Business Law

Rights Of Bailor Under Provisions Of Indian Contract Act

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

Rights Of Bailor

(1) Indemnity for losses due to negligence by bailee – According to Section 152, it is the duty of the bailee to take proper care of the goods kept with him by the bailor. If the bailee does not take proper care of the goods as an owner of such goods would do under normal circumstances, or is careless or negligent in the proper maintenance of goods, the bailor has the right to be compensated for the damage caused by the bailee’s negligence. For example, if the goods are stolen or damaged during bailment, the liability rests with the bailee.

(2) Termination of bailment on inconsistent use by the bailee – According to Section 153 the bailor can terminate the bailment if the bailee does, with regard to the goods bailed, any act which is inconsistent with the terms of the bailment. For example, if Satish lets out a horse to Suresh for his personal riding, and Suresh uses the horse to drive a carriage, the contract, in such a situation, can be terminated by Satish and he can get back the horse.

(3) Compensation when the bailee mixes the goods bailed with his own goods – According to Section 155, when the bailee mixes the good bailed with his own goods, the right of the bailor in such mixture of goods is to the extent of the goods kept under bailment.

According to Section 156, if the bailee, without the consent of the bailor, mixes the goods bailed with his own goods, and the goods bailed can be identified and separated, both parties will be entitled to their respective goods, but the bailor will have the right to claim damages for the expense of such separation of goods and the loss suffered by him as a result of such mixing.

According to Section 157, if the bailee, without the consent of the bailer, mixes the bailor’s goods with his own, and it is not possible to identify and separate such goods, then the bailor is entitled to receive compensation of the total goods kept by him in bailment

(4) Right of return of goods in case of gratuitous bailment – According to Section 159 when the goods are lent gratuitously, the bailor can demand their return whenever he pleases, even though the goods were lent for a specified time or purpose. But if the bailee suffers a loss that exceeds the benefit derived by him from the use of such goods because of premature return of goods, the bailor shall have to indemnify the bailee.

(5) Get the goods back – According to Section 160, on the expiry of the agreed duration of bailment or when the objective of bailment has been fulfilled, the bailor is entitled to get back the goods under bailment.

(6) Right to increase or profit from goods bailed – According to Section 163, if there is an increase in the goods under bailment or there is a profit because of any contract other than that of is entitled to such increase or profit.

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