Q-1: Define Bailment. Explain its important features. OR Discuss its essentials:
Ans: MEANING OF BAILMENT [Section 148]
The word ‘Bailment’ is derived from a French word ‘Writer* which means to deliver according to Section 148.
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 off according to the directions of the person delivering them”.
If a person already in possession of the goods of another contracts to hold them as a bailee, he thereby becomes the bailee, and the owner becomes the bailor of such goods, although they may not have been delivered by way of bailment.
The person delivering the goods is called the ‘bailor*.
The person to whom the goods are delivered is called the ‘bailee’,
EXAMPLES OF BAILMENT
(a) X who is going out of station deliver? a horse to Y for proper care.
(b) X lends a horse to Y for his riding only without charge.
(c) Y hires a horse from X for riding.
(d) X delivers a horse to a doctor, Y, for medical treatment.
(e) X sells a horse to Y who leaves the horse in the possession of X.
ESSENTIALS OR FEATURES OF BAILMENT
Following are the essential of bailment:
1. CONTRACT / AGREEMENT
There must be an agreement between the bailor and the bailee. This agreement may be either express or implied. However, law may imply a bailment also. For example, bailment between a finder of goods and owner of goods.
2- MOVEABLE PROPERTY
It is the main feature of bailment that it is only for the movable property and not for the immovable property.
3- DELIVERY OP COOPS
There must be delivery of goods. It means that the possession of goods must be transferred. In this connection, the following points may be noted:
(i) The delivery must be voluntary; for example, the delivery of jewellery by its owner to a thief who shows a revolver does not create a bailment because the delivery is not voluntary.
(ii) Delivery may be actual or constructive.
A delivery is said to be actual where the goods are physically handed over by one person to another/For example, delivery of a car for repair to a workshop dealer.
Constructive Delivery [Section 149]
A delivery is said to be constructive where it is made by doing anything, which has the effect of putting goods in the possession of the intended bailee or of any person authorized to hold
them on his behalf. For example, delivery of the key of a car to a workshop dealer for the repair of car.
4- CHANGE / TRANSFER OF POSSESSION
Under the Bailment contract also bring change in the possession of the goods. Only custody without possession is not sufficient for this contract.
5- PURPOSE OF BAILMENT
The delivery of goods must be for some intended purpose. For example, wrong delivery of goods to Jaipur Golden Roadways instead of Patel Roadways, does not create any bailment.
6- TEMPORARY DELIVERY
The delivery of the goods may not be for the permanent purpose. It is essential that delivery must be made for the temporary purpose.
7- OWNER SHIP
Under Bailment right of owner ship remains with bailer and it does not change by the delivery of goods to other person.
8- CHANCE IN FORM
If bail goods shape or form of goods is change in the mean time even then it remains a contract of bailment. Such as tailor has the change of cloth into shirt or paint.
9- PARTIES OF THE CONTRACT
In the contract of bailment there are two parties, the bailer and the bailee. The person who delivers the goods is called the Bailor, and the person to whom the goods are delivered is called the Bailee.
The goods, which form the subject matter of a bailment, must be returned to the bailor or otherwise disposed off according to the directions of the bailor, after the accomplishment of purpose or after the expiry of period of the bailment. It may be noted that the same goods (which t were delivered by bailor to bailee) must be returned in their original form or desired form (if any required by the bailor). Thus, goods must be returned in specie (same) though they may undergo a change of form.
Delivery of old gold jewellery to a banker for safe custody creates a bailment because same old gold jewellery in its original form is to be returned,
Delivery of old gold jewellery to a goldsmith for melting and making new one out of it also creates a bailment even though the same old gold is returned in the form of new jewellery.