1. Adv. Uzair A.K. Ghouri
Bailment
Definition
Characteristics
Types
Duties of Bailee
Duties of Bailor
2. Adv. Uzair A.K. Ghouri
Definition of Bailment
In accordance with section 148 it is the
delivery of goods by one person to another
for some purpose, upon a contract that they
shall, when the purpose is so accomplished,
be returned or otherwise disposed of
according to the directions of the person
delivering them.
Bailor delivers the good and bailee receives
the good
Transaction is called bailment
3. Adv. Uzair A.K. Ghouri
Characteristics of Bailment
Goods must be moveable property
Delivery can be “Constructive” or
“Actual”
Goods deliver for some purpose
Goods deliver with the Condition either
to return back or disposed of
4. Adv. Uzair A.K. Ghouri
Kinds of Bailment
Bailment for exclusive benefit of the
bailor (surety; security)
Bailment for exclusive benefit of the
bailee
Bailment for mutual benefit
5. Adv. Uzair A.K. Ghouri
Difference between Bailment
and Sales
In sales ownership is transferred.
In Bailment ownership is not
transferred rather possession for a
specific period of time.
6. Adv. Uzair A.K. Ghouri
Duties of Bailee
Duty to take reasonable care of goods deliver to
person (that is care that a man of ordinary prudence
would take of his own goods)
Bailee is not the insurer of the goods had the
mistake is not cause because of negligence on his
part
Duty not to make unauthorized use of the goods
else he is liable to make compensation
Duty not to mix goods bailed with his own goods
Duty to return goods
Duty to deliver any accretion to the goods
7. Adv. Uzair A.K. Ghouri
Duties of Bailor
Must disclose fault in goods of bailed
Must pay necessary expenses
Must receive back the goods
Shall indemnify the Bail
8. Adv. Uzair A.K. Ghouri
Termination of Bailment
If the Bailment is for specified period at
the end of that period
If the Bailment for specific purpose at
accomplishment of that purpose
termination will occur
Any act in violation of the contract