Duties of a Bailee
Duties of a bailee
in respect of goods are as follows:
1. Take proper care of goods
According to
section 151, it is the duty of a bailee to
take care of goods bailed to him. Bailee should take care of these goods as an
ordinary man will take care of his goods of the same value, quality, and quantity.
Thus, if the bailee
takes due care of goods then he will not be liable for any loss, deterioration
of such goods. Also, the bailee needs to take the same degree of care of goods
whether the bailment is for reward or gratuitous.
However, the bailee
is not liable for any loss due to the happening of any act by God or public
enemies though he agrees to take special care of the goods.
2. Not to make unauthorized use
As per section 153,
the Bailee shall not make any unauthorized use of goods bailed. In case he
makes any unauthorized use, then bailor can terminate the bailment.
Bailor can also
claim for damages caused to goods bailed due to unauthorized use
as per Section 154.
3. Keep goods separate
The bailee needs to
keep the goods separately from his own goods. He should not mix the goods under
bailment with his own goods. In case bailee mixes the goods with his own goods
without the consent of the bailor, then:
i. Bailor also has an interest in
the mixture.
ii. If the goods can be separated
or divided, the property in the goods remains with both the parties. But, the
bailee bears the expenses of separation or any
damages arising from the mixture.
iii. If it is not possible to
separate the goods, the bailee shall compensate the bailor for the loss of
goods.
4. Not set adverse title
A bailee must not
set an adverse title to the goods bailed.
5. Return Goods
The duty of the
bailee is to return the goods without demand on the accomplishment of the
purpose or the expiration of the time period. In case of his failure to do so,
he shall be liable for the loss, destruction, deterioration, damages or
destruction of goods even without negligence.
6. Return increase or profits
A bailee shall
return the goods along with any increase or profit accruing to the goods to the
bailor, in the absence of any contract to the contrary.
For example, A
leaves a hen in the custody of B. The hen gets a chick. B shall deliver the hen
along with the chick to A.
RIGHTS OF BAILEE
As
a matter of fact, all the duties of the bailor are the rights of the bailee.
In addition to that, the bailee has the following other rights also.
1. RIGHT TO
DELIVER THE GOODS TO ANY ONE OF THE JOINT BAILORS
If
several joint owners bailed the goods, the bailee has a right to deliver them
to any one of the joint owners unless there was a contract to the contrary.
Example: A, B and C are the joint
owners of a harvesting combine. They delivered it on hire to D for one month.
After the expiry of one month, D may return the “combine” to any one of the
joint owners namely, A, B or C.
2. RIGHT TO DELIVER
THE GOODS TO BAILOR WITHOUT TITLE
If
the bailor has no title to the goods, and the bailee in good faith delivers them
back to or according to directions of the bailor, the bailee is not responsible
to the owner in respect of such delivery.
3. RIGHT TO
APPLY TO COURT TO DECIDE THE TITLE TO THE GOODS
If
the goods bailed are claimed by the person other than the bailor, the bailee
may apply to the court to stop its delivery and to decide the title to the
goods.
Example: A, a dealer in T.V.
delivered a T.V. to B for using in summer vacation. Subsequently, C claimed
that the T.V. belonged to him as it was delivered only for repairs, to A and
thus, B should deliver it to him. In this case, B may apply to the Court to
decide the question of ownership of the T.V. so that he may deliver it to the
right owner.
4. RIGHT OF LIEN
The
bailee has a right to exercise lien i.e., to refuse to return the goods to the
bailor until his lawful charges are paid to him.
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