1. WELCOME

2.  Name : s.sivasangar
 Supject : business law
 College : ayya nadar janaki ammal college,sivakasi.
 Class : ii.b.com

3. BAILMENT
•Derived from a French word ‘bailer’
word which means to deliver
•In law of contracts it means
delivery of goods.
• Under contract law, only
possession is passed on and not
the ownership.

4. • Bailment is delivery of goods by one person to
another for some purpose upon a contract that
they shall, when the purpose is accomplished, be
returned or otherwise disposed of according to the
directions of the person delivering them.
• Bailor – a person or party that entrusts goods to
bailee .
• Bailee – a person or party who takes goods from
bailor .
•Bailment – Transaction
SEC 148 OF INDIAN CONTRACT ACT 1872

5. ESSENTIALS OF BAILMENT
1.Contract :
The first condition is that there must be a contract
between the two parties for the delivery of goods.
Such contract may be expressed or implied, written or
oral.
2.Delivery of Possession :
Possession of goods from one person to another and mere
custody of goods does not amount to change in possession
3. Delivery should be made upon a contract :
There is no bailment where the delivery of goods is without
contract Cases: State of Gujarat vs. Memon MohammadAIR
1967 SC 1885 Lasalgaon Merchants Coopertaion Bank ltd. Vs.
Prabhudas Hathibhai

6. 4. Delivery for specific purpose.
5. Return of goods.
KINDS OF BAILMENT :
On the basis of benefit :
1. Exclusive for the benefit of bailor .
2. Exclusive for the benefit of bailee.
On the basis of Reward :
1. Gratuitous Bailment:
Goods are delivered by the bailor to the bailee and neither
bailor nor bailee is entitled for remuneration.
example: Lending a book to a fund

7. 2. Non gratuitous Bailment :
Either bailor or bailee is entitled o a remuneration.
Example: A car let out for hire.
RIGHTS OF THE BAILOR:
1. Right to get back the goods .
2. Right to terminate the contract .
3. Expenses of separation .
4. Compensation for goods .
5. Right to share profit .
6. Compensation for delay in time.

8. RIGHTS AND DUTIES OF BAILEE :
1. To recover damages .
2. Recovery of expenses.
3. Recovery of compensation.
4. Right of action against the third party .
5. Right of lien – sec 170 of Indian contract act
DUTIES AND LIABILITIES OF THE BAILEE:
1. To take care of goods – sec 151
2. Expenses of separation – sec 156
3. Unauthorised use of goods – sec 154
4. Inconsistent act – sec 153
5. Compensation - sec 157

9. BAILMENT AGENCY
 1. Bailee does not
represent bailor.
 2. Bailee does not have
power to make contract on
bailor’s behalf.
 3. Bailor not liable for any
acts of bailee
 1. Agent represents
principal
 2. Agent can make
contract on principal’s
behalf
 3. Principal is bound by
agent’s act.
DIFFERENCE BETWEEN BAILMENT
ANDAGENCY

10. THANK YOU