26 February, 2016

Rights of Bailor

Bailment is a kind of activity in which the property of one person temporarily goes into the possession of another. The ownership of the property remains with the giver, while only the possession goes to another. Several situations in day to day life such as giving a vehicle for repair, or parking a scooter in a parking lot, giving a cloth to a tailor for stitching, are examples of bailment. Section 148 of Indian Contract Act 1872, defines bailment as follows:- 
Section 148 -  A bailment is the 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. The person delivering the goods is called the bailor and the person to whom they are delivered is called the bailee.
Explanation -  If a person is already in possession of the goods of another contracts to hold them as a baliee, he thereby becomes the bailee and the bailor becomes the bailor of such goods although they may not have been delivered by way of bailment.
Following rights are available to Bailor:-
1. Right to get back the thing bailed:-The bailor has right to get back the thing bailed when the purpose is accomplished or the period for which the thing was bailed has elapsed. (Sections 160, 148, the Indian Contract Act).
2. Right to get rent.-He has right to get rent of the thing bailed where bailment is for price.
3. Bailor entitled to increase or profit from goods bailed:-If there is no contract to the contrary, the bailee is bound to deliver to the bailor, or according to his directions, any increase or profit which may have accrued from the goods bailed. (Section 163 of the Indian Contract Act)
4. Right to terminate the Contract of bailment in certain circumstances:- The bailor has right to terminate the contract of bailment when the bailee does any act with regard to the goods bailed, inconsistent with the conditions of the bailment. (Section 153, Indian Contract Act) .
5. Right to sue against the wrong-doer:- (Section 180, Indian Contract Act). The bailor is entitled to bring a suit against the wrongdoer in respect of the thing bailed.
Courtesy:- Legal Point Foundation

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