Bailment & Types / kinds of Bailment
BAILMENT
Bailment implies a sort of relationship in which the personal property of one person temporarily goes into the possession of another. The ownership goes into the possession of another . The ownership the articles or goods is in one person and the possession in another . The circumstances in which this happens are numerous . Delivering a cycle , watch of any other article for repair , or leaving a cycle or car ,etc, at a stand ,depositing luggage or books in a cloakroom , delivering gold to a goldsmith for making ornaments, delivering garments to a dry-cleaner , delivering goods for carriage ,warehousing or storage and so forth ,are all familiar situation which create the relationship of bailment .Thus Bailment is a subject of considerable public importance. Bailment is defined in section 148 of Indian Contract Act.
Bailment, as according to Section 148 of the Indian Contract Act (herein after referred to as ‘ICA’), defines as the transfer of the goods while not giving up its ownership, i.e. only the possession of the goods is transferred and not the title. The person who transfers the possession is called ‘bailor’ and the one getting the possession is called ‘bailee’. It is widely accepted notion that it is a sui generis concept. It is duly stated so because of its autonomous nature. The purpose of the bailment depends upon the particular circumstances of the transaction. Generally, a bailment occurs in order to either provide a benefit to the bailor or the bailee, though sometimes a benefit is provided to both parties. In the initial example, you would benefit from the bailment of your possessions.
The essential elements of a bailment are:
- The bailor owns personal property or holds the right to possess it.
- The bailor delivers exclusive possession of and control over the personal property to the bailee.
- The bailee knowingly accepts the personal property with the understanding that he owes a duty to return the property, or to dispose ofit, as directed by the bailor.
CREATION OF BAILMENT
A bailment is created by an express or implied contract. Whether the elements of a bailment have been fulfilled is determined by examining all the facts and circumstances of the particular situation. For example, a patron goes into a restaurant and hangs his hat and coat on an unattended rack. It is unlikely that this created a bailment, because the restaurant owner never assumed exclusive control over the hat and coat. However, if there is a checkroom and the hat and coat are checked with the attendant, a bailment will arise.
If a customer parks her car in a parking lot, keeps the keys, and may drive the car out herself whenever she wishes, a bailment has not been created. The courts treat this situation as a lease of space. Suppose, however, that she takes her car to a parking garage where an attendant, after giving her a claim check, parks the car. There is a bailment of the car because the parking garage has accepted delivery and possession of the car. However, a distinction is made between the car and packages locked in the trunk. If the parking garage was not aware of the packages, it probably would not be a bailee of them as it did not knowingly accept possession of them. The creation of a bailment is illustrated in the Concept Review box below.
TYPES OF BAILMENT
- On the premise of benefit
- On the basis of reward
In this caring we partition bailment based on benefit , it may be isolated into three section
1. Bailment for exclusive benefit of bailor
In this kind of bailment, the bailor offers merchandise to bailee for his own motivation and great. It is for the elite advantage of the bailor. For instance A was going on a get-away he gives his pet to B for 4days, B needs to deal with his pet as a bailee however he won’t receive any advantage or prize in return. In this sort of bailment the obligation of bailee is slight since he isn’t taking any sort of advantage and prize out of this agreement of bailment so his obligation is slight. What’s more, the obligation of bailor is extremely high.
2. Bailment for exclusive benefit of the bailee
For this situation the bailee claims the products for his own motivation and great. The bailor gets nothing. Yet, the bailee is remunerated by the ownership of the products. For instance, an understudy takes books from one of his companions for contemplating. Here the bailee has all the advantages since he is utilizing the book of bailor however bailor isn’t receiving any prize and advantage in return. In this sort of bailment the obligation of bailee is high as the bailor isn’t removing any sort of points of interest from this agreement he is giving his property to the bailee for his utilization as it were. So the level of care is exceptionally high with respect to bailee. Also, the obligation of bailor is slight.
3. Bailment for mutual advantage
In this kind of bailment both the bailor and bailee benefits. It’s a sort of shared advantage situation where the two players get something out of the agreement they made. For instance if an individual gives his vehicle for fixing, the carport proprietor/bailee will be profited simply like the bailor. Here the two players are getting advantage out of this agreement so the obligation of care with respect to bailee is standard. What’s more, the obligation of the bailor is additionally common .
On the premise of remuneration
1. Gratuitous bailment
Unwarranted bailment is a kind of bailment where advantage can be of bailor or bailee however with no money related honor. For instance, obtaining a companion’s vehicle. A needless bailee is obligated for loss of the property just if the misfortune is brought about by the bailee’s gross carelessness. Consequently a lower standard of care is forced upon the bailee in an unnecessary bailment. Unwarranted bailment is likewise alluded to as bare bailment or bailment for sole advantage of bailor. The new York court of offers has simply help in siegel versus stick and co. that a needless bailee will undoubtedly pay harms for penetrate of his guarantee to impact protection on the article of care.
2. Non-Gratuitous bailment
Non-Gratuitous bailment is a kind of bailment where advantage can be of bailor or bailee yet with some financial honor. For instance, obtaining a companion’s vehicle. A needless bailee is obligated for each sort of misfortune and harm to the property. In this way a better quality of care is forced upon the bailee in an unwarranted bailment. Model :- Mr. Sean conveys the vehicle on lease to Mr. Burg Rs. 25,00 for each dayn and X has given over his dress to B who is proprietor of a clothing for washing. At a charge of Rs. 10/ – . Here the two players are being profited.
Difference between unwarranted bailment and Non-needless bailment
a) Duty to disclose defects[Sec 151]
1) In instance of gratuitous bailment
The bailor should uncover all the deformities in the merchandise.
(I) Which are known to him, and
(ii) Which substantially meddle with the utilization of them or open the bailee to phenomenal dangers.
Result: If the bailor doesn’t uncover such deformities and the bailee endures some misfortune because of such imperfections, the bailor is subject to bailee for such misfortune.
2) In instance of Non-gratuitous bailment
On the off chance that the bailee endures any misfortune because of any deformity in the merchandise, the bailor is subject to bailee for such misfortune if he knows those imperfections.
b) Duty to shoulder costs [Sec 158]
1) In instance of gratuitous bailment
The bailor should reimburse to the bailee all the essential costs which the bailee has just caused with the end goal of bailment.
2) In instance of non-gratuitous bailment
The bailor should reimburse to the bailee all the unprecedented costs which the bailee has brought about with the end goal of bailment.
Author: SHASHWAT Das,
KIIT School of Law