Duties of Bailor

Introduction

The duties of a bailor are important for understanding the rights and responsibilities in a contract of bailment under the Indian Contract Act, 1872. These duties ensure fairness and protect the bailee from loss or risk. Knowing these duties is essential for exams and practical application.

Meaning / Definition

A bailor is the person who delivers goods to another (bailee) for a specific purpose. The bailor has certain legal duties to ensure that the bailee can safely use and return the goods without suffering loss.

Modes or Types

Duty to disclose defects (Section 150)

The bailor must inform the bailee about defects in the goods.

• Gratuitous bailment (no payment involved):
  Bailor is liable only for defects he knows about and fails to disclose.

• Non-gratuitous bailment (for reward):
  Bailor is liable for all defects, whether he knows them or not.

The defect must:

• affect the use of goods, or
• expose the bailee to unusual risk.

Duty to bear expenses (Section 158)

• In gratuitous bailment, the bailor must repay all necessary expenses incurred by the bailee.
• In non-gratuitous bailment, the bailor pays only extraordinary (unusual) expenses, not ordinary expenses.

Duty to indemnify the bailee (Sections 159 & 164)

Indemnity means compensation for loss.

The bailor must compensate the bailee:

• if the bailor ends a gratuitous bailment early and causes loss
• if the bailor has no proper ownership (defective title)
• if the bailee suffers loss due to the bailor’s directions

Duty to bear risks

The bailor must bear the risk of loss or damage to goods if:

• the bailee has taken reasonable care

Duty to receive back the goods

The bailor must accept the goods when the bailee returns them as per the contract.

If the bailor refuses:

• he must compensate the bailee for expenses of keeping the goods

Duty to put bailee into possession (Section 149)

The bailor must ensure proper delivery of goods so that the bailee gets control (possession) over them.

Important Case Law

• Hyman v. Nye & Sons
  Bailor was held liable for injury caused due to an unfit carriage, even without knowledge of defect.

• Kaliaperumal v. Visalakshmi (1938)
  No bailment existed because there was no proper delivery of possession.

Practical Example

A lends his motorcycle to B for a ride.

• If A knows the brakes are faulty and does not inform B, A is liable if B is injured.
• If the motorcycle is given on rent, A is liable even if he did not know about the defect.

Summary

• Bailor must disclose defects in goods
• Liability depends on whether bailment is free or for payment
• Bailor must repay expenses based on type of bailment
• Bailor must compensate (indemnify) bailee for losses
• Bailor bears risk if bailee took reasonable care
• Bailor must accept goods back when returned
• Proper delivery (transfer of control) is essential