The right of ‘general lien’ as provided in section 171, means the right to hold the goods bailed as security for a general balance of account. General lien entitles the bailee to detain any goods bailed to him for any amount due to him whether in respect of those goods or any other goods. Lien is a personal right which continues only so long as the possessor holds the goods (Legg v. Evans). The right of lien may also be defeated or excluded by an agreement to the contrary.
The ‘general lien’ entitles the bailee to retain the goods of the bailor for a general balance of account. For instance, A leaves his horse with his neighbor, B, for safe custody foe one week. B is entitled to recover the expenses incurred by him in feeding the horse. Section 158– Some numeration has to be paid to the bailee for services he renders in respect of them, he has a right to recover the same, or to exercise the right of lien in respect of such goods until he receives the necessary payment.
All essential features must be met in order for the bailment contract to be legal. Both the bailor and the bailee have certain rights and duties to be complied with, wherever applicable. Although responsibilities will depend on the specifics of the case, some requirements, such as the bailee’s responsibility to reasonable care, are inherent in any bailment contract and are consistent and apply all over.
If the bailor fails to pay the due remuneration, the bailee has the right to claim the same from the bailor. The bailor has to remunerate the bailee for the expenses he incurs under a contract of bailment. If the goods bailed rights and duties of bailor are used for some purpose other than for which they were bailed, due to which the goods get damaged, the bailor can claim compensation for the same. For instance, in case of theft or some negligent act of the bailee the goods are lost or damaged, the bailor can claim compensation for the loss. By understanding and adhering to these defined duties, parties can safeguard their legal rights and responsibilities, which in turn enhances the overall efficiency and reliability of commercial transactions.
This category of delivery of products could be either actual or constructive bailment type in nature. The burden of proof is on the bailee to demonstrate that he was reasonably careful and he is not responsible if he can prove this. If the bailee provides proof that he has taken reasonable care to avoid reasonably foreseeable damages, or had taken all reasonable efforts to avoid reasonably apprehended hazards, he would be waived from his liability.
They are expected to take reasonable care of the property and use it only for the agreed-upon purpose. If they fail to do so and the property is damaged or lost, they can be held liable for the damages. The concepts of bailment and pledge play a significant role in the framework of the Indian Contract Act, 1872. These legal concepts outline the processes by which goods can be temporarily transferred from one party to another while ensuring that ownership remains with the original owner. In a bailment arrangement, the bailor entrusts their property to the bailee, who is responsible for its care and return. Conversely, in a pledge, the pledgor gives goods to the pledgee as security for a debt or obligation.
The bailor is the person who transfers the possession of personal property to another person (the bailee) but retains ownership of the property. For example, when you leave your car with a valet attendant, you are the bailor, and the valet is the bailee. The car remains your property, and you have the right to take it back when you want. Ex- The right to possess and use a vehicle is granted to a bailee who borrows a vehicle from a friend for the duration of the bailment.
Bailment is a crucial legal concept that affects our daily lives in ways we may not even realize. Understanding the roles of the bailor and the bailee can help us protect our personal property and ensure that we are not held liable for any damage or loss that occurs while our property is in someone else’s possession. The bailee is responsible for any damages or losses that occur during the bailment.
It is a legal relationship between two parties where one party (the bailor) transfers the possession of their property to another party (the bailee) for a specific purpose. The bailee assumes temporary control and possession of the property, but the bailor retains the ownership rights. In this blog, we will explore the roles of the bailor and the bailee in more detail. Section 166 states that, if the bailor’s title is defective, and the bailee delivers the goods to the bailor, then he cannot be held liable to compensate the owner of such goods. It is the duty of the bailee to return the goods to the bailor even though his title is defective. The bailee cannot refuse to return the goods due to the defective title of the bailor.
The bailee, in the absence of any special contract, is not responsible for the loss, destruction or deterioration of the thing bailed, if he has taken the amount of care of it described in section 151. In all cases of bailment the bailee is bound to take as much care of the goods bailed to him as a man of ordinary prudence would, under similar circumstances, take of his own goods of the same bulk, quantity and value as the goods bailed. The bailee is entitled with the responsibility to deliver back any increase or profit that accrued on the goods of the bailor.
The bailee is estopped from denying the right of the bailor to bail the goods and to receive them back. If such goods are bailed for hire, the bailor is responsible for such damage, whether he was or was not aware of the existence of such faults in the goods bailed. There are certain duties which the bailee has to fulfil under a contract of bailment. As mentioned in Section 153, the bailor has a right to terminate the contract if the bailee indulges in some malpractice or doesn’t fulfil the conditions of the contract.
This may involve creating a precise and thorough bailment agreement, acquiring adequate insurance, and keeping lines of communication open during the bailment time. 4)The bailor is responsible for reimbursing the bailee for any necessary expenses incurred in the preservation or improvement of the goods. 3)The bailor can terminate the bailment before the agreed-upon period in certain situations. The bailor must disclose any known defects in the goods that may affect their use or safety to the bailee. 1)The bailor has the right to demand the return of the goods from the bailee once the purpose of the bailment is accomplished or the agreed-upon period expires. Meanwhile, the establishment and enforcement of contracts including the above bond in India are governed by the Indian Contract Act of 1872.
In garage were put not only vehicles containing petrol but also other combustibles like thinners and paints. The garage was portioned by wooden walls and a part of it was allowed to be used for cooking purpose. The room in which plaintiffs’ car was kept could not be opened for 15 minutes after the fire was noticed, as the keys of the rooms were not available.