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Duties of Bailee

Bailee | 5 – Major Duties of Bailee | Business Law

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Bailee

➦ A bailee is a person to whom the goods are delivered for specific purpose or for specific period of time.

➦ During the period he has actual possession over the goods bailed. The term bailee refers to an individual or entity that holds temporary possession of someone else’s property, typically under a contract.

➦ Typically, bailees are entrusted with the care, custody, and control of the property for a specific period or purpose, and are required to return it in the same condition to the rightful owner.

Some of the duties of the bailee are as follows:

Duties of a Bailee

Duties of a Bailee

i. To take reasonable care of the goods bailed[sec. 28(2)] :

To take reasonable care of the goods bailed[sec. 28(2)]

➦ The primary duty of the bailee is to take care of goods (property) given to bail it on the belief.

➦ If in spite of reasonable care, the goods are lost, destroyed or deteriorated, without any negligence on his part, he is not liable in respect of any damage of the goods.

➦ In fulfilling this responsibility, the bailee must ensure that the goods are properly stored, maintained, and protected from damage or loss.

➦ This includes taking necessary precautions to prevent theft, deterioration, or unauthorized use of the bailed goods.

➦ By adhering to the standard of reasonable care, the bailee upholds their duty to safeguard the interests of the bailor and maintain the integrity of the bailed property throughout the duration of the bailment agreement.

ii. Duty not to make unauthorized use of goods entrusted to him. [Sec. 28(3)]:

Duty not to make unauthorized use of goods entrusted to him. [Sec. 28(3)

➦ It is the his/her duty to use the goods strictly with the terms of the bailment.

➦ If he makes an unauthorized use of the goods, he is liable to make compensation to the bailor for any damages arising to the goods from or during such use of them.

➦ By adhering to this obligation, the bailee ensures that the bailed goods are not subjected to misuse, exploitation, or unauthorized actions that may compromise their integrity or value.

➦ This duty underscores the importance of respecting the bailor’s rights and maintaining the trust and confidence placed in the bailee’s custody of the goods.

iii. Duty not to mix goods bailed with his own goods. [Sec. 28(4)]:

Duty not to mix goods bailed with his own goods. [Sec. 28(4)]

➦ It is also duty of the bailee that he should not mix his own goods with those of the bailor, without bailor’s consent. Otherwise he is liable for compensation.

➦ This requirement ensures the preservation of the bailor’s property distinct from that of the bailee, maintaining clarity regarding ownership and accountability.

➦ By refraining from mixing the bailed goods with their own, the bailee avoids confusion and facilitates the return of the specific property to the rightful owner upon the termination of the bailment. 

iv. Duty to return the goods. [Sec. 29(1) & (2)]:

Duty to return the goods. [Sec. 29(1) & (2)]

➦ Either after the completion of purpose or after the expiry of time, the bailee must return the goods bailed to the bailor or dispose off them according to the direction of the bailor.

➦ After the completion of the purpose or after the expiry of time too, if he does not return and keeps in his own possession, he must compensate the bailor for any loss, destruction or deterioration of the goods so bailed.

➦ The bailee must be careful not to keep the goods beyond the agreed-upon time or use them for any purpose not specified in the bailment agreement.

➦ By honoring this duty, the bailee shows respect for the owner’s property and fulfills their responsibility as a trustworthy custodian.

v. To return accretion to the goods bailed [sec. 29(4)]:

To return accretion to the goods bailed [sec. 29(4)]

➦ In the absence of the contract to the contrary, the bailee must return accretion either to the goods bailed, if any, to the bailer.

➦ Thus, it can be said that any accretion to the bailed good is transferred to the bailor. Accretions refer to any increase or enhancement that occurs to the bailed goods during the bailment period.

➦ This provision ensures that the bailor receives back not only the original goods but also any improvements or additions that may have resulted from the bailee’s custody or use of the property. 

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