Contract of Bailment

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					            Contract of Bailment
Presented to:               Presented by:
Anil Naswa Sir              Krunal Maheta(3811)
                            Chirag Vachhani(3827)

•   Definition
•   Essentials of a Valid Contract
•   Kinds of bailment
•   Duties of a Bailor
•   Duties of a Bailee
•   Rights of Bailor
•   Rights of Bailee
•   Termination of Bailment
•   Finder of Lost Goods

        Definition of Bailment

• A bailment is the transfer of possession of
  personal property without the transfer of
  ownership, usually on the understanding that the
  property will be returned.

• The party who transfers the property is called
  the bailor, and the party to whom the property is
  transferred is the bailee.

           Kinds of Bailment
1. Gratuitous bailment:
                         If any party to the
   contract does not derive any benefit under the
   contract of bailment, such bailment is called as
   gratuitous bailment.
2. Non-gratuitous bailment:
                           If both the parties
   derive some benefit under the contract of
   bailment, such bailment is called as non-
   gratuitous bailment.

      Bailment – what it isn’t
• Not a contract, but might have a contract
• Not a tort, but tortious conduct might be
• Not a sale, because the goods are only
  temporarily in the bailee’s possession
• Not a licence, because obligations are
  imposed on the bailee in a bailment

     Essentials of a Valid Contract
1.   Contract between the parties
2.   Bailment of goods only
3.   Delivery of goods
4.   Delivery for some purpose
5.   Return or disposal of goods

            Duties of a Bailor
1. Duty to disclose faults in the goods
2. Duty to reimburse expenses
3. Duty to indemnify bailee for loss caused due to
   defective title of bailor
4. Duty to indemnify the bailee for loss exceeding
   the benefits in case of premature termination of
   gratuitous bailment
5. Duty to receive back the goods
6. Duty to bear the loss
         Duties of a Bailee
1. To take care of the goods bailed
2. Not to make unauthorized use of goods
3. Not to mix bailor’s goods with his own
4. To return the goods bailed without
5. To return any accretion to the goods

           Rights of Bailor
1. Enforcement
2. Avoidance of Contract
3. Premature termination of Gratuitous
4. Action against wrong doer

            Rights of Bailee
• Bailee has the right to to deliver goods to
  anyone of the several joint bailors
• Defective title of bailor
• Application to court
• Action against wrong doer
• Lien

       Termination of Bailments
•   Mutual agreement of both parties.
•   Demand by either party.
•   Completion of the purpose of the bailment.
•   Act by the bailee that is inconsistent with
    the terms of the bailment

       Finder of Lost Goods
• Finding is not owning
• A Finder of lost goods is treated as bailee
  of the goods found as such and is charged
  with the responsibilities of a bailee.
• Besides responsibilities, he enjoys certain
  rights also
             1. Right to retain the goods
             2. Right to sell
       Finder of Lost Goods

• Can you keep something
 you found on the street?

        Finder of Lost Goods
• If you find something, you have the legal
  right to try to find the owner.
• You may be able to keep the item after
  following local requirements, which include
  advertising for the true owner or depositing
  the article at the local police station.

     Stolen Personal Property
• Can you keep something you bought that
  you later find out was stolen?

• No, the stolen item belongs to its original
  owner, who can always regain possession.

     Stolen Personal Property
• A person has no title to goods that are
  stolen and cannot give title to anyone else.
• An innocent purchaser is obligated to
  return it to the owner.
• Title to stolen goods never leaves the



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