In the contract of bailment, the person delivering the goods is called the ‘bailor’. The rights, duties and liabilities of a bailor is as follows,
Rights of the Bailor:
(i) Right to terminate the bailment:
According to section 153 a contract of bailment is voidable at the option of the bailor, if the bailee does any act with regard to the goods bailed, inconsistent with the conditions of the bailment.
For instance, A lets to B, for hire, a horse for his own riding. B drives the horse in his carriage. This is, at the option of A, a termination of the bailment. Termination of bailment may take place in the following circumstances .
(ii) Premature Termination:
According to section 159 when the goods are lent gratuitously, the bailor can demand back the goods at any time even before the expiry of the time fixed or the achievement of the object.
For instance, A, while going out of station delivered his ornaments to B for safe custody for one month. But A returned to station after one week. He may demand the return of his ornaments even though the time of one month has not expired. However, due to the premature return of the goods, if the bailee suffers any loss, which is more than the benefit actually obtained by him from the use of the goods bailed, the bailor has to compensate the bailee.
(iii) Suit by bailor & bailee against wrong doers:
According to section 180 if a third person wrongfully deprives the bailee of the use or possession of the goods bailed, or does them any injury, the bailee is entitled to use such remedies as the owner might have used in the like case if no bailment had been made; and either the bailor or the bailee may bring a suit against a third person for such deprivation or injury.
iv) Apportionment of relief or compensation obtained by such suits:
According to ection181whatever is obtained by way of relief or Compensation in any such suit shall, as between the bailor and the bailee, be dealt with according to them respective interests.
(v) Right to sue the bailee:
The bailor has a right to sue the bailee for enforcing all the liabilities and duties of him. It includes:
a. Right to claim compensation for loss caused to the goods by the negligence of the bailee.
b. Right to claim compensation for unauthorized mixing of goods .
c. Right to claim damages for unauthorized use of the goods .
d. Right to demand back goods.
e. Right to any accretion to the goods bailed.
Duties and liabilities of the Bailor :
(i) Bailor’s duty to disclose faults in goods bailed:
According to Section 150 the bailor is bound to disclose to the bailee faults in the goods bailed, of which the bailor is aware, and which materially interfere with the use of them, or expose the bailee to extraordinary risks; and if he does not make such disclosure, he is responsible for damage arising to the bailee directly from such faults. If the goods are bailed for hire, the bailor is responsible for such damage, whether he was or was not aware of the existence of such faults in the goods bailed.
For instance, A lends a horse, which he knows to be vicious, to B. He does not disclose the fact that the horse is vicious. The horse runs away. B is thrown and injured. A is responsible to B for damage sustained. The condition for the liability of the bailor are:
• The bailor should have the knowledge of the defect and the bailee should not be aware
• The defect in the goods must be such as exposes the bailee to extraordinary risks or materially interferes with the use of goods.
In, Hyman & Wife v. Nye & Sons (1881), A hired from B a carriage along with a pair of horses and a driver for a specific journey. During the journey a bolt in the under-part of the carriage broke away. As a result of this, the carriage became upset and A was injured. It was held that B was liable to pay damages to A for the injury sustained by him. The court observed that it was the bailor’s duty to supply a carriage fit for the purpose for which it was hired. Sometimes, the goods bailed are of dangerous nature. In such cases it is the duty of the bailor to disclose the nature of goods.
(ii) Duty to pay necessary expenses:
According to section where, by the conditions of the bailment, the goods are to be kept or to be carried, or to have work done upon them by the bailee for the bailor, and the bailee is to receive no remuneration (gratuitous bailment), the bailor shall repay to the bailee the necessary expenses incurred by him and any extraordinary expenses incurred by him for the purpose of the bailment. However, in case of non-gratuitous bailment the bailor is liable to pay the extraordinary expenses.
For instance, A hired a taxi from B for the purpose of going to Gurgaon from Noida, during the journey, a major defect occurred in the engine. A had to pay ` 5000 as repair charges. These are the extraordinary expenses and it is the bailor’s duty to bear such expenses. However, the usual and ordinary expenses for petrol, toll tax etc are to be borne by the bailee itself.
(iii) Duty to indemnify the Bailee for premature termination:
According to section 159 the bailor must compensate the bailee for the loss or damage suffered by the bailee that is in excess of the benefit received, where he had lent the goods gratuitously and decides to terminate the bailment before the expiry of the period of bailment.
(iv) Bailor’s responsibility to bailee:
According to Section 164 the bailor is responsible to the bailee for the following:
• Indemnify for any loss which the bailee may sustain by reason that the bailor was not entitled to make the bailment, or to receive back the goods or to give directions, respecting them (defective title in goods).
• It is the duty of the bailor to receive back the goods when the bailee returns them after the time of bailment has expired or the purpose of bailment has been accomplished. If the bailor refuses to take delivery of goods when it is offered at the proper time the bailee can claim compensation for all necessary expenses incurred for the safe custody.
For instance, X delivered his car to S for five days for safe keeping. However, X did not take back the car for one month. In this case, S can claim the necessary expenses incurred by him for the custody of the car.
*This Article Collect from the VOCULSHELPDESK
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