BL-Bailment
Arun
What is bailment? Is the bailor under any duty to disclose to the bailee any defects or faults in the goods bailed?
Bailment: 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 called the "bailor". The person to whom they are delivered is called, the "bailee"
Bailor's duty to disclose faults in goods bailed. The bailor is bound to disclose to the bailee faults in the goods bailed, of which the bailor is aware, and which materially interfere with the use of them, or expose the bailee to extraordinary risks; and if he does not make such disclosure, he is responsible for damage arising to the bailee directly from such faults.
If the goods are bailed for hire, the bailor is responsible for such damage, whether he was or was not aware of the existence of such faults in the goods bailed.
What are the rights of bailor and bailee?
Basically, the duties of a bailee are the rights of the bailor and the bailor can enforce his rights against the bailor by suing him in case of a default.
The various rights of the bailor are
1. Right to claim damagers in case of negligence
2. Right to terminate the contract in case of unauthorized use
3. Right to claim compensation in case of unauthorized use
4. Right to claim the separation of goods in case of unauthorized mixture
5. Right to claim compensation in case of unauthorized mixture of goods which cannot be separated
6. Right to demand return of goods
7. Right to claim compensation in case of unauthorized retention of goods
8. Right to demand accretions of goods
Right of a Bailee:
Basically, the duties of a bailor are the right of a bailee, and a bailee can enforce his rights against the bailor by suing him in case of default.
The various rights of a bailee are
1. Right to claim damages
2. Right to claim reimbursement of expenses
3. Right to be indemnified in case of premature termination of gratuitous bailment
4. Right to recover loss in case of bailor’s defective title
5. Right to recover loss in case of bailor’s refusal to take the goods back
6. Right to deliver goods to any one of the joint bailers
7. Right to deliver goods to bailor in case of bailor’s defective title
8. Right to particular lien
Explain “Pledge” and “Bailment” and the distinction.
Pledge: A pledge is an oath. Pledge or The pledge may also refer to:
§ a prospective member of college Fraternities and sororities
§ a Toast (honor) during the act of drinking in honor of someone
§ a warrant or assurance, now used especially in fundraising for charitable purposes
§ An item to be sold to a pawnbroker
Bailment
Bailment is distinguished from a contract of sale or a gift of property, as it only involves the transfer of possession and not its ownership. In order to create a bailment, the bailee must both intend to possess, and actually physically possess, the buildable chattel. Bailment is a typical common law concept and it is non-existent in civil law
Distinction between pledge and bailment
- Pledge is a bailment of goods as a security for the performance of the specific promise i.e. the payment of a debt or performance of a promise. Bailment, on the other hand, is for the purpose of any kind.
- In case of default by the pawnor to repay the debt, the pawnee may, after giving notice to the pawner, sell the goods pledged with him. The bailee may retain the goods or sue for his charges.
- In case of pledge, the pawnee has no right to use the goods pledged with him. In case of bailment, the bailee may do so if the terms of bailment provide so.
1. Bailment- Transfer of possession not of ownership from the bailor to bailee
2.
3. Mortgage- ownership of the goods vested in the mortgagor
4. Bailment- The delivery of goods by one to another person for some purpose, upon a contract that they shall , when the purpose is accomplished, be returned or disposed according to the directions of the person delivering them.
5. Pledge- Bailment of goods as security for payment of debt or performance of a promise. Conditions -Stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated.