Classification of Bailment

Introduction

Bailment can be classified in different ways depending on whether any payment (consideration) is involved and who benefits from the arrangement. This classification is important for understanding rights, duties, and liability of parties in exams and practical situations.

Meaning / Definition

Classification of bailment refers to dividing bailment into types based on:

• presence or absence of consideration (payment), and
• benefit received by the parties (bailor and bailee)

Modes or Types

On the Basis of Reward (Consideration)

Gratuitous Bailment

A gratuitous bailment is a bailment made without any consideration (no payment or benefit in money or kind).

It may be:

• for the benefit of the bailor, or
• for the benefit of the bailee

Examples:

• Lending a cycle to a friend without charging money
• Borrowing a book from a friend without paying

No hire charges or custody charges are involved.

Non-Gratuitous Bailment

A non-gratuitous bailment is a bailment made for consideration (payment or benefit).

It is for the mutual benefit of both parties.

Examples:

• Hiring a cycle from a shop
• Giving clothes to a tailor for stitching

Here:

• the bailee may pay hire charges, or
• the bailor may pay custody/service charges

On the Basis of Benefit

Bailment for Exclusive Benefit of Bailor

In this type, only the bailor gets benefit, and the bailee does not receive any reward.

Example: Leaving goods with a neighbour for safe custody while travelling

Bailment for Exclusive Benefit of Bailee

In this type, only the bailee gets benefit, and the bailor does not receive any reward.

Example: Lending books to a friend for study without charge

Bailment for Mutual Benefit of Bailor and Bailee

In this type, both parties get benefit from the bailment.

Example: Giving cloth to a tailor

• Bailor gets stitched clothes
• Bailee (tailor) gets payment

Practical Example

A gives his car to a mechanic for repair.

• A gets a repaired car
• Mechanic gets repair charges

This is a non-gratuitous bailment and also a bailment for mutual benefit.

Summary

• Bailment can be classified based on reward and benefit
• Gratuitous bailment involves no consideration
• Non-gratuitous bailment involves consideration
• Bailment may benefit only bailor, only bailee, or both
• Mutual benefit bailment is most common in commercial transactions