Describe the right and duties of the Bailor and Bailee

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Q-7      Describe the right and duties of the Bailor and Bailee OR Throw light on the liabilities and right of the Bailor and Bailee. OR Discuss the power & duties of the Bailee & Bailor.

Ans:    DUTIES OF THE BAILOR

Following are the duties and liabilities of the bailor:

 

(a)        Duty To Disclose Defects [Section 151]

In case of gratuitous bailment

In case of Non-gratuitous bailment

The bailor must disclose all the defects in the goods

(i)         Which are known to him, and

(ii)        Which materially interfere with the use of them or expose the bailee to extraordinary risks.

Consequence: If the bailor does not disclose such defects and the bailee suffers some loss due to such defects, the bailor is liable to bailee for such loss

If the bailee suffers any loss due to any defect in the goods, the bailor is liable to bailee for such loss whether he know? those defects or not

 

 

EXAMPLE I: X delivered a horse to T for his own riding without any charge. The

horse runs away. Y is thrown and injured. State the legal position in each of the following alternative case:

Case (a): if X did not know that the horse was vicious.

Case (b): if X disclosed the fact that the horse was vicious.

Case (c): If X did not disclose the fact known to him that the horse was vicious.

 

Solution: The baiUnent in the given problem is gratuitous bailment and, hence the legal position is as under:

Case (a): X is not liable to Y for, loss because he did not know the defect.

Case (b): X is not liable to Y for such loss because he disclosed the known defect.

Case (c): X is liable to Y for such loss because he did not disclose the known defect.

 

EXAMPLE II: If in Example Iy X charge Rs 100/= from Y, will your answer be same?

Solution: Then, it becomes a case of non-gratuitous bailment and hence the legal position will be changed as under:

In all cases, X is liable to Y for such loss because bailor is liable, to bailee for any loss

arising due to all defects whether he knows or not.

 

(b) Duty to Bare expenses [Section 158]

in case of gratuitous bailment

In case of non-gratuitous bailment

The bailor must repay to the bailee all the necessary expenses which the bailee has already incurred for the purpose of incurred for the purpose of bailment. The bailor must repay to the bailee all the extraordinary expenses which the bailee has

 

EXAMPLE:      X delivered a horse to Y. Y incurred Rs 100/= as feeding expenses and Rs 200/- as medical expenses when the horse became sick. State the legal position (a) if nothing was charged by either party9 (b) IF X charged Rs 500/= from Y.

Solution:

Case (a): It is a case of gratuitous bailment where X (the bailor) must repay Rs 300/= to Y (the bailee) because the bailor is bound to bear all expenses incurred by the bailee for the purpose of bailment.

Case fb): It is a case of non-gratuitous bailment where X (the bailor) must repay Rs 200/= tb Y (the bailee) because the bailor is bound to bear all extraordinary expenses (and not ORDINARY expenses) incurred by the bailee for the purpose of bailment.

 

(c)        Duty to Indemnify the Bailee In Case of Premature Termination of Gratuitous Bailment [Section 1S9]

A gratuitous bailment may be terminated by the bailor at anytime even though the bailment was for a specified time or purpose. The bailor must indemnify the bailee in case the loss arising due to premature termination of the bailment exceeds the benefits actually derived by the bailee.

(d)        Duty to indemnify the Ballet against the Defective Title the Bailor [Section 164]

The bailor is responsible to the bailee for any loss which the bailee may suffer because of the defective title of the bailor.

EXAMPLE

Y asks X, his friend to give him horse for one hour. X, instead of his own horse, delivers Ts horse to Y. While Y was riding, Z catches Y and hands him over the police custody- Y is entitled to recover from X all costs which he had to incur in getting out of this situation.

 

(a)        Duty to Receive Back the Goods [Section 184]

The bailor must receive back the goods when the bailee, in accordance with the terms of bailment, returns the ghods to him. If the bailor refuses to receive back the goods, he must repay to the bailee all the expenses, which the bailee has incurred for the safe custody of goods.

 

EXAMPLE

X lent a horse to Y for five days. On the expiry of five days, X refused to receive back the horse but two days thereafter, he agreed to receive back the horse. During these two days, Y incurred Rs 100 as feeding expenses* X must repay Rs 100/= to Y.

 

(b)        Duty to Bear the Risk of loss [Section 155]

The bailor must bear the risk of loss of goods provided the bailee has taken aYi reasonable steps to protect the goods from loss,

EXAMPLE

X lent a horse to Y for five days. On third day, the horse became sick and was Hospitalized. bnt died. Y is not liable to X for this loss.

 

 

 

 

 

 

RIGHTS OF A BAILOR

Basically, the duties of a bailee are the rights of a bailor ard the bailor can enforce his rights against the bailor by suing him in case of a default.

 

(a)        Right to Claim damages in Case of Negligence [Section 152]

If the bailee has not taken reasonable care (in the absence of any special contract) or special care (in case of special contract to that effect), the bailor has a right to claim damages for the loss, destruction or deterioration of the goods bailed.

(b)        Right to Terminate the contract In Case of Unauthorized use [Section 1S3]

If the bailee does any act in respect of goods’ bailed, which is inconsistent with the conditions of the bailment; the bailor has a right to terminate the contract of bailment.

(c)        Right to Claim compensation In case of unauthorized use [Section 154]

If the bailee does not use the goods bailed according to the conditions of the bailment, the bailor has a right to claim compensation from bailee for any damage arising to the goods from or during such use of them

(d)        Right to Claim the separation of Goods In Case of unauthorized Mixture [Section 155]

If the bailee, without the consent of the bailor mixes bailor’s goods with his own goods and the goods can be separated, the bailor has a right to claim his goods after separation.

(e)        Right to Claim compensation In Case of Unauthorized Mixture of Goods which cannot he separated [Section 157]

If the bailee, without the consent of the bailor mixes bailor’s goods with his own goods and the goods cannot be separated, the bailor has a right to claim compensation from bailee for the loss

of the goods.

(f)         Right to demand Return of Goods [Section 160]

The bailor has a right to demand return of goods after the accomplishment of the purpose or after the expiry of period of bailment.

(g)        Right to Claim Compensation In case of unauthorized Retention of Goods [Section 161]

If the bailee does not return or deliver the goods according to the bailor’s directions, after the accomplishment of purpose or after the expiry of period of bailment, the bailor has a right to claim compensation for any loss, destruction or deterioration of the goods from that time.

(h)        Right to Demon a Accretion to Coods [Section 163]

In the absence of contract to the contrary, the bailor has a right to demand any increase or profit which may have accrued from the goods bailed.

 

RIGHTS OF A BAILEE

Basically, the duties of a bailor are the rights of a bailee, and a bailee can enforce his rights against the bailor by using him in case of default.

 

(a)        Right to Claim Damages [Section 150]

In case of gratuitous bailment

In case of non-gratuitous bailment

If the bailor does not disclose the defect in the goods, which are known to him and the bailee, suffers some loss due to such defects-, the bailee has a right to claim damages. The bailee has a right to claim reimbursement crt all the extraordinary expenses, which the bailee has already incurred for the purpose of bailment.

 

(b)        Right to Claim Reimbursement of expenses [Section 158]

In case tof gratuitous bailment In case of  non-gratuitous bailment
The bailee has a right to claim reimbursement of all the necessary expenses, which he has already incurred for the purpose of bailment. The bailee has a right to claim reimbursement of all the extraordinary expenses which the bailee has already incurred for the purpose of bailment

 

(c)        Right to be Indemnified In ease of Premature Termination of Gratuitous Bailment [Section 159]

The bailee has a right to be indemnified in case- the loss arising due to premature termination of the gratuitous bailment exceeds the benefits actually derived by him.

(d)        Right to Recover loss In case of Bailor’s Defective Title [Section 164]

The bailee has a right to be indemnified in case he suffers any loss because of the defective title of the bailor.

(e)        Right to Recover Loss In case of Bailor’s Refusal to take the Goods sack [Section 164]

The bailor has a right to be indemnified in case he suffers any loss because of bailor’s refusal to take the goods back.

(f)         Right to Deliver Goods to Mw&ne of the Joint &a{lot’s (Section 16S]

In the absence of any contract to the contrary, the bailee has a right to deliver back the goods to anyone of the joint owners or may deliver the goods back according to the directions of one joint owner without the consent of all [Section 165].

(g)        Right to Deliver the Goods to sailor In case of Bailor’s Defective Title [Section 166]

If the bailor has no title to the goods, and the bailee, in good faith, delivers them back to, or according to the directions of the bailor, the bailee is not responsible to the owner in respect of such delivery.

(h)        Right to Particular lien [Section 170]

Where the bailee has, in accordance with the purpose of the bailment, rendered any service involving the exercise of labour or skill in respect of the goods bailed, he has, in the absence of a contract to the contrary, a right to retain such goods until he receives due remuneration for the services he has rendered in respect to them.

EXAMPLE I

“A” delivers a rough diamond to “B”, a jeweler, to be cut and polished, which is accordingly done. “B’; is entitled to retain the stone til! he is paid for the services he has rendered.

EXAMPLE II

“A” gives cloth to a tailor, to make into a coat. ‘£B;s promises “A” to deliver the coat as soon as it is finished, and to give a three moths credit for the price. “B” is not entitled to retain the coat until he is paid.

Following are duties of the bailee.

 

1.         CARE OF GOODS (Section 151 & 152)

It is the duty of the bailee that he should take as much care of the goods as a mean of ordinary prudence takes care about his own goods.

2.         ACT ACCORDING TO THE BAILMENT (Section 154)

Any act of the bailee should not be against the conditions of the contract- Otherwise contract will be voidable at the option of the bailor.

3.         MIXING IS NOT ALLOWED (Section 15S & 157)

It is the duty of the bailment that he should keep the bailor goods separate from his own goods, if he mixes without the consent of separation and loss.

4.         SHOULD NOT DENY THE TITLE (Section I60 & 161)

It is the duty of the bailee that he should not deny or change the title of the bailor about the owner ship of goods.

5.         DEFAULT OF RESPONSIBILITY (Section 154)

Due to the default of the bailee, if goods are not delivered or returned to the bailor then he himself will be responsible to the bailor for any loss.

6.         RETURN OF GOODS (SECTION 160)

Sec. 160 defines, “It is the duty of the bailor to return or deliver the goods bailed according to the bailor conditions”.

7.         RETURN AT PROPER TIME (SECTION 161)

It is the duty of the bailee that he should return the goods bailed as the time or purpose of bailment completes without the demand of the bailor.

8.         RETURN OF PROFIT (Section 163)

It is also the duty of the bailee that he should deliver the profit or any increase occurred in

the bailed goods to the bailor.

9.         PROPER USE OF GOODS

It is the duty of the bailee that he should use the goods according the conditions of the contract, if he misuses the goods than he will compensate the loss to the bailor.

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