Duties and Rights of the Bailor

Duties of the bailor

The bailor owes the following duties to bailee in respect of the goods bailed out by him.

Duties and Rights of Bailor

Duties and Rights of Bailor

1. Duty to disclose faults

In case of gratuitous bailment, the bailor is expected to disclose to the bailee all the defects known to him and which would get in the way with the use of goods bailed. A non-gratuitous bailment or bailment for reward, however, carries a greater responsibility on the part of bailor. He will be liable even if he was not in the know of the defects. The following instances drive home the points.

Example 1

A lends his horse, which he knows to be frisky, to B. He does not disclose the fact that the horse is frisky. When B tries to ride it, the horse throws him off its back, and B is injured. A is responsible to B for injury sustained.

Example 2

A hires a carriage of B, The carriage is unsafe, though B is not aware of it, and A is injured. B is still responsible to A for the injury.

2. Duty to repay bailee’s expenses

A bailor is duty bound to repay to the bailee expenses incurred by him for work done on the goods received under conditions of bailment, and for which he is not receiving any remuneration or deriving any benefit. In this regard,

3. Duty to indemnify the bailee

The bailor is bound to make good the loss suffered by the bailee that is in excess of the benefit actually derived, where he had delivered the goods gratuitously and compelled the bailee to return them before the expiry of the period of bailment.

4. Duty to compensate bailee for breach of warranty

Every contract of bailment warrants the bailee about the bailor’s title being defect free. Thus, if bailee subsequently suffers any loss by the reason of the bailor’s title being defective, it is the duty of the bailor to compensate the bailee for breach of warranty.

5. Duty to claim back the goods

The bailor is bound to accept the goods upon being returned by the bailee in accordance with the terms of bailment. If he refuses or fails to accept back the goods, if offered at a proper time and at a proper place, without any reasonable ground, he shall be responsible for any loss or damage to the goods and not the bailee.

Moreover, the bailee, in such a case, can also claim from the bailor all necessary and incidental expenses that he might have incurred to keep and protect the goods.

Rights of the Bailor

A bailor has the following rights.

1. Right to enforce bailee’s performance

Since the bailor delivers goods to the bailee for some specific purpose, the former, especially in case of non-gratuitous bailment, has an elemental right to achieve that purpose or obtain the benefit (i.e., performance) through the latter.

For example, if X delivers a suit length to Y, his tailor, to stitch a suit for him, X (bailor) will see that the tailor does the needful in the desired manner.

3. Right to claim damages

In all cases of bailment, the bailor has the right to claim for damages against the loss, if any, caused to the goods bailed due to the bailee’s negligence or misconduct.

4. Right to claim compensation against unauthorized use of goods

A good example for this is this situation, A lets B use his car but with a condition that only B shall drive. B allows C, a member of his family, to drive the car. C rides with care, but the car meets with some accident. Now B is liable to compensate for the damages caused.

5. Right to demand return of goods along with accretion to, if any

The bailor enjoys the exclusive right to have the goods bailed delivered back to him in safe and sound condition after the time of bailment has expired or the purpose behind the bailment has been achieved. Moreover, in the absence of any contrary term in the contract, the bailor is also entitled to any accretion to the goods bailed if it occurred while the goods were in the study of bailee.

For example, A leaves his brooding hen in the custody of B to be taken care of for a week. The hen has hatched the chicks. A is entitled not only to the hen but also to the chicks.

In addition to the above mentioned right, A bailor has Right to terminate the contract under certain conditions too.

2 Comments

Leave a Reply

Recent Posts




Recent Comments


Related pages


nbfc rbiegm meetingwhat is sundry assetsadvantages and disadvantages of performance appraisalfeatures of capitalism socialism and mixed economyindian venture capitalistadvantages and disadvantages of centralisation and decentralisationdisadvantages of online banking to customerscentralisation advantagesaudit evidence definitiondisadvantages of primary market researchwhat does mechanization meanpreferential allotment of sharesmisfeasance meaningpurposive convenience samplingpromissory note payable to bearerpayables turnover ratiowhat is judgmental samplingsalesmanship pdfautocratic leadership businessstaff morale questionnaire sampleuncalled share capitalcapital market reforms in indiasebi actadvantages of an autocratic leadership stylevalid contract examplesnon budgetary control techniquesstock turnover days definitionwhat is the meaning of moadisadvantages of decentralizationprecis meansequity shareholders and preference shareholdersadvantages of sunsilk shampooinsurable interest in insurancedefine ratify contractvoid contract and voidable contractfunction of rbiadvantages of probability sampling methodstypes of nonprobability samplingadvantages of small scale farmingadvantages of vertical organizational structuredisadvantages of using e commercewhat is diseconomies of scale in economicscauses of labour turnovermeaning of managerial accountingoverhead absorptiondumping definition in economicswhat is marketing skimmingsubcultures of indiadefine contracteebreak even analysis advantages and disadvantagesdefine veil of incorporationlifting the corporate veiloverhead apportionmentinflation definition macroeconomicsadvantages and disadvantages of being an accountantmercantile legalwhat are disadvantages of capitalismadvantages and disadvantages of variance analysisdisadvantages of abc costingrandom samplingsoperating lease finance lease differencespot contract vs forward contracturbanized meaningwhat is the meaning of debenturecentralization of authorityfoundry plant layoutcapex needs analysisallotments meaningpreference shareholders rightsconcept of decentralizationsole trader featuresdisadvantages of target marketingbudgeting wikipediaeffective delegation of authorityzero based budgeting advantagescontinuous auditing techniques