Section 148 defines the terms ‘bailment’, ‘bailor’ and ‘bailee’.

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 directions of the person delivering them. The person delivering the goods is called the bailor and the person to whom the goods are delivered is called the bailee.

Essentials of Bailment

1.Delivery of the goods for some purpose

2.Return of the goods after the purpose is achieved, or their disposal according to the bailor’s directions.

Kinds of Bailment

  1. Gratuitous Bailment: In gratuitous bailment it is without any consideration for benefit of bailor or bailee.
  2. Non-Gratuitous Bailment: Benefit for both bailor and bailee. Also known as bailment for reward.
  3. Bailment for benefit of bailor: Bailor delivers his goods to bailee for safe custody without any benefit or reward.
  4. Bailment for benefit of bailee: Bailor delivers his goods to a bailee without any benefit for his own use.
  5. Bailment for benefit of bailor and bailee: It is beneficial for both i.e. bailor and bailee.

Duty of Bailor

Section 150 mentions the following duty of bailor in respect of the goods bailed by him:

  1. The bailor is bound to disclose the faults to the bailee in the goods bailed, of which the bailor is aware and 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 the damage arising to bailee directly from such faults.
  2. 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 fault in the goods bailed.

Duties of Bailee

  1. Duty to take reasonable care of the goods bailed (Section 151 and 152).
  2. Duty not to make unauthorised use of the goods bailed (Section 153 and 154).
  3. Duty not to mix the bailor’s goods with his own goods ( Section 155,156,157).
  4. Duty to return the goods on fulfillment of the purpose (Section 160,161 and 165,166,167).
  5. Duty to deliver to the bailor increase or profit on the goods bailed (Section 163).