailee. After repair, the laptop must be returned to Riya.
Essential Elements of Bailment:
- Delivery of goods (actual or constructive)
- For a purpose
- Goods must be returned or disposed of after purpose is complete
Duties of Bailee:
- Take reasonable care of goods
- Use goods only for the agreed purpose
- Return goods after use
Duties of Bailor:
- Disclose faults in goods
- Bear extraordinary expenses
- Indemnify bailee for any loss caused
Types of Bailment:
- Gratuitous Bailment – made without reward
- Non-Gratuitous Bailment – made for consideration
Important Point:
If the bailee fails to take proper care or uses goods wrongly, it becomes a breach of bailment, and he may be liable for damages.
So, bailment is simply a temporary transfer of goods for a purpose, with a duty to return them safely.