Rights Duties and Liabilities of a Bailor

by Sree Rama Rao on August 2, 2009

Rights of Bailor:

Treat bailment as voidable: Termination of bailment: (Sec 153) If the bailor does any act with regard to the goods bailed, inconsistent with the conditions of the bailment, a contract of bailment is voidable at the option of the bailor. When the bailee wrongfully uses or disposes the goods, the bailor can terminate the bailment and claim his rights.

Illustration:

A lets to B for hire a horse for his own riding. B drives the horse in his carriage. A can terminate the bailment.

Return of goods: (Secs 160 & 161) The bailor has got a right to receive back the goods from the bailee or direct the goods to be delivered according to his directions, as soon as time for which they were bailed has expired, or the purpose for which they were bailed has been accomplished. If the goods are not returned delivered or tendered at the proper time, the bailor can claim compensation for any loss destruction or deterioration of the goods.

Claim compensation for wrongful use of goods by bailee: (Sec 154). In case of wrongful or unauthorized use of goods by bailee, bailor can claim compensation for any damage arising to the goods.

Illustration:

A lends a horse to B for his own riding only. B allows C, a member of his family to ride the horse. C rides with care, but the horse accidentally falls and is injured. B is liable to make compensation to A for the injury done to the horse.

In case of mixture of goods by the bailee: (Sec: 155-157)

i) If the bailee, with the consent of the bailor, mixes the goods of the bailor with his own goods, the bailor can claim proportionate share in mixed goods.
ii) If the bailee without the consent of the bailor, mixes the goods of the bailor with his own goods, and the goods can be separated or divided, the bailor can claim expenses of separating and any damage arising from the mixture.
iii) If the bailee without the consent of the bailor mixes the goods of the bailor with his own goods, and the goods cannot be separated or divided, the bailor is entitled to be compensated by the bailee for the loss of the goods.

To receive any increase or profit from goods bailed: (Sec 163) In the absence of any contract to the contrary, the bailor is entitled to any increase or profit which may have accrued from the goods bailed.

Enforcement of rights: The bailor can enforce by suit all the liabilities and duties of the bailee.

Duties and Liabilities of the bailor:

Put bailee into possession: (Sec 149) The bailee shall put the goods in the possession of the intended bailee by doing anything which was the effect of putting the goods in the possession of the bailee.
Disclose faults in the goods bailed: (Sec150) The bailor is bound to disclose to the bailee –

i) faults in the goods bailed of which the bailor is aware; and
ii) faults which materially interfere with the use of them, or expose the bailee to extraordinary risks.

If the bailor does not make such disclosure, he is responsible for damage arising to the bailee directly from such faults. Bailor is liable to pay damages which have arisen directly from such fault. If the goods delivered are dangerous, the fact should be disclosed to the bailee. If the goods are bailed for hire, the bailor is responsible for such damages, whether, he was or was not aware of the existence of such faults in the goods bailed.

In case of gratuitous bailment, the bailor is bound to disclose only the defects or faults known to him. He is not liable for defects of which he is not aware. In case of other bailments, he is responsible for defects whether known to him or not. It is the duty of the bailor to supply goods as fit for the purpose for which they are hired as reasonable care and skill can render it.





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