Bailment: Its Essentials and Kinds

Meaning of Bailment - The term 'Bailment' is derived from the French word "Bailler" which means to deliver. Bailment is a technical term of the common law signifying a delivery of goods which bailment implies a relationship in which the personal property of one person temporarily goes into the possession of another. The ownership of the' goods 'is in one person and the possession is in another. For Example- Delivery of a cycle, watch or any other article for repair or leaving a cycle or scooter etc. at a stand, depositing luggage or books in a cloak room, delivering  gold to a goldsmith for making ornaments, garments to dry cleaner etc. create the relationship of bailment.

Definition of Bailment-  According to S. 148 "A bailment is the delivery of goods by one person to another for some purpose upon a contract that they (i.e. goods) shall when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them.

Who is Bailor and Bailee - S. 148 further says that the Person delivering the goods is called the "bailor". The person to whom they are delivered is called the "bailee". If a person already in possession of the goods of another contracts to hold them as a bailee, he thereby becomes the bailee, and the owner becomes the bailor of such goods, although they may not have been delivered. by way of bailment.

Essentials of Bailment -    .

1.   There must be temporary delivery of the possession of goods -, The main characteristic of a bailment is that the delivery contemplated is for a temporary purpose. There can be no bailment if the whole property is transferred and the thing delivered is not to be specifically returned or accounted for nor where the delivery of property is for an equivalent in money or other commodity, if so, it is a sale or exchange not bailment.  

Delivery is of two kinds - (i) Actual and (ii) Constructive. Actual delivery may be made by handing over something to the bailee. Constructive or Symbolical delivery' may be made by doing something which has the effect of putting the goods in the possession of the intended bailee or of any person authorised to hold them on his behalf (S. 149) Thus, the delivery of a document of title i.e. Railway Receipt may amount to the delivery of goods contained therein.

It may be noted that bailment involves change of possession. Mere custody without possession does not create the relation of a bailor and bailee, e.g., a servant in possession of his master's goods, or a guest using his host's goods, cannot be called a bailee, Similarly. in Kalya Perimal Vs.Visalakshmi- A jeweller was engaged by a lady to melt old jewellery and make new ornaments. This work was done at the jeweller’s house under the lady's supervision. Every evening. the lady would lock the half made jewellery into a box, leave the box in the jeweller's house, but take its key with her. One night, the jewels were stolen. On a suit field by the lady, the question arose whether the jeweller were in the possession of the jeweller or of the lady, and it was held that the circumstances, there was a re-delivery of the jewels to the lady every evening. and that they could not be said to be in the possession of the jeweller when they were  stolen.

But, if a person is already in possession of the goods of another and contracts to hold them as a bailee, he thereby becomes the bailee, and the owner becomes the bailor of such goods, although they have not been delivered to him by way of bailment. Explanation to S.148.

2.    The delivery of goods should be upon a contract - In bailment, the delivery of goods is upon a contract that when the purpose is accomplished, they small be shall be returned. But it may be noted that though bailment is usually based on a contract. there are some exceptions, e.g. the case of _a finder of goods (S. 168). There is no contract 'between the finder of a lost article and its owner; nonetheless, the finder in law as a bailee of the lost article.

3.   There must be return of specific goods - The person to whom the goods have been delivered is to return the specific goods either to the bailor or to somebody according to the direction of the bailor. If the thing delivered is not to be specifically returned or accounted for, there is no bailment. Even if the goods bailed are in the meantime altered in form, e.g., corn convered Into Dour, cloth made into coat, etc., still the contract is one of bailment. It i6 sufficient if the right to have redelivery of the same specific matter rests with the owner.

It must, however, be noted that the bailor need not be the owner of the goods which he delivers. because his, business is to transfer the possession and not the ownership.

Kinds of Bailment- According to Lord Holt there are six-kinds of bailment, viz.-

1.    Deposit:-A simple bailment of goods by one man to another to keep for the bailor's Use.     

2.    Comodatum - The goods lent to a friend gratis to be used by him.

3.    Hire - When goods are delivered to the bailee for hire.

4.  Pawn - When goods are delivered to' another (pledge) by way of security for money borrowed.          

5.   When goods are delivered to be carried or something to be done on them for reward payable to the bailee.     

Courtesy:- Legal Point Foundation