Management Notes

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Bailee – Duties of Bailee (Bailment) | Business Law


Duties of Bailee
Bailment | Business Law
Management Notes

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.Some of the duties of the bailee are as follows:

Duties of a Bailee

i.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.

ii.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.

iii.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.

iv.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.

v.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.

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