KINDS OF BAILMENT

by • 09/06/2013 • GeneralComments (0)356

Q.3      Explain the various kinds of bailment on the basis of reward and on the basis of benefit.

Ans:    KINDS OF BAILMENT

 

1.         BAILMENT ON TNE BASIS OF REWARD

 

Type

Meaning

Example

(a) Gratuitous bailment It is a contract of bailment where no consideration passes between the bailor and the bailee. X lends a horse to Y for his riding without any charge.
(b) Non-gratuitous bailment It is a contract of bailment where some consideration passes between the bailor and the bailee Y hires a horse from X.

 

DISTINCTION blw A GRATUITOUS AND NON-GRATUITOUS BAILMENT

A gratuitous bailment can be distinguished from a non-gratuitous bailment as under.

Basis of distinction

Gratuitous bailment

Non-gratuitous bailment

1.

Consideration. Non-consideration passes between bailor and the bailee. Some consideration passes between the bailor and the bailee.

2.

Benefit It is for the exclusive benefit of the bailor or bailee. It is for the mutual benefit of the bailor and bailee.

3.

Liability of bailor for unknown defects [section 151] The bailor is not liable to the bailee for the loss due to defects in the goods if he does not know those defects. The bailor is liable to the bailee for the loss due to defects in the goods whether he knows those defects or not.

4.

Bailer’s duty to bear expenses [Section 158] The bailor must repay to the bailee all the necessary expenses, which the bailee has, already purposes of bailment. The bailor must repay to the bailee only the extraordinary expenses, which the bailee has already incurred for the purpose of bailment.

5.

Bailment for a specified

period / purpose

It can be terminated at any time even though the bailment was for a specified period or specific purpose. It is terminated on the expiry of specific period or on the fulfillment of the specific purpose.

6.

Effect of death of bailor / bailee It is terminated by the death of bailor or bailee. It is not terminated by the death of bailor or bailee.

 

II.        BAILMENT ON THE BASIS OF BENEFIT

Type

Meaning

Example

Bailment for the exclusive benefit of the bailor It is a contract of bailment, which is executed only for the benefit of the bailor, and the bailee does not derive any benefit from it X who is going out of station delivers a horse to Y for proper of care
Bailment for the exclusive benefit of the bailee It is a contract of bailment, which is executed only for the benefit of the bailee, and the bailor does not derive any benefit from it. X lends a horse to Y for his riding without any cargo.
Bailment for mutual benefit It is a contract of bailment, which is executed for the mutual benefit of bailor and bailee. Y hires a horse from X.

 

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