Business Law

Duties Of Bailor Under Provisions Of Indian Contract Act

Duties Of Bailor – Hello friends, By this article you can easily understand the Duties Of Bailor. For reading the rights of bailor, there is a link in the article. Please click on that for reading rights of bailor.

Duties Of Bailor

(1) To disclose faults in the goods bailed – According to Section 150, it is the duty of the bailor to point out all the defects in the goods that he is delivering which are known to the bailor, or which can cause damage to the bailee if he is unaware of such defects. If the bailor does not make such disclosure, he is responsible for any damage caused to the bailee by such faults. If the goods have been given on rent, the person giving the goods on rent is responsible for all the faults even if he is not aware of them. That is to say that, in the case of bailment for rent, the responsibility of the bailor is much greater than ín other contracts of bailment.

  • Example 1. Ram lends his horse to Shyam. Ram knows that the horse is vicious, but he does not disclose it to Shyam. The horse runs very fast, and Shyam is thrown off and injured. Ram will be held responsible for the damage sustained by Shyam.
  • Example 2. Ramesh hires a car from Mahesh. The brakes of the car are not working properly, but Mahesh does not know about it because he has not driven the car lately. Ramesh meets with an accident and suffers injuries. Mahesh will be liable for damages even if he was unaware of the defect in the car.

(2) To repay the necessary expenses – According to Section 158, when the terms of the contract require the bailee to keep some goods in bailment and transport such goods, or when he has to do any repair of goods for which there is a charge, the bailor is bound by law to pay all the necessary expenses incurred by the bailee on behalf of the bailor.

  • For example, Ravi leaves his horse with Mukesh for some time  because he is leaving town temporarily, and Mukesh is not to be paid for taking care of the horse But the horse needs to be fed and taken care of. In this case, Ravi is liable for all expenses incurred by expenses Mukesh for feeding and otherwise looking after the horse. It should also be noted that, even if the are extraordinary, the bailor is liable to pay such expenses. In the above case, if the horse were to fall sick or be injured, Ravi would be liable for all expenses incurred by Mukesh on its treatment.

(3) To indemnify the bailee – If the bailor gives custody of goods that do not belong to him to the bailee, or there is a flaw in the ownership of goods by the bailor, and the bailee has to suffer some damage because of it, the bailor is liable for such damage.

(4) Liability on premature breach of bailment – If the bailor demands and takes possession of the goods before the expiry of the bailment, and the bailee has to suffer a loss greater than the profit he has made during the period of bailment of such goods, the bailor is responsible to pay to the bailee for the difference in the amounts of the expected gain and the loss suffered by the bailee.

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