Rights & duties of bailor & bailee [ contract of bailment part 2]

According to the syllabus of B.com 1st year

1. Rights & Duties of Bailor & Bailee Course Co-Ordinator: Ms. Neetu Kushwaha

2. Duties of Bailor: Duty to deliver the goods. [Sec.149] To Disclose Known Faults [Sec. 150] To Bear Extraordinary Expenses of bailment [Sec.158] To Indemnify the bailee for any loss due to defect to title. [Sec. 164] To Bear Loss for Wrongful Refusal to take back the goods. To bear loss due to destruction or deterioration of goods bailed in natural course.

3. Duties of Bailee To Take Care of the goods bailed. [Sec. 151 & Sec. 152] Not to make any unauthorized use of good bailed. [Sec. 154] To return the goods bailed. [Sec. 160] *In Case he fails to return the goods he will be responsible to the bailor for any loss. [Sec. 161] To return any accretion to the goods. Not to mix the goods with his own goods.

4. CONT……. If bailee mix the goods: With the consent of the bailor: In this case bailor & bailee shall have proportionate interest in the mixture . (ii) Without the consent of the bailor: * When the goods can be separated: The bailee is bound to bear the expenses of separation and any loss or damages arising from the mixture. * When the goods can not be separated : The bailee will have to bear the loss. [Sec. 157]

5. CONT….. In case the goods get mixed due to any accident or by mistake of bailee or by the third party, the bailee shall bear the loss & expenses incurred for separation of goods. In case the goods cannot be separated, the bailee will have to bear whole loss.

6. Rights of the Bailor To take back the goods. [Sec. 159] To terminate the bailment. [Sec.153] To claim damages. [Sec. 151] To claim compensation for unauthorized use. [Sec. 154] To claim increase compensation for the loss caused by mixture of goods.[Sec. 157] To claim increase or profit from the goods. [Sec. 163]

7. Rights of the Bailee To claim damages. [sec. 150] To claim necessary expenses. [Sec.158] Right to indemnified. [Sec. 159] To deliver goods to one the joint bailors. [Sec. 165] To return goods. [Sec. 166] To exercise Lien. [Sec. 170 & sec. 171]