Bailment — Duties of Bailor & Bailee — KSLU Contract 2 Notes

Bailment — Duties of Bailor & Bailee

A bailment (S.148) is the delivery of goods by one person (the bailor) to another (the bailee) for a purpose, on a contract that they be returned or disposed of as directed once the purpose is done. Its essentials are delivery of possession (actual or constructive), an underlying contract, and a purpose with an obligation to return the same goods (in specie or altered form) — this last feature distinguishes bailment from a sale or a loan of money.

flowchart LR
    A["BAILMENT (S.148)"]:::root
    A --> B["Gratuitous<br/>(no reward)"]:::leaf
    A --> C["Non-gratuitous<br/>(for reward)"]:::leaf
    A --> D["For bailor's benefit<br/>(safe custody)"]:::leaf
    A --> E["For bailee's benefit<br/>(loan of a book)"]:::leaf
    A --> F["Mutual benefit<br/>(repair, hire)"]:::leaf

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    classDef leaf fill:#E6F3FF,stroke:#1E3A8A,color:#000;
    linkStyle default stroke:#888,stroke-width:1px;

Duties of the BAILOR	Duties of the BAILEE
Disclose known faults in the goods (S.150)	Take reasonable care as a prudent owner (S.151–152)
Bear extraordinary expenses (S.158)	Not make unauthorised use of goods (S.153–154)
Indemnify the bailee for defects in title (S.164)	Not mix goods with his own (S.155–157)
Receive the goods back when purpose ends	Return goods on time (S.160–161) & return accretions (S.163)

The standard of care (S.151) is the same for every bailee — that of an ordinarily prudent person over his own goods of the same description — and a special contract may raise (but the Act sets a floor on) it. For an unauthorised use or a mix of goods, the bailee is liable for any resulting loss (S.154, S.156–157).