Bailment, as defined under Section of the Indian Contract Act, is the delivery of goods by one person to another for some purpose. Bailment is the delivery of goods by a person (the Bailor) to another (the Bailee) for a certain purpose. have been pledged by him under section 19 of the Indian Contracts Act,and the contract [1]Indian Contracts Act, In Contact, a bailment is the delivery of goods from one person to another for Section of the Indian Contract Act, deals with the topic of bailment.

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Indian Contract Act, Contract Law. It is no defence for him to say that he was not aware of the defect. A man drops off his clothes for dry cleaning. If there is no contract, there is no bailment. Post was not sent – check your email addresses! Just complete this form…. Bailment, as defined under Section of the Indian Contract Act, 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 bailor [1].

The judge had held that it is not per incuriam hence the same will be binding on this court. Parcels Ltd 1 QB The bank, in this case, was entrusted with the jewellery and the valuation of the jewellery had been proved with sufficient evidence produced to the police at the time of the robbery. Talk to a legal expert on phone and get the advice you need.

The judgment acts as a good precedent as it mitigates the responsibility of the banks to some extent which is absolutely required in to allow them to provide service to the public. This site uses cookies. The delivery may either put the bailee in the actual physical possession of the goods or put the bailee in a position of power over such goods that may be possessed later.

You are commenting using your WordPress. Retrieved from ” http: It is to be noted that if a person is already in possession of goods of another contracts to hold them as bailee, he thereby becomes the bailee and the owner of the goods as bailor, though the goods are not delivered by way of bailment. He is making profit from his profession and, therefore, it is his duty to see that the goods which he delivers are reasonably safe for the purpose of the bailment. A contract of bailment may be terminated by act of parties or by operation of Law.


The person delivering the goods is called the bailorand the person to whom the goods are delivered is the bailee. Publication policy Submit article. The court held that there was an implied undertaking that the launch was as fit for the purpose for which it was hired as reasonable care and skill could make it. The judge held it insufficient to prove that the appellant had entrusted the jewellery to the respondent.

If a bank is given actual and exclusive possession of the property inside a locker by the person who hired the locker, only then can bailment under Section can be presumed.

Bailment – Section – of Indian Contracts Act – Law Times Journal

Natha contarct 13 Bom ]. The lower courts have also relied on this judgment and the present court has established that there is no error in doing so. The Law Commission of India in its 13 th report conntract that bailment without contract should also be included in the Indian Contract Act, but no concrete steps have been taken as yet.

There has to be a purpose for the bailment of goods and it is mandatory that once such purpose is accomplishes, the goods have contraxt be returned to the bailor or be disposed off per his instructions. Section specifically deals with constructive delivery of goods. If there is an agreement to return the equivalent and not the same goods, it is not bailment. This example is similar to the case of National Bank of Lahore vs.

Similarly, hiring and storing goods in a bank locker by itself is not bailment thought there is delivery of goods to the bank premises.

What updates do you want to see in this article? We deliver our goods to another person or leave them in the power of another invian for a purpose and expect to receive our goods back when the purpose has been achieved. Email required Address never made public.

The tailor is supposed contracg return the finished garment to the customer, the bailor, once the garment has been stitched. To create a bailment, the bailee must intend to possess and in some way physically possess or control the bailed goods or contraxt. A has a motorcycle that he sells to B who leaves the motorcycle in the possession of A while he contracct out of town.

The bank was held liable for negligence because the robbery was committed by the manager within the bank itself. Thus, the lockers could be opened even without the key of the customers. Only the temporary possession of the bailed goods is transferred and the ownership of such goods remains with the bailor. But the coins and notes that are no longer legal tender and are more or less just objects of curiosity, then they can be bailed.


The plaintiff hired from the defendant for a specific journey of a carriage, a pair of horses and a driver.

Contract of Bailment

File Divorce in Delhi – Right Now! It states that anything done which has the effect of putting the goods in the possession of the intended bailee or any other person authorized to hold them on his behalf is to be treated as constructive delivery of the goods. One of the key ingredients emphasized on by this definition is the delivery of possession of the goods from the bailor to the bailee.

The court has been right in giving this decision in favor of the respondents because holding the bank responsible for the loss of any goods kept in the locker by their customers would give rise to uncountable amount of liability as it may be found difficult to prove that there was no exclusive possession of the contents of the locker. A guest who uses the goods of the host during a party is not a bailee.

During the journey a bolt in the under-part of the carriage broke, the splinter bar became displaced, the carriage was upset and the plaintiff injured.

He has added that the question of reasonable care and quantum of damages would arise only after it has been shown that actual exclusive possession of the property was given by the bailee to the bailor, i.

They were injured and suffered loss.

Bailment – Introduction

Hence, in one peculiar case, where the lady had handed over some of her jewels to a goldsmith to be utilized for making new jewels, and the lady used to take back the half-made jewels every evening for the purpose of safekeeping in her own box, the contract of bailment got over every evening as soon as the lady took the half-made jewels in her possession.

Exception to infian delivery upon contract: The Pawnee must redeem the value of the pledge to the Pawnor after the completion of the bailment. This means there should a contract between the acr parties for such transaction of delivery and subsequent return.