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Manpreet Kaur, Lovely Professional University Unit 10: Contract of Bailment

Unit 10: Contract of Bailment Notes

CONTENTS
Objectives
Introduction

10.1 Definition of Bailment and its Kinds

10.1.1 Definition of Bailment (S.148)
10.1.2 Kinds of Bailments
10.2 Duties and Rights of Bailer and Bailee
10.2.1 Duties of a Bailer

10.2.2 Duties of a Finder of Goods
10.2.3 Rights of a Bailee
10.2.4 Rights of Bailer
10.3 Termination of Bailment

10.4 Finder of Lost Goods
10.4.1 Right to retain the Goods (S.168)
10.4.2 Right to Sell (S.169)
10.5 Summary
10.6 Keywords
10.7 Self Assessment

10.8 Review Questions
10.9 Further Readings

Objectives

After studying this unit, you will be able to:
Discuss the bailment and kinds of bailment
State the duties of bailee
Describe pledge as a special kind of bailment

Introduction

In last unit, you studied about contract of guarantee and contract of indemnity. At one time
or another, we enter into a legal relationship, called bailment and pledge. Bailments are quite
common in business also. Traders often store their surplus goods in warehouses; and utilize the
services of cold storages for keeping their goods to be taken back as and when required; and
factory owners often send machinery back to vendors for repairs. Also, goods are pledged for
securing loans. The sections quoted in this unit refer to the Indian Contract Act, 1872.

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